India has recently launched an anti-dumping probe into imports of hot rolled flat products originating in or exported from Vietnam. This move comes after complaints from domestic steelmakers that these products were being sold at low prices, negatively impacting the interests of the Indian steel industry. The Indian Steel Association, representing companies like JSW Steel and ArcelorMittal Nippon Steel India, filed an application seeking a probe into these imports, particularly those rerouted through Vietnam under the India-Asean free trade agreement.
The notification issued by the Directorate General of Trade Remedies stated that there was prima facie evidence of dumping of hot rolled flat products from Vietnam and the consequential injury to the domestic industry. The product under consideration is described as hot rolled flat products of alloy or non-alloy steel, with specific thickness and width parameters. The period of investigation spans 15 months, from January 1, 2023, to March 31, 2024.
The applicants have requested a retrospective imposition of anti-dumping duty, citing adverse effects on their performance metrics such as cash profit, market share, and return on investment. Major steel producers in India have been aligning their expansion plans with the country’s target of achieving 300 million tonnes of steel capacity by 2030-2031. However, concerns have been raised that cheap imports could impact cash flows and hinder these expansion plans.
According to reports by ICRA and CRISIL, new steelmaking capacity is expected to come online in the coming years, with India becoming a net importer of steel in fiscal 2024. China, South Korea, Japan, and Vietnam are highlighted as key exporters to India, with Vietnam’s exports to India increasing significantly year-on-year.
The anti-dumping investigation initiated by India reflects the government’s commitment to protecting the interests of the domestic steel industry. By addressing the issue of cheap imports from Vietnam, Indian steelmakers hope to safeguard their market share and profitability, ensuring a level playing field for all players in the industry. As the investigation progresses, stakeholders will be closely monitoring the outcomes and potential implications for the future of the Indian steel sector.