Indian Steel Associations File Application for Safeguard Duty on Rebar

Various Indian secondary steel associations have jointly filed an application to DG (Director General of safeguards) in order to impose safeguard duty on rebar.

To protect domestic steel industry from cheaper flow of imported rebar especially from China, various Indian secondary steel associations have jointly filed an application to DG (Director General of Safeguards). They are seeking imposition of safeguard duty on rebar, alike HR Coils, on which the government had imposed 20% safeguard duty on 14 Sept’15.

Rebar products put under the consideration include ‘steel rebar of alloy and non-alloy category’. The concerned products are classified under chapter 72 of the Custom Tariff Act, 1975 under various codes such as 72131090, 72132090, 72141090, 72142090, 72155090, 72279090, 72281090, 72283019, 72283029 and 72286099.

The list of all India and regional associations, who have filed an application to impose safeguard duty on the above listed rebars products are:

1)Tamil Nadu Steel Re-rollers Council
2)Chhattisgarh Steel Re-rollers Association
3)All India Steel Re-rollers Association
4)Steel Manufacturers Association of Kerala
5)Iron and Steel Re-rollers Association
6)All India Induction Furnances Association

As per letter submitted to DG, total import of bar and rod reported during Apr- Sept’15 was 1.18 MnT. They also mentioned that this is a serious point of concern for Indian rebar producers, especially to small ones, who are in the process to shutdown their units.

Letter also states that few Chinese steelmakers had already received BIS license and few others have applied, which will increase import anytime soon.

In FY15, India produced about 38 MnT bar and rod, in which, primary producers contributed 10 MnT and secondary makers about 28 MnT.

Presently, China’s rebar export offers are in the range of USD 260-265/MT FoB main port for 16-25 mm sizes with chromium added. Offers are more or less stable since the starting of 2016. In addition, Chinese government is also providing rebate of upto 14% on specific export of rebar products.

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