Safeguard duty Unlikely to Continue on HRC: Sources

With the imposition of MIP on steel imports, safeguard duty on HRC is anticipated to be discontinued and is also unlikely to be imposed on plates.

As the final decision on whether the safeguard duty on HRC shall continue beyond 200 days is expected shortly, SteelMint has heard from its market sources that after MIP imposition it is unlikely that duty will continue further as government will not prefer imposing two trade barriers together on imports.

In order to protect cheaper steel imports in to India especially from China, Japan and Korea, DG Safeguards (DGS) on Sep’15 imposed 20% provisional safeguard duty on ‘Hot Rolled Flat products of non-alloy and other alloy Steel in coils of width of 600 mm or more’; for 200 days.

Update on Safeguard Duty Case on Plates

In a recent update on ongoing safeguard duty case on plates, market sources have informed SteelMint that DGS (DG Safeguards) is not in favor of imposing safeguard duty on plates after the recent MIP imposition by the Indian government on steel imports.

“MIP is strong enough to prevent dumping of cheap imports in to India and thus it is unlikely that DGS will announce safeguard duty on plates. Even petitioners of safeguard duty case are also not showing much interest in the case after the MIP announcement”, quoted a BIMA (Bombay Iron & Merchants Association) member.

In order to put a barrier on cheap plates import, on 28 Oct’ 15, a petition was filed by SAIL, Essar Steel, JSW Steel and Jindal Steel & Power Ltd for imposition of safeguard duty on imports of  ‘Hot Rolled flat sheets and plates (excluding hot rolled flat products in coil form) of alloy or non alloy steel having nominal thickness less than or equal to 150 mm and nominal width of greater than or equal to 600 mm’.

On 10 Jan’16, public hearing was conducted on the case in which DGS have requested petitioners to submit their response by 1 Mar’ 16.