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The Ministry of Commerce has recommended anti-dumping duty on steel products imported from Japan, China, Korea, Brazil, Indonesia, Russia and Ukraine for five years, insulating the domestic steel industry from predatory priced imports.
On Tuesday, the Directorate General of Anti Dumping under the Ministry of Commerce issued a final recommendation to fix the import price of hot rolled coil at $489 a tonne, hot rolled plates and sheets at $561 a tonne and cold rolled coils at $576 a tonne.
The anti-dumping duty will be the price difference between the landed cost and the price indicated by the Centre, said the order.
The definitive anti-dumping duty recommended by the Ministry is completely WTO-complaint and cannot be contested by the exporting countries.
The DGAD concluded that there has been a significant increase in the volume of dumped imports from these nations.
Due to the dumping, the domestic industry has suffered material injury, the DGAD said in a notification today.
On the issue raised by the Government of Japan on the methodology of calculation of reference price, the Directorate said the calculation is done keeping the concept of lesser duty rule followed by the Indian authority.
The move will provide a long lasting relief for the steel industry which has been plagued by cheap imports and fall in domestic demand.
The government had initiated investigation against cheap imports on petition filed by SAIL, Essar Steel and JSW Steel.
Last April, it recommended a provisional anti-dumping duty which led to revival in domestic steel industry, with production increasing 8.5 per cent to 97 million tonnes in FY-17.
Concerned over rising bad debt in the industry, the government had initiated various measures including minimum import price and safeguard duty to protect the domestic industry, but it was contested by exporting countries in the global forum.
H Shivramkrishnan, Director (Commercial), Essar Steel, said fast-tracking of the final anti-dumping order within one year of filing of petition conveys a clear positive signal that the government is proactive to the domestic industry concerns.
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