The Directorate General of Trade Remedies (DGTR) has commenced an investigation into the alleged dumping of hot-rolled flat products, both alloyed and non-alloyed steel, imported from Vietnam. This action follows a formal request submitted by the Indian Steel Association (ISA), a representative organization for domestic steel producers.
The ISA’s application was lodged on behalf of local manufacturers, including JSW Steel and ArcelorMittal Nippon Steel India. According to the notification issued by the DGTR, the complaint contends that these steel products are being imported at artificially low prices, a practice that is purportedly inflicting substantial harm on the domestic steel industry.
Additionally, the application highlights a looming threat of further injury to the local sector due to these dumped imports. The DGTR’s notification reveals that there is preliminary evidence suggesting the existence of dumping practices with respect to the steel products in question, originating from or exported by Vietnam.
This evidence indicates that such dumping is not only impacting the domestic industry adversely but also poses a risk of continued harm. Hot-rolled flat steel, the product under scrutiny, is crucial across various sectors including automotive manufacturing, oil and gas pipeline construction, cold-rolled steel production, general engineering and fabrication, construction, capital goods, and process equipment for industries such as cement, fertilizer, refineries, and earth-moving machinery.
The notification confirms the initiation of an anti-dumping investigation and notes that the ISA has requested the retroactive application of anti-dumping duties, citing a history of previous dumping incidents. The investigation will cover import data spanning from April 2020 to March 2023.
Should the investigation substantiate claims that dumping has caused significant injury to domestic producers, the DGTR will propose the imposition of anti-dumping duties on these imports. The final decision on the implementation of such duty’s rests with the finance ministry.
In the fiscal year 2023-24, India imported steel worth $722 million from Vietnam, marking a 101% increase compared to the previous year. The total bilateral trade between India and Vietnam for the same period reached $14.81 billion, a slight rise from $14.7 billion in the previous fiscal year. India’s exports to Vietnam amounted to $5.47 billion, whereas imports were $9.34 billion, resulting in a trade deficit of $3.87 billion in favor of Vietnam.
