The Centre has initiated an anti-dumping probe against imports of copper tubes and pipes from ASEAN members — Malaysia, Thailand and Vietnam — into India. This has kindled hopes of a demand revival for domestic manufacturers of copper tubes. The industry has seen capacity utilisation dwindle to a low of about 18 per cent in the past four-five years.

As against the total annual demand of about 85,000 tonnes for copper tubes and pipes and installed capacity of about 82,000 tonnes, imports are to the tune of about 69,000 tonnes — leaving over 80 per cent of the domestic capacities idle.

Talking to BusinessLine , Sandeep Jain, President, Bombay Metal Exchange (BME) said that of the 69,000 tonnes of total imports of these products, about 63,000 tonnes or approximately 74 per cent of the total demand was met through imports from ASEAN nations.

“In the last five years, 20 large manufacturers of copper tubes have shut operations as they couldn’t withstand the competition from cheap imports. They had about 70 per cent of the industry’s total capacity,” said Jain.

The duty difference between the raw material and finished products is about 5.5 per cent, which makes finished products’ imports cheaper to that extent compared to domestically manufactured products, added Jain.

The BME, a representative body of non-ferrous metals trade and industry in India, was the one that had appealed to the Directorate General of Trade Remedies under Ministry of Commerce and Industry for the probe.

Targeted production

Data shows that during the past four years, imports from Malaysia, Thailand and Vietnam collectively accounted for more than 90 per cent of total imports of copper pipe and tubes, broadly categorised under HS Codes 74112100, 74112200 and 74112900. These products are largely used in air-conditioning and refrigeration systems. It is seen that these countries have encouraged local production despite no additional demand in their domestic markets. This indicates that the production was targeted to feed the Indian market and gain benefit, say industry sources.

Following the government probe, Jain stated that prices may go up in the domestic markets. “There is a possibility of an anti-dumping duty on imports of finished products. But there is also a possibility that the government may cut duty on raw materials. If that happens, then the prices will remain at par with the imported rates,” he said.

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