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Indian steel exporters brace for 30% duty slap

BS Bureau

Indian steel exporters are likely to be slapped with a hefty duty under Section 201 of the US Trade Law. Steel ministry sources said news coming in from the US indicate a levy of 30 per cent on steel sold to the US.

They said, there was no clear indication on whether India would receive any special treatment, given President George W Bush's appreciation of India's support to his war against terror.

Even the optimists warned of a duty hit. Raman Madhok, deputy managing director Jindal Iron and Steel Company, said the safeguard duty was likely to be 20-25 per cent and India in all probability would be clubbed with other developing countries likely to receive certain benefits.

The other developing nations were Thailand, Argentina and Turkey, which account for less than 3 per cent of US imports.

Japan, China, South Korea, Russia, Ukraine and Brazil are among nations likely to be worst hit.

"Quantitative restrictions may also be imposed and the duties for flat and long products may differ" Madhok said. Jisco's US subsidiary, Jindal USA imported slabs from India.

Madhok clarified that the company is yet to hear from its lawyers in the US, who would get back only after the final announcement on Wednesday.

Jisco is one of the largest exporters of galvanized products. Around 60 per cent of its half million tonne produce was exported, out of which 15-18 per cent was exported to the US.

Madhok pointed out that a 20-25 per cent duty would not have much of an impact on the company. "Buyers have already factored the 20-25 per cent rise in prices," he said.

The USITC had recommended 20-40 per cent duty on 29 foreign-made (including Indian) steel products.

The 29 products that were subject to scrutiny included steel slabs, hot rolled sheets, cold rolled sheets, HR bars and related products.

Industry representatives said companies likely to be hit hardest were exporters of CR products and GP/GC sheets, as HR coils were no longer competitive in the US market following imposition of anti-dumping duty earlier.

Last year, India exported around 1.4 million tonne HRC to the US alone.

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