ArcelorMittal-Nippon Steel India faces potential major output cuts and delays in expansion due to Indian import restrictions on low-ash metallurgical coke. The CEO expressed concerns regarding operational sustainability and the ability to meet production goals. The situation reflects broader issues within the Indian steel industry, as domestic suppliers struggle to meet quality demands.
ArcelorMittal’s joint venture in India has issued a warning regarding potential significant reductions in steel production and a delay in expansion initiatives due to the government’s restrictions on importing low-ash metallurgical coke, a crucial raw material. These curbs were introduced in December to protect domestic suppliers but have hindered the joint venture’s operational capabilities due to inadequate local supply meeting quality standards.
In conclusion, ArcelorMittal Nippon Steel India’s situation highlights the challenges posed by the Indian government’s import restrictions on met coke. The company’s urgent request for increased import allowances from Poland and Japan underscores the gravity of operational sustainability faced by foreign steelmakers in India. The broader implications of these restrictions could affect not only production plans but also the employment landscape within India’s steel industry.
Original Source: www.livemint.com
