All imports will soon be looking at anti-dumping duty:Steel Secy


The government on Thursday extended the minimum import price (MIP) only on 66 steel products till October 4. The earlier MIP, which was on 173 products, ended on August 5.

The MIP is on imports from 6 countries namely Japan, Korea, Russia, Indonesia, China and Brazil and will protect the industry against cheap imports.

Of the 173 products, MIP will be on 66 products and rest of the products will come under anti-dumping duty, which has been in place for 5 years, says Aruna Sharma, Steel Secretary.
MIP is a short-term solution only, she adds.

While the World Trade Organization (WTO), which does not favour MIP, might raise objections, the extension was needed to uplift the Indian industry.

The idea behind two months MIP extension is to ease all products under anti-dumping duty in the future, Sharma says adding that the anti-dumping levy will be on difference between the production cost and landing cost.

Minimum import price extended on 66 steel products till Oct 4


The Directorate General of Foreign Trade has extended the minimum import price (MIP) on 66 steel products till October 4. The MIP ranges between $341-752 per tonne.
MIP was earlier levied on 173 steel products for a duration of 5 months. According to a steel ministry official, the extension of the MIP now provides enough time for investigations for an anti-dumping duty to be completed.
The steel industry had been demanding for the extension of the MIP.
Asked why the Government has reduced the number of products, an official said, “We felt that only these 66 products require protection. The commerce ministry is already investigating dumping of certain steel products.”
The 66 products include semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.
To guard domestic steel producers against cheap in-bound shipments, the government in February had imposed MIP, ranging between USD 341 to USD 752 per tonne, on 173 steel products for a period of six months.
On ingots and billets, blooms and slabs, the MIP reads USD 362, USD 352 and USD 341 per tonne, respectively.
On flat-rolled products of iron or non-alloy steel of a width of 600 mm or more, clad plated or coated, the minimum prices will be USD 643 and USD 752 per tonne on different items.
Similarly, bars and rods, hot-rolled in irregularly wound coils of iron or non-alloy steel, the figure stood at USD 449 per tonne and USD 451 per tonne on different products.
Earlier, the minimum import price was imposed for a period six months.
India’s imports of non-alloy steel rose 29.6 per cent between April-December 2015 to 6.34 million tonne. Its total consumption of non-alloy steel stands at 53.166 million tonne.
Indian Steel Association has asked the government to extend minimum import price (MIP) on steel products, saying its imposition has marginally improved the industry’s viability after a long period of subdued prices.
Accelerating imports of predatory prices from steel surplus countries like China, Japan and Korea has been a major concern area for the domestic industry since September 2014.
Post the imposition of MIP in February, the industry has been able to marginally improve viability after a long period of subdued prices and eroded profit margins, the association had said.
(This article was published on August 5, 2016)

EU Slaps Anti-Dumping Tariffs on Some Chinese, Russian Steel Imports


BRUSSELS—The European Union on Thursday imposed anti-dumping tariffs on some Chinese and Russian steel imports for the next five years in a fresh effort to protect domestic manufacturers struggling with overcapacity.

The duties, which range from 19.7% to 22.1% for Chinese companies and from 18.7% to 36.1% for Russian producers, apply to so-called cold-rolled steel, a product used in the packaging, automotive, construction sectors.

The expected move comes days after the EU imposed tariffs on so-called rebars, steel products used to reinforce concrete.

European manufacturers in recent years have lodged multiple complaints that their Chinese competitors are exporting steel products to Europe at unfairly low prices.

The bloc had provisionally imposed tariffs in February, but the new rates are significantly higher. In a first time move by the Commission, they are also backdated to apply retroactively to December 2015, before the provisional tariffs were agreed.

“This shows our continuous efforts to use to full extent the available trade-defense instruments to fight unfair imports of steel products,” said Mina Andreeva, a spokeswoman for the European Commission.

The U.S. has also imposed preliminary duties on imports of cold-rolled steel on seven countries, including China at far higher rates. The U.S. set the duties for Chinese steelmakers at 265.79% in March.

Under World Trade Organization rules, the EU can impose anti-dumping duties on products from countries outside the bloc if an investigation demonstrates that these products enter the EU at prices below fair market value and cause injury to the EU industry.

Currently the EU has 37 anti-dumping and antisubsidy measures in place in the steel sector, of which 15 concern China.

European industries say that the Chinese industrial policies allow local producers to pump out far more goods than its domestic market can consume. The result has been a flood of cheap products shipped to Europe, the U.S. and other developed markets.

China, the world’s largest steel producer, has doubled its exports to the EU over the past two years, while the bloc’s demand languishes below levels seen before the 2008 financial crisis. EU steel prices have fallen roughly 40% over the past two years.

Write to Valentina Pop at and Laurence Norman

Govt to levy anti-dumping tax on some cold-rolled steel products


An Indian government body has recommended provisionalanti-dumping duty on imports of cold-rolled steel products, a government statement said on Thursday, to protect domestic mills.
The Directorate General of Anti Dumping recommended atax of up to $594 a tonne on steel products from China, Japan, South Korea and Ukraine, the statement said.
Indian steelmakers such as the Steel Authority of India, JSW Steel, and Essar Steel had lobbied for protectionist measures to prevent cheap overseas purchases that were undercutting local mills and squeezing margins.

Stocks to Watch: HCL Tech, Infosys, Tata Steel and More


The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, declined 0.3 percent to 8,635.
Here are all the stocks to watch today

  • Metal stocks: India to impose temporary anti-dumping duty on some steel products
  • Ambuja Cement: Gets 82,300 tonne coal linkage from Gevra Siding, 16,500 tonne from

Kusmunda & 20,400 tonne from Niljai

  • Godrej Consumer: Unit acquires 100 percent in Hair Credentials
  • Indian Bank: To raise up to Rs 1000 crore via tier 2 bonds
  • Insecticides: In marketing pact with Nihon Nohyaku unit
  • Piramal Enterprises: To raise Rs 215 crore via NCD

Media Reports

  • SpiceJet said to plan cargo ops as separate unit (Economic Times)
  • India may restrict subsidies to private firms if they don’t cut prices of non-urea

fertilisers by up to Rs 5,000 per tonne (PTI)

  • NMDC said to consider mining rare earth minerals (PTI)
  • TCS: Inks two big-ticket office lease deals (Business Standard)
  • Reliance Industries: Government’s auditor red-flags $1.6 billion excess cost recovery by

Mukesh Ambani-led firm (PTI)

  • Infosys to invest in $100 million VC fund (Economic Times)

Earnings to Watch

  • Bata India Q1
  • Berger Paints India Q1
  • Cadila Healthcare Q1
  • Capital First Q1
  • Carborundum Universal Q1
  • Dishman Pharmaceuticals Q1
  • Emami Q1
  • Entertainment Network India Q1
  • Gulf Oil Lubricants India Q1
  • HCL Technologies Q1
  • Kajaria Ceramics Q1
  • PC Jeweller Q1
  • Ramco Cements Q1
  • Ramco Systems Q1
  • Titan Q1
  • TTK Prestige Q1

Earnings Reaction to Watch

  • EIH: Q1 loss Rs 12.24 crore versus Rs 21.15 crore profit YoY
  • Torrent Power: Q1 profit Rs 45.62 crore versus Rs 223 crore YoY
  • Tata Investment: Q1 net Rs 33.87 crore versus Rs 36.53 crore YoY
  • JM Financial: Q1 net Rs 86.09 crore versus Rs 72.35 crore YoY
  • HEG: Q1 loss Rs 28.92 crore versus Rs 7.05 crore loss YoY
  • UFO Moviez India: Q1 profit Rs 9.82 crore versus Rs 17.74 crore YoY

GST Boost
The long-pending GST Bill will be tabled today for consideration and passage in Rajya Sabha amidst strong indications that the most important economic reform in the last couple of decades would be supported by Congress and all other major political parties.


India’s anti-China steel tariffs bite engineering, manufacturing firms


Indian manufacturers of finished steel goods are urging New Delhi to end tariffs on cheap imports of the alloy from China, Japan and South Korea, worried the protectionist measures may cost them billions in lost overseas sales.

India put the tariffs in place in February to ensure a minimum import price (MIP) for 173 steel products, mainly to guard against cheap Chinese exports of around 10 million tonnes a month of items such as hot-rolled and cold-rolled steel that have undercut U.S., European and Asian producers.

The gambit to protect India’s domestic steelmakers is threatening export revenues earned by engineering and manufacturing companies as artificially high prices for a primary raw material for everything from home appliances to ships make their products uncompetitive in foreign markets.

The MIP policy has hit engineering firms especially hard. These mostly small- to mid-sized companies together export goods worth $56 billion a year – a fifth of India’s shipped merchandise – made at least partly with steel now priced 15 percent higher on average than at end-2015 and up to 30 percent more than Chinese imports.

“My input cost is 40 percent higher than other nations. How will my finished product compete?” Pankaj Chaddha, CEO of Jyoti Steel Industries, said of the MIP tariffs.

Jyoti Steel, a Mumbai manufacturer of stainless steel wire and carbon steel bright bars, cut 50 of its 300 jobs after MIP was introduced, and its output slumped by 22 percent in the April-June quarter.

Chaddha said he would have to lay off another 50 contract workers if the policy was extended past its Aug. 5 expiry date.

Also hanging over India’s steel sector is a separate recommendation that the government enact anti-dumping duties on imports of hot-rolled steel products from China, Japan, South Korea, Russia, Brazil and Indonesia.


Indian prices of hot-rolled steel – used to make pipes, rods, cars, ships and industrial machinery – rose by more than 15 percent to 37,000 rupees ($554) a tonne between December and early May, according to the latest data available.
Chinese prices moved from $270 a tonne in December to $420 a tonne in April, before softening again.

Trade body EEPC India said engineering goods exports would drop 10 percent this year if MIP is extended. The group has gone before the trade ministry several times to ask that the import policy be allowed to lapse, and members have also met with the steel ministry on the issue.
India’s indebted steel sector, though, struggling with low profit amid a global supply glut, has lobbied hard for it to be kept in place.

By making foreign steel too expensive, domestic steelmakers such as Steel Authority of India, Tata Steel and JSW Steel have been able to raise prices.

But higher prices, besides hampering exporters, have pushed steel processing firms such as Adhunik Metaliks, Jayaswal Neco and Sujana Metal Products into losses.

About 20 of 60 mills on his membership list have shut, said S.C. Mathur, executive director of Cold Rolled Steel Manufacturers Association of India.

“Others are operating at 40-50 percent of capacity and incurring losses.”

China, the world’s largest steel manufacturer and consumer, produced 804 million tonnes last year – about half of global supply – using just 70 percent of its capacity.
India – along with the United States, Europe and others – has said that even as Beijing works to downsize its overblown sector, Chinese mills are exporting their excess supply.
India, the world’s third-largest producer with an estimated output of 90 million tonnes, consumed about 80 million tonnes of finished steel in the year through March 2016.
It imported about 11 million tonnes that year, according to the steel ministry’s Joint Plant Committee (JPC), with China supplying around 47 percent.
($1 = 66.7428 Indian rupees)

(Additional reporting by Ruby Lian in SHANGHAI and Henning Gloystein in SINGAPORE; Editing by Tom Hogue)

Govt to impose temporary anti-dumping duty on some steel products


New Delhi: An Indian government body has recommended provisional anti-dumping duty on imports of hot-rolled steel products, a government statement said on Tuesday, to reduce overseas purchases of the alloy and shield local mills.
The anti-dumping duty will come into effect after New Delhi formally notifies the tax.
The Directorate General of Anti Dumping recommended the duties on steel products from China, Japan, South Korea, Russia, Brazil and Indonesia, the statement said.
Indian steelmakers such as the Steel Authority of India, JSW Steel and Tata Steel had lobbied for protectionist measures to prevent cheap overseas purchases that were undercutting local mills and squeezing margins. Reuters


Steel cos on tenterhooks as MIP comes for review on Aug 5


Steel companies are on tenterhooks as the government is set to review impact of minimum import price and decide on its extension beyond August 5, even as small value added steel product manufacturers have called for its withdrawal amid falling exports.

Last February, the protectionist measure for the steel industry was introduced by the government on 173 steel items for six months.

It restricts import of the listed steel items below the price range of $341 a tonne to $752 a tonne.

Big players such as JSW, Tata Steel and state-owned Steel Authority of India want MIP to continue as it has helped them improve margins by reining in steel imports in the last nine months.

Union Steel Minister Chaudhury Birendra Singh had called an urgent meeting of steel companies and industry associations last week to discuss the impact of MIP, safeguard and anti-dumping duties on steel products. Under pressure from various user-industries, the government is already considering an option to remove all the steel items covered under anti-dumping investigation from the purview of MIP, said sources.

TS Bhasin, Chairman, Engineering Export Promotion Council, said steel companies claim that importers have circumvented MIP through letter of credits and advance authorisation does not hold true given that imports have been falling.

Further, he added, advance LCs have a lifespan of 90 days for delivery (especially in China) and hence, even if the LCs were opened on February 4, the delivery should have happened by April.
Moreover, hot rolled coil export price (FOB China) has increased 30 per cent to $350 a tonne in July from $250 a tonne logged in last December.

Steel prices in India are even higher and was not tenable due to slack demand, hence it fell, he said. Steel companies have pointed out that MIP ensures government’s “Make in India” programme, but they fail to understand that the sharp rise in steel prices has denied the opportunity to a host of other steel product manufacturers to Make in India, said Bhasin.

In contrast, Sanak Mishra, Secretary General, Indian Steel Association, said an extension MIP regime will support the steel industry to manage its high debt levels, and in turn, reduce the spectre of NPAs with the banking sector.

Post imposition of MIP, the industry has been able to marginally improve its viability after a long period of subdued prices and eroded profit margins, he said.

Steel industry does not see the MIP as a perpetual protectionist step but a necessary temporary measure which will allow time for a path of recovery of the sector, he added.

Dalian iron ore hits 14-wk top as higher steel prices counter stockpile gains


MANILA, Aug 1 Chinese iron ore futures rose as much as 3 percent to their highest in more than three months on Monday as the raw material rode on the sustained strength in steel prices.
Tighter steel supply in China has helped prop up prices with floods in the northern part of the country disrupting transport routes and environmental inspections across some provinces forcing the closure of some facilities.
“It is difficult to believe, but Chinese steel output continues its strong run and prices have actually showed continued strength despite bearish forecasts and a persistent backwardation in futures,” INTL FCStone said in a report.
“Some of the strength is due to short-term bottlenecks that have raised steel prices and iron ore along with it.”
The most-traded iron ore on the Dalian Commodity Exchange was up 2.4 percent at 479 yuan ($72) a tonne by 0301 GMT, after rising as high as 482 yuan, its strongest since April 25.
On the Shanghai Futures Exchange, construction-used rebar was up 2 percent at 2,493 yuan a tonne, after earlier touching a two-week high of 2,509 yuan.
The strength in steel prices helped iron ore overcome the drag from rising stockpiles of the commodity along China’s ports.
Inventory of imported iron ore at China’s ports remained high, standing at 106.05 million tonnes on Friday, the most since December 2014, according to data tracked by SteelHome consultancy. SH-TOT-IRONINV
The port inventory has risen 14 percent this year.
Iron ore for delivery to China’s Tianjin port .IO62-CNI=SI eased 40 cents to $58.80 a tonne on Friday, a day after touching a 12-week high, according to data compiled by The Steel Index.
The spot benchmark has gained 37 percent this year, even as the price has come off the 2016 peak of $68.70 reached in April.
INTL FCStone said the $60 level remains the key level for “mid-major ore producers to restart idled production and that could mean that the (price) upside looks rather limited here.” ($1 = 6.6346 Chinese yuan) (Reporting by Manolo Serapio Jr.; Editing by Christian Schmollinger)

Steel Minister asks cos to take steps to promote use of steel


Steel Minister Chaudhary Birendra Singh advised domestic steel producers to explore ways to enhance steel consumption and utilise the time in the highly dynamic economic scenario.
“Domestic steel producers should take all steps to promote use of steel at the earliest as time is of essence in the fast changing business scenario,” a statement by domestic steel giant SAIL said quoting the Minister at a customers meet in Jind (Haryana).
The customer meet, to boost steel consumption in Haryana, was organised by state-run steelmakers SAIL and RINL.
SAIL and RINL should quickly stabilise their modernised facilities, maximise their performances and strengthen the domestic sector, Singh said.
“Domestic steel industry should exhibit a sense of urgency in leveraging their R&D strength thus improving their cost efficiencies,” he added.
Elaborating on opportunities for steel firms in Haryana, the Minister said the state is an industrially as well as agriculturally developed state which is widening its scope of development for industries and this will present good opportunity for improved steel consumption.
On tapping demand in Haryana, SAIL said that the state already has a strong presence in automobiles and auto ancillaries space, which coupled with the Centre’s smart cities mission can provide steel firms opportunities to enhance steel consumption.
The state has major industrial zones for country’s northern region with presence of several national and international manufacturing companies from sectors including automobile, heavy industries, engineering parts and equipments, paints, diary, agricultural equipments, housing materials, tube & pipes etc, it added.
In tandem with the vision of central government’s progressive policies, Haryana government is also keen to develop many cities as smart cities and Faridabad and Karnal have already found its niche in the centre’s ‘Smart Cities Mission’, SAIL said.
All these factors culminate to a strong opportunity for improved steel consumption in Haryana providing a conducive market for domestic producers, it said.