The government is planning to recommend a safeguard duty to contain imports of cheaper steel from abroad, especially from China.It is learnt that the move has been planned to pacify domestic steel companies, who are campaigning against a surge in cheaper imports of both long and flat steel products from China flooding the local markets. Steel produced in other nations like Japan, South Korea, Ukraine is also finding its way into the country.

Chief executives of six major utilities on Tuesday evening met steel and mines minister Narendra Singh Tomar to convey that while they are battling steep rise in input costs and sluggish market conditions, the rise in cheaper steel imports has aggravated their woes.
A source privy to the meeting said, “A general consensus emerged during the meeting that a credible way to contain the cheaper imports would be to impose a safeguard duty.”

The steel makers had told the ministry last month that imports from China during the second quarter of FY15 exceeded “the historic (quarterly) high” of 90 million tonnes and there is a pressing need to contain it. They also suggested doubling the import duty on value-added steel products to 15 per cent ad-valorem from 7.5 per cent.

The chief executive of a steel firm said the executives expressed apprehensions that if the government withdraws the duty in the General Budget next year, then it would be a long wait. Separately, the steel ministry has last week sought the finance ministry’s intervention in asking officials from customs and other departments to ascertain the quality of imported steel before allowing entry.

The steel makers have also alleged that the Chinese try to calibrate their product mix to bypass the defined quality standards under the Quality Control Order 2012 and import classification.

SAIL chairman CS Verma told this newspaper that China is exporting a category of thermo-mechanically treated (TMT bars), used mostly by the realty sector and its producers are availing lower duty and export benefits.

He said Asian countries such as Thailand have already taken measures to contain Chinese exports, and it is time India did so too.

Chief executives of six major companies met the steel minister over cheaper imports denting their prospects in a climate of rising input costs and sluggish market conditions
 Chinese imports have touched 90 MT and steelmakers have urged the ministry to contain it. Chinese steel companies get export benefits putting Indian steel companies at a disadvantage

Source:- indianexpress.com