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Pet coke import ban is likely to affect aluminium, steel industry

Metal News - Published on Fri, 11 Jan 2019

Image Source: Business Standard
Winslow Record reported that latest Union Commerce Ministry’s notification prohibiting pet coke import is likely to hit the end manufacturers in India. While industry estimates the cost impact at about 50 dollars per tonne, the secondary manufacturers apprehend significant escalation in cost of production as they have to look for alternate fuel feed for their electric arc furnaces. However, large mills, using the blast furnace route for steel making, are insulated as they do not have much use of in their process.

Major makers Vedanta, Hindalco and Nalco import to make anodes for use in the smelters for electrolytic process to separate aluminium. An official of a leading aluminium firm said “In the absence of pet coke to make anodes in-house, the companies will be forced to import anodes which will scale up the metal making cost by 40 to 50 dollars per tonne.”

On the other hand, a steel industry source said, the pet coke used in the steel melting shop are of high quality containing low impurities like sulphur. He said “Such high quality pet coke import is not banned. Hence, there won’t be much impact on the large steel mills producing high grade steel.”

DGFT notification follows a ruling of the Supreme Court last month that agreed to put into place recommendations from the court-appointed Environment Pollution Prevention & Control Authority (EPCA) to limit imports only to those industries using coke as a feedstock or in the manufacturing process, not as a fuel. Though the notification issued by Director General of Foreign Trade (DGFT) under the has prohibited for fuel purpose, it has exempted the ban for certain category of industries, including cement which is the largest importer of pet coke in the country.

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Posted By : Rabi Wangkhem on Fri, 11 Jan 2019
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