India’s steel industry, a crucial pillar of the nation’s industrial landscape, is currently navigating a complex challenge that threatens its competitive equilibrium. At the heart of this turmoil is a recently initiated anti-dumping investigation, triggered by an application from the Indian Steel Association on behalf of two domestic steel titans, JSW Steel Limited and ArcelorMittal Nippon Steel India Limited. This investigation centers on imports of hot-rolled flat products of alloy or non-alloy steel originating in or exported from Vietnam, a key player in the global steel market. The application has set into motion a meticulous examination under the aegis of the Designated Authority, as prescribed by the Customs Tariff Act of 1975 and the Anti-Dumping Rules of 1995.
The genesis of this investigation lies in the ISA’s allegations that Vietnamese exporters are engaging in dumping practices, selling their hot-rolled flat steel products in the Indian market at prices significantly below their normal value. This practice, the petitioners argue, has inflicted substantial material injury upon the Indian steel industry. The repercussions of such dumping are manifold, encompassing diminished profit margins, erosion of market share, and an overarching threat to the viability of domestic steel producers who are unable to compete with the artificially low prices of imported goods.
The product under consideration,in this investigation is expansive, covering a wide range of hot-rolled flat steel products. These include alloy and non-alloy steel products that have not been further processed beyond the hot-rolling stage, with thicknesses up to 25 mm and widths up to 2100 mm. Such products are indispensable in various critical sectors, including automotive manufacturing, oil and gas pipeline construction, and general engineering. The broad application of these products underscores the strategic significance of the investigation, as any adverse impact on the domestic steel industry could ripple through these dependent industries, amplifying the economic consequences.
Central to the investigation is the proposed Product Control Number system, which aims to establish a fair and transparent framework for comparing the imported goods with those produced domestically. The PCN system categorizes products based on specific attributes, such as alloy type, thickness, and width, to ensure an equitable comparison. This meticulous classification is crucial in ascertaining whether the imported goods are indeed being dumped and if they are causing or threatening to cause significant injury to the domestic industry.
The ISA has expressed particular concern over the future implications of continued dumping. Beyond the immediate material injury, there is an apprehension that unchecked dumping could exacerbate the vulnerability of the domestic industry, potentially leading to plant closures, job losses, and a broader economic downturn in regions heavily reliant on steel manufacturing. This foresight has led the petitioners to request the imposition of anti-dumping duties, which would serve as a defensive measure to neutralize the unfair pricing advantage enjoyed by the imported products and restore a level playing field for domestic producers.
The period of investigation proposed by the applicants spans from January 1, 2023, to December 31, 2023. However, the Authority, recognizing the need for a more comprehensive analysis, has extended this period to March 31, 2024, a total of 15 months. This extended POI allows for a thorough assessment of the market conditions, capturing the full scope of the dumping practices and their impact over a longer timeframe. Additionally, the injury investigation period covers three previous fiscal years, providing a robust dataset to evaluate the trends and the extent of injury sustained by the domestic industry.
As the investigation progresses, it is expected that all stakeholders, domestic producers, importers, exporters, and the Vietnamese government, will present their evidence and arguments. The process will involve a detailed examination of import data, pricing patterns, and the economic performance of the domestic industry. The outcome of this investigation is of paramount importance, as it will determine whether anti-dumping duties are warranted to protect the Indian steel industry from further harm.
