The Directorate General of Anti-Dumping & Allied Duties (DGAAD) has initiated anti-dumping investigations vide notification No 14/12/2016-DGAD into dumping of cold rolled coils and sheets (including cold rolled full hard) into India.
The four countries covered in the investigations are China, Japan, Korea and Ukraine. The DGAAD has prima-facie found sufficient evidence of dumping of the above-mentioned steel products by these countries which have caused significant injury to the domestic steel industry.
The investigation has been initiated by DGAAD on the basis of the petition filed by Essar Steel India, SAIL and JSW Steel, and supported by Bhushan Steel.
The product covered under the investigations is cold rolled/cold reduced flat steel products of alloy or non-alloy steel or other alloy steel of all widths and thickness, including cold rolled full hard. The period of investigation is July - December, 2015.
Speaking on this issue, H. Shivramkrishnan, Chief Commercial Officer, Essar Steel India, said it is a very significant step taken by the DGAAD on the petition filed by the domestic industry to cover the cold rolled segment under anti-dumping investigations, as besides adversely impacting domestic sales of CR at fair prices, circumvention of HR imports, which are now under AD investigation, would have happened through cold rolled full hard steel imports.
Cold rolled steel imports from the subject countries in FY2013-14, which was 0.94 million tons, surged more than 80% to 1.7 million tons in FY 2015-16 (based on July-December, 2015 figures). The average import prices have declined steeply from $727 in FY2013-14 to $400 in December 2015.
Sr.No. |
Country |
Import volumes in FY 2013-14(mt) |
Import Volumes in July-Dec15(mt) |
% increase on a y-o-y basis |
1 |
China |
0.045 |
0.16 |
622% |
2 |
Japan |
0.28 |
0.18 |
29% |
3 |
Korea |
0.561 |
0.48 |
71% |
4 |
Ukraine |
0.052 |
0.03 |
19% |
|
Sub-Total |
0.94 |
0.85 |
81% |
5 |
Other Countries |
0.1 |
0.041 |
|
6 |
Total |
1.04 |
0.9 |
73% |
According to the petitioners, the dumping margins for the four countries are estimated as follows:
Sr. No. |
Name of Country |
Dumping Margin |
1 |
China |
90% |
2 |
Japan |
40% |
3 |
Korea |
50% |
4 |
Ukraine |
100% |
The domestic industry has been adversely impacted by the dumping of steel into India which is reflected in the losses reported in the Q3FY16 financial results.
The steel companies have submitted evidence to the authority regarding injury having taken place as a result of dumping by the four countries in terms of increase in imports in absolute terms and in relation to domestic production and domestic demand. This has resulted in deterioration of sales, production, capacity utilisation, market share and returns on capital employed.
It is worthwhile to note that the share of the 4 countries in the total CR imports is more than 90% and the domestic steel industry needs such long-term measures for survival from predatory pricing and dumped imports.
It may further be noted that the US has already announced its affirmative preliminary determinations in the anti-dumping duty (AD) investigations into imports of certain cold rolled steel flat products from China, Japan, Korea, among others.
The preliminary dumping margins for China are 265%, Japan 71% and Korea 2-7%.