Search the Internet          Tips  Sites: Finance, Investment

US slaps 153% dumping duty on Indian steel

Rumi Dutta

In a preliminary anti-dumping duty investigation, the US commerce department found that the imports of cold-rolled steel products from India were being dumped on the US market.

On April 29, the department announced that the dumping margins for imports from India were 153.65 per cent. India's name figures with 19 other countries.

According to steel industry sources, the impact on the Indian producers "will not be very great" because the cold-rolled steel exports by Indian steel makers, including Ispat Industries and Tata Steel, have considerably reduced in the recent months.

However, sources agreed that the 153.6 per cent anti-dumping duty would bring exports to the US to a halt. Indian steel manufacturers have begun to identify other export markets like China and Southeast Asia.

Tata Steel is expanding its cold-rolled steel capacity to export to the US. Earlier, the company said it would like to export at least 30 per cent of its cold-rolled steel to the US.

"The US is not satisfied with the existing tariff barriers and the protection extended to its local producers. Is this not a lesson for other countries where the steel industry needs protection?" Barin Das, senior vice-president at Ispat Industries, said.

The imposition of anti-dumping duties requires approval of the US commerce department and the US International Trade Commission.

The department will make the final determination in the anti-dumping cases on India and other countries on July 10 while the USITC ruling is expected by August 26.

The other countries on which the antidumping cases have been slapped include Australia, France, Japan, Korea, the Netherlands, China, Russia, Sweden, Spain, Thailand and Turkey.

The anti-dumping and countervailing duties that might be imposed after the final determination would be over and above the existing 30 per cent temporary safeguard duties.

However, cold-rolled steel products are subject to the Section 201 relief announced by President Bush in March wherein developing countries like India are exempted from this 30 per cent safeguard duty.

Powered by

ALSO READ:
The Rediff Budget Special
The Rediff-Business Standard Special
Money

Tell us what you think of this report