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China could aggressively dump steel into India

By Niranjan Mudholkar,

Added 28 August 2015

Troubles within China are expected to spell disaster for the Indian steel industry, warns ASSOCHAM

Tin plate exhibits an example of rising defective steel and need for strict quality compliance. Out of the 16 categories published in the Draft notification for Quality Control Order, 2015, Tin plate is very critical, as it is widely used for packaging of food items, Industrial goods, Pesticides, stationery and toys. Presently a lot of substandard quality of tin plate is being imported at very cheap prices and being utilized in Packaging industry.

Due to absence of adequate quality standards on imported steel, China was able to cleverly disguise its commodity grade steels as Alloy-Steel by adding 8-ppm i.e. 0.0008% or more of Boron. In this manner it was able to penetrate into the Indian market and also en-cash the benefit of Export-Tax-Rebate ranging between 9% to 13%.

"Globally, countries which have become the victims of surplus, cheap and non-standard steel from steel-surplus nations are seeking various kinds of trade remedial measures on steel imports mainly from China, Japan and Korea", said ASSOCHAM Secretary General Mr D S Rawat . He said there are over 400 trade actions taken across the world with majority focused on China. Every country has become a prey to China's unfair exports and have been taking safeguard, anti-dumping or CVD route to counter the surplus steel entry.

"However, the Indian steel industry has not been able to implement a single action till date for carbon steel. India's only action (TBT) in form of the quality order on 16 steel products is still pending and awaiting recommendations on the WTO website. The delays are hurting the steel industry which is not able to compete with the cheap steel being exported from China to Indian end users", the chamber said.
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