Steel dump­ing: safe­guard duty is no so­lu­tion, says CII chief

Resource Digest - - CONTENTS -

In­dia should build a strong case against China for dump­ing steel and steel-based prod­ucts, in­stead of im­pos­ing a safe­guard duty that harms the in­ter­ests of do­mes­tic user in­dus­tries, ac­cord­ing to CII Pres­i­dent Su­mit Mazumder.

In­dia re­cently im­posed 20 per cent safe­guard duty on the im­port of any flat steel with a width of 600 mm and above, on the back of ris­ing im­ports from China, South Korea and Ja­pan.

“The safe­guard duty was driven (aimed at) by China. They pro­duce huge quan­ti­ties of steel and sud­denly there is no de­mand for it. So they re­sorted to dump­ing. I pre­fer an­tidump­ing over safe­guard. Un­for­tu­nately, we take years to im­pose anti-dump­ing,” he said in an ex­clu­sive in­ter­view.

Steel­mak­ers in Korea and Ja­pan score over their In­dian coun­ter­parts in terms of cost com­pet­i­tive­ness and range of prod­ucts, said Mazumder.

“China is re­sort­ing to dump­ing. But I don’t be­lieve Korea and Ja­pan are re­sort­ing to that. Be­sides, we have FTAs (free trade agree­ments) with Korea and China,” he added.

Mazumder is also Man­ag­ing Di­rec­tor of TIL Ltd, which uses steel to man­u­fac­ture in­fra­struc­ture equip­ment such as cranes and ex­ca­va­tors. The safe­guard duty has helped do­mes­tic steel­mak­ers, but at the cost of down­stream in­dus­tries, he said.

LO­CAL MAN­U­FAC­TURE

“I have a very strong view. There should not be any ex­tra duty for im­port­ing grades that are not man­u­fac­tured in the coun­try. High-grade and high-tension steel are not man­u­fac­tured here. If they are not man­u­fac­tur­ing, why will we pro­tect?” he said.

Asked about the im­pact of the safe­guard duty on TIL, he said costs are bound to in­crease.

Chi­nese man­u­fac­tur­ers are sell­ing cranes with three-year in­ter­est-free sup­pli­ers’ credit, against 12 per cent per an­num in­ter­est in In­dia. “Is it not dump­ing?” he asked.

While main­tain­ing that TIL is able to hold on to its mar­ket share by virtue of bet­ter ser­vices, Mazumder said crane im­ports from China are on the rise.

The CII Pres­i­dent is con­fi­dent that pro­tec­tion may of­fer do­mes­tic steel­mak­ers some in­terim re­lief. But, in the long run, the in­dus­try should be­come cost-com­pet­i­tive.

SU­MIT MAZUMDER, CII PRES­I­DENT

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.