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Indian Court Rejects JSW Steel and Trafigura’s Pleas on Met Coke Imports
Court Ruling Upholds Import Restrictions
An Indian court has rejected requests from JSW Steel and Trafigura to allow certain shipments of metallurgical coke (met coke), reinforcing the government’s new import curbs aimed at supporting domestic suppliers.
India’s New Import Policy on Met Coke
In January, India introduced restrictions on low-ash met coke imports, setting country-specific quotas to promote local production. The policy has raised concerns among major steelmakers, including ArcelorMittal Nippon India, regarding its impact on production and quality.
Legal Challenges by JSW Steel and Trafigura
JSW Steel contested the government’s decision to block $90 million worth of imports, arguing that the orders were placed before the new restrictions took effect. Similarly, Trafigura sought approval for a rejected shipment. However, the Delhi High Court dismissed both cases, siding with the government’s stance that allowing these imports would undermine the policy’s objectives.
Government’s Justification for the Ban
The Indian government argued that companies were aware of the impending restrictions when placing their orders. The court order, issued by Judge Sachin Datta, stated that permitting these shipments would exceed the quota limits and counteract the purpose of the new rules.
Industry Impact and Future Implications
India’s met coke imports have more than doubled over four years, prompting the government to cap overseas purchases at 1.4 million metric tons between January and June. This policy is expected to have significant consequences for India’s steel industry, the second-largest producer of crude steel in the world.
ArcelorMittal Nippon India’s Pending Case
ArcelorMittal Nippon India has warned that the restrictions could force it to scale back steel production and delay expansion plans. The company has also approached the Delhi High Court seeking approval for met coke imports from Indonesia and Poland. A ruling on this case is still pending.
Conclusion
The court’s decision highlights the Indian government’s firm stance on reducing import dependence and promoting domestic suppliers. However, it also poses challenges for steel producers relying on imported raw materials. The outcome of ArcelorMittal’s case could further shape the industry’s response to these restrictions.
“Indian Court Rejects JSW Steel and Trafigura’s Pleas on Met Coke Imports” “Indian Court Rejects JSW Steel and Trafigura’s Pleas on Met Coke Imports” “Indian Court Rejects JSW Steel and Trafigura’s Pleas on Met Coke Imports”