India has proposed to implement metallurgical coke import quotas on key supplying nations.

A government notification, accessed by Kallanish, reveals that Indian entities filed an application in April 2023, citing a significant surge in met coke imports causing harm to the domestic sector.

The product in question is low ash metallurgical coke, classified under HS code heading 2704, with an ash content below 18%. It excludes coke fines, coke breeze, and ultra-low phosphorous metallurgical coke with phosphorous content up to 0.030%.

Following thorough examination, the investigating department concluded that the sudden influx of low ash metallurgical coke imports poses a serious threat to India's domestic industry.

It has consequently recommended the imposition of quantitative restrictions in the form of quarterly quotas on these imports for one year, to mitigate further damage. However, the date of implementation is yet to be determined.

The recommendation aligns with WTO guidelines on safeguard measures and attributes the industry's injury to the surge in imports. Additionally, it exempts certain imports from developing countries based on specific criteria.

The imposed quotas target key exporters to India, including Australia, China, Colombia, Indonesia, Japan, Poland, and Russia, reflecting their significant contributions to India's met coke imports in recent years. Each origin will receive its own quarterly quota and any unused quota will be rolled over. The strategy aims to facilitate smooth volume transactions for exporters and importers.

Reacting to the news, an industry participant from a reputed trading house quips: "The imposition date has not been announced for these quotas and, as our 2-3 coke vessels are coming in the next two months, we are not sure if they would be counted under the quota or not. This is just an announcement and we are not sure when the actual implementation will take place, making us linger in uncertainty. However, it would be a temporary thing as the government ensures that Indian steel mills get raw materials at competitive rates."

India's metallurgical coke imports surged by 47% from 2020 to 2023, reaching 3.83 million tonnes. The bulk of these imports originated from Poland, China, Colombia and Indonesia, as per customs data.