In New Delhi, an Indian court has rejected requests from JSW Steel and Trafigura to allow specific shipments of a steelmaking raw material, as per a court order. This decision marks a setback following the implementation of New Delhi's recent policy limiting imports, causing turbulence in the sector.

In January, India implemented restrictions on imports of low-ash metallurgical coke, known as met coke, with quotas allocated by country to support local suppliers. The move has raised concerns among steel giants like ArcelorMittal Nippon India regarding the impact on business and potential quality issues associated with domestically produced met coke.

JSW Steel contested New Delhi's rejection of $90 million worth of pre-January import orders, while Trafigura's Indian unit went to court in an attempt to clear one of its rejected shipments.

The Delhi High Court, in a late Saturday ruling, dismissed these requests, supporting the Indian government's stance that allowing such imports would undermine the purpose of the new import restrictions. Judge Sachin Datta noted that the companies were aware of the impending restrictions when placing orders, and the quantities they sought exceeded the quota limits.

Despite the ruling, JSW declined to comment, and there was no immediate response from Trafigura.

Over the past four years, imports of low-ash met coke have more than doubled, prompting New Delhi to cap total overseas purchases at 1.4 million metric tons from January to June.

The policy implications are significant for India, the world's second-largest crude steel producer. ArcelorMittal Nippon India has expressed concerns to the Indian government that it may need to significantly scale back steel production in the country and postpone expansion plans due to the import restrictions.

The company has also taken its case to the Delhi court to seek clearance for some met coke imports from Indonesia and Poland, with the decision pending.