To check dumping from countries such as China and South Korea and support the ailing domestic steel producers, the government has imposed a minimum import price (MIP) ranging from $341 to $752 per tonne on 173 steel products providing relief to local steel makers hurt by an increase in cheap imports.
The Directorate General of Foreign Trade (DGFT) said in a notification that “MIP is introduced against 173 HS Codes (iron and steel products).” It also said that the floor price on steel imports will be valid for six months. However, it will not apply on imports under the advance authorisation scheme and high-grade pipes used in the petroleum and natural gas industry. The notification also said imports/shipments under the letter of credit already entered into with foreign suppliers will also be exempted from this decision.
While the duty on various steel products ranges between $341 per tonne and $752 a tonne, on ingots and billets, blooms and slabs, the MIP reads $362, $352 and $341 per tonne, respectively. On flat-rolled products of iron or non-alloy steel of a width of 600 mm or more and hot-rolled one, the minimum prices will be $445 and $500 on different items. On flat-rolled products of iron or non-alloy steel of a width of 600 mm or more and cold-rolled one, the figure stood at $560 per tonne. On products like corrugated flat-rolled products of iron/non-alloy steel, MIP ranged between $643 and $752. Further flat-rolled products of other alloy steel of a width of 600 mm or more, MIP reads between $445 and $752.
The domestic steel producers have hailed the government’s decision saying that will ensure a level-playing field to the Indian steel industry which has been adversely affected by dumped imports from various sources. On the other hand the user industry cried foul, saying it would impact prices of raw materials.
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