As aluminium prices on the London Metal Exchange hover above $1900/tonne-mark, govt may impose MIP only when trend of price dip starts showing.
Domestic aluminium makers want minimum import price (MIP) to protect against surge of cheap imports, but the commerce ministry â€œcautiousâ€ as move may not be strictly WTO-compliant
Moody's Investors Service today said extension of anti-dumping duties on hot-rolled and cold-rolled flat products of alloy or non-alloy steel is credit positive for Indian steelmakers as it will continue to protect them from cheaper imports from other Asian nations.
The government today said there would be no extension of protectionist minimum import price (MIP) on 19 colour-coated steel products.
Asserting that the steel sector has started "stabilising", Steel Minister Chaudhary Birendra Singh today said the industry must gear up to face global competition as protectionist measures like minimum import price (MIP) and anti-dumping can not continue indefinitely.
"Chaudhary Birender Singh (Steel Minister) had emphasised that MIP is a short-term measure and not of a permanent nature," the steel ministry said in a statement today.
CNBC-TV18‘s Anshu Sharma, quoting sources, said that revised MIP for primary aluminum products is likely to be USD 1996 per tonne. For secondary aluminum products, MIP is likely to be range of USD 2275-3266 per tonne.
The government today said that it is considering imposing a minimum import price (MIP) on aluminium, a move that may help stem a rise in cheaper shipments coming from overseas, hurting domestic manufacturers.
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.
Last month, a government body decided against imposing safeguards on some aluminium products citing lack of evidence over imports hurting profitability of domestic industry.
The government may discontinue the minimum import price (MIP) imposed on certain products after February 4; final decision expected shortly. Steelmakers want long-term trade barrierâ€”anti-dumping dutyâ€”on most of products
The objective of imposing minimum import price (MIP) on certain steel products was not to give a "permanent cover" to the industry but to stop cheap inbound shipments, Commerce and Industry Minister Nirmala Sitharaman said today.
"On December 20, Japan notified the WTO Secretariat that it had requested dispute consultations with India in the dispute 'IndiaCertain Measures on Imports of Iron and Steel Products'," the WTO has said.
Government extended minimum import price (MIP) on 19 products for two months to protect domestic steel industry from below-cost imports. Steel Secretary Aruna Sharma believes that steel capacity will reach 150 MT in couple of years.
Aluminium major Hindalco today sought government support to enable the domestic industry to take on what it called "foreign economic invasion" and urged it to encourage new investments.
"The central government hereby extends the applicability of MIP beyond 4/10/2016... for further two months, i.e., till December 4, 2016," the Directorate General of Foreign Trade has said in a notification last night.
In August this year, the Directorate General of Foreign Trade (DGFT) had extended MIP on the same products of iron and steel till October 4. MIP had first come into place in February this year on 173 steel products in range of USD 341-752.
The development comes as the talks between the government and primary as well as secondary producers of aluminium on imposing MIP on the metal to check imports from China and the Middle East remained inconclusive last month.
Mines Secretary Balvinder Kumar said a decision on import duty hike or MIP on aluminium will be taken with a fortnight.
ISA has requested the government to favourably consider continuation of the MIP regime pertaining to imports pf 66 HS codes of iron and steel, it said in a statement.
Speaking to CNBC-TV18's Rukmini Rao, FIMI's Secretary General, RK Sharma, reiterated the need to continue with minimum import price (MIP) to safeguard the steel industry.
Government is unlikely to further extend the minimum import price (MIP) on certain steel products beyond October 4 as these items could be covered under anti-dumping duty, an official today said.
Last week, government extended the minimum import price (MIP) on steel products by two months, but pruned the list from 173 products to 66. It said rest of the products will be brought under anti-dumping duty, which is a better protection mechanism.
Siddharth Purohit of Angel Broking points out that if MIP been extended for one more year, then it would have made some difference, now the government needs to figure out what happens after October, as when this protection goes away, the domestic player will lose advantage and dumping will again start.
MIP and anti-dumping duties benefit local producers, but not the consumers. In the case of steel, user bodies have protested saying they are forced to buy expensive domestic steel when global prices are far lower