International BusinessUPDATE:Steel ind demands early imposition of anti-dumping duties
The domestic steel industry has demanded early imposition of safeguard and anti-dumping duties on imports of steel fearing rise in shipments of cheaper alloy from China, which has announced sops on export of such items.
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"Our demand for imposition of safeguard and anti-dumping duties is with the government. Government has to take a call. The earlier it decides, the better it is for the sector," JSW Steel Joint Managing Director Seshagiri Rao told PTI today.
China has announced tax incentives of up to 9 per cent on export of steel products. The move has concerned the Indian steel industry, as China is one of the five countries which constitutes about 65 per cent of India"s steel imports.
Domestic steel makers fear that the revival of demand for the commodity from auto and construction sectors in India may prompt global steel mills, including those from China, to dump their goods here. Steel consumption went up by 6 per cent to 8.22 million tonnes in the country in April-May period.
Besides safeguard and anti-dumping duties, the industry has been demanding an import duty of 20 per cent against the present 5 per cent to check the surge in cheap imports.
"We are not against fair imports, but dumping of goods in the Indian market at prices lower than their actual domestic rates," Mehra said.
Yesterday, Commerce Secretary G K Pillai had said the government is examining the case for imposition of safeguard and anti-dumping duties on cheap steel imports and would initiate action if the Indian steel firms formally lodge a complaint again in the light of the developments in China.
"We are examining this (imposing anti-dumping and safeguard duties) ... We will initiate action if Indian steel companies lodge a formal complaint," Pillai said, adding that the Chinese move to promote its steel exports "definitely strengthens the case for anti-dumping and safeguard duties" on import of such products.
India is a net importer of steel and it saw the arrivals declining by 18 per cent to 5.7 million tonnes during 2008-09. In May, however, steel imports rose by 21 per cent to 5.28 lakh tonnes against 4.35 lakh tonnes over the year-ago period.
Last month, the government had deferred decision for 60 days on a proposal for imposing safeguard duty on key steel items, saying the matter needs to be examined further after taking views of the consuming industry.
Fearing injury from surge in cheap imports amid rising demand, steel majors led by JSW, Essar and Ispat Industries had petitioned the government for levying import restricting measures. The government is still to take a decision on it.
"The domestic industry has taken recourse to proper channel for imposition of safeguard and anti-dumping duties. It is now up to the government to take a decision," Essar Steel Business Group CEO Jatinder Mehra said.