Government Lifts Import Curbs on Low Ash Metallurgical Coke

The government has removed import restrictions on low ash metallurgical coke, easing raw material availability for the steel sector. The decision was notified by the Directorate General of Foreign Trade (DGFT), reversing an earlier move that had extended curbs on such imports till June 30, 2026. The step is expected to provide relief to domestic steelmakers amid steady demand.

What the Latest DGFT Notification Says

In a notification dated January 3, the DGFT clarified that the import of low ash metallurgical coke, defined as coke with ash content below 18 per cent, will now be permitted freely. The relaxation also applies to coke fines, coke breeze, and ultra-low phosphorous metallurgical coke, all of which are critical inputs in steel manufacturing.

Earlier Extension of Restrictions

The decision marks a shift from the DGFT’s December 31 notification, which had extended import restrictions on low ash metallurgical coke from January 1 to June 30, 2026. That earlier move was aimed at supporting domestic producers, but had raised concerns within the steel industry over supply constraints and rising input costs.

Importance for the Steel Industry

Metallurgical coke, produced from coal, is a key raw material used in blast furnaces for steel production. Low ash variants are particularly valued for improving efficiency and reducing impurities during the smelting process. Industry players have consistently argued that domestic production alone is insufficient to meet quality and quantity requirements, making imports essential.

Imporatnt Facts for Exams

• Metallurgical coke is used as a fuel and reducing agent in steel production.
• Low ash metallurgical coke has ash content below 18 per cent.
• DGFT functions under the Ministry of Commerce and Industry.
• Trade policy changes directly impact input costs for core industries.

Policy Signal and Market Impact

By allowing free import of low ash metallurgical coke, the government has signalled flexibility in trade policy to balance domestic industry protection with the needs of downstream sectors. The move is expected to stabilise raw material supplies for steelmakers and help moderate production costs at a time when infrastructure and construction demand remains strong.