Govt To Probe Dumping Of Hr Coils By Russia

The commerce ministry plans to initiate an anti-dumping investigation with regard to hot rolled (HR) steel coils, plates, strips and sheets by Russian exporters. The steel industry has been pressing for over two months for such an action.

Industry sources say severe losses have been suffered by domestic producers on account of the delay in start of the investigations. Leading steel makers including Essar and Steel Authority of India are reeling under low-priced imports of HR coils, strips, plates and sheets from Russia.

Sources say the difference in the normal price in Russia and the price at which the coils are being exported is 40 per cent. Imports from Russia have also gone up by 17 per cent in the last two years. As a result, domestic producers are holding large inventories and suffering heavy losses.

 

Delays by the commerce ministry in several cases is causing damage to domestic industry. For instance in the case of purefied terephthalic acid (PTA), a case initiated at the behest of Reliance and Bombay Dyeing, the industry is estimated to have suffered losses of close to Rs 50 crore in the last few months.

However, the commerce ministry has been unresponsive. While the minister and the secretary have on several occasions talked of strengthening the anti-dumping set-up, no action has been taken on the ground. The anti-dumping cell consists of primarily three-four officers.

A cabinet proposal to convert the cell into an anti-dumping directorate has been pending for a while. Sources said the directorate was deemed necessary in view of the large number of complaints being received by the ministry by Indian companies, often more than seven a week. The ministry, with barely three officers, is examining several complaints for initiation and has to keep track of at least 30 active cases. Most other countries have well developed anti-dumping machinery with at times over 1,000 officers working on cases.