SteelMin calls for restrictions on imports, doubling duty.

Cautioning that steel imports from China during the second quarter of FY15 has exceeded “the historic (quarterly) high” of 90 million tonnes, the steel ministry has suggested doubling the import duty on value-added steel products to 15 per cent ad-valorem from 7.5 per cent currently “with immediate effect”.

In a note dated August 12, to the finance ministry, the steel ministry has recommended imposition of “quantitative restrictions” on import arrivals in the ports on the Western coast. Burdened with a surplus steel production capacity of 250 MT, China is trying to push its output into India. Apart from China, steel produced in Japan, South Korea, Ukraine are also finding their way into the domestic markets, the ministry said.

The suggestions are based on representations from the steel companies last month, which say that the import surge from China is hurting them even as they continue to battle paucity of iron ore and muted demand for the alloy. Citing figures provided by the steelmakers, the ministry said while total steel imports from China surged by 100 per cent, it was up by 51 per cent from South Korea. Imports of hot rolled flat steel have increased by 57 per cent. Of this, China saw a 460 per cent increase and South Korea 259 per cent.

SAIL chairman CS Verma told The Indian Express that China is exporting a category of TMT bars (used by realty sector) and its steel makers are availing lower duty and export benefits.

Source : indianexpress.com