FerrumFortis

India's Met Coke Industry Faces Existential Crisis Amid Asian Import Surge

Synopsis: Indian metallurgical coke manufacturers struggle as imports from China and Indonesia threaten domestic production, leading to widespread plant closures and job losses.
Friday, November 15, 2024
Coke
Source : ContentFactory

The Indian metallurgical coke manufacturing sector is experiencing unprecedented challenges as imports from China and Indonesia flood the domestic market, according to a recent statement from the Indian Metallurgical Coke Manufacturers Association. The situation has reached critical levels, with import volumes surging more than 12.5 times since the 2022-23 financial year.

The severity of the crisis is highlighted by alarming statistics, particularly regarding import levels from Asian competitors. Indonesian imports have exceeded the Directorate General of Trade Remedies' (DGTR) recommended levels by 1,950%, while Chinese imports have surpassed suggested limits by over 620% in 2024-25. These figures underscore the massive scale of the challenge facing domestic producers.

The impact of this import surge has been particularly devastating for major production centers across India, including Gujarat, Odisha, Jharkhand, Andhra Pradesh, Tamil Nadu, and Karnataka. Many facilities in these regions have been forced to either shut down completely or operate at less than 25% capacity, resulting in thousands of job losses and significant economic distress in these areas.

In response to this crisis, IMCOM approached the DGTR in April 2023, seeking intervention. The DGTR responded by recommending one-year quantitative restrictions on metallurgical coke imports on April 29, 2024. However, despite support from the Ministry of Coal, these recommendations remain unimplemented, leaving the industry vulnerable to continued import pressure.

The crisis has created a ripple effect throughout India's industrial landscape, affecting not only direct employment in the metallurgical coke sector but also related industries and local economies. The situation is particularly dire in states like Odisha, Gujarat, and Tamil Nadu, where multiple plants have been forced to scale back operations dramatically.

IMCOM has emphasized the urgent need for government intervention through the Ministry of Commerce and Industry. The association warns that without immediate implementation of the DGTR's recommended quantitative restrictions, the sector faces potentially irreversible damage to both its employment capacity and industrial stability.