Source: Customs data and SteelMint Research
In the latest update on Mid-Term Review (MTR) investigation case of graphite electrodes (GE), DGAD (Directorate General of Anti-Dumping and Allied Duties) has given an extension of one month (till 15 Jun’18) to the interested parties in order to submit their responses.
This MTR investigation with regard to existing anti-dumping duty on the imports of GE from China was initiated by DGAD on 4 Apr’18 on the request of ASPA (Alloy Steel Producers Association of India).
The DGAD has given time limit of 40 days (from the date of investigation initiation) to the interested parties (exporters in the subject country and its Government through its Embassies in India, importers and users in India) to submit their responses which has now been extended by another 30 days.
However, it has also been clearly mentioned that no further extension in the case will be allowed beyond 15 Jun’18, indicating government’s keenness to take final call on GE’s MTR investigation case quite soon.
Earlier in 2015, the Finance Ministry had imposed the anti-dumping duty on graphite electrodes imports from China for five years, based on recommendations of DGAD. The duty ranges between USD 278.19 and USD 922.03, the duty imposed is variable and specific to various companies from China.
What is Mid-Term Review?
Mid-term Review is undertaken by the Designated Authority at any time during the period of 5 years when the levy Anti-Dumping duty is in force, wherein the duty may be continued, modified or revoked.
Such review can be undertaken only if a reasonable period of time has elapsed since the imposition of the definitive anti-dumping duty. Upon such review, the Designated Authority shall recommend to the Central Government for its withdrawal, where it comes to a conclusion that the injury to the domestic industry is not likely to continue or recur if the said anti-dumping duty is removed or varied and is therefore no longer warranted.
Any mid-term review initiated needs to be concluded within a period not exceeding twelve months from the date of initiation of such review.
Why has ASPA demanded MTR review?
The electrode prices in India have risen exponentially in the past few months due to its lower availability amid restricted imports from China with existing anti-dumping duty in place. This has created a major problem for the Indian steel manufactures using EAF route to manufacture steel. In order to get relief from this problems, ASPA has applied for MTR of anti-dumping duty on graphite electrodes.
The elimination of the anti-dumping duty will help the Indian steel makers to source the electrodes from international markets and ease the cost pressure of steel manufacturing for EAF producers. Moreover, the rise in global Graphite Electrode prices has led to a subsequent increase in the landed value of Graphite Electrode imports and with this the injury margin has also come down rising the need for reviewing the current level of anti-dumping duties imposed.
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