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Steel Ministry Pushes for Tariff Removal
The Ministry of Steel is advocating for the elimination of anti-dumping duties on metallurgical coke, a strategic shift to support the nation's steel industry. This action stems from a significant domestic supply shortage that is driving up costs and pressuring steel producers.
Rising Input Costs Hit Steelmakers
India's steel sector, a major global producer, is struggling with the impact of provisional anti-dumping duties on met coke imports, introduced in December. Ministry assessments indicate that the domestic market's failure to provide met coke at competitive prices has drastically reduced imports from key global suppliers. State-owned Rashtriya Ispat Nigam Ltd (RINL) has reported a 20% increase in its raw material expenses due to these import issues, affecting its financial recovery and competitiveness, especially as it undergoes a government-supported revival.
Smaller Producers Face Raw Material Shortages
Removing tariffs is also intended to help small and medium-sized steel businesses. These firms, dependent on merchant suppliers for met coke, are finding it harder to obtain crucial materials under the current import restrictions, which have been in place since January of the previous year. Major companies like JSW Steel and ArcelorMittal Nippon Steel India have also expressed concerns about how these import limits affect the nation's overall steel production capacity.
Data from commodities consultancy BigMint shows a significant 21% decrease in India's met coke imports in 2025, reaching 3.81 million metric tons compared to the prior year. Earlier reports in October highlighted that Indian steel mills could only source about half of their met coke needs domestically in the first half of 2025, pointing to a severe supply-demand gap. Current domestic met coke production is around 1.7 million tonnes monthly, well below the industry's 2.5 million tonnes per month requirement. This shortfall is expected to continue, with domestic output projected to reach only 2 million tonnes monthly by March 2027.
Impact on Competitiveness and Future Decisions
Scrapping tariffs could lead to lower costs for Indian steel manufacturers, potentially boosting their global competitiveness. Although domestic producers have called for protection, the ministry's current stance favors ensuring raw material availability and stable pricing for the wider industry. The government's final decision will likely consider the effects on both domestic producers and steel consumers, as well as broader trade factors. The ongoing reliance on imported met coke highlights a strategic challenge for India's self-sufficiency in the steel sector.