India’s steel producers are grappling with a severe shortage of metallurgical coke; a critical raw material used in blast furnaces for steelmaking. Industry data indicates that domestic mills were able to meet only about half of their total coke requirements during the first half of 2025, creating operational disruptions and pushing up production costs.
Metallurgical coke, derived from coking coal, is essential for reducing iron ore into molten iron. The shortfall has largely been attributed to a combination of supply bottlenecks and import constraints. With limited domestic availability, steelmakers have traditionally relied on imported coke from countries such as China and Australia. However, recent import restrictions and higher freight costs have tightened supplies further, forcing several mills to scale back output.
Producers are urging the government to review current import policies and ease restrictions to ensure a steady flow of raw materials. Industry associations have also called for incentives to boost local coke production capacity and reduce dependence on overseas suppliers. They warn that continued shortages could hamper steel output growth and affect India’s infrastructure pipeline, which depends heavily on timely steel supplies.
Analysts believe that unless corrective measures are introduced soon, the imbalance between coke supply and steel demand could widen, undermining the competitiveness of Indian steel in global markets. While some integrated steel plants have been able to mitigate the impact through captive coke production, smaller and mid-sized producers are bearing the brunt of the shortfall.
The shortage underscores the vulnerability of India’s steel supply chain and highlights the urgent need for a long-term raw material security strategy to support the nation’s expanding steel capacity and infrastructure ambitions.
