India’s flat steel import activity has dropped to negligible levels during the past week amid reports that the government is considering the imposition of across-the-board tariff barriers for flat product inward shipments from China, Vietnam and South Korea, traders said on Thursday, October 24.
The traders said that, while ex-China hot rolled coil (HRC) prices have continued to soften during the past week, moving down by $5-10/mt to $430-440/mt CFR Mumbai, no significant deals have been concluded by either traders or end-users, who did not want to get caught by possible tariff barriers at the time of delivery.
Market sources said that reports are emanating from the government to the effect that it is looking at provisional tariff barriers for a period of six months on all flat product imports from the three countries in question and has directed the Ministry of Commerce to look at options as to in what form such tariff barriers could be imposed. One of the options under consideration by the government is to direct the Directorate General of Trade Remedies (DGTR) to recommend imposition of provisional antidumping duty on all flat product imports from China, Vietnam and South Korea, which would then be announced by the department of revenue, while the DGTR could conduct detailed investigations during the six-month period that the levy would be in force.
The sources said that the Indian government is in favor of a tariff barrier ranging from $20/mt to $200/mt on the landed price of import flat products, varying according to the respective producing/exporting countries.
“Most of the reports on fresh tariff barriers on imports have not been confirmed officially. But it has triggered severe nervousness in the market and no one is willing to commit a deal at the moment,” a Mumbai-based trader said.
“Until there is clarity from the government, import activity is unlikely to resume particularly at a time when domestic flat products are at a three-year low already,” the trader added.