Domestic producers of non-ferrous metal products, mainly small and medium units, are facing severe competition from China due to heavy dumping of finished products. Chinese producers are dumping finished products including pipes, tubes, strips and rods into the Indian market at any cost. ?The major reason for dumping of non-ferrous metal products into the country is due to an increase of export incentives provided by the Chinese government on most metal products over two-three months ago,? Mahendra Shah, senior vice-president, Bombay Metal Exchange Ltd, told FE. The Chinese government has recently increased its incentives to exporters on most metal products to 10%-15% from an earlier level of 3%-7%.
Domestic units are facing unhealthy competition due to the dumping of excess finished products. ?Most of the small and medium manufacturers are currently running at 30% – 40% capacity. If such a situation persists, these entrepreneurs will have no option, but to close down and this will lead to huge layoffs and severe unemployment,? he said. ?We have requested the concerned ministries to maintain at least a 10% differential duty between raw materials and finished products. We also suggested that the government reduce the import duty on raw materials and maintain at least a 10% duty on finished products,? he said.
