In a bid to incorporate permanent measures to protect domestic steel industry against unfair trade practices of cheaper imported goods, Indian government has extended the provisional anti-dumping duty on flat steel products for a period of two months and has withdrawn the temporary safeguard measure of Minimum Import Price (MIP).
MIP was levied in the month of February 2016 on 173 steel products for a duration of 5 months, which was later extended for 2 months (till October 4, 2016). Further, it was extended for 66 products till 4th December’16. Rest of the products were either covered under anti- dumping or excluded from any protection. Later, on 4th December’16, the Indian government extended the protection measure on 19 steel products majorly comprising of GP/GC and PPGI for a period of two months till 4th February’17. Keeping permanent safeguard measures in place, the government has withdrawn MIP on all 19 steel products.
Impact of MIP Withdrawal Minimal on Indian Steel Industry
Not much impact will be seen in the steel industry post withdrawal of MIP as government has already announced on 11 January’17, imposition of provisional anti-dumping duty on color coated /pre-painted flat products of alloy or non-alloy steel originating in or exported from People’s Republic of China and European Union for a period of six months.
The anti-dumping duty imposed is on flat steel products falling under headings 7210, 7212, 7225 and 7226 of the 1st schedule to the Customs Tariff Act, 1975. The goods description on which anti-dumping duty has been imposed are – Pre- painted, painted, color coated or organic coated flat steels in coils or not in coils, with or without metallic coated substrate of zinc, aluminium- zinc or any other substrate coating, excluding plates of thickness 6 mm or more. The anti-dumping duty rate fixed on PPGI/color coated flat steel product is at USD 849/mt.
Thus, majority of the steel products on which MIP was withdrawn now falls under the purview of provisional anti-dumping, which is valid for six- months.
Indian Government Extended Provisional Anti-Dumping Duty on HRC & CRC for 2 Months
The government of India had imposed provisional anti dumping duty on HR and CR coil products in August’16 for a period of six months which got expired in February’17. Following this, the government extended it for a period of two months.
Provisional Anti-Dumping duty is imposed on cold rolled flat products of alloy or non alloy steel originating in or exported from China PR, Japan, Korea RP and Ukraine. In case of hot rolled products of alloy or non-alloy steel, provisional anti-dumping duty exists on products exported from China PR, Japan, Korea RP, Russia, Brazil and Indonesia.
Market participants are optimistic that the government will make the provisional anti dumping duty permanent on HRC and CRC for five years and also raise the levels of Non Injurious Prices (NIP). Earlier in August’16, the government had decided NIP for HRC at USD 474/mt, USD 557/mt for HR plates and USD 594/mt for CRC.
Prices in global steel market have increased sharply since the provisional anti-dumping duty was imposed. The above imposed NIP levels stand ineffective in the current situation. Thus, government may consider the final price determination in these two months until further announcements.
Government Imposes Anti Dumping Duty on Chinese Seamless Tubes & Pipes for 5 Years
The government on 17th February 2017, notified imposition of definitive Anti- Dumping Duty on seamless tubes & pipes and hollow profiles of iron, alloy or non-alloy steel (other than cast iron and stainless steel) whether hot finished or cold drawn or cold rolled of an external diameter not exceeding 355.6 mm falling under the heading 7304 originating in, or exported from the People’s Republic of China. The definitive anti-dumping duty imposed is the range of USD 961.33 – 1,610.67/mt on subject goods imported from China.
China has remained largest source of imports of seamless tubes & pipes for India. In FY17 (till Nov’16), India’s import under heading 7304 stood at 0.29 MnT, out of which share of China was 83%.
Source: Steel 360 Magazine Mar’17 Issue