Coke Manufacturers Raise Alarm Over Chinese Dumping via Indonesia, Call for Probe into Import Curbs Misuse

India’s metallurgical coke industry is sounding the alarm over what it claims is rampant dumping of low-ash coke by Chinese-owned firms operating through Indonesia. The Indian Metallurgical Coke Manufacturers Association (IMCOM) has formally written to the Ministry of Commerce, alleging that import curbs introduced earlier this year are being misused to flood the domestic market with underpriced coke, threatening the viability of Indian producers.

The issue centers around low-ash metallurgical coke (LAM coke), a critical raw material used in blast furnaces for steelmaking. Despite the government’s imposition of country-specific quantitative restrictions (QRs) on coke imports, industry data shows that imports from Indonesia have far exceeded the designated quota, raising concerns of regulatory loopholes and strategic circumvention.

Import Curbs and Alleged Misuse

In January 2025, the Directorate General of Foreign Trade (DGFT) imposed a six-month restriction on unrestricted imports of LAM coke, capping Indonesia’s quota at 66,364 metric tonnes (MT) for the January–June period. However, IMCOM claims that nearly 650,000–700,000 MT of coke entered India from Indonesia during this window, far exceeding the permitted limit.

The association alleges that Chinese firms are using their subsidiaries in Indonesia to bypass direct import restrictions, offering coke at dumped prices that are not only below domestic selling rates but also undercut the cost of production for Indian manufacturers.

IMCOM’s Letter to Commerce Ministry

In its letter dated September 14, 2025, IMCOM urged the government to investigate the surge in Indonesian coke imports and the dilution of safeguards meant to protect domestic producers. The association claims that consumer industries falsely portrayed Indonesia as the only viable source of coke to secure relaxed import norms, while the real intent was to access cheaper Chinese-origin coke.

IMCOM has called for stricter enforcement of quotas, enhanced scrutiny of import documentation, and a comprehensive probe into the origin of coke shipments.

Industry Impact and Headwinds

India’s merchant coke manufacturers are facing severe headwinds due to the influx of dumped coke. The landed price of imported coke is reportedly 20–30% lower than domestic prices, making it difficult for Indian producers to compete.

The industry fears that continued dumping could lead to plant closures, job losses, and long-term damage to India’s self-reliance in metallurgical inputs.

Government’s Position and Recent Exemptions

While the government has reiterated its commitment to protecting domestic coke producers, it has also granted exemptions to select steelmakers. For instance, JSW Steel received permission to import 1.06 lakh MT of coke from Indonesia, citing quota reallocation from other countries. Similarly, ArcelorMittal Nippon Steel India was allowed to shift its quota from Russia to Poland.

These exceptions, while within the national cap of 14.4 lakh MT for H1 2025, have raised concerns about transparency and consistency in policy enforcement.

Commerce Ministry’s Response and Policy Outlook

Commerce and Industry Minister Piyush Goyal, speaking at the ISA Steel Conclave earlier this month, emphasized the need for import substitution and domestic capacity building. He urged the industry to look beyond protectionism and focus on long-term competitiveness.

The ministry is expected to review the current quota system and consider additional safeguards to prevent misuse.

Recommendations from Industry Stakeholders

IMCOM and other stakeholders have proposed a series of measures to curb dumping and protect domestic manufacturers:

These steps, if implemented, could restore balance in the coke market and reinforce India’s trade safeguards.

Conclusion: A Call for Vigilance and Policy Reinforcement

The allegations of Chinese coke dumping via Indonesia have reignited debates on trade policy enforcement and industrial protection. As domestic manufacturers struggle to stay afloat amid unfair pricing, the government faces mounting pressure to tighten import controls and ensure that curbs are not diluted through strategic loopholes.

With the steel sector being a cornerstone of India’s infrastructure and manufacturing ambitions, safeguarding the supply chain for critical inputs like metallurgical coke is essential. The coming weeks may see intensified scrutiny, policy recalibration, and possibly anti-dumping proceedings to address the concerns raised by industry stakeholders.

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Disclaimer: This article is based on publicly available industry reports, verified news sources, and government statements. It is intended for informational purposes only and does not constitute legal or trade advice. All figures and developments are subject to change based on official updates.