ArcelorMittal Nippon Sues India Over Blocked Raw Material Imports, Warns of Production Cuts

ArcelorMittal Nippon Steel India has sued the Indian government over its decision to reject met coke imports, escalating a dispute over recent import restrictions. India imposed curbs on low-ash metallurgical coke imports in January, aiming to support domestic suppliers. However, ArcelorMittal Nippon argues that the policy was applied retroactively, violating free trade principles. The company challenged the rejection of 168,300 million tonnes of met coke from Indonesia and Poland in court.

While the Indian government claims there is sufficient domestic supply, companies like ArcelorMittal Nippon cite quality concerns. The company warns that these restrictions could force production cuts or even a shutdown of its blast furnace operations. It estimates financial losses of $25 million per shipment, along with vessel detention charges. JSW Steel has also filed a similar lawsuit over delayed import clearances.

Meanwhile, India’s Steel Secretary maintains that companies are seeking imports primarily due to cost savings of $50-100 per tonne. A confidential letter from ArcelorMittal Nippon warned that production disruptions could begin as early as April. The Delhi High Court has directed the government to respond to the lawsuit by next week. The case highlights concerns over policy consistency, investor confidence, and the stability of industrial supply chains.

ArcelorMittal Nippon Sues India Over Blocked Raw Material Imports, Warns of Production Cuts

ArcelorMittal Nippon Steel India has initiated legal proceedings against the Indian government following its decision to restrict imports of a vital steelmaking ingredient, escalating a conflict over regulatory changes that the company claims jeopardize its operations. The dispute centers on India’s recent imposition of quotas on low-ash metallurgical coke (met coke), a critical resource for steel production. Introduced in January to support domestic suppliers, the policy has drawn criticism from leading steel manufacturers, including ArcelorMittal Nippon, which have raised concerns over the inferior quality of locally sourced met coke.

Court records reveal that on March 5, the company challenged the government’s rejection of its pre-existing import contracts for 168,300 tonnes of met coke from Indonesia and Poland in the Delhi High Court. The firm argues that these orders, placed before the new quotas took effect, should be honored under India’s customary practice of grandfathering pre-regulatory commitments. Authorities denied the imports, asserting that the company had sufficient domestic reserves. However, ArcelorMittal Nippon contends that this retroactive enforcement of policy destabilizes trade predictability and erodes investor confidence, warning that such unpredictability could deter future investments.

A joint venture between ArcelorMittal and Japan’s Nippon Steel, the company has highlighted severe operational risks in its filing, stating that blocked imports could disrupt production, force output cuts, or even halt operations entirely. It projects losses of roughly $25 million per shipment, in addition to daily detention fees of $27,004 for stalled cargo. Similarly, JSW Steel has challenged delays in clearing $90 million worth of met coke imports, urging consistent policy enforcement to ensure effective operational planning. The court has yet to rule on JSW’s case.

Steel Secretary Sandeep Poundrik defended the restrictions, stating that domestic met coke supplies are adequate and attributing import demand to cost savings, with foreign supplies priced $50–$100 per tonne lower. Despite this, ArcelorMittal Nippon warned in a confidential letter to the government on February 19 that the import curbs might force blast furnace shutdowns by June or production cuts as early as April.

The Delhi High Court has mandated that the government respond to the petition by next week. The verdict could influence how India enforces trade policies and resolves disputes with multinational steel firms, testing the balance between promoting domestic self-sufficiency and integrating into global supply chains. Industry stakeholders are closely monitoring the case, as its outcome may shape future regulatory and investment strategies, highlighting the ongoing tension between local industry support and international trade dynamics in India’s steel sector.