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The Directorate General of Trade Remedies (DGTR) has initiated a probe into allegations of rising imports of low ash metallurgical coke (also called met coke). The investigation into initiating safeguard duties follow after five companies submitted a complaint claiming that a rising imports of low ash met coke was impacting domestic producers.
Met coke in one of the key fuels or feedstock material in furnaces and klins and finds usage across industries like steel, pig iron, chemicals, ferro-alloys and foundries. Low ash met coke refers to coke where the ash content is less than 18 per cent.
The five companies which had reached out to the DGTR include BLA Private Ltd, Jindal Coke, Saurashtra Fuels, Vedanta Malco Energy and Vista Coke. These companies account for majority of the met coke produced in India.
While the application made by these companies sought to cover the nine-month period of April – December 2022, the DGTR probe will cover FY23 (that is April 2022 to March 2023).
“....the Authority prima facie finds that imports of the subject (low ash met coke)....causing serious injury to the domestic industry in the recent period. Further, imports pose a threat.....” a notification by the DGTR said.
Met coke where the ash content is above 18 per cent is not included as a part of the investigation.
Increasing Imports
As per the petition made by met coke producers, imports on an annualised basis increased 10.3 lakh tonnes, or a 40 per cent rise on a YoY basis. The market shares of imports relative to total demand also increased from 42 per cent in FY22 to 52 per cent in April – December (on an annualised basis).
Rise in imports have been attributed to factors like the Russia – Ukraine war impacting the key raw material price, coking coal, leading to increase in cost of production for Indian met coke players which in turn increased met coke prices in India. With sanctions kicking in, China’s proximity to Russia saw it gain added advantage in sourcing coking coal and freight advantages.
The companies have also argued that while Indian producers are impacted by high freight rates (in bringing in coking coal), other met coke producers like Indonesia and Australia do not face such issues.
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