The government has extended the minimum import price (MIP) on 66 steel products for a period of 2 months as against the 173 items earlier.
The MIP ranges between US$341 - US$752 per ton.
“The MIP for 66 (steel products) is extended till October 4 this year,” Director General of Foreign Trade Anup Wadhawan said in a notification.
The steel industry had been demanding extension of the MIP.
When asked why the government has reduced the number of products, sources said, “We felt that only these 66 products require protection. The commerce ministry is already investigating dumping of certain steel products.”
The 66 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.
To guard domestic steel producers against cheap in-bound shipments, the government in February had imposed the MIP, ranging between US$341 to US$752 per ton, on 173 steel products for a period of 6 months.
On ingots and billets, blooms and slabs, the MIP is at US$362, US$352 and US$341 per ton, respectively.
On flat-rolled products of iron or non-alloy steel of a width of 600 mm or more, clad plated or coated, the minimum prices will be US$643 and US$752 per ton on different items.
Similarly, for bars and rods, hot-rolled in irregularly wound coils of iron or non-alloy steel, the figure stood at US$449 per ton and US$451 per ton on different products.
Earlier, the minimum import price was imposed for a period 6 months.
India’s imports of non-alloy steel rose 29.6 per cent between April-December, 2015 to 6.34 million ton. Its total consumption of non-alloy steel stands at 53.166 million ton.
The Indian Steel Association has asked the government to extend the MIP on steel products, saying its imposition has marginally improved the industry’s viability after a long period of subdued prices.
Accelerating imports of predatory prices from steel surplus countries like China, Japan and Korea has been a major concern area for the domestic industry since September 2014.
Post-imposition of the MIP in February, the industry has been able to marginally improve viability after a long period of subdued prices and eroded profit margins, the association said.
Earlier, a government statement said India will impose a provisional anti-dumping duty on imports of hot-rolled steel products. The recommendation by the Directorate General of Anti-Dumping & Allied Duties, the government arm that recommends duties, is aimed at shielding domestic steel manufacturers from cheap imports of finished products.
The DGAAD has proposed a floor price on imports of hot-rolled flat products in the range of $474-$557 per ton. The anti-dumping duty will be the difference between the price of imported products and the specified floor prices.
In its recommendations, the DGAAD has singled out companies from South Korea, Japan, China, Indonesia and Brazil, and proposed the duty on imports from these countries.
The government body has sought comments on its preliminary findings within 40 days and may revise its stance, taking into account views from stakeholders. The provisional anti-dumping duty will come into effect once the government formally notifies the tax.
The DGAAD was investigating complaints from domestic steel manufacturers – Essar Steel, JSW Steel and government-owned Steel Authority of India Ltd. The manufacturers had filed a joint application for initiation of anti-dumping investigation concerning imports of “hot-rolled flat products of alloy or non-alloy steel”.