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The Indian government is planning to extend import restrictions on low-ash metallurgical (met) coke, a key ingredient in steel production, beyond June 2025. This move is aimed at reducing dependency on imports and encouraging domestic production, but it comes with both benefits and challenges for steelmakers.
With the existing cap of 1.4 million metric tonnes on imports, Indian steel companies may have to rely more on local met coke suppliers. This could strengthen domestic production and create new business opportunities for Indian coke manufacturers. However, there are concerns about quality variations and cost differences between imported and locally produced met coke. Many large steelmakers prefer imports due to better consistency and lower prices, and restrictions might lead to increased production costs.
If domestic suppliers fail to meet demand, the cost of steel could rise, impacting infrastructure, automobile, and construction industries. Additionally, steel manufacturers may explore alternative sourcing options from countries like Russia and Australia, but this may lead to higher logistics costs.
For long-term sustainability, Indian steel players must focus on enhancing domestic coke production capacity, adopting new steelmaking technologies, and negotiating with policymakers to ensure a smooth transition.
At SteelBazaar, we believe that this decision will reshape the Indian steel industry, and its impact will depend on how well businesses adapt to these evolving policies.
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