India's steel exports to the United States might be adversely affected with the US international trade commission (ITC) yesterday finding imports of steel slabs, hot-rolled sheets, cold-rolled sheets, hot-rolled bar and eight other related products threatening the financial health of its domestic producers. "Close to 80 per cent of the tonnage in the steel industry has been found to be injured," ITC said.
Reacting to the development, the Indian Steel Alliance (ISA), under the aegis of the Confederation of Indian Industry (CII), said: "The clubbing of all carbon and alloy flat steel products as a single category by the US ITC would further reduce exports of steel from India as it closely follows the US anti-dumping action on hot rolled and cold rolled steel products."
ISA, comprising major steel producers in the country, went on to add: "This is unwarranted as recently there was no injury determination by Canada." Anti-dumping investigations are already on against cold-rolled steel exports to the US and the finding of injury by US ITC commissioners is likely to be used as an argument in establishing linkage between the two, ISA said.
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Steel Authority of India (SAIL) has decided to adopt a 'wait and watch' policy on the issue.
"We are currently assessing the situation," a SAIL official told Business Standard.
The US ITC is expected to present its 'injury decision' and remedy recommendations to US President George Bush by December 19. Bush will be required to decide on the final plan within 60 days.
Under Section 201 of the US Trade Law, Bush might impose a quota, hike tariff or come up with a combination of both known as a tariff-rate quota to restrict the access of Indian exporters to the US steel market.
The Indian industry will now have to prepare for the pre-hearing briefs on remedy on October 29 and hearing on the remedy will be held in the first week of November.
President Bush launched the Section 201 investigation in June this year following a campaign by US steel workers who have lost thousands of jobs because of a slowdown in the sector.
The US imports around 34 million tonne of steel from different countries including Brazil, Ukraine, China, the European Union and India. India exports around 0.9 million tonne of steel to the US.
However, industry sources have said that US steel importers have criticised the ruling saying it would do nothing to solve the problems facing the domestic steel industry and could lead to a trade war. They also warned import restrictions could severely damage the already fragile global economy by triggering a new round of protectionism around the world.