India: Govt begins anti-dumping probe into hot-rolled flat steel imports from Vietnam

The Ministry of Commerce and Industry has initiated an anti-dumping investigation on imports of hot-rolled flat products of alloy or non-alloy steel of various specifications, including thickness up to 25 mm and width up to 2,100 mm, from Vietnam.

The investigation follows a petition by the Indian Steel Association (ISA) which claimed the hot-rolled flat steel products are being sold at low prices, thereby causing harm to the domestic industry.

Products under consideration: The investigation covers hot-rolled flat products of alloy or non-alloy steel, not clad, plated, or coated, with a thickness of up to 25 mm and a width of up to 2,100 mm. These products are used in various industries, including automotive, oil and gas, construction, and capital goods.

The ISA argues that the product produced by Vietnamese exporters and that which is manufactured by domestic producers are "like articles" under the anti-dumping rules. They possess similar physical and chemical characteristics, production processes, functionalities, and applications.

JSW Steel and ArcelorMittal Nippon Steel India Limited are considered the domestic industry for this investigation, as they account for a significant portion of the total domestic production of the like article.

Vietnam is identified as the subject country in this investigation.

Period of Investigation: The period of investigation is set as 1 January 2023 to 31 March 2024 (15 months). The injury investigation period covers a broader timeframe, spanning from 1 April 2020 to 31 March 2024.

Allegation of injury and causal link: The ISA claims that the domestic industry has suffered material injury due to dumped imports from Vietnam. They allege that the volume of imports has increased, while the price of the imported product has undercut domestic prices. This has reportedly led to a decline in the domestic industry's performance in terms of profitability, market share, and return on investment. The ISA also expresses concern about the threat of further injury if the situation persists.

The ISA has requested the imposition of retrospective anti-dumping duties, citing a history of dumping of the product in India and the recent surge in imports at allegedly dumped prices. They argue that immediate action is necessary to prevent irreparable damage to the domestic industry.

The investigation will follow the procedures outlined in the anti-dumping rules. All interested parties, including Vietnamese producers, exporters, the Vietnamese government, Indian importers, and users, have been notified and have 30 days to submit relevant information. Failure to respond within the stipulated time frame could result in the Authority making findings based on the available information.

Outlook:

India imported around 0.92 mnt of finished flat steel from Vietnam in CY'23 against 0.04 mnt in CY'22. Moreover, total finished flat steel imports from Vietnam were recorded at around 0.08 mnt in CY'24 (till July 2024). In addition, domestic HRC (2.5-8mm / CTL, IS2062, Gr E250 Br.) exy-Mumbai prices have dropped by around INR 1,500/t m-o-m in August to INR 50,800/t against INR 52,300/t in July. The anti-dumping investigations may support domestic prices in India.