An Indian court has rejected requests from JSW Steel and Trafigura to permit certain shipments of a steelmaking raw material, marking a setback following New Delhi's new policy aimed at curbing imports, which has caused concern in the sector.
India has implemented restrictions on imports of low-ash metallurgical coke (met coke), introducing country-specific quotas to support domestic suppliers. This decision has raised alarms among major steel producers like ArcelorMittal Nippon India, who are worried about the impact on their operations and the quality of locally produced met coke.
JSW Steel challenged New Delhi's earlier rejection of its import requests, made prior to the January restrictions, while Trafigura's Indian unit filed a lawsuit to clear one of its disputed shipments.
Late on Saturday night, the Delhi High Court dismissed these appeals, agreeing with the government's stance that allowing such imports would undermine the purpose of the new policy.
The government contended that the companies were aware of the impending restrictions when placing their orders, and the quantity of met coke they sought exceeded the established quotas, as noted by Judge Sachin Datta.
JSW declined to comment on the ruling, and Trafigura did not respond immediately.
Imports of low-ash met coke have more than doubled over the past four years, prompting New Delhi to limit total overseas purchases to 1.4 million metric tons between January and June.
This policy has significant implications for India, the second-largest producer of crude steel in the world. ArcelorMittal Nippon India has indicated that it may need to significantly reduce steel production and postpone expansion plans due to the import restrictions.
The company has also approached the Delhi court to clear some of its met coke imports from Indonesia and Poland, although the outcome of this case is still pending.