The European Commission (EC), the executive body of the European Union,
is expected to open anti-subsidy and anti-dumping investigations against
imports of stainless steel cold finished (bright) bars from India.
Eurofer, the European Confederation of Iron and Steel Industries, confirmed the development. Jean-Louis Moray, director, speciality steels, Eurofer ASBL, said in an e-mail response that the EC was expected to notify the investigations in its official journal this week.
The complaint was filed by Eurofer against imports from India in general. The companies identified were Bhansali Bright Bars, Venus Wire Industries, Chandan Steel, Viraj Group, Raajratna Metal Industries, Nevatia Steel & Alloys, Facor Group, Mukand Ltd, Garg Inox, Panchmahal Steel, Isibars and Shah Alloys.
According to Eurofer, imports from India increased from 14,800 tonnes in 2005 to 32,000 tonnes in 2008. Despite the economic slump, imports were at 19,000 tonnes in 2009, it said.
Eurofer represents all EU steel producers. Their combined output is 200 million tonnes or, in value terms, ¤200 billion. Moray said, “The complaint is based on market share lost and, more crucially, severe price undercutting and high dumping margins.”
Stainless steel bright bars are capable of withstanding temperature fluctuations and therefore have a great demand in electronics, thermal power stations and the machinery making industry. They are also used in construction of buildings, roads and bridges.
Safeguard measures cut both ways. Last year, India’s Directorate General of Anti-Dumping and Allied Duties (it works under the Union commerce ministry) recommended a tariff on stainless steel imports into India from China, the EU and six other countries, based on a complaint filed by a domestic stainless steel producer.
The turf war is not just fought in speciality steel. In 2009, a range of flat steel products faced anti-dumping duty in Thailand, when import volume from India increased 350 per cent in the first in the first five months of 2009, to which a Thai committee on anti-dumping and subsidy came out with objections.
Industry sources said a step-up in anti-dumping action across the globe in the past two years was fuelled by the slowdown in 2009 and a still unfolding recovery, which was still unfolding. “Hence, the two years were crucial for the industry.”
Source : business-standard.com