Posted on 12 Sep 2024
India’s Ministry of Finance has extended the countervailing or anti-subsidy duty on the import of welded steel pipe and tube originating or exported from China and Vietnam for five years, according to a government notification.
The finance ministry cites injury to the domestic steel industry as the reason for the subsidy duty extension, Kallanish notes. The anti-subsidy duty was originally imposed in September 2019.
In June, the Indian commerce ministry’s investigation body, the Directorate General of Trade Remedies (DGTR), recommended the continuation of the countervailing duty on welded stainless steel pipe from China and Vietnam, in order to protect Indian domestic players in the segment (see Kallanish passim).
India has been facing increasing pressure in the domestic steel sector amid rising cheaper imports and dumping-related issues.
The country turned into a net finished steel importer in the fiscal year ended March 2024 (FY24). Annual finished steel imports rose by 38.2% on-year to 8.32 million tonnes. Exports grew 11.5% to 7.487mt, according to Joint Plant Committee data (see Kallanish passim).
It remained a net importer of finished steel in the April-July period. Finished steel imports rose by 31.6% year-on-year to 2.7mt, while exports contracted by 41% to 1.6mt.
In August, the DGTR initiated an anti-dumping investigation into imports of hot-rolled flat products of alloy or non-alloy steel originating from or exported by Vietnam (see Kallanish passim).
Last week, Indian steel minister HD Kumaraswamy said he will request Prime Minister Narendra Modi and the finance ministry to ensure steel custom duties are hiked from 7.5% to 10-12%, amid dumping and import issues faced by the industry. The commerce minister, Piyush Goyal, also recommended setting up a meeting to discuss a border adjustment tax with four to five top steelmakers (see Kallanish passim).
Source:Kallanish
