Indian Govt Recommends Imposition of Provisional Anti Dumping Duty on Galvalume Steel Products

The process was initiated in Apr'19 owing to injury to the domestic industry caused by dumped imports since the volumes of imports to India have rose significantly from subject countries.The application has been filed by major steel producer named JSW Steel Coated Products Limited.

Meanwhile there are three other major producers in India,namely, M/s.Tata BlueScope Steel Private Limited, M/s. Tata Steel BSL Limited and M/s. Asian Colour Coated Ispat Limited. However, M/s. Asian Colour Coated Ispat Limited has not produced the PUC from 2017 on-wards.

The Product under Consideration (PUC) for initiation of anti-dumping initiation involves following HS codes - 72106100, 72125090, 72259900 and 72269990 of the Customs Tariff Act, 1975. The PUC is also being imported under other Customs Tariff data-x-Items 72101290, 72103090, 72104900, 72106900, 72107000,72109090, 72121090, 72122090, 72123090, 72124000, 72169910, 72255010,72259100, 72259200, 72269930 etc.

How has it impacted the domestic industry ?
Imports of the subject goods have increased relative to production and also relative to consumption in India. Imports were in range of 0-5% of production of the domestic industry in 2015-2016 which increased to 25-30% during POI(Period of Investigation). Imports of PUC from subject countries have increased in absolute terms from 17,695 MT in 2015-16 to 2,02,711 MT in POI.

Also the Authority notes that the landed prices of the subject goods were below the selling price of the domestic industry showing significant price undercutting being caused by the dumped imports from the subject countries.

However the investigation does not include the following products: -
i. Flat rolled steel products coated with Zinc without addition of
Aluminum).
ii. Pre-painted or colour coated Aluminium Zinc alloy coated steel sheets ( Precoated
SGL sheets).
iii.Flat rolled steel products coated with Aluminium without addition of Zinc

What has Indian govt recommended ?
Authority recommends imposition of provisional anti dumping duty equal to lesser margin of dumping and the margin of injury so as to remove the injury to the domestic industry. Accordingly the Authority recommends imposition of provisional anti dumping duty on import of subject goods exported from subject countries. The landed value of imports for this purpose shall be assessable value as determined by the customs.

Suggested duty amount for companies for South Korea is around USD 28.67-122.6/MT and USD 45.35-199.5/MT from Vietnam and USD 68.08-129.5/MT for Chinese companies.

SteelMint in conversation with steel participants involved close to the matter shared that this is just the preliminary findings. There will be time involved in the investigation process followed by which final findings will be made and announced. The Authority has invited comments on preliminary findings from all known interested parties within 21 days from the date of issue of preliminary findings.