The Directorate General of Anti-Dumping & Allied Duties (DGAAD) has initiated anti-dumping investigation into dumping of hot rolled coils, sheets and plates (including plate mill plates) into India.
The six countries covered in the investigation are China, Japan, Korea, Brazil, Indonesia and Russia, according to a statement from Essar Steel.
DGAAD has prima-facie found sufficient evidence of dumping of the above mentioned steel products by these countries which have caused significant injury to the domestic steel industry.
The investigation has been initiated by DGAAD on the basis of the petition filed by Essar Steel India, SAIL & JSW Steel, and supported by Tata Steel and Jindal Steel & Power.
The products covered under investigations are hot rolled coils of width upto 2100mm and thickness upto 25mm, hot rolled sheet & plates of a width upto 4950 mm and thickness upto150 mm. All grades including API are covered in the Product scope. The period of investigation is July – December 2015.
Speaking on this issue, H. Shivramkrishnan, Chief Commercial Officer, Essar Steel India, said it is a very important step taken by the DGAAD, who after thorough review of the petition has found substantive evidence of dumping and injury to the domestic steel industry. The expediting of the provisional anti-duty is the next milestone which will ensure that such predatory steel imports are curtailed.
The HR steel imports from the subject countries in FY 2013-14, which was 1.46 million surged more than 275% to 5.5 million tons in FY 2015-16 (Annualized based on July-Dec15 figures).
According to the petitioners, the Dumping margins for the six countries are estimated as follows:
Sr. No. |
Name of Country |
Dumping Margin |
1 |
China |
80% |
2 |
Japan |
50% |
3 |
Korea |
50% |
4 |
Russia |
80% |
5 |
Brazil |
120% |
6 |
Indonesia |
60% |
The Domestic industry has been adversely impacted by the dumping of steel into India which is reflected in the losses reported in the Q3FY16 financial results.
The steel companies have submitted evidence to the Authority regarding injury having taken place as result of dumping by the six countries in terms of increase of imports in absolute terms and in relation to domestic production and domestic demand. This has resulted in deterioration of sales, production, capacity utilization, market share and returns on capital employed.
The DGAAD has also invoked a very significant clause of Retroactive Duty. Assuming that the provisional AD Duty is levied by June 15, the retroactive clause will apply on import arrivals 90 days prior to the date of provisional findings which will be April 15.