The Directorate General of Safeguards (DGS) has initiated a probe into imports of HR sheets and plates after it found prima facie that these imports have seen sudden increase in recent past.
Domestic steelmakers such as SAIL, Essar Steel, JSW and JSPL had on October 28 urged the DGS for immediate imposition of the import barrier for a period of four years. Safeguard duty imposed in mid-September on HR Coil for 200 days is already in place.
Domestic firms have contended that as a result of rising imports their capacity utilisation has been squeezing from 45% in 2012-13 to 38% in 2014-15. This fiscal it is likely to come down further to 37%. Their profitability has also come down significantly.
“The domestic industry has also requested for imposition of provisional safeguard duty in view of steep deterioration in performance of the domestic industry as a result of increased imports,”DGS said in the notice.