- Coke imports from select countries rise 179% during review period
- Imports from these countries undercutting domestic prices: DGTR
The Directorate General of Trade Remedies (DGTR) has today issued its preliminary findings in the anti-dumping investigation concerning imports of low-ash metallurgical (LAM) coke from Australia, China, Colombia, Indonesia, Japan, and Russia, concluding that the domestic industry has suffered material injury due to dumping from these six countries.
The investigation was initiated following a petition by the Indian Metallurgical Coke Manufacturers Association, with nine domestic producers submitting data for evaluation. The product under review is metallurgical coke with ash content below 18%, excluding ultra-low phosphorus coke (≤0.030% P), used primarily in ferro alloy manufacturing.
Metallurgical coke is used as a primary fuel in industries where a uniform and high temperature is required in kilns or furnaces, such as in production of pig iron, foundries, ferro alloys, chemical plants and steel plants.
Key findings:
- Import volumes from the subject countries have increased throughout the injury period. Imports have increased by 179% over the injury period.
- Imports in relation to production and consumption have also increased over the injury period. The subject imports account for 52% of the consumption in India during the period of investigation.
- While the subject imports comprised 51% imports into India during the base year, the volume of such imports has more than doubled over the injury period. The subject imports account for 81% of imports into India during the period of investigation.
- Imports from the six countries increased at a pace higher than the rise in demand. Demand in India has increased by 40% during the investigation period as compared to the base year, while the subject imports have increased by 179% over the same period.
- Such imports are undercutting domestic prices and this trend is significant.
- DGTR notes that domestic coke inventories have increased over the injury period.
- The profitability of the domestic industry has declined significantly over the injury period.
Duty in public interest
DGTR noted that imposing anti-dumping duties would help restore a level playing field for Indian producers. Historical data shows that higher LAM coke prices in previous years did not negatively impact users, suggesting such measures would not harm downstream sectors. The Authority has recommended a provisional anti-dumping duty equivalent to the lower of the dumping margin or the injury margin, with the objective of removing injury to the domestic industry.
Accordingly, proposal for imposing provisional anti-dumping duties on LAM coke imported from the subject countries, effective from the date of notification issued by the Central Government, has been floated. Based on these factors, the Authority concluded that the domestic industry has suffered material injury directly caused by dumped imports, with no other factors contributing to injury.
Recommended Provisional Duties:
- Australia: $73.55/t
- China: $ 130.66/t
- Colombia: $119.51/t
- Indonesia: $ 82.75/t
- Japan: $60.87/t
- Russia: $85.12/t
Next steps in investigation
The DGTR has invited comments from all stakeholders within 15 days of publication of the preliminary findings. It will also hold an oral hearing under Rule 6(6), with the date to be announced on the DGTR website.
Further verification of data submitted by interested parties will follow, after which the Authority will disclose essential facts before issuing its final findings.
Leave a Reply