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Anti-dumping investigation into imports of steel into India from six countries |
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KOLKATA: Directorate General of Anti-Dumping & Allied Duties has initiated anti-dumping investigation into imports of steel into India from six countries --China, Japan, Korea, Russia, Brazil & Indonesia perceived to have caused 'injury' to the domestic steel industry. DGAA, which comes under the union commerce ministry started the investigation on the basis of petition filed by large domestic steel players like SAIL, JSW Steel, Essar Steel India and supported by Tata Steel and JSPL.
The investigation would cover items like Hot Rolled Coils (HRC), Sheets and Plates (including Plate Mill Plates) into India. DGAD has prima-facie found sufficient evidence of dumping of the above mentioned steel products by these countries which has caused significant injury to the domestic steel industry, an official notification by the DGAA said. The period of investigation is July - December 2015. More specifically, the products covered under the investigation would include HRC of width up to 2100mm and thickness up to 25mm, HR sheet & plates of a width up to 4950 mm and thickness up to 150 mm. Such steel items find use in automotive, oil and gas line pipes/exploration, cold-rolling, pipe and tube manufacturing, infrastructure and construction, general engineering & fabrication, earth-moving & mining equipment, storage tanks, low pressure heaters, capital goods including plant and process equipment for cement and fertilizers.
Reacting to the government move, Jayant Acharya, director (commercial & marketing) JSW Steel said our steel industry is in a critical phase with margins and profitability under severe strain primarily due to dumping at predatory prices into India. Such unfair trade affects our viability like it has affected steel industry in the rest of world. While Indian steel sector is competitive, we need adequate protection from those producers / countries which get state subsidy to produce steel."
Commenting on the development, H Shivramkrishnan, Chief Commercial Officer, Essar Steel India, said: "Expediting the provisional anti-dumping duty is the next step which will ensure such predatory steel imports are curtailed. After a thorough reviewed of the petition DGAD has found substantive evidence of dumping and injury to the domestic steel industry."
HR steel imports from the six countries amounted to 1.46 million in FY14 but surged more than 275% to 5.5 million tons in FY 2015-16(annualized based on July-Dec15 figures). Steel companies had earlier submitted evidence to the DGAA regarding 'injury' as a result of dumping by the six countries in terms of volume of imports and in relation to domestic production and domestic demand. This, they claimed, has resulted in deterioration of sales, production, capacity utilization, market share and returns on capital employed. Incidentally, the DGAD has also invoked a significant clause of Retroactive Duty. Assuming that the provisional anti- dumping duty is levied by June 15, 2016 the retroactive clause will apply on import arrivals 90 days prior to the date of provisional findings which will be April 15, 2016.
Source : economictimes.indiatimes.com
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