India Steel Market Watch
October 7: The Steel Wire Manufacturers Association of India is opposing the Steel and Steel Products (Quality Control) Order, 2015, sources informed ISMW.
SWMAI members said many units will close down or discontinue business because they will be denied superior quality materials as per widely accepted international standards such as AISI, SAE, JISG etc at globally competitive prices.
The wire makers will not be able to compete in the international market nor counter cheap imported engineering goods, said SWMAI members.
Wire rods manufacturers in China are of better quality. The large domestic players like Tata Steel, SAIL, JSW Steel and JSPL make quality wire rods. However, only those steel wire rods which are superior in quality to those manufactured in India are being imported from China. But, because of the demand supply gap, none of the domestic players' capacities are idling because imports are replacing them, said a source.
Wire rods required are in 100 grades and sizes. The quality control order is linked to a particular IS number where not a single wire has been manufactured as per this benchmark number 7904. There has been no licensing for this number since no material has been produced under this quality benchmark.
"We want to restrict the import of such a product. But if there is no domestic product, nor imports then this particular category gets killed. Since 90 percent of the wire rod manufacturers are in the MSME sector, they will be hit because they use this category to make wires and their capacity will remain idle. That is why we are opposing the quality control order, said SWMAI Chairman Vijay K Vedmutha.
He added that SWMAI is not opposed to quality per se but the way the quality control order is being implemented, will result in a non-tariff barrier.