Steel major ArcelorMittal Nippon gets import exemption for key raw material despite curbs

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Centre has granted ArcelorMittal Nippon Steel India (AM/NS India) the permission to import additional 71,500 metric tonnes of low ash metallurgical (LAM) coke from Poland, over and above existing allocation - despite import restrictions - after the company raised concerns that curbs were disrupting its steel production, according to a court filing seen by Moneycontrol that has not been made public.

The JV unit of the world's largest steelmaker had earlier sought relief against the rejection of 168,300 mt of met coke import orders from Indonesia and Poland. The government agreed to allow the import of 71,500 MT from Poland, as well as to the company's request to divert an existing quota of 88,000 MT of met coke earlier sought to be imported from Russia to Poland, said the document.

AM/NS India did not immediately respond to Moneycontrol’s request for a comment for the story.

"The relief was given to AM/NS so that the plant remains functional, hence they were allowed to import as much quantity required to keep the plant running, to avoid throttling the production," said a person familiar with the matter.

A case filed by AM/NS India on March 5 stands disposed of, according to the Delhi high court website, after the company approached the Delhi High Court in March against the government’s decision to deny the import of met coke.

Met coke is a critical raw material used as a reducing agent and fuel in blast furnaces during steelmaking, and helps convert iron ore into molten iron, making it essential for integrated steel plants.

India, in January, had imposed a ban on unrestricted imports of low-ash metallurgical coke (met coke), introducing country-specific quotas to safeguard domestic producers. The curbs are expected to be in place till June 30.

According to a news report in The Hindu, AM/NS India’s top leadership wrote to a senior lawmaker expressing concern over the policy change, warning that if pursued in the longer term, it could adversely impact future investments and steel-making operations in the country. The filing shows that AM/NS India had expressed concerns in a letter dated February 13, 2025 regarding the adverse impact of import restrictions on LAM Coke on their steel production and requested a review of their existing import quotas, including approval for 71,500 MT already imported from Poland.

The restrictions had also prompted other companies like JSW Steel and Trafigura to move Delhi HC, arguing that their import orders, for the key raw material, had been placed before the ban came into effect. The companies also sought relief under clause 1.05 of the Foreign Trade Policy (FTP), that allows such parties to honour prior commitments made before the imposition of new restrictions. However, their petitions were dismissed on March 28, according to the document.

JSW Steel and Trafigura did not respond to Moneycontrol’s requests for a comment.

In case of JSW Steel, the steelmaker and Amba River Coke entered into contracts in late November and early December 2024 to import 340,000 metric tonnes of LAM coke from a Hong Kong-based supplier. However, on 26 December 2024, the government imposed quantitative restrictions, prompting the companies to apply for relief under the FTP. Their applications were rejected by the Directorate General of Foreign Trade (DGFT) on February 6.