With imports of stainless steel flat products from China rising by around 500% in the last three years, industry body Ficci has urged the government to extend anti-dumping duty on flat stainless steel products to save the interest of domestic industry.
Flat products account for 70% of the domestic stainless steel market and India imports around one-third of its requirements.
The industry body has written a letter to the commerce ministry to look into the matter and take necessary steps for extending anti-dumping duty provisions for all grades and widths of flat steel products from China.
Earlier, India had imposed anti-dumping duty on imports of hot-rolled flat products of stainless steel from the European Union, South Africa, US and Taiwan, but excluded China.
The stainless steel industry is going through a rough phase. We want the government to extend the anti-dumping duty from China or at least increase the basic import duty from current 5% to 7.5% to save the domestic industry from cheap imports, said NC Mathur, president, Indian Stainless Steel Development Association.
India, ranks as the third largest consumer of stainless steel and is also worlds fourth largest producer. Domestic firms put in massive investments towards modernisation and capacity enhancement, hoping domestic growth would be in double-digit for another 5-6 years. However, these investments are now in jeopardy because of widespread dumping of stainless steel flat products from China, the letter said.
India had imposed anti-dumping duty on imports of cold-rolled flat products of stainless steel in the width range of 600 mm to 1,250 mm in 2010.
There is no duty below 600 mm and above 1,250 mm now and imports are coming in these width as they are outside the range of anti-dumping duty.