India’s Metallurgical Coke Industry Struggles Amid Surging Imports From China And Indonesia

New Delhi, Nov 4 (KNN) India’s metallurgical coke manufacturing sector faces severe challenges due to surging imports from China and Indonesia, according to the Indian Metallurgical Coke Manufacturers Association (IMCOM).

The industry, which produces a critical raw material for steel-making and various manufacturing sectors, employs approximately 150,000 workers across more than 100 plants nationwide.

Metallurgical coke, derived from coal carbonisation, serves as an essential component in steel production and supports various industries, including ferroalloys, foundries, nickel, and automotive manufacturing. 

Major production centres are located in Gujarat, Odisha, Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka.

IMCOM Vice-President Asim Agarwalla attributes the industry’s difficulties to government policies, particularly the free trade agreement with Indonesia. 

Import volumes from China and Indonesia have increased more than 12.5 times since the 2022-23 financial year, severely impacting domestic production capabilities.

In response to these challenges, IMCOM approached the Directorate General of Trade Remedies (DGTR) in April 2023. 

The DGTR subsequently recommended implementing one-year Quantitative Restrictions on metallurgical coke imports on April 29, 2024. However, these recommendations remain pending implementation, despite support from the Ministry of Coal.

Recent data indicates the severity of the situation, with Indonesian imports exceeding DGTR’s recommended levels by 1,950 per cent in 2024-25, while Chinese imports surpassed recommended levels by over 620 per cent. 

According to Naresh Sharma, an IMCOM committee member and plant owner in Visakhapatnam, the impact has been devastating, leading to thousands of job losses and forcing several plants, primarily in Odisha, Gujarat, and Tamil Nadu, to either close or operate at less than 25 per cent capacity.

Industry leaders are now calling for urgent government intervention through the Ministry of Commerce and Industry to implement the DGTR’s recommended quantitative restrictions, warning that further delays could severely impact both employment and industrial stability in this crucial sector.

(KNN Bureau)

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}