SteelMint has heard from its market sources that Vietnamese steel mills have applied for India’s quality certificate for PPGI (pre-painted galvanised iron) also known as pre-coated steel, which has gained popularity in Indian steel market recently. According to India’s customs data, country’s import of colour coated products has increased by a staggering 250% y-o-y basis during Apr-Dec’17.
The quality certificate is known as BIS license and is likely to be issued to the steel mills in Vietnam in next six months. BIS license is provided in India by Bureau of Indian Standard (BIS), the National Standard body as a third party guarantee of quality, safety, and reliability of the products to the customer.
Rising concern of increasing GP/GC imports from Vietnam
In past two years, India has adopted various measures in the form of MIP (Minimum import price), safeguard and anti-dumping duty in an attempt to restrict cheap steel imports into the country. Subsequently, while India’s flat steel imports have moderated in 2017, country’s GP/GC imports have increased during the year.
India’s customs have reported an increase of 11% y-o-y basis in GP/GC imports from 1.23 MnT in 2016 to 1.37 MnT in 2017. If we analyse India’s country-wise GP/GC imports over past two years, about 70% imports come from South Korea, China, and Japan. But in 2017, Vietnam has emerged as a key galvanised steel exporting country to India, with a percentage share of 11% (at 0.16 MnT) in country’s total GP/GC imports.
How Vietnamese still mills’ BIS license will Impact Indian steel circuit?
India’s steel major, JSW Steel has also raised concerns over rising import of colour coated products into India especially from Vietnam as imports from this country enjoys zero percent import duty under FTA (Free Trade Agreement). The company has moved to the Bureau of Indian Standard (BIS) and got the quality order for colour-coated sheet imports notified that became applicable from Jan’18. This action was intended to restrict imports of colour coated products the coming months as the majority of Vietnamese mills have not been issued the BIS licenses.
However, now with the news of Vietnamese steel mills obtaining BIS license, galvanised steel imports including colour coated products is likely to increase from Vietnam in the upcoming months.
In Oct’17, the Indian government announced the imposition of anti-dumping duty on imports of GP/GC and colour coated products coming from China and European Union which became applicable from 11 Jan’18 for next five years.
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