India has launched an anti-dumping probe into imports of hot rolled flat products originating in or exported from Vietnam after complaints that they were being sold at low prices, hurting the interest of the domestic steel industry.
Indian steelmakers have been flagging cheap imports from China rerouted through Vietnam under the India-Asean free trade agreement for a while now. Imports at lower prices have been impacting domestic steel prices.
The move came after Indian Steel Association (ISA) — on behalf of domestic steel producers, namely, JSW Steel and ArcelorMittal Nippon Steel India (AM/NS India) — filed an application seeking a probe into hot rolled flat products of alloy or non-alloys steel coming from Vietnam.
A notification issued by the commerce ministry’s Directorate General of Trade Remedies (DGTR) dated August 14, said that on the basis of the duly substantiated written application submitted by the domestic industry, there was prima facie evidence concerning the dumping of the product under consideration originating in or exported from Vietnam and the consequential injury and threat of injury to the domestic industry.
“The authority hereby initiates an anti-dumping investigation,” it said.
The product under consideration is “hot rolled flat products of alloy or non-alloy steel, not clad, not plated or coated, of a thickness up to 25 mm and width up to 2100 mm”.
The period of investigation is January 1, 2023 to March 31, 2024 (15 months).
The applicants have requested for retrospective imposition of the anti-dumping duty.
They claimed that because of the adverse volume and price effect of the dumped imports, its performance has deteriorated in respect of cash profit, market share, profit and return on investment.
Major steel producers have been aligning their expansion plans in tune with India’s target of achieving 300 million tonne (mt) steel capacity by 2030-2031.
According to an ICRA report in June, 27.5 mt of new steelmaking capacity is expected to come on stream between FY25 and FY27. Post-Covid, about 26.3 mt of capacity was commissioned between FY21 and FY24.
Major steel producers who are putting in billions of dollars in capacity addition have been raising concerns that cheap imports could impact cash flows and thereby weigh on the expansion plans.
A CRISIL report in June noted that India became a net importer of steel in fiscal 2024, with an overall steel trade deficit of 1.1 mt, marking a shift in status as a net exporter since fiscal 2017.
While China led the pack, South Korea and Japan maintained their export volumes to India. Vietnam made it to the list of top exporters, with its exports to India rising 130 per cent on-year, the CRISIL report mentioned.
First Published: Aug 16 2024 | 8:20 PM IS