EU imposes anti-dumping duty on Indian steel pipes

The European Union has imposed a provisional anti-dumping duty of up to 31.2 per cent on imports of water and sewage pipes from India for six months to protect its industry. Indian exporters of these pipes to the EU market will be impacted by the move.

The European Commission in its anti-dumping probe has “concluded at this stage that the material injury to the Union industry was caused by the dumped imports from India”. On the basis of this <g data-gr-id="42">conclusion</g> “provisional measures should be imposed to prevent further injury being caused to the Union industry by the dumped imports,” the Commission has said in its Official Journal. 

While 15.3 per cent provisional anti-duping duty has been imposed on exports by Electrosteel Casting Ltd, there would be 31.2 per cent levy on shipments from Jindal Saw Ltd and other companies.

The Commission had initiated an anti-dumping investigation with regard to imports into the EU of “tubes and pipes of ductile cast iron”, used for drinking water supply, sewage disposal and irrigation of agricultural land, originating from India on December 20, 2014.

The Indian import volumes increased significantly by over 22 per cent during October 2013 and September 2014, it said. The probe was initiated following complaints by Saint-Gobain PAM group on behalf of producers.

Countries initiate anti-dumping probes to check if <g data-gr-id="36">domestic</g> industry has been hurt because of a surge in below- cost imports. As a counter-measure, they impose duties under the multilateral WTO regime.

Meanwhile, Indian steel sector may take another 18-24 months for revival, which is passing through a global over-supply crisis, a steel ministry official said. “We have assessed the steel situation within the ministry and according to that assessment the industry is expected to remain under stress for the next 18 to 24 months,” Ministry of Steel Joint secretary Syedain Abbasi said at BCCI organised Metals 2015. 

“Government is there to help out the industry in these difficult times. We have imposed safeguard import duty on steel and have taken up the issue of easing the external commercial booking norms for the steel industry with the Finance Ministry,” he said. Indian steel demand is expected to remain robust in the current financial year (2015-16) with the consumption expected to rise 5-6 per cent a year, he said.

“I can understand the industry is facing unfair competition from the Chinese producers. But 5-7 per cent steel import is <g data-gr-id="39">healthy</g> domestic industry. Import is necessary for fair pricing of steel in the country,” he said. <g data-gr-id="38">Despite of</g> the stress in the sector, India’s total steel production is seen rising to 300 million tonne by the year 2025, Abbasi added.