Posted on 12 Dec 2015
Imports from China drew the highest duty, at 57.39% of the total value of shipments. A 9.47% duty was imposed on products from the U.S., while for the EU it is between 29.41% and 52.56%. The tariff will be in place for five years.
"There is continued dumping of the subject goods from subject countries/territories. Though the volume of imports has declined after imposition of duties, the performance of the domestic industry has deteriorated in the current injury period due to the impact of the dumped imports," the government said in a statement.
The duty was imposed after the Directorate General of Safeguards, as mandated, carried out investigations into surging imports and resulting damage to domestic manufacturers.
Shares of steelmakers rallied during the day over the buzz. The largest private-sector manufacturer, Tata Steel, ended up 3.41% at 240.95 rupees on the Bombay Stock Exchange.
Other steelmakers such as Steel Authority of India and JSW Steel ended 1.47% and 0.90% higher respectively. The BSE Metal index closed 0.23% up at 6902.75.
This is the third time this year that the government imposed such a duty to safeguard companies that are reeling under huge debts and falls in domestic market share.
In September, a 20% duty was imposed on some varieties of steel for 200 days on continued complaints from companies such as JSW Steel, Essar Steel, Jindal Steel & Power, and Steel Authority of India. In August, import duties on base metals were hiked by 2.5% and in June an anti-dumping duty of up to $316 per ton was imposed on inbound shipments of some steel items from three countries, including China.
According to a Fitch Ratings report last month, steel imports to India increased significantly in 2015. Indian steel imports increased by 41.4% on-year to 5.4 million tons during April-September and this put pressure on steel prices, and consequently, the profitability of Indian producers.
Fitch predicted that high Indian steel imports will continue in 2016. "With steel demand falling in most countries, steel producers are likely to target growth markets like India for exports," it said.
