India Withdraws Import Restrictions on Low-Ash Metallurgical Coke in January 2026
In January 2026, the Indian government removed quantitative restrictions and prior authorization requirements on imports of low-ash metallurgical coke, a crucial input for steelmaking. This policy reversal was made due to domestic supply challenges and aims to stabilize steel production costs. Anti-dumping duties remain in effect to protect domestic producers from unfairly low prices of imports, with rates ranging between $60.87 and $130.66 per tonne on imports from countries including China, Australia, and Russia.
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Key Facts
- On January 3, 2026, the Directorate General of Foreign Trade (DGFT) issued a notification lifting import restrictions on low-ash metallurgical coke, reclassifying it as "free" import under ITC (HS) codes 27040020, 27040030, 27040040, and 27040090.
- Previously (from January to December 2025), imports were subject to country-wise quotas limiting imports to 713,583 tonnes per quarter and required prior authorization.
- Anti-dumping duties ranging from $60.87 to $130.66 per tonne remain effective on imports from China, Australia, Colombia, Indonesia, Japan, and Russia to protect domestic producers.
- Metallurgical coke accounts for approximately 35% to 40% of steel manufacturing costs and is essential in blast furnace operations for iron and steel production.
Background & Context
Low-ash metallurgical coke (ash content below 18%) is preferred in steelmaking because lower ash improves furnace efficiency and steel quality. India is the world's second-largest crude steel producer and relies heavily on metallurgical coke, yet domestic supply constraints have led to higher local prices.
To protect domestic manufacturers of low-ash metallurgical coke, India imposed provisional anti-dumping duties and import restrictions including quotas and prior authorization throughout 2025. However, steel producers faced operational challenges and rising input costs, prompting government reassessment.
The January 2026 DGFT notification removed import restrictions (quotas and prior authorizations) to increase supply flexibility for steel manufacturers, while retaining anti-dumping duties to mitigate unfair competition from imports priced below normal value.
Why This Matters for Exams
This issue illustrates India's use of trade policy tools such as anti-dumping duties and import restrictions to balance competing interests of domestic industry protection and steel sector competitiveness, a topic commonly tested in economics, trade policy, and industrial development sections of competitive exams.
Points to Remember
- DGFT Notification date: January 3, 2026
- Low-ash metallurgical coke ash content threshold: below 18%
- Anti-dumping duties: $60.87 to $130.66 per metric tonne
- Countries affected: China, Australia, Colombia, Indonesia, Japan, Russia
- Import restrictions removed: quotas and prior authorization requirements
- Metallurgical coke's share in steel production cost: 35-40%
- India ranks as the world’s second-largest crude steel producer
Sources & Further Reading
| Document / Website | Link |
|---|---|
| India Reviews Metallurgical Coke Import Duty - GKToday | Open India Reviews Metallurgical Coke Import Duty - GKToday ↗www.gktoday.in |
| India Lifts Import Restrictions on Low-Ash Metallurgical Coke | Open India Lifts Import Restrictions on Low-Ash Metallurgical Coke ↗www.metalbook.com |
| India imposes provisional anti-dumping duty on low ash metallurgical coke imports - The Economic Times | Open India imposes provisional anti-dumping duty on low ash metallurgical coke imports - The Economic Times ↗economictimes.indiatimes.com |