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

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.

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