The domestic industry has been reeling under the onslaught of dumping from Russia, Austria, Ukraine, Romania and the Czech Republic. The likely entry of Japan and China portends ominous signs for the domestic manufacturers.

The domestic industry finds itself in an unenviable state. Take the instance of Tisco. It suspended production at its seamless tubes division last year. Remi Metals was unable to start commercial production at its new plant. The rest of the seamless industry including Kalyani Seamless Tubes, Maharashtra Seamless and Indian Seamless Metal Tubes are struggling to stay afloat.

The seamless tube manufacturers blame the prevailing unremunerative prices in the domestic market on theincessant dumping. Companies from these countries diverted their attention to the Indian market after the EU imposed anti-dumping measures against them. From a profit making industry in 1995-96 the seamless tubes industry finds itself in the red. During 1996-97, the industry posted a loss of Rs 20 crore followed by losses of Rs 11 crore in 1997-98 and the trend is likely to continue. They have been able to survive because of diversification into high value-added products.

The total installed capacity in the domestic industry is 3,50,000 tonne per annum and the average domestic production is in the region of 1,40,000 tonne. Capacity utilisation has been barely 40 per cent as 1,30,000 tonne of seamless tubes are being imported per year. These imports at dumped prices have adversely affected the domestic manufacturers.

The Association of Seamless Tubes Manufacturers study indicates that the margin of dumping (the difference between normal value in the exporter's market and the export price) ranges anythingbetween 43 per cent to 128 per cent.

Fearing further damage, the members of the Association of Seamless Tubes Manufacturers had petitioned the anti-dumping cell in the ministry of commerce.

Relief has come to the industry in the form of anti-dumping investigations initiated against the industry's dumping allegations. Investigations are likely to take 10 to 12 months. The association is hopeful of getting some reliefs from the government in the form of provisional anti-dumping duty to offset the adverse effect of dumping.