Indian government has already applied various tools in order to safeguard its domestic steel industry from low cost imported steel products entering into the country. As we are aware, government had implemented Minimum Import Price (MIP) on steel products including bar and rod under chapter/HS code 7213, 7214 and 7227 in the range of USD 449- 455/mt in early February this year which will expire in the 1st week of Aug’16. Meanwhile, upon an application filed by Indian steelmakers, the government is also considering to take another step, that of imposing anti-dumping duty on wire products, especially coming from China.
In a recent notification issued on 2 June’16 by the Directorate General of Anti- Dumping and Allied Duties (DGAD), under the arms of Indian government, started the anti- dumping investigation related to import of ‘Wire Rod of Alloy or Non-Alloy Steel’ originating or exported from China.
As per DGAD, “And whereas, the Authority prima facie finds that sufficient evidence of dumping of the subject goods, originating in or exported from the subject country, injury to the domestic industry and causal link between the alleged dumping and the injury exist to justify initiation of an anti-dumping investigation, the Authority hereby initiates an investigation into the alleged dumping causing consequent injury to the domestic industry in terms of the Rules, to determine the existence, degree and effect of dumping and recommend the amount of anti dumping duty, which if levied, would be adequate to remove the injury to the domestic industry.”
Products under Consideration
The products under consideration in the present investigation are bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel or alloy steel (commonly known as ‘wire rods’). These products are of prime and non-prime category in all sizes. These products conform to various qualities of steel, including but not limited to electrode, free cutting, forging, cold heading, low/medium/high carbon steels, drawing, ball bearing steel, case hardening steel, spring steel, corrosion resistant steel, weathering steel, structural steel and many other qualities of steel.
The following products, however, are not included in the scope of the product under consideration.
A) Bars and rods containing indentations, ribs, grooves or other deformations produced during the rolling process falling under traffic item 72131090 (commonly known as rebars or TMT bars)
B) Bars and rods of stainless steel falling under Tariff Heading 7221
C) Bars and rods of high speed steel falling under Tariff Item 72271000
The application has been filed by leading steel producers like SAIL, RINL (Vizag Steel), Usha Martin and JSW Steel. The same application is also supported by other domestic producers like Tata Steel and Jindal Steel & Power Limited, as per the notification.
Import of wire products on which the government imposed MIP under chapter/HS code 7227 has been continuously falling since Feb’16. In Feb’16, India imported about 65,000 mt of wire in the mentioned code/chapter. Since then, the import has fallen to 20,500 mt in May’16.
MIP has helped curb import of the product significantly. However, seeing as MIP’s implication period stands to expire shortly with decision upon its extension pending, another measure such as the anti-dumping duty in place may prove to be a prudent measure.
Source: Steel 360 July’16 Issue