News

19 October 2015

In India, new duties began to operate

In the Asian market, there have been significant changes. The reason for this is the new duties introduced by the Government of India. They are 20% and are applied to imported hot-rolled coils. Indian producers were able to raise the cost of production by 35-40 USD / ton. The measures taken contributed to a considerable reduction in the gap between the prices of national and foreign products. Chinese manufacturers continue to supply to the Indian market. The sales strategy can be different. Some companies have reduced the cost to 290 USD / ton. At the same time, even duties do not particularly affect their competitiveness. Some producers try to circumvent the restrictions. The technique is quite simple. The cutting of products is done in such a way that the final dimensions do not fall under the duties. Products that meet the API standards, 20% duty is not charged.

Korean and Japanese manufacturers chose not to import products to India. Restrictions blocked their access. To reduce the same cost, like the Chinese, neither Japan nor Korea is going to. The loss of such an important market affected the price policy. To strengthen positions in other areas, steelmakers were forced to slow down the cost . Thus, a relative advantage is achieved for the PRC companies. The price of hot-rolled Korean and Japanese rolls in the countries of the Persian Gulf and Vietnam fell to 300 USD / ton. Chinese quality rolls lower in September were 270-280 USD / ton. At the same time, many manufacturers reported that further decline is impossible. In any case, while the price of iron ore exceeds 55 USD / ton.

In the ASEN camps, all the new barrage duties have recently appeared. They affect many types of imported metallurgical products. The Thai Ministry of Commerce in September fixed duties on low-carbon Chinese wire rod. In September, the next investigation was launched. One affected the painted galvanized steel from Vietnam. Perhaps, duties are also affected by sheet metal with aluminum and zinc coating. The complaint came from BlueScope, one of the leaders of the Thai metallurgical sector. The basis was the dumping difference at the level of 86.04-89.58%. The second lawsuit was filed by Toyo Millennium and Thai-German Products. Investigation will be conducted with regard to imported stainless steel tubing products . Taxes will be applied to the producers of Vietnam, China, Taiwan and Korea. Here the dumping margin reaches 20-472%.

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