Govt initiates anti-dumping probe on steel imports from US, EU.

NEW DELHI: Acting on a complaint from steel maker JSL, the government has initiated a probe into alleged dumping of a particular variety of steel by exporters from US, EU and South Korea into the Indian market.

JSL Ltd, the country's largest stainless steel producer, has complained to the directorate general of anti-dumping and allied duties (DGAD) that the cheap imports of cold-rolled flat products were causing injury to the domestic industry.

The cold-rolled steel is used in manufacture of railways, pipes and tubes, automotive components, fabrication and other industrial applications.

"The authority (DGAD) hereby initiates an investigation into the alleged dumping and consequential injury to the domestic industry...to determine the effect of dumping and to recommend the amount of anti-dumping duty," a commerce ministry official said.

The probe would look into the imports between January 2009 and March 2010 (15 months) and its subsequent impact on the local industry, he said.

The official added that the probe was started as the DGAD had sufficient evidence of dumping of the steel product from South Korea, the US and European Union (EU).

In the recent months, India has imposed 15 anti-dumping duties across various sectors.

It has slapped the restrictive duty on several items such as yarn, fabrics, certain stainless steel products, auto parts and chemicals.

A country initiates anti-dumping probe to see whether its domestic industry has been hurt due to a surge in below-cost imports. As a counter-measure, it imposes duties under the multilateral regime of the WTO.

Such duties ensure fair trading practices and create level-playing field for domestic producers vis-a-vis foreign players resorting to dumping.

Source : economictimes.indiatimes.com