India may roll back countervailing duty on stainless steel imports

India may impose a countervailing duty (CVD) on imports of stainless steel flats to protect domestic producers. Mint informs about it.

The country’s Ministry of Steel supported the move, and the Directorate General of Trade Remedies has already recommended a 19% duty on these imports. The final decision must be made by the Ministry of Finance.

India used to use CVD on imports of stainless steel flats, but these were removed in the 2021-22 budget.

According to the source, the Indian market is heavily influenced by imports mainly from two countries – China and the Russian Federation. Chinese supplies have always been at a high level, and Russian exports to India have been increasing since the beginning of the war in Ukraine due to European sanctions.

Local steelmakers expect the introduction of a compensatory duty on this steel product. According to SteelOrbis, in May 2023, Indian Steel Authority of India Limited (SAIL) and Jindal Stainless Limited appealed to the government to refund CVD on imports of stainless steel flats from China, which were entering the country at prices 19% lower than domestic prices.

As GMK Center reported earlier, steelmakers of India in April 2023 increased export of steel (rolled and semi-finished products) by 13% compared to the same period in 2022 – up to 855,000 tons. Thus, steel shipments for export increased to a 13-month high. The import of steel to the country in April 2023 increased by 38% compared to April 2022 – up to 460,000 tons. Lower prices on world markets are likely to contribute to the growth of imports of rolled steel to the country in the short term.