Minimum import prices of select steel products extended for 2 months

The government has extended the minimum import price (MIP) on 66 steel products for two months, as a safeguard against import of cheap products that adversely affects the domestic steel and allied industries.

''The central government hereby extends the applicability of MIP beyond 04/10/2016…for further two months, ie, till 4th December, 2016,'' the directorate general of Foreign Trade said in a notification.

The MIP which ranges from $341 to $752 per tone is applicable on 66 products, including semi-finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods.

The government had in February imposed MIP, ranging between $341 and $752 per tonne, on 173 steel products for a period of six months. Since then, the government in August decided to extend the minimum import price for another two months, but limited it to 66 steel products against 173 items earlier.

Steel makers, hit by cheap imports from steel-surplus countries like China, South Korea and Japan, wanted the government to extend minimum import price (MIP) on certain products, as its imposition has only marginally improved the industry's viability after a long period of subdued prices.

Post the imposition of MIP in February, the industry has been able to marginally improve viability after a long period of subdued prices and eroded profit margins, Indian Steel Association had said.