Industry body urges govt to extend MIP on steel products

Indian Steel Association has asked the government to extend minimum import price (MIP) on steel products, saying its imposition has marginally improved the industry's viability after a long period of subdued prices.
"The Indian Steel Association has urged the government to favourably consider an extension of the minimum import price (MIP) regime pertaining to imports for 173 HS Codes under Chapter 72 of Indian Trade Classification (ITC)...," the body said in a statement.
Sanak Mishra, Secretary General, Indian Steel Association said that while MIP cannot possibly be an all-encompassing framework for a complete turnaround of Indian steel industry, it has certainly provided a cushion against surging imports.

Accelerating imports of predatory prices from steel surplus countries like China, Japan and Korea has been a major concern area for the domestic industry since September 2014.
Post the imposition of MIP in February, the industry has been able to marginally improve viability after a long period of subdued prices and eroded profit margins, the statement said.
Another extension of MIP regime will support the industry to manage high debt levels and in turn reduce the spectre of NPAs with the banking sector.
"Indian steel industry does not see the MIP as perpetual protectionist step but a necessary temporary measure which will allow time for a path recovery of the sector. Alongside trade remedial measures and an enabling environment supported by all concerned ministries within the government, the domestic industry is determined to counter the distress in the sector and serve the public needs for quality steel," the statement added.

In February, the government had imposed MIP on 173 steel products ranging between USD 341 and USD 752 per tonne, giving relief to domestic companies from cheap in-bound shipments, especially from China, Korea and Japan.