India has formally removed import restrictions on low-ash metallurgical coke, a critical input for blast furnace–based steelmaking, marking a significant policy recalibration aimed at easing raw material supply constraints for the domestic steel industry. The move comes even as the government retains provisional anti-dumping duties, signalling a shift from quantitative controls to price-based trade protection.
Low-ash metallurgical coke, typically defined as coke with ash content below 18%, plays a vital role in steelmaking efficiency, furnace productivity and hot metal quality. India remains structurally dependent on imports for this grade due to limited domestic availability of prime coking coal and constrained coke oven capacities.
What Has Changed in the Import Policy
The Directorate General of Foreign Trade (DGFT) has deleted the policy condition that earlier placed low-ash metallurgical coke under the “restricted” category. With this amendment, imports of low-ash met coke and related products are now freely importable under the applicable HS codes, without the need for quantitative ceilings or import authorisations.
This effectively dismantles the quota-based regime that had been in place through 2025 and into early 2026, under which imports were allowed only within country-wise and quarterly volume limits.
However, the removal of restrictions does not imply unrestricted pricing freedom, as provisional anti-dumping duties continue to apply.
Import Volumes and Supply Context
India’s dependence on imported low-ash met coke has increased steadily alongside rising steel production. Imports surged sharply in recent years, prompting the government to experiment with quota controls in 2025.
Table 1: Key Import Measurements – Low-Ash Metallurgical Coke
| Metric | Period | Volume | Unit | Context |
|---|---|---|---|---|
| Quarterly import cap (under restriction regime) | Q1 & Q2 2025 | 713,583 | tonnes per quarter | Country-wise quotas introduced under DGFT policy |
| Indicative annual import ceiling (policy intent) | 2025 | ~2.85 | million tonnes | Referenced during policy consultations |
| Imports from Indonesia | Full year 2024 | 2.08 | million tonnes | Indonesia emerged as India’s largest supplier |
| Imports from Indonesia | Jan–Aug 2025 | 0.885 | million tonnes | Continued strong inflows despite restrictions |
| Import growth trend | Past four years | +61% | — | Reflects structural supply gap |
The data underlines why steelmakers consistently opposed quantitative caps, arguing that restricted access to low-ash coke raised input costs and threatened blast furnace stability.
Anti-Dumping Duties Remain in Force
While quantitative restrictions have been removed, the Ministry of Finance has imposed provisional anti-dumping duties on low-ash metallurgical coke imports from select countries. These duties are valid for six months, pending final findings.
Table 2: Provisional Anti-Dumping Duty on Low-Ash Met Coke
| Country of Origin | Duty Rate | Unit |
|---|---|---|
| China | 130.66 | USD/tonne |
| Colombia | 119.51 | USD/tonne |
| Russia | 85.12 | USD/tonne |
| Indonesia | 82.75 | USD/tonne |
| Australia | 73.55 | USD/tonne |
| Japan | 60.87 | USD/tonne |
The duty range of USD 60.87-130.66 per tonne establishes a price floor for imports, ensuring protection for domestic coke producers even as volume controls are lifted.
How Policy Has Evolved: A Timeline
India’s approach to low-ash metallurgical coke has shifted rapidly over the past 15 months, reflecting competing priorities between steelmakers and domestic coke producers.
Table 3: Policy Timeline – Low-Ash Metallurgical Coke
| Date | Policy Action | Impact |
|---|---|---|
| Dec 2024 | Announcement of import restrictions | Low-ash met coke moved to “restricted” category |
| Jan 2025 | Restrictions implemented | Country-wise and quarterly import quotas enforced |
| Jun 2025 | Restrictions extended | Continued volume controls amid industry pushback |
| Dec 2025 | Anti-dumping duty imposed | Shift towards price-based protection |
| Jan 2026 | Import restrictions removed | Low-ash met coke made freely importable |
The rollback of restrictions suggests the government has acknowledged the operational realities of steel production, where uninterrupted coke supply is critical.
Impact on the Steel Industry
Metallurgical coke accounts for 35–40% of the variable cost in blast furnace steelmaking. Restricted supply during 2025 had led to:
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Higher landed coke costs
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Margin pressure for steelmakers
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Increased dependence on higher-ash substitutes, affecting furnace efficiency
With restrictions lifted, steel producers are expected to:
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Optimise sourcing from multiple origins
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Stabilise blast furnace operations
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Reduce volatility in raw material procurement
However, anti-dumping duties mean that import prices will remain elevated, limiting any sharp decline in coke costs.
Market Outlook
The policy shift points to a hybrid trade strategy:
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No volume caps, ensuring availability
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Price protection, safeguarding domestic producers
In the near term, import volumes are likely to recover modestly, particularly from Southeast Asia and Latin America. Over the medium term, the steel industry will continue to monitor whether provisional duties are converted into long-term definitive measures, which could further influence sourcing strategies.
For India’s steel sector targeting 300 million tonnes of capacity by 2030, stable access to low-ash metallurgical coke remains a strategic necessity rather than a tactical choice.