Import duty will help stabilise steel prices: industry
22 Nov 2008
The government has decided to restrict free import of hot-rolled coils in an attempt to curb dumping of this item from China. The item has been placed on the restricted list and only actual users will be able to import the product against licences issued by the government.
According to Vinod Mittal of Ispat, the move has come at an appropriate time and it would help in stabilising the domestic steel industry. Mittal added that the move wail help steel manufacturers reduce steel prices further. He said it would also help manufacturers ramp up orperations from the present 50 per cent to 80 per cent of capacity.
Chinese companies have been dumping hot-rolled coils in the Indian market for some time now. With the Chinese governement possibly withdrawing 15 per cent duty on exports, domestic producers have started feeling uneasy about their prospects in a free imports regime.
The Federation of Indian Export Organisations (FIEO) director general said the measure would work against imports which will discourage traders from importing the item. He said that import against acutal use would bring about reduction in total imports.
The move comes as part of the government's effort to support domestic industry in the wake of the global downturn.