Steel Industry Seeks Hike In Safeguard Duty To 18-25% To Guard Against China's Dumping: Sources

India's steelmakers seek a sharper safeguard duty, instead of the 12% presently proposed, and plan to formally raise this request with the Commerce Ministry in the next seven to 10 days, according to sources.

Representatives of domestic steel companies feel the proposed 12% duty is insufficient, and it won't hinder China from dumping steel goods into India. A representation will be made by them before the ministry to request a revision in the duty to 18-25%, the persons privy to the development said.

Notably, 25% was the industry's demand when it first approached the Directorate General of Trade Remedies in December last year.

Further, the steel industry also believes the 200 days of provisional duty is not enough, and will move for a more permanent solution to the issue.

However, government sources have stated that the 12% duty is sufficient, and the number has been arrived on the basis of thorough investigation of the "scope of injury to the domestic industry".

Late on Tuesday, the DGTR proposed a 12% safeguard duty on certain steel products to protect the domestic industry against the surge of imports, which has happened due to the protective measures imposed by the United States.

In December, the DGTR had started an investigation into imports of non-alloy and alloy steel flat products, which are used in industries including construction, capital goods, automobile, tractors, white goods, electrical panels and furniture.

The probe came after the Indian Steel Association filed a complaint with the DGTR alleging a "recent, sudden, sharp and significant increase in imports", which has caused "injury to the domestic industry".

Indian Steel Association members include leading domestic steel companies such as ArcelorMittal Nippon Steel India, JSW Steel Ltd., Bhushan Power & Steel Ltd., Jindal Steel and Power Ltd. and Steel Authority of India Ltd.