ArcelorMittal (MT) warned that steel production at its India joint venture with Nippon Steel could be significantly reduced due to restrictions on low-ash metallurgical coke imports, Reuters reported, citing a private letter to India's Minister of Commerce and Industry.

The joint venture's CEO, Dilip Oommen, said in the letter dated Feb. 19 that the joint venture may need to scale back production from April or shut down its blast furnace operations by June unless it secures additional coke beyond the country-specific import quotas imposed by India starting January 1.

"We are heading for a difficult and uncertain period," Oommen wrote in the letter seen by Reuters.

The import curbs, aimed at protecting domestic coke producers, have faced opposition from major steelmakers, who argue that domestic supply does not meet their quality requirements. ArcelorMittal India JV also said the restrictions could delay its $9 billion expansion plan in India, which includes increasing capacity to 40 million metric tons annually by 2035.

ArcelorMittal and Nippon Steel did not immediately respond to a request from MT Newswires seeking comment on Wednesday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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