Relief Granted Despite National Import Curbs
In a pivotal regulatory development, ArcelorMittal Nippon Steel India has secured an import exemption from the Indian government, permitting the import of 71,500 metric tons of low-ash metallurgical coke from Poland. This exception, granted in spite of current import restrictions, comes after the steel major raised serious concerns about production interruptions at its facilities due to raw material shortages.
The relaxation was approved after AM/NS India filed a legal plea, objecting to the rejection of 168,300 metric tons of metallurgical coke import orders from Indonesia and Poland. These orders were blocked following the Indian government's January 2025 notification imposing quantitative caps on LAM coke imports by country.
Policy Tussle Spurs Legal Recourse
On March 5, 2025, AM/NS India took the matter to the Delhi High Court, arguing that the curbs jeopardized ongoing operations. A court filing, not made public but accessed by Moneycontrol, revealed that the company was also granted permission to redirect an existing 88,000 metric ton quota originally assigned to Russia, rerouting it instead to Poland, a supplier considered more feasible under current logistics.
The Delhi High Court has now disposed of the case, indicating a resolution in favor of operational continuity for the joint venture.
Coke's Crucial Role in Steelmaking
Metallurgical coke is a vital raw material used in blast furnaces to reduce iron ore into molten iron, making it indispensable for integrated steel manufacturing. LAM coke, in particular, is preferred for its low ash content, which improves furnace efficiency and reduces emissions.
India's decision in January 2025 to impose import quotas aimed to protect domestic coke producers. The curbs are expected to continue till June 30, 2025, raising concerns among foreign-invested steel manufacturers reliant on consistent and high-grade coke supply.
Policy Threat to Future Investments
Top executives at AM/NS India had previously written to senior lawmakers, warning that such restrictive policies would deter long-term investments and throttle the performance of steel plants. A letter dated February 13, 2025, requested a reconsideration of the company’s import quotas and emphasized the need to clear pending imports from Poland.
This letter played a key role in government reconsideration and eventual exemption, a move described by insiders as necessary to "keep the plant functional" and prevent downscaling or shutdowns.
A Broader Industry-Wide Impact
AM/NS India isn't alone in this predicament. Competitors such as JSW Steel and Trafigura also filed petitions before the Delhi High Court under clause 1.05 of the Foreign Trade Policy, which allows for prior contractual obligations to be honored before the enforcement of new trade restrictions.
Despite their appeals highlighting contracts signed in late 2024, including JSW Steel’s 340,000 metric ton order from a Hong Kong-based supplier, their cases were dismissed on March 28, 2025, by the court. Their applications for exemptions had earlier been rejected by the Directorate General of Foreign Trade on February 6, 2025.
Government’s Balancing Act
The Indian government’s decision to selectively grant relief to AM/NS India underscores the fine balance it must maintain between protecting local industries and supporting strategic foreign investments. While the restrictions remain in force for most steelmakers, the exception granted to AM/NS India illustrates how case-by-case relief can be applied when national productivity is at risk.
This case also sets a precedent for temporary regulatory flexibility when global supply chains and domestic production capacities are entangled.
KEY TAKEAWAYS:
• ArcelorMittal Nippon Steel India (AM/NS India) received permission to import 71,500 metric tons of LAM coke from Poland, despite ongoing import restrictions.
• India had imposed country-specific quotas on LAM coke imports in January 2025, valid until June 30.
• AM/NS India had earlier faced rejection of 168,300 metric tons of coke imports from Indonesia and Poland.
• The company redirected an 88,000 metric ton quota from Russia to Poland with government approval.
• LAM coke is a critical input in integrated steel production, used as a fuel and reducing agent in blast furnaces.
• A legal case filed by AM/NS India in Delhi High Court on March 5 was settled in the company’s favor.
• The relief was granted to ensure the plant remains operational and steel production is not throttled.
• Other companies like JSW Steel and Trafigura also approached courts but their petitions were dismissed.
• JSW Steel had signed contracts for 340,000 metric tons of LAM coke before the ban but was denied relief.
• Clause 1.05 of the Foreign Trade Policy, allowing pre-ban contracts to be honored, was not upheld in their cases.
• The government’s selective exemption reflects an effort to balance domestic producer protection & foreign JV stability.
