NEW DELHI - India's met coke imports are set to reach a record high this year despite an anti-dumping levy imposed in July, as domestic shortages and strong demand from pig iron producers fuel higher overseas purchases, executives said.

India, the world's biggest crude steel producer after China, is expected to import around 6-million tons of met coke in the fiscal year that began in April, up 32% from a year earlier, mainly from Indonesia and Poland.

The rise comes despite steelmakers opposing import restrictions for more than a year, arguing domestic production is insufficient to meet demand.

Reuters previously reported that the federal Ministry of Steel supported steelmakers by seeking the withdrawal of the anti-dumping duty. The government, nevertheless, imposed a five-year anti-dumping duty on met coke in July.

Met coke is used in making pig iron, an intermediate product used to produce steel.

Indonesia has become an increasingly important supplier, accounting for about 2.1-million tons of imports so far this year, up 165% from a year earlier, said an executive at a large steel firm, who was not authorised to speak publicly.

Domestic coke output rose only about 6% year-on-year, below steel and pig iron demand, the executive said.

PIG IRON EXPORTS DRIVE IMPORTS

Pig iron producers have been importing large quantities of met coke because they can avoid the import duty when the coke is converted into pig iron for export, the executives said.

That exemption makes imported met coke cheaper than locally produced coke, they said.

US demand for Indian pig iron is strong this year and may double from 2025 levels, the executives said, adding that Indian pig iron has gained market share from Ukraine because of lower prices.

Indian pig iron is cheaper by around $50 a ton, according to commodities consultancy BigMint.

The US imports around 4- to 5-million metric tons, with Brazil, Ukraine and India among its main suppliers.

Reflecting the domestic shortfall, met coke prices rose 24% from a year earlier to 35 850 rupees ($375.63) a ton in August, according to BigMint data.

"Met coke prices are increasing as a result of the rising coking coal prices," said Monica Bachchan Duvvuri, founder of Metalogic PMS, a steel and mining market intelligence firm. She added that met coke prices may go up by 3-4% this week.

Reuters reported last week that steel prices were expected to rise further in the coming weeks partly due to high coking coal costs.