India's Ministry of Steel has rejected claims by local steel mills that steel products were being dumped by Japanese and South Korean producers under Comprehensive Economic Partnerships Agreements (CEPAs) signed between India and the two countries, a steel ministry official said on Wednesday, April 23.
Since net steel imports into India have been almost unchanged over the last two financial years, it does not make sense that domestic steel producers are claiming injury by dumping only for the last financial year, according to U K Singh, joint secretary at the Ministry of Steel.
As per the ministry's data, India imported 6.8 million mt of steel in FY 2011-12 and 7.8 million mt during FY 2012-13, while exports were pegged at 4.5 million mt and 5.2 million mt during the respective years. Hence, with net imports almost stagnant at 2.3 million mt and 2.6 million mt, local steel producers' claims of being ‘injured' by dumping were not justified by the data, the official said.
Two Mumbai-based traders told SteelOrbis that imports from Japan and South Korea were mostly high value-added auto grade steel and could not be called dumping since Indian capacity for similar grade steel was insufficient to meet current levels of demand.
Under the CEPAs in question, steel imports from Japan and South Korea are permitted at a concessional import duty rate of 2-3 percent against 7.5 percent from other countries.