The Indian government has extended anti-dumping duties on hot-rolled and cold-rolled flat steel products from China and South Korea by two months. This extension will help protect India's domestic steel industry from cheap imports. While protectionist measures cannot last indefinitely, the government may also impose long-term anti-dumping duties on up to 124 steel products within the next two months before temporary duties expire to continue supporting the industry. However, the industry will ultimately need to strengthen itself to face international competition on its own.

1. After the withdrawal of MIP on 19 colour-coated steel products, the
government extended by two months the anti-dumping duties on hot-
rolled and cold-rolled flat products of alloy or non-alloy from
specified countries including China and South Korea. The safeguard
measure has been continued to protect India from cheap imports.
Government continues with safeguard measures
The government recently discontinued with the extension of Minimum
Import Price (MIP) on 19 colour-coated steel products. The Steel
Minister said that the protectionist measures like MIP and anti-
dumping duty cannot continue indefinitely.
Nevertheless, the government extended by two months the anti-
dumping duties on hot-rolled and cold-rolled flat products of alloy or
non-alloy steel from countries including China and South Korea.
Interestingly Pakistan has also imposed anti-dumping duties on
imports from China at almost the same time.
The duty was earlier imposed in August 2016 for a period of six
months. An anti-dumping duty of $474-557 per tonne was imposed on
'hot-rolled flat products of alloy or non-alloy steel' import from China,
Japan, South Korea, Russia, Brazil and Indonesia. The DGAD had
concluded that conclusion that these goods have been exported to
India from these countries below normal value which had affected
domestic industry.
Imports of HR and CR coils
Of the total steel imported in India during 2015-16 imports of HR and
CR coils was 47%. After imposition of these duties (August 2016) the
imports of HR and CR coils has come down and in April-October 2016,
the share of these HR and CR coils was around 36% of the total steel
imported during the period.
February 9, 2017 I Industry Research
Steel Industry: Anti-
Dumping duties now?
Contact:
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Chief Economist
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91-022-67543490
Mradul Mishra (Media Contact)
mradul.mishra@careratings.com
91-22-67543515
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2. Industry Research I Steel Industry
2
Chart 1
Share of HR and CR coils during April-October 2016 (thousand tonnes)
Source: CMIE
Chart 2 Chart 3
HR coil imports (thousand tonnes) CR coil imports (thousand tonnes)
Source: CMIE Source: CMIE
With this share of HR and CR coils in the total steel imports, the move to extend the anti-dumping duties on hot-rolled and
cold-rolled flat products of alloy or non-alloy steel will benefit the industry.
It is also believed that India has a strong case for imposing long-term anti-dumping duties on up to 124 steel products in the
next two months. Also it has been stated that the long-term anti-dumping duties could be imposed on a case-by-case basis
within the next two months before the temporary anti-dumping duties expire.
Concluding remarks
o The extension of antidumping duties by two months will benefit the steel industry
o If the government considers imposing long-term anti-dumping duties on up to 124 steel products, the industry will
continue to get protection from the government.
o However, it cannot be expected that this protection will last forever and the industry has to gear itself to face
competition in the normal course.
1,323.90
279.4
2,769.60
HR coils CR coils Others
347.2
404.1
298.5
471.5 470.8
436.6
335.3
201.7 192.9
230.6
188.6
166.7 155.4
188.1
0
100
200
300
400
500
Apr May Jun Jul Aug Sep Oct
2015 2016
88.3 90.4
78.2
123.9
102.5
112
144.5
42.4
74.3
28.7
39.5
25
51.6
18
0
50
100
150
200
Apr May Jun Jul Aug Sep Oct
2015 2016

3. Industry Research I Steel Industry
3
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