Jindal hails duty on steel

The domestic steel industry is seeking an anti-dumping duty on steel imports from China and Korea. The government earlier this week had approved a five per cent import duty to provide cushion to the domestic producers against imports.

"We have also demanded that government should impose anti-dumping duty for the steel coming from China and Korea," said Sajjan Jindal, president of industry body ASSOCHAM today.

Jindal, who is also the Vice Chairman and Managing Director of JSW, the country’s third biggest steel producer said that capacity of steel production will not be brought down because the prices of steel had started stabilising due to the steps taken by the government. He appreciated the imposition of import duty.

Companies in Ukraine and China are offering steel at a price of $430-440 a tonne and a large number of contracts are taking place at these rates. At the current rupee-dollar exchange rate, this translates into Rs 21,300-21,800. The price at a consumption site would come to around Rs 23,300-23,800 after incurring port clearing and inland freight charges. By contrast, the domestic steel is selling for Rs 34,000 a tonne (ex-mill). The price of imported steel is much below than the cost of domestic producers, the industry has claimed.