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