Steel industry welcomes imposition of safeguard duty

New Delhi, Mar 30 (PTI) Steel industry today welcomed the imposition of safeguard duty on import of some products till March 2018, to protect domestic industry from onslaught of cheap supplies from China amid a global glut.

Indian Steel Association (ISA) the premier body of Indian steelmakers representing 60 per cent of steel capacities in India welcomed the move.

The bodys secretary General Sanak Mishra in a statement said the imposition will guard against cheap imports into India and help domestic steel companies compete on more of a level playing field with imports, at least on the subject goods.

He, however, cautioned that circumvention of these duties should also be prevented, since instances of import of commercial grade structural steel Hot Rolled coils in guise of API Grade Steels (excluded under safeguard duty) have been reported since the levy of provisional safeguard duty in September 2015.

Welcoming the move, Essar Steel India Chief Commercial Officer H Shivramkrishnan said the industry has been seeking long term measures to contain dumping of steel.

"The final findings confirm the injury to the domestic steel industry due to increased imports and the extension of Safeguard Duty till September 2018 is a right step and we welcome this move," he added.

Meanwhile, Steel and mines Minister Narendra Singh Tomar tweeted that: "GOI is committed to safeguard the interests of all stakeholders in the steel industry. Lets all work together for a stronger India."

ISAs Mishra also said that imports under the Minimum Import Price (MIP), covering almost 80 per cent of imports into India, should be closely monitored. This is especially so, since safeguard duties would not apply in case of subject goods being imported at or above MIP, as per the CBEC notification, he added. PTI RNK ABK