STMAI urges govt to act against surge of low-cost Chinese pipe imports

Seamless Tube Manufacturers' Association of India (STMAI) on Thursday said the country has sufficient capacity of seamless pipes and tubes to meet domestic demand and urged the government to implement strict measures to curb influx of low-cost Chinese pipe imports to safeguard the domestic industry.

According to the STMAI President Shiv Kumar Singhal, the domestic seamless pipes and tubes industry has an installed capacity of approximately 1.95 million metric tonnes (MMT) -- more than sufficient to meet the total Indian demand of 1.32 million metric tonnes.

Despite strong support from the government through various safeguard measures to protect the domestic seamless pipe industry, Chinese pipe imports have increased exponentially over time -- particularly in the last 3-4 years, he said.

 

However, these efforts have proven largely ineffective in curbing imports from China, he explained.

Chinese importers are reportedly declaring inflated invoice values at the time of customs clearance, while subsequently selling the same products in the Indian market at significantly lower prices than those of domestic seamless pipe manufacturers, he said.

"This practice undermines fair trade and puts Indian producers at a serious disadvantage," he said, adding that the Directorate of Revenue Intelligence should investigate into this.

The domestic pipe industry has made significant investments over the past few decades to develop a wide range of import-substitute products in India, such as oxygen cylinder pipes and drill pipes, and more -- aligned with the government's Make in India initiative.

Despite establishing substantial production capacities for these critical products, domestic mills continue to struggle for orders, with a large portion of their capacities remaining underutilised, he explained.