India Removes Import Restrictions on Low Ash Metallurgical Coke to Support Steel Industry

India Lifts Import Curbs on Low Ash Metallurgical Coke to Aid Steel Sector

In a significant policy reversal aimed at easing raw material supplies for the steel industry, the Indian government has removed import restrictions on low ash metallurgical coke. The decision, notified by the  Directorate General of Foreign Trade (DGFT) , rescinds an earlier extension of curbs that was set to last until June 30, 2026.

Key Details of the New Notification
A DGFT notification dated  January 3  states that imports of  low ash metallurgical coke —defined as coke with an ash content  below 18% —will now be freely allowed. The relaxation also covers critical inputs like  coke fines, coke breeze, and ultra-low phosphorous metallurgical coke , all essential for steel manufacturing processes.

Reversal of Earlier Policy
This move marks a strategic pivot from the DGFT's notification of  December 31 , which had extended import restrictions on low ash metallurgical coke effective from January 1, 2026. The earlier restriction was intended to support domestic coke producers but had sparked concerns within the steel industry over potential supply shortages and increased input costs.

Critical Role in Steelmaking
Metallurgical coke, a fuel and reducing agent produced from coal, is indispensable for iron production in blast furnaces. The  low ash variant  is particularly valued as it enhances furnace efficiency and reduces impurities during smelting. Industry representatives had consistently highlighted that domestic production is inadequate to meet both the qualitative and quantitative demands of the sector, making imports vital for sustained operations.

Policy Implications and Market Response
By permitting free imports, the government has signaled a flexible approach to trade policy, seeking to balance the protection of domestic manufacturing with the raw material security of core downstream industries like steel. The step is anticipated to  stabilize supply chains  and help moderate production costs for steelmakers. This comes at a time when robust demand from infrastructure and construction sectors necessitates consistent and cost-effective raw material availability.

Important Facts for Examinations:

• Metallurgical coke  serves as a key fuel and reducing agent in steel production.

• Low ash metallurgical coke  is defined by an ash content of  less than 18% .

• The  Directorate General of Foreign Trade (DGFT)  operates under the  Ministry of Commerce and Industry .

• Changes in trade policy directly influence input costs for core sectors like steel.