Abhijit Chowdhury
Post News Network
New Delhi, Dec 23: To protect debt-laden domestic steel majors from cheap imports coming China and Russia, the Centre is planning to impose a minimum floor price on steel imports. Floor prices will be fixed by comparing costs of products in domestic markets to international benchmarks, an official said.
The curbs are necessary to ensure a ‘level-playing field’ for Indian companies after restrictions imposed in September failed to stop decline in prices, a senior ministry official said. China and Russia are aggressively selling steel at low prices, forcing the government to impose protectionist measures. Faced with a glut in domestic production, surging imports and prices trading at six-year low, Indian steelmakers have sought safeguards against increasingly cheaper imports. Steel exports by China exceeded 100 million tonne for the first time in the first 11 months, rising 22 per cent from a year earlier. India is seeking minimum import prices for a range of products including hot and cold rolled coiled sheets, galvanized sheets and rods.
Earlier this month, the centre has announced anti-dumping duties on cold-rolled flat products of stainless steel for five years as well as a probe on hot-rolled plates and sheets after steelmakers including Steel Authority of India Ltd, JSW Steel Ltd and Jindal Steel Ltd complained regarding these products. After 20 per cent duty imposition on hot-rolled coil in September, India’s monthly imports slowed for the first time since April, government data shows. “The industry is preparing a case. We also need to see what kind of subsidies is being given in those countries to arrive at the actual cost of production there,” the official said.
