Govt initiates anti-dumping investigation into steel from Vietnam

New Delhi: India has initiated an anti-dumping investigation into imports of hot rolled flat products originating from or exported by Vietnam, following allegations that these products were being sold at unfairly low prices, thereby harming the domestic steel industry.

Indian steelmakers have long expressed concerns about cheap imports from China, which are rerouted through Vietnam under the India-Asean free trade agreement, adversely affecting local steel prices. The probe was prompted by a complaint filed by the Indian Steel Association (ISA) on behalf of major domestic producers, including JSW Steel and ArcelorMittal Nippon Steel India (AM/NS India).

The Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce issued a notification on August 14, acknowledging prima facie evidence of dumping and its detrimental impact on the domestic industry. The investigation will cover hot rolled flat products of alloy or non-alloy steel, up to 25 mm in thickness and 2100 mm in width, imported from Vietnam during the period from January 1, 2023, to March 31, 2024.

The ISA has requested the imposition of retrospective anti-dumping duties, citing significant harm to the domestic steel sector, including reduced cash profits, market share, and return on investment. This concern is particularly pressing as Indian steel producers are investing heavily in capacity expansion to meet the national target of 300 million tonnes of steel production by 2030-31.

According to recent reports, the Indian steel industry is on track to add 27.5 million tonnes of new steelmaking capacity between FY25 and FY27. However, the influx of cheap imports could jeopardize these expansion plans by straining cash flows. Notably, a CRISIL report highlighted that India became a net importer of steel in fiscal 2024, with a trade deficit of 1.1 million tonnes, a significant shift from its status as a net exporter since fiscal 2017. Vietnam’s steel exports to India surged by 130 percent year-on-year, further intensifying the challenges faced by the domestic industry.