ArcelorMittal’s joint venture in India has raised concerns with New Delhi about its plans to restrict imports of a crucial raw material used in steelmaking, highlighting potential implications from the Red Sea crisis, according to a letter seen by Reuters.
The proposal aims to cap imports of low ash metallurgical coke, known as met coke, at 2.85 million metric tons annually, citing harm to domestic producers from increased shipments. It also suggests quotas on met coke imports from exporting nations, including European countries.
In a letter to India’s Directorate General of Trade Remedies (DGTR) dated June 3, ArcelorMittal-Nippon Steel India (AM/NS India) emphasized that geopolitical tensions in the Red Sea could disrupt shipping routes, impacting the availability and cost of met coke. The company, a major player in India’s steel industry with an annual capacity of about 9 million metric tons, highlighted its reliance on imported met coke, mainly from Europe, Poland, Switzerland, China, and Indonesia.
AM/NS India urged Indian authorities to reconsider the proposal, warning that restrictions could hinder the steel industry’s growth and capacity expansion plans. It noted that the steel sector anticipates increased demand for met coke as it ramps up production capabilities.
India’s steel ministry has also expressed reservations about limiting met coke imports, citing potential risks to domestic steel output. The proposal is currently under review by the commerce ministry, with no implementation date set yet.
The concerns raised by ArcelorMittal-Nippon underscore the complexities facing India’s efforts to balance domestic industry protection with global supply chain disruptions caused by geopolitical tensions.
