Supply shortage of Graphite electrode has been severe in the recent months. To get relief from this major problem Alloy Steel Producers Association of India (ASPA) have requested the DGAD (Directorate General of Anti-Dumping Duty) to lift anti-dumping duty on imports of the commodity.
As per the market sources, ASPA expressed their serious concerns of the steel producers and have requested the DGAD to take effective steps to deal with the situation.
The electrode prices in India have risen in the past few months due to low availability, lower imports, and the anti dumping duty & this has led to acute shortage of graphite electrodes in market creating major problem for the steel manufactures who are on the verge of closure.
Earlier in 2015, the Finance Ministry imposed the anti-dumping duty on graphite electrodes imports from China, based on recommendations of the Directorate General of Anti-Dumping Duty (DGAD) for five years. The duty ranges between USD 278.19 and USD 922.03.
According to data with SteelMint, the imports of graphite electrodes in FY’14 (12,800 MT) & FY’15 (13,700 MT), saw an increase in cheaper imports from China which flooded the Indian graphite market. As a result the DGAD, to protect the domestic industry, imposed anti dumping duty on imports from China in 2015.
The import market became dormant in FY16 (6,800 MT) & FY17 (4,000 MT) after anti dumping duty was levied – resulting in decline of imports by 40% China was the largest supplier of graphite electrode to India.
The decision on lifting of anti-dumping duty is presumably to be made by Jan’18.
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