Detailed Overview of the Anti-Dumping Investigation on Hot Rolled Flat Products of Steel from Vietnam
The Government of India has initiated an anti-dumping investigation regarding imports of "Hot Rolled Flat Products of Alloy or Non-Alloy Steel" originating from Vietnam. This investigation was triggered by a formal complaint filed by the Indian Steel Association on behalf of domestic producers, namely JSW Steel Limited and ArcelorMittal Nippon Steel India Limited. The complaint highlights concerns about the alleged dumping of these steel products at unfairly low prices, which, according to the petitioners, are causing significant material injury to the domestic steel industry.
Background of the Investigation
The Directorate General of Trade Remedies, under the Ministry of Commerce & Industry, is handling the investigation under the provisions of the Customs Tariff Act, 1975, and the Anti-Dumping Rules. The focus is on the imports of hot rolled flat products, which are primarily used in various sectors such as automotive, oil and gas, construction, and general engineering.
The product under scrutiny includes hot-rolled flat products of alloy or non-alloy steel with specific attributes such as:
• Thickness up to 25 mm
• Width up to 2100 mm These products could be subjected to various processes like pickling, oiling, and recoiling, and are utilized in industries ranging from pipe manufacturing to construction equipment.
Details of the Investigation
The anti-dumping petition filed by ISA claims that steel products from Vietnam are being sold in India at dumped prices. This situation, they argue, is harming the financial health of domestic producers. Furthermore, there is a threat of additional injury if this practice continues unchecked.
The Directorate has found sufficient prima facie evidence that dumping is occurring, leading to adverse effects on the domestic industry’s performance, including reduced market share, decreased profits, and a general decline in investment returns.
• Period of Investigation:
The investigation period is from 1st January 2023 to 31st March 2024, covering 15 months. This period was chosen to ensure compliance with the regulations under the AD Rules, which requires a minimum of 6 months between initiation and the formal investigation period.
• Duties and Assessment:
The applicants, JSW Steel and ArcelorMittal Nippon Steel, have requested the retrospective imposition of anti-dumping duties, citing the history of dumping and its adverse effects on domestic producers. This request comes after an increase in both the volume of imports and the intensity of price undercutting during the investigation period.
Product Control and Specifications
For the purposes of comparison, the petitioners have outlined specific product control numbers (PCNs) that categorize the steel products by thickness, width, and alloy composition. These distinctions are crucial for an accurate assessment of injury caused by the dumped imports.
Key Participants in the Investigation
The parties involved in the investigation include:
• Domestic Industry: JSW Steel Limited and ArcelorMittal Nippon Steel India Limited
• Subject Country: Vietnam, where the products are being exported from
• Interested Parties: Importers, users, and any other stakeholders with vested interests in the case are invited to submit relevant information for evaluation.
Legal Framework and Procedures
The investigation follows the procedures outlined in India’s Anti-Dumping Rules, which ensure fair treatment of all interested parties:
• Confidentiality: Parties involved in the investigation can submit confidential information with the condition of also providing a non-confidential version for transparency.
• Oral Hearing: An oral hearing has been scheduled for 03.04.2025 to allow interested parties to present their arguments.
• Submissions: Interested parties are invited to submit their responses within the given timeframe, with clear instructions regarding the format and submission of both confidential and non-confidential information.
Dumping Margin and Injury
The petitioners have established a clear correlation between the dumping margin and the material injury suffered by the domestic industry. The dumped products are being sold at prices lower than their normal value, with adjustments made for freight and handling costs. This has caused significant price depression in the domestic market, leading to the claimed injuries.
The domestic producers have shown evidence of a decline in their financial performance due to the influx of cheap imported steel from Vietnam. The injury is not only material but also poses a future threat if the current trend of dumped imports continues.
Key Takeaways:
• Oral Hearing Date Rescheduled: The oral hearing for the anti-dumping investigation concerning imports of hot rolled steel products from Vietnam is now scheduled for 3:00 PM (IST) on 03.04.2025 in hybrid mode.
• Investigation Focus: The probe is looking into the alleged dumping of hot rolled flat products of alloy or non-alloy steel from Vietnam, which are believed to be causing material injury to India’s domestic steel industry.
• Domestic Producers Involved: JSW Steel Limited and ArcelorMittal Nippon Steel India Limited are the key petitioners claiming injury due to dumped imports.
• Period of Investigation: The investigation will cover the period from 1st January 2023 to 31st March 2024, instead of the usual 12-month period, to ensure a comprehensive review.
• Retrospective Duty Request: The petitioners have requested the imposition of retrospective anti-dumping duties, citing the history of dumping and its adverse effects on the domestic industry.
• Product Specifications: The investigation focuses on hot-rolled flat steel products of a thickness of up to 25 mm and width up to 2100 mm, used in industries such as automotive, construction, and general engineering.
• Import Impact: The petitioners have claimed that the dumped imports have caused significant damage to the domestic industry, including reduced market share, lower profits, and a decline in investment returns.
• Interested Parties: All interested parties, including importers and users of the product, have been invited to submit their views and information to the Directorate General of Trade Remedies (DGTR).
• Submission Guidelines: All submissions must be made in the prescribed format, with both confidential and non-confidential versions submitted to the DGTR.
