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ArcelorMittal Nippon Steel India Withdraws Coke Import Request After Government Approval

Written by: Suraj Uday SinghUpdated on: Apr 15, 2025, 2:52 PM IST
ArcelorMittal Nippon Steel India withdraws its coke import plea after government approval to import from Poland. Learn how met coke policy changes impact steelmakers in India.
ArcelorMittal Nippon Steel India Withdraws Coke Import Request After Government Approval
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In a key development for India’s steel industry, ArcelorMittal Nippon Steel India (AM/NS India) has withdrawn its plea in the Delhi High Court after receiving the central government’s approval to import metallurgical coke, commonly known as met coke. This marks the end of a legal tussle that had sparked debate around trade restrictions and industry needs.

Initial Rejection of Coke Import Orders

The matter began when ArcelorMittal Nippon Steel India’s request to import 168,300 metric tonnes of met coke from Indonesia and Poland was turned down by the Indian government. Authorities stated that the company already had sufficient stock, and thus, no additional imports were necessary. In response, AM/NS moved the Delhi High Court challenging the decision, pointing out the impact it would have on operations and global contracts.

Why Met Coke Matters?

Metallurgical coke is a key raw material used in steel production. It is made by heating coking coal at high temperatures in the absence of air, a process called carbonisation. The quality of met coke directly affects steel production efficiency and output. ArcelorMittal Nippon Steel India had highlighted that local met coke didn’t meet their production quality needs, which is why overseas imports were essential.

Government’s Policy Shift and Approval

In January 2025, the Indian government had introduced import restrictions on low-ash met coke, allowing country-specific quotas. The move aimed to protect domestic producers. However, global steelmakers operating in India, like ArcelorMittal Nippon Steel India and JSW Steel, expressed concerns about these curbs impacting production.

Following the backlash, the government softened its stance. It eventually permitted AM/NS India to import 71,500 metric tonnes of met coke from Poland and allowed the redirection of an 88,000 metric tonne quota (originally for Russian imports) to Poland. With these approvals in hand, AM/NS India decided to drop its petition.

Earlier, the Delhi High Court had issued a notice to the government seeking its response after ArcelorMittal Nippon Steel India filed a writ petition. The steel giant argued that the restrictions contradicted India’s free trade stance, particularly for orders placed before any policy change.

In the petition, AM/NS warned that delays would cause major financial damage. The company estimated potential losses of $25 million per consignment, along with vessel detention charges of over $27,004 per day. The steelmaker also highlighted risks of breaching supplier and customer contracts.

Not Alone in the Fight

ArcelorMittal Nippon Steel India wasn’t the only one to challenge the import rules. JSW Steel and Trafigura’s India unit had also approached the court over similar issues, underlining the widespread industry concern.

Conclusion

With the government’s revised approval, AM/NS India’s concerns seem to have been addressed, at least for now. The episode highlights the delicate balance between supporting domestic industries and maintaining open trade channels. For steelmakers, access to quality raw materials like met coke remains a top priority.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Apr 15, 2025, 2:52 PM IST

Suraj Uday Singh

Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.

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