1. As MIP expires, govt protection for steelmakers set to stay

As MIP expires, govt protection for steelmakers set to stay

Though minimum import prices (MIPs) for steel products will expire on August 5, domestic primary steelmakers will continue to enjoy protection from imports...

By: | New Delhi | Updated: August 3, 2016 6:45 AM

The government had in February imposed MIPs on 173 steel products including HR coil; MIP s range between $341-752 per tonne while it was $450 for HR coil, the primary product more in currency.

The government had in February imposed MIPs on 173 steel products including HR coil; MIP s range between $341-752 per tonne while it was $450 for HR coil, the primary product more in currency.

Though minimum import prices (MIPs) for steel products will expire on August 5, domestic primary steelmakers will continue to enjoy protection from imports in the form of anti-dumping duties, reports Surya Sarathi Ray in New Delhi.

The Directorate General of Anti-dumping has recommended provisional duties in the range of $69-152 per tonne on hot-rolled coil and “HR not in coil” from specified producers in China, Japan, Korea, Brazil, Russia and Indonesia, after concluding these items are being imported into India at below normal (cost) price.

“Imposition of anti-dumping measures would remove the unfair advantages gained by dumping practices, would prevent the decline of the domestic industry and help maintain availability of wider choice to the consumers of the subject goods,” the DGAD said in a statement.

The recommendation following came after petition filed by domestic majors such as SAIL, Essar Steel and JSW Steel on imports from Korea, Japan, China, Russia and Brazil, etc, on complaint that there had been widespread dumping in the range of up to 105% (margin), hurting domestic firms and eroding their capacity utilisation.

Gr3

The government had in February imposed MIPs on 173 steel products including HR coil; MIP s range between $341-752 per tonne while it was $450 for HR coil, the primary product more in currency. Once the dumping duties are imposed, the MIPs will become redundant in case of HR coil. India has been under pressure in multilateral fora to remove the MIPs seen as an outdated measure that is WTO-incompatible. Shortly after MIP was imposed, steel imports started falling and the domestic industry’s sales and margins picked up. But, after correcting positively till May, steel prices became very volatile.

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