India: Govt cancels extension of anti-dumping duty on HRC, CRC

The Union Ministry of Finance has put down the recommendation forwarded by the Directorate General of Trade Remedies (DGTR) relating to the imposition of anti-dumping duty on certain alloyed and non-alloyed flat steel products.

The anti-dumping duty on hot-rolled coils and cold-rolled coils expired on 15 Dec'21 after being extended on an interim basis on 29 June of last year.

Earlier, the Ministry of Finance had extended the anti-dumping duty - due for expiry on 15 Aug'21 - on HRC and CRC till 15 Dec. The anti-dumping duty on HRC stands at $489/t and that for CRC is $576/t.

DGTR had concluded in its findings that cold-rolled products were being dumped by companies from China, Japan, South Korea and Ukraine, while hot-rolled goods were being dumped by China, Japan, South Korea, Russia, Brazil and Indonesia.

India has a free trade agreement (FTA) with Japan and South Korea.

Impact on market

The government's latest decision to do away with the anti-dumping duties on certain flat steel products is unlikely to impact the market as imported HRC prices are much higher than the anti-dumping duty levels.

Price indications for imported HRC from China are at $795/t and from South Korea have been recorded at around $825/t CFR India.

Only BIS-grade imports are allowed into India, which may keep imports limited.

However, in the mid-to-long-term domestic flat steel producers will no longer have the comfort of a base price.

Flat steel imports fall

Flat steel imports into India have fallen drastically from 5.8 mn t in CY'19 to 3.4 mn t in CY'20 and further to 3.39 mn t in CY'21. HRC/plate imports have fallen from 2.3 mn t in CY'19 to 1 mn t in Jan-Nov'21.

Imports from South Korea have fallen from 2.7 mn t in CY'19 to 1.89 mn t in CY'21. Imports from China slipped to 0.29 mn t in CY'21 from 0.89 mn t in CY'19.