Whalesbook
India's Steel Ministry Pushes to Lift Met Coke Import Tariffs
The Ministry of Steel is advocating for the removal of anti-dumping duties on imported metallurgical coke (met coke). These tariffs, first introduced for a six-month period in December 2025, are seen as the main reason for met coke's scarcity and high cost. This situation is negatively affecting the operational capacity and competitiveness of both large steel companies and small to medium-sized enterprises (SMEs), potentially slowing the sector's growth.
Domestic Supply Falls Short, Prices Rise
In a memo to the Ministry of Finance on May 18th, the Steel Ministry expressed that domestic met coke supplies have been inadequate and prices have climbed significantly since the anti-dumping duties were put in place. The domestic market has not provided enough supply at competitive prices, placing a direct burden on steel manufacturers. This shortage is especially challenging for state-run companies and smaller firms that rely on a steady and affordable met coke supply. As a major steel producer, India imports met coke from countries including China, Indonesia, Poland, Japan, and Switzerland, but these imports have dropped sharply since the duties were enacted.
RINL Faces Higher Costs, SMEs Are Vulnerable
State-owned steel producer Rashtriya Ispat Nigam Ltd (RINL) is reportedly facing a 20% increase in input costs due to difficulties in obtaining sufficient met coke domestically at fair prices. This financial strain impacts RINL's ongoing revival efforts, which have received significant government investment to boost its net worth and operations. The Steel Ministry also highlighted the risks for small and medium-sized steelmakers who depend heavily on merchant suppliers. These SMEs often cannot negotiate better terms or invest in their own coke production, making them highly vulnerable to domestic shortages and price hikes.
Protectionism's Unintended Consequences
While anti-dumping duties aim to protect domestic industries, their current application seems to be causing more harm than good. The investigation that led to provisional duties in December 2025 was triggered by low-cost Indonesian coke imports that reportedly forced domestic producers to lose money. However, the Steel Ministry's current stance indicates that domestic production has not scaled up enough to meet demand or stabilize prices. This creates a difficult trade-off: protecting domestic producers inflates costs for downstream steel manufacturers, potentially reducing their competitiveness. Some observers believe these protective measures could lead to higher steel prices overall, disproportionately affecting smaller businesses and possibly deterring investment in manufacturing. It is also notable that India imports about 90% of its coking coal, making the domestic met coke supply a critical but potentially unstable part of the supply chain.
Future of Met Coke Supply
The Steel Ministry's proposal to remove anti-dumping duties signals an acknowledgment that the current policy is hindering the steel sector. In April 2026, the Directorate General of Trade Remedies (DGTR) had recommended reducing these duties, suggesting a potential shift in regulatory thinking. The Finance Ministry's decision on the Steel Ministry's request will be key. If the duties are removed, imports from countries like Indonesia, Poland, and Colombia could increase, potentially stabilizing prices and improving availability for Indian steelmakers. This would support India's goal of diversifying supply chains and ensuring a steady flow of raw materials for its growing steel industry, which aims for 300 million tonnes of crude steel capacity by 2030. RINL's recovery efforts will be closely monitored, with government support focused on improving its operations and financial health.