Will 25% Anti Dumping Duty on Met Coke be Effective in Restricting Imports into India?

The imminent levy of Anti Dumping Duty in India on imports of Met Coke from China and Australia is seen as a relief to the country’s Met Coke producers, who have been battered by cheap imports of the material from the two countries; but the issue arises whether the recommended rate of duty, at 25% (from China), will be effective in shielding them from the menace of the cheap imports.

An analysis of the recommended duty rate and the current import prices reveals that the duty will not be effective in restricting the imports; and in place, a duty of at least 50% would be effective, especially in view of the rising production cost, due to higher Coking Coal prices.

A section of market participants, spoken to by CoalMint in the context, said that although the recommended rate of duty might not be very effective in the beginning, it would be impactful in the long run, as Coking Coal prices are not expected to remain at the current rates for a very long time.

Besides, the recommended rate was suggested in Dec’15, taking into account the then prevailing market situations.

Source: CoalMint Price Database