Anti-dumping duty on Metallurgical coke bane to steel industry: ISA

The Indian Steel Association (ISA) has asked the Central Government not to impose any anti-dumping duty on Metallurgical Coke (met coke) fearing cost escalation of their products.
A levy of anti-dumping duty on met coke will have a cost-push effect on the steel sector. It will fuel further the cost of steel making, resulting in an increase in the cost of finished steel.
What is Metallurgical Coke?
Metallurgical coke is made from low ash, low sulfur bituminous coal, with special coking properties. It is one of the most important and critical raw materials for the steel industry. The steel industry in India having large blast furnaces requires met coke with high ash content and moisture content of less than 5% to run efficiently. This demand is met through imports from other countries as the domestic met coke has low ash content and high moisture content along high phosphorous and sulpher content.
What is the issue?
The Union Ministry of Commerce had initiated anti-dumping investigation on import of low ash met coke from Australia and China in the year 2015. It had resulted in the sharp increase in the price of this key raw material with no signs of abating. Besides this, domestic steel industry is getting affected by the unbridled steel imports from countries such as China, Japan, South Korea, Russia at predatory prices.

Month: Current Affairs - November, 2016