Steel industry seeks extension of MIP
The Indian steel industry does not see MIP as a perpetual protectionist step, but as a necessary temporary measure that will allow time for recovery.
Even as the steel industry is urging the Centre to continue the minimum import price (MIP) protection scheme to guard against increased imports, user-industries have started protesting against any extension of the scheme.
The MIP scheme was introduced in February, 2016 for six months. Post-MIP, the industry has been able to marginally improve its viability after a prolonged period of subdued prices and eroded profit margins, according to the Indian Steel Association (ISA).“While MIP cannot possibly be an all-encompassing framework for a complete turnaround of the Indian steel industry, it has provided a cushion against surging imports,” said Sanak Mishra, secretary general, ISA.
The Indian steel industry does not see MIP as a perpetual protectionist step, but as a necessary temporary measure that will allow time for recovery, according to ISA. The Indian steel industry’s outstanding loan is estimated at Rs.3,00,000 crore, of which 35 per cent may be stressed.
MIP was imposed on February 5, 2016 on 173 steel items covering both flat and long products. The ISA said that accelerating imports at predatory prices from three steel-surplus Asian countries has been a major concern for the domestic industry since September 2014.
Steel imports, which had peaked in July 2015 registering a 114.6 per cent increase year-on-year, started to decline around November 2015 (when a provisional safeguard duty was imposed). Post-MIP it has dropped in range of 24.6 per cent and 43.1 per cent in the first quarter of the current fiscal.
India is expected to impose an anti-dumping duty of up to $ 557 per tonne on imports of certain steel products from six countries.
The Directorate General of Anti-Dumping and Allied Duties (DGAD), under the Commerce Ministry, has found that hot-rolled flat products of alloy or non-alloy steel have been exported to India from China, Japan, Korea, Russia, Brazil and Indonesia at “below-normal value”.