India has initiated a probe into alleged dumping of a certain variety of steel products by four countries, including China, Japan and Korea, following a complaint by major producers.
Steel Authority of India (SAIL), JSW Steel, Essar Steel India and JSW Steel Coated Products have filed a petition before the Directorate General of Anti-Dumping and Allied Duties (DGAD) for initiation of anti-dumping investigation.
These players have suggested for imposition of anti-dumping duty on the alleged dumped imports of 'cold rolled / cold reduced flat steel products of iron or non-alloy steel, or other alloy steel, of all widths and thickness, not clad, plated or coated' originating in or exported from China, Japan, Korea and Ukraine.
In a notification, DGAD has said it has prima facie found sufficient evidence of dumping of the goods from these countries
"...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," it said.
These steel items are used in many applications and sectors such as automotive, appliances, furniture, electrical panels, general engineering, capital goods, construction, packaging including drums and barrels, coating and plating including galvanizing, color coating and tin plates.
DGAD is the nodal agency under the Commerce Ministry for such investigations. It recommends the duty, while the finance ministry imposes it.
The period of investigation is July-December 2015. However, for the purpose of analysing injury, the data of 2012-13, 2013-14, 2014-15 and April-Dec 2015 will also be considered, the notification added.
As per available information, the four producers accounts for a major proportion of the total domestic production in India.
The move assumes significance as the sector is facing challenges due to cheap steel imports. The government has already taken steps such as imposing minimum import price and safeguard duty to guard domestic producers.
Speaking on this issue, Essar Steel India Chief Commercial Officer H Shivramkrishnan said it is a very significant step taken by the DGAD.
Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. It is not a measure to restrict imports or cause an unjustified increase in cost of products.
