Jindal Stainless has sought imposition of anti dumping duty on imports of the metal alloy from China.
Ramesh Nair, president & executive director of Jindal Stainless said: “We have requested the government to impose anti dumping duty on cheaper imports of stainless steel from China. Their price is much below the cost level. This is hurting the industry.”
He added that their demand is for imposing anti dumping duty on cold rolled flat stainless steel, which accounts for about 80% to 85% of domestic consumption.
He explained: “The Chinese producers are pumping the material at sub cost level. Their price is 20% to 25% lower. They are able to do it as they have surplus capacity and are not worried about their bottom line profit levels.”
In November 2011, the government had imposed anti dumping duty on flat stainless steel from European Union, South Africa, the US and Taiwan to protect the domestic industry from cheap imports from abroad. The level of duty on the product varied from country to country.
Currently, the government levies 5% import duty on imports of stainless steel.
Among the domestic producers, Jindal Stainless, with a capacity of 1.8 million tonnes per annum, accounts for about 50% of total domestic production. Other major players include Salem Plant of SAIL, Viraj Steel and Mukand Limited. Currently, India has a surplus stainless steel production capacity at about 3.5 million tns/yr. Of this, about 0.8 million tns per annum gets exported. Despite this, the industry estimates that imports from China, amounting to about 250,000 to 300,000tns in a year, is taking place due in large part, to lower prices offered by the Chinese manufacturers.