Centre mulls MIP on colour-coated steel

The Ministry of Commerce and Industry has recommended a minimum import price of $849 a tonne on various colour-coated steel products, imported from China and the European Union.

The preliminary finding submitted to the Finance Ministry follows an investigation over a complaint filed by JSW Steel and Essar Steel on rampant increase in import of colour-coated and pre-painted flat products of alloy or non-alloy steel.

H Shivram Krishnan, Director (Commercial), Essar Steel, said that the preliminary findings and recommendations demonstrate the dumping of steel by various countries including China and the injuries inflicted on the domestic steel industry.

The quick action taken by the Centre reflects their commitment to stem the dumping of steel into the country, he said.

The Commerce Ministry has sought comments from interested parties – including exporters, importers, and various industry users – on the recommendations within 40 days. After examining the submissions made and issues raised, the Ministry has concluded that an injury has been caused by the imports of colour-coated steel from China and the EU at a price below the normal value of the goods. The purpose of anti-dumping duties is to eliminate the injury caused to the domestic industry by the unfair trade practices of dumping, so as to re-establish a situation of open and fair competition in the Indian market. Imposition of anti-dumping measures will not restrict imports from these countries in any way, and therefore, will not affect the availability of the products to the consumers, it said.

There has been a significant increase in the volume of dumped imports from China and Europe, which has risen significantly compared to consumption and production in India. Dumped imports have had significant adverse impact on domestic prices of these products. Low-priced dumped imports have forced the domestic industry to fetch a market price that could not even cover its cost.

The domestic industry is suffering significant price under-cutting and under-selling. The preliminary findings have noted that dumped imports have adversely impacted the performance of the domestic industry in respect of capacity utilisation, inventories, market share, profits and cash profits.

Inventories with the domestic industry increased and the profitability of the domestic industry has been drastically affected. This is evident from the fact that the losses suffered by the domestic industry have significantly increased, it said.

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