Economy

Govt initiates investigation for continuing anti-dumping duties on steel wire rods from China

Amiti Sen New Delhi | Updated on July 29, 2021

Domestic industry, including RINL, SAIL, fear withdrawal of duties could lead to continuation of dumping, cause injury to local producers

The government has initiated a sunset review investigation on the need for continued imposition of anti-dumping duties on steel wire rods originating in China. This follows concerns raised by the domestic industry, including SAIL and RINL, about possible continuation or recurrence of dumping of the items on withdrawal of the duties.

In a gazette notification put up on July 28, the Directorate General of Trade Remedies (DGTR), under the Commerce & Industry Ministry, has said that it had initiated a review as the domestic industry has provided prima facie evidence substantiating the likelihood of continuation or recurrence of dumping and injury to the domestic producers in case the anti-dumping duties were allowed to lapse.

“The domestic producers namely, RINL, SAIL and JSW Steel Limited have provided the prescribed information in the application. Further, Tata Steel Long Products Limited and Jindal Steel and Power Limited have supported the application,” the notification stated.

Anti-dumping duties are imposed when it is conclusively proved that a particular item is being exported at a price lower than what is prevailing in the domestic market of the exporter and it is leading to disruption in the domestic market causing injuring to local producers.

Preliminary anti-dumping duties on steel wire rods from China were first imposed in November 2016. After detailed investigation, definitive anti-dumping duties of $546 per tonne were imposed in October 2017 for five years from when preliminary duties were imposed. The anti-dumping duties would, therefore, lapse this year-end if they are not renewed.

“There is prima facie evidence of likelihood of continuation/recurrence of dumping and injury to the domestic industry in the event of cessation of duty, considering the volume and price of imports of subject goods (steel wire rods) from China, positive dumping margin, significant unutilised capacities in subject country, existence of trade remedial measures imposed by other countries against the subject country, potential trade diversion, price attractiveness of Indian market and reduction of basic custom duty by India on imports of product under consideration,” according to the notification.

Steel wire rods, made from both alloy or non-alloy steel, are used in many applications and sectors such as automotive components, welding electrodes, springs, wire mesh, fasteners including nuts and bolts, nails, railway sleepers, general engineering, binding wires for construction industry, armoured cables etc.

The sunset review investigation will undertake likelihood analysis of dumping and injury. A period of investigation of 18 months from October 1, 2019 to March 31, 2021, has been fixed. All affected parties, including exporters of the items and importers and users of the products, have been given 30 days to give their submissions on the matter.

Published on July 29, 2021

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