Met coke shortage: Steel Ministry seeks duty rollback 2026

Why met coke has become a policy flashpoint

India’s Ministry of Steel has flagged a shortage of low-ash metallurgical coke, or met coke, and has asked the Ministry of Finance to withdraw anti-dumping duties on imports. A government document reviewed by Reuters links the request to tight domestic availability and a sharp rise in local prices after the duty was imposed. Met coke is a critical input for blast furnace-based steelmaking, so price spikes directly affect operating costs for steel producers. India is the world’s second-largest crude steel producer, which makes supply stability for core raw materials a strategic issue. The request adds a new layer to a policy debate already in motion, with trade remedies under review and import rules being recalibrated.

What the Steel Ministry told the Finance Ministry

In an office memorandum dated May 18, the Steel Ministry said “concerns have emerged” about limited availability in the domestic market and a “substantial increase” in domestic prices following the anti-dumping duty. It said the duty has imposed a “significant financial burden” on steel manufacturers. The ministry’s communication asked that the import tariffs be withdrawn to ease supply constraints and cost pressure. The document also argued that domestic producers have not been able to supply adequate quantities at competitive prices to meet steel industry needs.

Provisional anti-dumping duty imposed in December

India imposed a provisional anti-dumping duty on low-ash met coke imports in December for six months. Separately, reporting and official notifications referenced that the duties were imposed for six months until the end of June 2026. The levies cover low-ash met coke with ash content below 18%. Materials used for ferroalloy manufacturing, with phosphorous content up to 0.03% and particle size up to 30 mm (with a 5% tolerance), were excluded from the duties. The move followed a request made in November by the Ministry of Commerce and Industry for anti-dumping duties, and the Department of Revenue under the Finance Ministry then notified the provisional measures.

Import curbs scrapped after duties were put in place

Alongside the duty measures, India also changed its approach to quantitative restrictions on met coke imports. An official notification by the Directorate General of Trade Remedies (DGTR) said imports of low-ash met coke, including coke fines or coke breeze and ultra-low phosphorous metallurgical coke, are “free,” indicating the removal of quantitative restrictions. The government had earlier extended import restrictions from January 1 to June 30, 2026, but those volume caps were later scrapped after the provisional anti-dumping duty was imposed. Another account of the policy change described the shift as moving from volume-based controls to tariff-based protection mechanisms.

Country-wise provisional duty rates cited in notifications

Provisional anti-dumping duty rates were notified for imports from six countries: Australia, China, Colombia, Indonesia, Japan and Russia. These were described as applicable for six months, with the current measures running until June 30.

DGTR’s April 28 notification and what it recommended

A DGTR notification dated April 28 recommended a reduction in anti-dumping duties on met coke imports from several countries. It also specified that the recommendation covers met coke with ash content below 18% under HS codes 27040010, 27040020, 27040030, and 27040090. The notification excluded ultra-low phosphorous met coke used in ferroalloy manufacturing, defined as a maximum phosphorous content of 0.030% and size of 30 mm (with a 5% tolerance). The DGTR investigation covered October 2023 to September 2024, along with a review of historical data, and concluded that anti-dumping duties were necessary to counter dumping and injury to India’s domestic met coke market.

Recommended duty changes for Indonesia and China

The April 28 notification included country-wise recommendations that implied lower duties for some sources. The document cited significant reductions for Indonesian and Japanese imports, and also provided figures for Indonesia and China.

Steelmakers’ cost pressure and the RINL example

The Steel Ministry’s memorandum highlighted difficulties faced by state-run Rashtriya Ispat Nigam Ltd (RINL). It said RINL was unable to procure adequate quantities of met coke at reasonable prices from the domestic market, resulting in a 20% rise in input costs. The ministry’s broader point was that domestic supply has not ensured adequate availability at competitive rates for the steel industry. With met coke being a key feedstock, disruptions in procurement and price volatility can quickly raise conversion costs for producers relying on blast furnaces. The ministry’s request to withdraw the duties reflects this cost and availability concern rather than an argument about trade protection.

What still needs approval and what the market is watching

The DGTR’s recommended duty structure remains subject to formal approval by the Ministry of Finance. The notification also indicated that the proposed five-year anti-dumping period would commence from the date the provisional duty was first levied, implying the definitive duty could be backdated to the start of 2026. Market participants were described as awaiting a final notification from the Directorate General of Foreign Trade (DGFT) on definitive duties and their implementation period. While no official timeline was cited, expectations were linked to a decision by June 2026, when the provisional measures are set to expire.

Why this matters for India’s steel supply chain

The episode underscores a balancing act between protecting domestic met coke producers and ensuring reliable, competitively priced inputs for steelmakers. The government has, at different points, used both quantitative restrictions and anti-dumping duties to manage imports, but recent steps show a preference for tariff-based tools while removing volume caps. For steel producers, the immediate issue is whether import duties remain at levels that restrict supplies or raise landed costs during periods of domestic tightness. For policy, the key decisions now sit with the Finance Ministry on whether to withdraw, reduce, or continue duties, and with DGFT on the final notification and implementation details.

Conclusion

India’s Steel Ministry has formally sought withdrawal of anti-dumping duty on low-ash met coke imports, citing shortages and a surge in domestic prices that have increased costs for steelmakers, including RINL. Provisional duties remain in force until June 30, while DGTR has recommended adjustments and clarified product scope and exclusions. The next milestones are Finance Ministry approval and the DGFT’s final notification on definitive duties and their duration. Until those decisions are published, steelmakers and overseas suppliers are likely to track policy signals closely as the June 2026 expiry date approaches.