Government Initiates Anti-Dumping Investigation into Steel Imports from Vietnam [Current Affairs]

India has initiated an anti-dumping investigation into the import of hot rolled flat products from Vietnam following complaints that these products are being sold at significantly low prices, negatively impacting the domestic steel industry. The move, driven by requests from leading Indian steelmakers such as JSW Steel and ArcelorMittal Nippon Steel India (AM/NS India), seeks to address the adverse effects of cheap imports on the domestic market, particularly under the India-Asean free trade agreement.

Concerns Raised by Indian Steelmakers

Indian steelmakers have been increasingly alarmed by the influx of low-priced steel imports from China, rerouted through Vietnam, which have been undermining domestic steel prices. The Indian Steel Association (ISA), representing major steel producers, has petitioned the Directorate General of Trade Remedies (DGTR) for an investigation into these imports.

Scope of the Investigation

The DGTR’s notification, issued on August 14, 2024, confirms the initiation of an anti-dumping probe into hot rolled flat products of alloy or non-alloy steel from Vietnam. The investigation period is set from January 1, 2023, to March 31, 2024, covering 15 months. The products under scrutiny include those with a thickness of up to 25 mm and a width of up to 2100 mm.

Impact on Domestic Steel Industry

Indian steelmakers have highlighted that the dumped imports have significantly affected their cash profits, market share, and return on investment. The petitioners have requested the retrospective imposition of anti-dumping duties to mitigate the financial strain on the industry. The ongoing influx of cheap imports poses a threat to the expansion plans of major steel producers, who are investing billions in increasing India’s steel production capacity to 300 million tonnes by 2030-2031.

Market Trends and Shifts

According to a CRISIL report, India became a net importer of steel in fiscal 2024, with a trade deficit of 1.1 million tonnes, marking a shift from its status as a net exporter since 2017. Vietnam, alongside China, South Korea, and Japan, has emerged as a significant exporter to India, with exports rising by 130% year-on-year. This trend has led to the highest levels of finished steel imports in five years during April-May 2024.