The benefit of this measure will go to Ispat Metallics which has to importcoke and the mini blast furnaces which are merchant pig iron producers.

However, ferro alloy producers and caustic soda producers who also importmet coke from China, will have to pay the dumping duty. They are nowcontemplating moving the government for doing away with the measure asindigenous coke is not suitable for their operations.

Sources within the ferro alloy industry say that they are going to ask thegovernment to remove anti-dumping from the ferro alloy industry as it alsocomes under Chapter 72 of custom duty levies, along with the pig iron andsteel industry. The ferro alloy industry also contends that the pig ironproducers and steel producers through the blast furnace route are thelargest importers of Chinese met-coke and if dumping duty for them isremoved, there exists no case for dumping at all. The fortunes of themerchant pig iron producers have been improving due to rise in domesticprices and demand. The auto industry has been in a boom and this hasreflected in the better demand for pig iron. Further due to better prices inthe world market, integrated steel producers like Vizag Steel have beenexporting their product leaving a greater share of the domestic market formerchant pig iron producers with mini blast furnaces.

There has also been a shortage of pig iron as seven furnaces with a capacityof nearly 1.2 million tonnes has been closed for a long time. Other furnaceshave reduced their production.

Export prices of pig iron improved from a round $80 - $90 per tonne f.o.b inApril 1999 to $120 - $125 f.o.b per tonne in May 2000, which givesincentives to plants like Vizag and Bhilai to resume exports of pig iron.

Local prices of pig iron ex-factory inclusive of excise duty also haveincreased from Rs 7100 per tonne to around Rs 8300 - Rs 8400 per tonneduring the period April 1999 - May 2000.

However, prices of Chinese met coke were increasing owing to therestrictions placed on imports from China. Only a few producers could exportfrom China. Prices of met coke increased to $87 - $90 CIF from China againstearlier prices of $80 per tonne. Some were quoting even $95 to $100 but nowwith the dumping duty removed it will give a lot of relief to the pig ironproducers.