In Feb’16, Indian government announced MIP (Minimum Import Price) on 173 steel products for a period of six months. In first week of Aug’16 when MIP was scheduled to expire, government imposed anti-dumping duty on HRC/CRC and Plates. Whereas MIP was extended further for two months for 66 products broadly covered under categories of Billets/Slabs, GP/GC, and Bar/Rods.
In a recent update on the same when MIP on 66 products was scheduled to expire on 4 Oct’16, government once again extended MIP on these products for another two months till 4 Dec’16.
In this article we have analysed the import of 66 steel products in Pre and Post MIP period broadly covered under three categories of Billet/Slabs, GP/GC, and Bar/Rods.
The whole of one year from Aug’15 to Aug’16 is divided in to pre and post MIP period.
The pre MIP period is from Aug’15 to Jan’16. Whereas post MIP period is from Feb’16 to Aug’16.
Billet/Slabs:
In pre MIP period from Aug’15 to Jan’16, India’s billet/slabs import stood at 0.20 MnT whereas in post MIP period from Feb’16 to Aug’16, it increased by 14% to 0.31 MnT.
Although, billet is not imported in to India in large quantities, slabs form major part of semi-finish import. Also as import shipments booked on or before 5 Feb’16 were allowed in to India, higher imports are reflected in post MIP period especially in the month of Feb’16 and Mar’16.
Bar/Rods:
In case of Bar/rods, India’s import in pre MIP period stood at 0.29 MnT, whereas in post MIP period it stand at 0.18 MnT.
Bars are usually not imported in to India because of mandatory BIS certification on import of bars to be used in construction sector. However, in case of wire rod its import have become highly restricted post MIP imposition.
GP/GC:
GP/GC imports from Aug’15 to Jan’16, stood at 0.27 MnT, while in post MIP period it stood at 0.31 MnT. Import shipments under the LCs opened on and before 5 Feb’16, continued to enter India till two three months post MIP imposition, thus being the reason behind increased imports of GP/GC.
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