Government of India imposed 20% provisional safeguard duty on hot rolled products in the light of increased imports from China, Japan,and Russia.
Indian HRC prices are likely to increase in the range of INR 500-700/MT following imposition of safeguard duty on hot rolled products announced by Indian government yesterday.
“There wont be sudden increase in domestic HRC prices after safeguard duty and it may increase gradually within a month or two,” said a dealer based in Delhi.
Current offers for 2.5 mm HRC are assessed at INR 32,500/MT (ex-Mumbai), INR 33,500/MT (ex-Delhi), INR 33,000/MT (ex-Chennai). All prices include excise of 12.50%.
“Safeguard duty will bring some stability in the domestic market in the coming months. However, if Chinese exporters reduce their HRC offers below USD 300/MT there won’t be much scope left for Indian manufacturers to increase their prices.” quoted a manufacturer based in Chennai.
20% provisional safeguard duty was announced by Indian government on 14 Sept’ 15. The duty is imposed for 200 days based on preliminary findings of Directorate General of Safeguards (DGS). The provisional duty would be refundable if after final investigation DGS finds that no injury has been caused to domestic steel industry.
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