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India's steel industry will be hit by a shortage of met coke in the first half 2025

India's steel industry will be hit by a shortage of met coke in the first half 2025

India's steelmills only obtained about half their metallurgical coal needs from domestic suppliers during the first half 2025. This highlights shortages, and intensifies their calls for a easing of the import restrictions on this key steelmaking material.

India produced 1.5 millions metric tons between January and June of metallurgical coal, but the demand was almost double at 3.09million tons, according to an insider and government data.

India, which is the second largest crude steel producer in the world, implemented import restrictions on metallurgical coal in January, to stimulate the industry. In June, the country extended its curbs by setting country-specific quotas. It also capped overseas purchases between July 1 to December 31 at 1.4 millions tons.

Steelmakers call for a reduction in import curbs

Several steel mill executives who spoke on condition of anonymity as they were not authorized to speak to the media said that the latest data regarding the local metallurgical output raised doubts about this decision.

Indian steel producers are urging the government to increase import quotas by nearly seven times to alleviate what they describe as a critical shortage.

The Federal Ministry of Commerce and Industry has not responded to an email asking for comment.

The Society of Indian Automobile Manufacturers sent a letter to the government last year warning of possible supply disruptions of auto components.

The industry group has not responded to an email seeking comments.

Steelmakers such as JSW Steel, ArcelorMittal Nippon Steel India, and ArcelorMittal Nippon Steel India, have expressed concern about curbs. They claim that they interfere with their expansion plans because it is difficult to obtain preferred grades locally.

The imports of low-ash coke have more than doubled over the past four years, with the major suppliers being China, Japan and Poland. (Reporting and editing by Mayank Bhahardwaj, Mark Potter and Neha Arora)

(source: Reuters)