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19-08-2024
NEW DELHI: The probe covers hot-rolled flat products of alloy or non-alloy steel originating in or exported from Vietnam, according to a notification by the directorate general of trade remedies (DGTR). The products fall under the HS codes 7208, 7211, 7225 and 7226.
The Indian Steel Association had filed an application on behalf of domestic steel producers JSW Steel and ArcelorMittal Nippon Steel, seeking a probe into imports from Vietnam, according to the DGTR, which is the government’s investigative agency.
The steelmakers allege the products are being imported at “dumped prices” and have sought an AD duty, claiming they pressure local prices and hurt domestic producers’ market share, profits and return on investment.
The DGTR said it has considered information provided by the steelmakers to assess injury to the domestic industry, noting an increase in the volume of imports from Vietnam and the depressing effect on domestic prices.
“There is sufficient prima facie evidence that the domestic industry has suffered material injury and there is a threat of injury due to dumped imports from the subject country to justify the initiation of the anti-dumping investigation,” the agency said.
Finished steel imports from Vietnam more than doubled on the year to 737,000t in the April 2023-March 2024 financial year, according to data from the steel ministry’s joint plant committee. That accounted for nearly 9pc of India’s total finished steel imports.
The period of investigation is from 1 January 2023-31 March 2024, according to the DGTR. Steelmakers have requested a retrospective imposition of the AD duty, citing the risk of “irreparable damage” to the domestic industry if imports are not restricted immediately, the agency said.
There was no mention of China in the DGTR’s notification, although Indian steelmakers have also sought curbs on imports from China, which was the top supplier of finished steel to India in April 2023-March 2024.
Import bookings have also increased in recent months, which, coupled with seasonally weak demand during monsoons, has weighed on domestic HRC prices since mid-June. The Argus weekly Indian domestic HRC assessment for 2.5-4mm material was 50,000 rupees/t ($595/t) ex-Mumbai on 16 August, down by Rs3,750/t, compared with 14 June.
Meanwhile, India’s steel mills, alarmed by a sharp rise in imports, have repeatedly called for government interventions and safeguard measures. The federal Ministry of Steel has resisted such calls, citing strong local demand.
China was a top exporter of steel to India in recent months, alongside South Korea. Major Indian steel producers such as Tata Steel (TISC.NS), opens new tab have flagged Chinese imports as a “growing concern.”
India’s finished steel consumption jumped 10.5% to a six-year high at 23 million tons in April-May, reflecting buoyant demand for the alloy in one of the world’s fastest-growing economies. Rapid economic growth and higher infrastructure spending have turned India into a lucrative market for Indian and global steel makers, particularly with steel demand slowing down in Europe and the United States.
India was a net importer of finished steel during the previous fiscal year that ended in March. The country imported 8.3 million metric tons of finished steel, up 38.1% from the prior year.
The country’s finished steel exports fell to their lowest in at least six years. Overseas shipments of steel totaled 0.9 million tons between April and May, down 39.6% year-on-year, the data showed. (Int’l Monitoring Desk)
