Moneycontrol had on January 12 reported that the Steel Ministry may not recommend a further extension of minimum import price (MIP) on the metal beyond February as it does not see the relevance of the trade barrier now.
The government has decided to impose anti-dumping duty on select steel products imported from Europe and China for a period of six months.
Moneycontrol had on January 12 exclusively reported the Steel Ministry may not recommend a further extension of minimum import price (MIP) on the metal beyond February as it does not see the relevance of the trade barrier now.
On February 5, 2016, the ministry had imposed an MIP on 173 steel products ranging between USD 341 and 752 per tonne, on 173 steel products, for a period of six months to insulate the local industry against cheap Chinese imports. Subsequently, the list was slashed to 19 products in December, the MIP was extended on 19 steel products in the range of USD 643 and 752, till February 4.
The reference for pre-painted, colour-coated flat steel now stands at USD 849 per tonne.
MIP serves as the floor rate below which overseas shipments of specified items are not allowed to enter Indian shores.
While imposing the MIP in February last year, the Steel Ministry had labelled MIP as an interim measure to protect the local industry. Domestic steel producers, grappling with issues ranging from huge loan volumes and eroding bottomline owing to cheap imports, also had sought a long-term trade barrier — anti-dumping duty — on most of products, as it can be levied for up to five years.
The steel and commerce ministries’ rationale behind imposing MIP was to provide immediate relief to steelmakers from cheap inward shipments coming in from countries including China, South Korea, Japan, Russia and Ukraine.