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Steel News April 06, 2016 04:30:57 AM

India to review minimum import price on steel products

Anil Mathews
ScrapMonster Author
India will review its decision to impose minimum import price (MIP) on 173 types of steel products.
India to review minimum import price on steel products

NEW DELHI (Scrap Monster): India will review its decision to impose minimum import price (MIP) on 173 types of steel products. The Indian government had imposed MIP on steel products in February this year, in an attempt to safeguard domestic steel industry from import of cheap steel products. The decision will be reviewed on April 12th, according to government officials.

The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, on February 5th, had decided to impose a minimum import price ranging from $341-752 per tonne on 173 categories of steel products. The MIP was imposed for a period of six months initially. The April meeting would review the impact of the decision by analyzing the import data since the imposition of MIP.

The review meeting will be attended by senior officials from the ministries of steel, commerce and the Central Board of Excise and Customs (CBEC), part of department of revenue under the ministry of finance.

Meantime, Ministry of Steel has demanded extension of MIP mechanism so as to include stainless steel products as well. On the other hand, Ministry of Commerce and Industry has announced that it will not support any additional step to curtail steel imports into the country. The government has already extended the provisional safeguard duty on steel until March 2018. Moreover, Economic Survey had predicted that any future safeguards for the steel industry will be against the interests of the country’s downstream industries.

According to India Ratings and Research Pvt. Ltd., steel imports have dropped marginally since the month of January this year. There was marginal decline during the month of February. The imposition of MIP should bring down the March ’16 steel import figure significantly lower.