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The 20 per cent provisional safeguard duty on selected steel products isn’t enough to protect primary producers in this country from imports, says the industry.
“Import prices of hot rolled coils (HRC) have been reduced by more than $100 a tonne by (companies in) China, Japan and Korea to nullify the impact,” said a senior executive from one of the largest Indian steel companies. It has also been alleged to the government that a Korean manufacturer has been transferring HRC steel to its Indian plant at $224 a tonne, about half the price in its home market.
On September 14, the government imposed a 20 per cent provisional safeguard duty for 200 days on the import of hot-rolled flat products in coils of a width of 600 mm or more.
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On December 11, the government imposed an anti-dumping duty ranging from 5-57 percent on cold-rolled flat products of stainless steel for a period of five years.In a notification, the central board of excise and customs said that the duty has been imposed on geographies such as China,South Korea, European Union, the US, South Africa, Thailand and Taiwan.
Posco is the only South Korean steel maker with a sizeable presence in India. The company spokesperson did not reply to an email from this newspaper on the prices at which Posco India had purchased HRC steel from its parent company after the September 14 order.
It has also reportedly come to the government’s notice that HRC importers have been avoiding the safeguard duty by declaring their consignments as API grade. And, that companies in China and Japan have started exporting cold-rolled coil as an HRC replacement, at lesser prices. Safeguard duties are allowed by the World Trade Organisation as a temporary measure to check damage to a country’s industry from cheaper import.
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On September 14, the government imposed a 20 per cent provisional safeguard duty for 200 days on the import of hot-rolled flat products in coils of a width of 600 mm or more
