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  1. Government extends MIP on 66 iron, steel products for 2 months

Government extends MIP on 66 iron, steel products for 2 months

To protect domestic industries from cheap imports, the government has extended the minimum import price (MIP) on 66 steel products for a period of two months as against 173 items earlier.

By: | New Delhi | Published: August 5, 2016 3:33 PM
The steel industry had been demanding for extension of the MIP. (Reuters) The steel industry had been demanding for extension of the MIP. (Reuters)

To protect domestic industries from cheap imports, the government has extended the minimum import price (MIP) on 66 steel products for a period of two months as against 173 items earlier.

The MIP ranges between USD 341-752 per tonne.

“MIP for 66 (steel products) is extended till October 4 this year,” Director General of Foreign Trade Anup Wadhawan said in a notification yesterday.

The steel industry had been demanding for extension of the MIP.

When asked why the government has reduced the number of products, an official said: “We felt that only these 66 products require protection. The commerce ministry is already investigating dumping of certain steel products.”

The 66 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.

To guard domestic steel producers against cheap in-bound shipments, the government in February had imposed MIP, ranging between USD 341-752 per tonne, on 173 steel products for a period of six months.

On ingots and billets, blooms and slabs, the MIP reads USD 362, USD 352 and USD 341 per tonne, respectively.

On flat-rolled products of iron or non-alloy steel of a width of 600 mm or more, clad plated or coated, the minimum prices will be USD 643 and USD 752 per tonne on different items.

Similarly, bars and rods, hot-rolled in irregularly wound coils of iron or non-alloy steel, the figure stood at USD 449 per tonne and USD 451 per tonne on different products.

Prior to February also, the MIP was imposed for a period of six months.

India’s imports of non-alloy steel rose 29.6 per cent between April-December 2015 to 6.34 million tonne. Its total consumption of non-alloy steel stands at 53.166 million tonne.

Indian Steel Association has asked the government to extend MIP on steel products, saying its imposition has marginally improved the industry’s viability after a long period of subdued prices.

Accelerating imports of predatory prices from steel surplus countries like China, Japan and Korea has been a major concern for the domestic industry since September 2014.

Post the imposition of MIP in February, the industry has been able to marginally improve viability after a long period of subdued prices and eroded profit margins, the association had said.

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