The government has extended the minimum import price (MIP) for 19 colour-coated and galvanised steel products till February 4, 2017, without tweaking the price range.

This leaves 47 products without MIP protection. While domestic producers of 15 of these wire rod products are protected by the anti-dumping duty, 35 products lack any kind of import protection other than tariffs.

The MIP,, below of which import is not permitted, was initially introduced in February 2016. It was aimed at containing imports of 173 steel products in the range of $341-$752 per tonne. The list was pruned to 66 in August for two months and again in October for another two months. Now, the list stands at 19 flat-rolled iron or non-alloy steel products.

The domestic industry has already sought protection in the form of anti-dumping duty on 21 products of coated sheets where the MIP is in place now.

Sources in the steel ministry said the MIP may not be extended further as the government fears a huge backlash in the international arena from WTO non-compatible measures, particularly after prices are going up while imports are on the wane.

Despite repeated pleas by the industry, the steel ministry was not in favour of the extension of the MIP for 30 semi-finished products such as slabs and billets, in October as imports of these items have been negligible. Currently, the MIP on these items is in the range of $341-364 per tonne.

Indian steelmakers had recently urged the government to extend the MIP for all 66 products as the measures imposed for the first time in February last year are yet to “trickle down” to boost domestic demand. The also fear that the liquidity crunch due to demonitisation and imposition of met coke would further dent the demand and production situation.

Once dumping duties are imposed, MIPs become redundant. India has been under pressure in multilateral fora to remove MIPs which are seen as an outdated measure that is WTO incompatible.

Shortly after the MIP was imposed, steel imports started falling and the domestic industry’s sales and margins picked up. But after correcting positively till May, steel prices became very volatile and now are on the upswing.

Replacing MIP, the directorate general of anti-dumping in August had recommended provisional duties in the range of $69-152 per tonne on hot-rolled coil and ‘HR not in coil’ from specified producers in China, Japan, Korea, Brazil, Russia and Indonesia. It concluded that these items are being imported at below-normal (cost) price.

In the same month, the directorate had also slapped the anti-dumping duty on certain cold-rolled flat steel products from four nations, including China and

South Korea, to guard the domestic industry from cheap imports.

-The 18th China(Guangzhou)Int’l Fastener & Equipment Exhibition