| Date: |
23-12-2015 |
| Subject: |
Indian steelmakers may attract anti-dumping duty in Canada |
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MUMBAI: Indian steelmakers are at the risk of attracting anti-dumping duty or countervailing duty in Canada after investigation by the Canada Border Services Agency (CBSA) found dumping of certain steel products by steelmakers such as Steel Authority of India Ltd and Jindal Steel and Power Ltd.
The Canadian International Trade Tribunal is inquiring into the possible injury to the domestic industry and will issue its decision by January 6, 2016. If found guilty India can expect anti-dumping duty on its steel exports to Canada.
The investigation was started after Canadian arm of Indian steelmaker Essar Steel sought anti-dumping and countervailing duty against Indian steel earlier in June, alleging undue benefit through 58 subsidy programmes. The document reviewed by ET said CBSA's investigation found subsidies for Indian steelmakers were "not insignificant."
The probe found hot-rolled carbon steel plate and high-strength low-alloy steel plate exported from India by SAIL, JSPL and other steelmakers from India having a subsidy margin of 98.1%, or Rs. 7844 per tonne.
"Enforcing fair trade in Canada's domestic steel market is more critical than ever given current market conditions," said Essar Steel Algoma president and CEO Kalyan Ghosh. "The determinations imposed by the CBSA represent a victory for all Canadian steel producers. It signals clearly that our government will not allow other countries to distort our markets by dumping steel here."
Essar Steel Algoma is undergoing financial restructuring in Canada.
The Indian steel industry is facing the dumping accusation in Canada at a time when they are fighting against increasing imports from China, Japan and South Korea in the home market. Analysts, however, do not see a major impact of any negative ruling on Indian steel companies as steel export volumes to Canada are miniscule.
While JSPL's annual report did not mention export volumes for the last financial year it mentioned that it had increased sales volumes in Canada. SAIL exported 0.591 million tonnes of steel out of 11.8 million tonne steel produced last financial year, according to its annual report. SAIL and JSPL were not immediately available for a comment.
Source : economictimes.indiatimes.com
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