India launches safeguard investigation on non-alloy and alloy steel flat products on alleged recent, sudden, sharp and significant increase in imports causing serious injury to the domestic steel manufacturing industry.
In its notification, India said it has initiated an investigation on Dec. 19, 2024 covering the present investigation from Oct. 1, 2023 to Sept. 30, 2024. India’s concerned authority will also examine data pertaining to April 1, 2021 to March 31, 2022, April 1, 2022 to March 31, 2023, and April 1, 2023 to March 31, 2024.
The product under consideration for the investigation includes “Non-Alloy and Alloy Steel Flat Products”, (“PUC”), which includes (a) Hot Rolled (“HR”) coils, sheets and plates, (b) HR Plate Mill Plates (“PMP”), (c) Cold Rolled (“CR”) coils and sheets, (d) Metallic Coated Steel coils and sheets, whether or not profiled, including Galvanneal, Coated with Zinc or Aluminium-Zinc or Zinc-AluminiumMagnesium (“Coated”), and (e) Colour Coated coils and sheets, whether or not profiled (“CC”). The following products are excluded from the scope of the PUC: a) Cold Rolled Grain Oriented Electrical Steel (CRGO) b) Cold Rolled Non-Oriented Electrical Steel (CRNO) coils and sheets c) Coated – Electro Galvanized steel d) Tinplate e) Stainless steel.
The PUC falls under the HSN tariff headings 7208, 7209, 7210, 7211, 7212, 7225 and 7226. The tariff headings are indicative only and not binding on the investigation.
The PUC is used inter alia in general engineering and fabrication, pipe manufacturing, construction, capital goods, automotive industry, tractors, bicycles, appliances, furniture, electrical panels, packaging, drums, barrels, general engineering, substrate for coating, color coaling galvanizing, metal-coaling/plating, roofing application, appliances, renewable energy, walling, panelling, cladding and decking, automotive, white goods and appliances, furniture, etc.
The investigation has been initiated following the examination of the safeguard application of the domestic industry alleging serious injury and the threat thereof caused by the recent, sudden, sharp and significant increase in imports of the PUC.
In its application, the domestic industry cited recent, sudden, sharp and significant increase in imports during the period Oct. 1, 2023 to Sept. 30, 2024. The domestic industry said that imports have increased primarily due to a number of unforeseen factors, including 129 trade remedy measures imposed by various other countries against steel products between 2019 to 2023.
The domestic steel industry also cited significant excess capacity far exceeding domestic consumption in China, Japan and South Korea. China’s recent domestic policy measures resulting in a decline of the consumption of long steel products that are mainly used in real-estate sector, that has resulted in an increase in production of flat steel products, which is being exported to global markets.
In addition, the industry said that ASEAN is expected to significantly increase crude steel production capacity, with 75% of the region’s planned capacity expansion related to investments by Chinese companies.
The confluence of all the above unforeseen developments and the effect of obligations undertaken by India under the GATT and other covered agreements have resulted in a recent, sudden, sharp and significant increase in imports of PUC into India, which is causing serious injury to the domestic industry. Hence, it has been decided to initiate the safeguard measure.
