India slaps punitive anti-dumping duty on steel import

Anti-dumping duty slapped on Chinese steel products

MUMBAI: In a bid to offer a long lasting relief to the beleaguered steel sector, which has been plagued by cheap imports and fall in domestic demand, the federal government has imposed definitive anti-dumping (ADD) duties on import of hot and cold rolled flat steel products.
According to the leading investment information and credit rating agency IRCA, the move is likely to create a stable operating milieu for flat steel players in India.
The definitive ADD has been fixed at a stage which is said to be the difference between the product’s landed value and a given threshold. The values have been fixed at $489/MT for HR coils, $561/MT for HR plates/sheets, and $576/MT for CR coils.
The Union Cabinet recently cleared the National Steel Policy (NSP) 2017 that hopes to increase the crude steel capacity to 300 MT by 2030-2031, from the current capacity of 128 MT, said ICRA.
ADD is said to arrest the landed cost of imported flat steel from sliding below the threshold, thereby shielding domestic players from international volatility in steel prices, said IRCA.
During FY2015-16, domestic steel players had to bear the brunt of cheap imports from China, South Korea, Japan, Russia and Ukraine.
According to Jayanta Roy, Senior Vice President of ICRA, said: “Flat steel products that fall under the ADD regime had contributed around 60 percent to India’s overall steel imports between FY2015 and FY2017. Hence, the current measure is expected to keep a check on India‚Äôs steel imports in the future.”
According to reports, the European Union (EU) and the US had first initiated the move by setting up import barriers on multiple steel products from countries, such as China, Japan and South-Korea. Meanwhile, ADD is perceived as a punitive and definitive measure towards putting an end to the woes of the ailing steel sector.
India, punitive anti-dumping duty, steel import