CALCULATE YOUR SIP RETURNS

JSW Steel, Tata Steel Share Prices in Focus as Met Coke Curbs Threaten Production

Written by: Neha DubeyUpdated on: Mar 6, 2025, 12:10 PM IST
JSW Steel and Tata Steel share prices are in focus as ArcelorMittal-Nippon warns of production cuts due to India's import restrictions on met coke.
JSW Steel, Tata Steel Share Prices in Focus as Met Coke Curbs Threaten Production
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

India’s import restrictions on low-ash metallurgical coke (met coke) have raised concerns among steel manufacturers, with ArcelorMittal-Nippon Steel India (AM/NS India) warning of potential production cuts and expansion delays, as per Reuters Report.

Impact of Import Restrictions on Steel Production

ArcelorMittal-Nippon Steel India (AM/NS India) has expressed serious concerns over India’s recent import restrictions on low-ash metallurgical coke (met coke).

The company has warned that these restrictions could force it to significantly reduce steel production and delay its expansion plans.

In a letter to India’s Commerce Minister, Piyush Goyal, AM/NS India has requested additional allocations from Poland and Japan, citing the inability of local suppliers to meet the required quality standards for met coke, as per Reuters Report.

Potential Shutdown and Business Disruptions

The restrictions, imposed in December 2024, aim to boost the domestic coke industry by capping total imports at 1.4 million metric tons for the first half of 2025.

However, AM/NS India has stated that these limitations could lead to a complete shutdown of its blast furnace operations by June 2025 or a reduction in production starting in April.

Industry-Wide Concerns Over Met Coke Supply

The import curbs have sparked fears of business disruptions among foreign-owned steelmakers, as domestic suppliers are unable to meet both the demand and quality requirements.

Other major steel manufacturers, including JSW Steel and Tata Steel, have also opposed the move, emphasising the need for high-quality met coke for efficient steel production. India’s met coke imports have more than doubled in the past four years, and the restrictions could significantly impact steel production in the country.

Share Price Performance

JSW Steel share price traded at ₹1,002.55, slightly down by 0.01%, while Tata Steel’s share price traded at ₹147.71, up by 1.10% at 9:35 AM on the NSE.

Conclusion

With a 5% share of India’s steelmaking market, AM/NS India’s operations in Gujarat are at risk due to the import curbs. The company remains committed to engaging with policymakers to find a mutually beneficial solution that ensures continued production and expansion. As the Indian government weighs the possibility of extending the restrictions, steel manufacturers are urging reconsideration to avoid disruptions in the industry.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 6, 2025, 9:45 AM IST

Neha Dubey

Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers