Events and Updates

Title: Setback for steel producers as safeguard duty plea against imports rejected

Posted on: 22nd August 2019
Source: cnbctv18.com

The Indian Steel Association had filed a petition for 25 percent safeguard duty on import of various steel products.

The petition sought protection for steel manufacturers in a move similar to those taken by governments in the United States, Canada, and Turkey among others, to safeguard their domestic producers from steel dumping.

The risk of softening of prices, an increase in raw material prices and weak demand is anticipated to weaken the steel market in India.

 

The petition filed by the Indian Steel Association for 25 percent safeguard duty on steel importshas been rejected by the directorate general of trade remedies (DGTR) on the grounds that the imports of the commodity are not causing significant damage to the steel industry in the country, people aware of  the development told CNBC-TV18.

 

The Indian Steel Association had filed a petition for 25 percent safeguard duty on import of various steel products’ like semis, flats, longs, pipes, tubes, stainless steel, and railway ancillary products from countries, including South Korea, Japan, China, and Association of Southeast Asian Nations (Asean).

 

The petition sought protection for steel manufacturers in a move similar to those taken by the governments in the United States, Canada, and Turkey among others, to safeguard their domestic producers from steel dumping.

 

The industry is worried about an economic and demand slowdown in the infrastructure sector as government spending has not picked up. Continued tepid sales in the automobile sector is another cause of worry for the domestic steel producers.

 

The risk of softening of prices, an increase in raw material prices and weak demand is anticipated to weaken the steel market in India.

 

During the April-July period, exports of finished steel products saw a dip of 23.5 percent at 1.47 MT (million tonne) and imports were down 6 percent at 2.49 MT in the same period making India a net importer of steel.

 

The World Steel Association believes India’s steel industry will see a growth of 7 percent in calendar years 2019 and 2020.