Mumbai, June 14 Steel companies have raised their pitch for imposition of anti-dumping duty after China recently enhanced incentives for steel exports.
China now offers a 9 per cent value-added tax (VAT) rebate on exports of several high-end steel products to support domestic steel mills. The world’s biggest steelmaker will refund tax on flat-rolled steel products and hot-rolled ferro-alloy products effective June 1, according to its government’s Web site. As a result, the rebate ends up alleviating the 17 per cent by more than half.
“Though demand for steel in China is strong, it is not able to absorb the entire output. India has now emerged as a major dumping ground for its products thanks to demand being robust here, quite unlike most other countries,” said a steel company official.
The World Steel Association has, incidentally, predicted that only India will register growth in demand (of 2 per cent) in 2009.
In May, steel imports into India surged 21 per cent to 5.28 lakh tonnes against 4.35 lakh tonnes in the same period last year. Shipments from Commonwealth of Independent States (CIS) countries account for 28 per cent of total imports, according to Steel Ministry data.
Import prices lower
Exporters have been wooing Indian buyers with attractive prices. While domestic steel companies sell hot-rolled coils for about Rs 27,000 a tonne (excluding taxes), exporters offer it at Rs 3,000 less. Recently, they further cut prices to Rs 22,000 a tonne, said an industry source.
Alarmed by the sharp rise in imports over the last few months, Essar Steel and Ispat Industries, along with SAIL and JSW Steel, have moved the Centre for imposition of safeguard duty.
The Directorate General of Safeguards, in its recent recommendation to the Inter-Ministerial Board (on Safeguards) has suggested 25 per cent safeguard duty on imports of hot-rolled coils, sheets and strips priced below $500 a tonne. It has maintained that cheap inflows from China and other countries are hurting the domestic industry.
Source : Business Line