India for anti-dumping duty on Chinese steel
Business

India for anti-dumping duty on Chinese steel

New Delhi, Sept 09: India is likely impose anti-dumping duty of up to 185.51 US dollars per tonne for five years on certain varieties of Chinese steel to guard domestic players from cheap imports of the commodity from that country.

A clutch of firms, including JSW Steel Ltd, Sunflag Iron & Steel Co, Usha Martin, Gerdau Steel India, Vardhman Special Steels and Jayaswal Neco Industries Ltd, had jointly filed an application for initiation of the investigations and levying of anti-dumping duties.

In its investigations, the Directorate General of Trade Remedies (DGTR) stated that dumped imports of ‘straight length bars and rods of alloy steel’ from China have increased in absolute terms during the period of probe (2016-17). The dumped imports are undercutting the prices of the domestic industry and due to this their profits, return on capital employed and cash profits have declined during the period.

'The authority recommends imposition of anti-dumping duty' on the imports 'for period of five years,' the DGTR notification said. It has recommended duty in the range of 44.89 US dollars per tonne and 185.51 dollars per tonne.

It added that no anti-dumping duty shall be payable on imports of forged bars and tool and die steel if their landed value is above 659.91 dollars. If the landed value is lower than 659.91 dollars, then the difference shall be payable as anti-dumping duty, it added.

While the DGTR, under the Commerce Ministry, recommends the duty, the final call is being taken by the Finance Ministry. Imports of straight length bars and rods of alloy steel from China have increased to 1,80,959 tonnes in 2016-17 from 56,690 tonnes in 2013-14.

India’s total imports rose to 2,56,004 tonnes in 2016-17 from 1,32,933 tonnes in 2013-14. The demand of this steel too increased to 16,69,653 tonnes in 2016-17 from 15,14,795 tonnes in 2013-14. Domestic manufacturers always flag concerns over the imports from China, with which India has a huge trade deficit.

The trade gap has increased to 63.12 billion dollars in 2017-18 from 51.11 dollars billion in the previous financial year. The DGTR has also stated it recognises that the imposition of anti-dumping duties might affect the price levels of the product in India. However, fair competition in the market will not be impacted by the imposition of these trade remedy measures.(UNI)