The Indian government has started a safeguard investigation into imports of metallurgical coke with ash content below 18pc on concerns about their damage to domestic producers.
The application was filed by major domestic coke producers BLA Coke, Jindal Coke, Saurashtra Fuels, Vedanta Malco Energy and Visa Coke because of the sharp increase in imports of low-ash metcoke that has harmed the domestic industry and poses a further threat, according to a notification issued by the country's Directorate General of Trade Remedies on 30 June.
The applicants have requested for imposition of safeguard measures in the form of quantitative restrictions on imports of the product for one year only under HS codes 27040010, 27040020, 27040030 and 27040090.
Low-ash metcoke Imports during April-December 2022 rose by 40pc from a year earlier to above 1mn t, while the share of imports also rose to 52pc during April-December 2022 from 42pc during the same period in 2021-22, according to the application filed by domestic producers.
The applicants claim imports increased because of the Russia-Ukraine conflict that increased coking coal costs and increased the cost of production of met coke for domestic producers. Global sanctions on Russia, which is a major exporter of coal, also pushed coal prices higher. Higher freight rates after the Covid-19 pandemic also added to costs for domestic producers, unlike in countries like Australia, China and Indonesia where coking coal is abundant.
Indian steel producers import 90pc of the coking coal used in their operations as the country has low reserves of the key steel-producing raw material.
The applicants stated that the goods produced by the domestic industry have no significant difference to the imported material and are technically and commercially substitutable.
They have proposed the period of investigation from April 2022-December 2022 but the government authority considered April 2022-March 2023 as the most recent period for the purpose of investigation.
The retail price for domestic Indian 63/65 CSR coke was indicated at 36,000 rupees/t ($439/t) last week. The Argus 62 CSR met coke index was at $269.15/t fob China, while the 65 CSR index was at $285/t fob China on 30 June.
