Govt Ini­ti­ates Anti-dump­ing Probe into Steel Im­ports from China, Other Na­tions

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Kolkata: In­dia has ini­ti­ated an anti-dump­ing in­ves­ti­ga­tion into im­ports of cold rolled coils and sheets from China, Ja­pan, Korea and Ukraine. The Direc­torate Gen­eral of Anti-Dump­ing & Al­lied Du­ties (DGAD), which will carry out the probe, said it has prima fa­cie found suf­fi­cient ev­i­dence of dump­ing by th­ese coun­tries, caus­ing ‘sig­nif­i­cant’ in­jury to the do­mes­tic steel in­dus­try. The move to in­ves­ti­gate im­ports be­tween July and De­cem­ber 2015 comes on top of a se­ries of mea­sures taken by In­dia, in­clud­ing a safe­guard duty of 20% and min­i­mum im­port prices, to pro­tect lo­cal steel­mak­ers. The govern­ment on April 12 an­nounced a sim­i­lar in­ves­ti­ga­tion also into al­leged dump­ing of hot rolled steel items by China, Ja­pan, Korea, Rus­sia, Brazil and In­done­sia.

The lat­est in­ves­ti­ga­tion, which will also cover im­ports of cold rolled full hard, fol­lows a pe­ti­tion filed by steel play­ers such as Es­sar Steel, Steel Au­thor­ity of In­dia and JSW Steel, which were sup­ported by Bhushan Steel, a govern­ment no­ti­fi­ca­tion dated April 19 said.

Cold rolled steel im­ports from the four co- un­tries are es­ti­mated to have surged more than 80% to 1.7 mil­lion tonnes in FY 2015-16, ac­cord­ing to in­dus­try data. Av­er­age im­port prices dropped to $400 a tonne in De­cem­ber 2015 from $727 per tonne in 2013-14. “DGAD has taken a much-needed step. The in­ves­ti­ga­tion will sub­stan­ti­ate what has been found prima-fa­cie based on data,” said Sanak Mishra, sec­re­tary gen­eral of In­dian Steel As- so­ci­a­tion, whose mem­bers rep­re­sent 60% of In­dia’s steel ca­pac­ity. H Shivramkr­ish­nan, chief com­mer­cial of­fi­cer at Es­sar Steel In­dia, called the de­ci­sion “a very sig­nif­i­cant” step.

The steel ma­jors had sub­mit­ted ev­i­dence to the DGAD on the dam­age they suf­fered due to the al­leged dump­ing. In­crease in im­port vol­ume has re­sulted in de­te­ri­o­ra­tion of sales, pro­duc­tion, ca­pac­ity util­i­sa­tion, mar­ket share and re­turns on cap­i­tal em­ployed for lo­cal com­pa­nies, they claimed. The share of the four coun­tries in the to­tal CR im­ports is more than 90%, and the do­mes­tic steel in­dus­try needs long-term mea­sures for sur­vival from preda­tory pric­ing, the do­mes­tic steel firms ar­gued. In­ci­den­tally, the US too has ini­ti­ated anti-dump­ing in­ves­ti­ga­tions on the im­ports of cer­tain cold rolled steel flat prod­ucts from coun­tries such as China, Ja­pan and Korea. In De­cem­ber 2015, the govern­ment had im­posed an anti-dump­ing duty of 5-57% on cold rolled stain­less steel im­ported from coun­tries like China, US, South Africa, Thai­land and Tai­wan. That or­der is valid for five years.

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