India to Leave Import Duties on Steel Products Unchanged

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Researched by Industrial Info Resources (Sugar Land, Texas)--India will not increase import duties on hot-rolled steel coils, as demanded by steel manufacturers in the country, to counter cheaper imports, mainly those from neighboring China.

The steel ministry has refused to recommend 15% increases to the finance ministry, saying that steel imports had not reached an alarming level to impose restrictions or warrant such a step. The present import duty on various steel products in India is 5%.

During a recent meeting with the steel ministry, Indian steel giants such as Tata Steel Limited (BSE:500470) (Mumbai), Ispal, Essar Power Limited (Mumbai) and JSW Group (Mumbai) demanded the increase, arguing that they needed insulation from the sudden rise in cheaper imports.

According to Indian steel secretary Atul Chaturvedi: "In response to their demand for a hike in import duty to 15%, we have turned it down. We do not want to recommend bringing steel under a restrictive list of goods.

"During the meeting we found there was no consensus among them on it. We asked them to specify to what extent the cheaper hot-rolled coil imports have taken place, but they did not possess the requisite data to justify their contention of imports rising by more than 100%."

The steel manufacturers said that imports during the April-June quarter of this year increased 117%, but Chaturvedi said imports have risen 80%.

Ministry officials said that the consumption of hot-rolled coils had increased 24% during the period, while production went up only 6%, which meant there was a gap of 18% between demand and supply.

Chaturvedi said: "Consumers will naturally fend for themselves because of the huge shortfall in supply. So, the trade policies should not be altered at the drop of a hat."

He said that the manufacturers had been advised to obtain solid data to justify their demand and present their case more effectively before the Directorate General of Anti-Dumping or the Directorate General of Safeguards.

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