The recent government action to extend the minimum import price (MIP) on 66 steel products by two months till 4 December 2016 shows the government’s desire to extend protection for a longer time, says India Ratings and Research (Ind-Ra). Many of the 66 products are mostly subject to an anti-dumping investigation, which is likely to be completed over the next two months.

Ind-Ra believes that once this is completed anti-dumping duty (ADD) is likely to be imposed on most of these products for an extended period. The agency had highlighted the need for safeguards in June 2016 in the report ‘Steel Production May Not Rise in FY17, In the Absence of MIP’.Ind-Ra notes that in August 2016, GoI reduced the items under MIP to 66 from 173 and imposed an ADD on most of the excluded items, namely on hot rolled flat products and cold rolled flat products. During April-August 2016, India’s steel imports declined by 34.5 % yoy to 3.01m tonne.
                    Ind-Ra expects GoI to continue to protect domestic steel players from cheap imports. Over FY15-FY16, GoI took various quantitative and qualitative steps to curb the increase in imports into India, however it is only post the imposition of MIP on 5 February 2016, the domestic steel industry heaved a sigh of relief.

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