Govt initiates anti-dumping probe into imports of hot-rolled coils, plates

Authority finds sufficient evidence of dumping by China, Japan, Korea, Brazil, Indonesia, Russia that has caused significant injury to the domestic steel industry

Following a petition from domestic steel producers, the Directorate General of Anti-Dumping & Allied Duties (DGAD, part of the department of commerce) has begun an investigation into import of hot-rolled (HR) coils, sheets and plates from six countries.

The countries are China, Japan, Korea, Brazil, Indonesia and Russia. Certain product specifications are being considered for the July–December 2015 period. There seems evidence of dumping of these products, causing significant injury to the domestic steel industry, said DGAD.

“It is definitely a move in the right direction. HR steel is one of the most important products and steps need to be taken to curb its cheap import,” said Sanak Mishra, general secretary of the Indian Steel Association (ISA).

DUTY IMPOSITION TO CURB STEEL IMPORTS

• 2.5% hike in import duty on long products in June 2015
   
• Up to $316 per tonne anti-dumping duty on stainless steel in June 2015
   
• 2.5% hike in import duty on flat products in August 2015
   
• 20% safeguard duty in September 2015 on hot-rolled flat products of non-alloy and other alloy steel with a width of 600 mm or above
   
• 5-57% anti-dumping duty on imports of cold rolled flats products of stainless steel in December 2015
   
• $341 to $752  Minimum import price on 173 steel products in February 2016

HR steel products had a safeguard duty levied last year, too. The Joint Plant Committee, officially recognised data bank on the Indian iron and steel industry, said total import of finished steel in the year ended March grew 20.2 per cent to 11.2 million tonnes, making the country a net importer of the commodity. The investigation for anti-dumping has been initiated on a petition from Essar Steel, Steel Authority of India and JSW Steel, with support from Tata Steel and Jindal Steel & Power.

H Shivramkrishnan, chief commercial officer, Essar Steel India, said, “Expediting of the provisional anti-dumping duty is the next milestone, ensuring such predatory imports are curtailed.”

HR steel import from the countries mentioned in FY14 during July-December was 1.46 mt and rose 275 per cent to 5.5 mt in FY16, said industry officials. “The situation the domestic industry is in, we are going to see some more measures for the sector in the coming months,” said Mishra of ISA. “This is going to be a recurring story."

Industry officials say many more products need to come under the anti-dumping preview, for the industry to escape from the heat of cheaper import. Since last year, the government has been trying to protect the domestic industry, including a minimum import price on about 100 products for a specified period.