National Policy Shift: Import Curbs to Safeguard Domestic Players
At the start of 2025, the Government of India clamped down on the unrestricted import of LAM coke—a critical ingredient for steel production—by enforcing quantitative restrictions (QRs). These curbs are part of a strategic move to protect and promote domestic coke manufacturers who have been undercut by cheaper international supplies.
The newly implemented trade policy stipulates a total import cap of 14.4 lakh metric tons for the January–June 2025 period. This quota is further split across various coke-exporting countries. Indonesia’s share was limited to 66,364 metric tons for the six-month window—33,182 metric tons per quarter. These curbs were announced on December 26, 2024, catching many firms off guard, including JSW Steel.
Legal Battle & Policy Interpretation: JSW’s Pre-existing Contracts
JSW Steel, anticipating rising demand, had already entered into long-term contracts for 3,40,000 metric tons of LAM coke with international suppliers. These deals were signed on November 26 and December 3, 2024, and were secured with Irrevocable Letters of Credit (ICLCs) by December 4, 2024—well before the import ban was declared.
Following the announcement of restrictions, JSW & ARCL petitioned the Directorate General of Foreign Trade (DGFT) to register their existing ICLCs under Clause 1.05(b) of the Foreign Trade Policy. This clause permits fulfillment of trade commitments made before the enforcement of new curbs. However, the DGFT rejected their application on February 6, 2025, prompting JSW to approach the Delhi High Court for intervention.
Court Dismissal & Administrative Leeway
On March 28, 2025, the Delhi High Court dismissed JSW’s petition, siding with the DGFT’s stand. However, what followed was a rare administrative reversal. Recognizing the practical difficulty faced by JSW Steel in sourcing the raw material from its original quota-allotted country, the DGFT permitted JSW to import 1.06 lakh metric tons from Indonesia instead.
This quantity exceeds Indonesia’s quota but remains within the overall national limit of 14.4 lakh metric tons. The DGFT justified this approval by noting that no breach of total quantitative restriction occurred, as JSW merely shifted source countries due to logistical constraints.
JSW’s Strategic Imports & Stockpile Expectations
Even while awaiting DGFT approval, JSW Steel and ARCL had gone ahead and imported 1,03,312 metric tons of LAM coke, betting on the likelihood that the government would honor the prior ICLCs. This proactive approach underscored the strategic importance of LAM coke for JSW’s steelmaking operations.
LAM coke is indispensable in blast furnace steelmaking, where it serves both as a reducing agent to convert iron ore into molten iron and as a high-efficiency fuel. For integrated steel plants, any disruption in coke supply could cause significant production bottlenecks.
Precedents & Parallels: ArcelorMittal’s Coke Switch
JSW Steel’s case mirrors a recent scenario involving ArcelorMittal Nippon Steel India, where the government permitted a reallocation of 88,000 metric tons of met coke imports—from Russia to Poland. This flexible approach by Indian authorities suggests a willingness to balance regulatory objectives with industry realities.
Such precedents also raise questions on the uniform application of trade policy, especially for smaller firms that may lack similar legal or diplomatic leverage.
Wider Trade Implications & Industry Outlook
The met coke exemption granted to JSW Steel adds a new dimension to India's ongoing industrial policy. While the curbs were meant to curtail dumping and boost self-reliance, large manufacturers now operate within a grey zone of policy exceptions and case-by-case adjustments.
Furthermore, the WTO’s recent report indicating a 0.2% drop in global trade forecasts for 2025—due to rising tariffs and reciprocal curbs—adds urgency to India’s trade calibration. The steel industry, heavily dependent on stable raw material inputs, now faces a volatile international landscape.
Key Takeaways:
• India introduced strict quotas for LAM coke imports starting January 2025, to protect local producers.
• Total allowable imports capped at 14.4 lakh metric tons from January to June 2025.
• Indonesia's country quota was 66,364 metric tons, but JSW Steel was permitted to import 1.06 lakh metric tons.
• JSW had pre-signed contracts for 3,40,000 metric tons before the curbs were announced.
• Despite an initial court rejection, DGFT allowed the import due to sourcing issues from the original quota country.
• JSW had already imported 1,03,312 metric tons amid uncertainty, expecting policy leniency.
• The decision did not breach national import limits, only shifted sourcing from one country to another.
• ArcelorMittal Nippon Steel India was similarly allowed to switch import sources from Russia to Poland.
• LAM coke is a crucial component in blast furnace steelmaking, making timely imports vital for productivity.
• The exemption signals administrative flexibility, though it raises concerns over policy uniformity.
