The Hindu Business Line : Anti-dumping duty on cold-rolled steel from US, Japan to stay

THE Designated Authority in the Commerce Ministry has recommended continuation of the anti-dumping duty on imported cold-rolled flat stainless steel products from the US and Japan while withdrawing the levy on such products from the EU and Canada, after undertaking a mid-term review.

In its final findings notification, gazetted recently, the Authority held that the subject goods have been found to be exported from the US and Japan below their normal value, resulting in dumping.

The domestic industry continues to suffer material injury and due to the likelihood of injury to the indigenous industry as a sequel to the persistent dumping, the anti-dumping duty might continue to remain imposed.

However, due to the negative injury margin in respect of imports from the EU and Canada, the anti-dumping duty on EU and Canada might be withdrawn, the Authority said.

As the prices of subject goods have seen volatility during the recent past, the Authority deems it appropriate to recommend fixed anti-dumping duty, following its review.

Thus, in the case of firms exporting cold-rolled flat products of stainless steel of width of 600 mm or more or whether further processed or not from the US, the anti-dumping duty is $445.69 a metric tonne and in the case of firms exporting from Japan, the recommended anti-dumping duty is $305.

While tracing the causal link and likelihood of recurrence of dumping and injury, the Authority found that the demand of the subject goods has been rising.

There was an increase of 71 per cent in demand during the period of probe over 2000-01.

The domestic industry has increased the production capacity in keeping with the rise in demand.

Against the increased production capacity of 90,000 tonnes, the domestic industry achieved a capacity utilisation of 61.61 per cent during the period of investigation.

Its share in total demand also increased to 63.51 per cent from 54.64 per cent. These trends showed that the domestic industry was on the road to recovery.

However, available data on imports showed dumping from subject countries in different magnitude. The improved performance by the domestic industry on parameters such as production, capacity utilisation, sales, improved marked share, and higher productivity and growth could also be ascribed to the anti-dumping duty imposed in 2001 as well as to the general improvement in the state of steel industry the world over, the Authority said.

The domestic industry continued to suffer losses in the sale of subject goods, though the losses have declined markedly. As the dumping of the subject goods continues, withdrawal of anti-dumping duty might lead to intensified dumping and recrudescence of injury to the indigenous industry. Hence, the Authority recommended continuation of anti-dumping duty.

But with regard to the lower duty rule followed by the Authority, it favoured imposition of anti-dumping duty equal to the margin of dumping or margin of injury, which ever is less.

Here, the injury margin in respect of imports from the EU is negative as the landed value of dumped imports is higher than the non-injurious price of the domestic industry for subject goods in the comparison made at the aggregate level of imports.

In the case of firms from Canada too, the Authority found that the injury margin is negative as the landed value of dumped imports is higher than the non-injurious price of the domestic industry for the subject goods in the comparison made at the aggregate level of imports.

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