Steel companies are bracing themselves for another setback on the export front following the decision by France, Spain and Italy to slap a provisional anti-dumping duty on Indian producers of stainless steel bars from May 26 onwards.
The provisional duty will be followed by the imposition of a final duty on July 26. Industry circles are keen on blocking the process at the provisional duty stage as they feel that "the provisional duty is likely to become permanent".
The three European countries had notified the government of the proposed anti-dumping duty on March 26 following which inspectors from the concerned countries had come to India to conduct investigations.
The date for the provisional duty has been set on the basis of these inspections.
The steel ministry met domestic stainless steel producers on May 18 to take stock of the proposed measure.
The producers have asked the steel ministry-promoted, Steel Exporters Forum, to address the problem as the commerce ministry is yet to set up a special cell for addressing anti-dumping issues affecting Indian producers in overseas markets.
The three countries have altogether slapped anti-dumping duties on products of 17 countries, but industry circles say the duty is expected to be the highest especially in the case of Indian products.
"These countries are fighting the anti-dumping case through different lobbies instead of making a concerted effort, which would have been more effective," sources said.
During 1997-98, the domestic stainless steel sector exported products worth Rs 173.7 crore.
The Steel Exporters Forum has taken up the issue with embassies of the concerned countries.
It is believed that Indian trade commissions are negotiating with the authorities in those countries.
The Indian Stainless Steel Development Association has is also deliberation the issue with its counterparts in France, Spain and Italy.
The latest threat will only add to the woes of Indian producers, who are already facing anti-dumping charges on several products.
Last year, Tata Steel and Essar Steel were hit by anti-dumping duties on hot rolled products. Domestic producers also face quantitative restrictions imposed by countries like the United States on several products.
