Lok Sabha Question No. 783 (UNSTARRED), answered on 2015-07-24
Subject: Import of Steel
Ministry: COMMERCE AND INDUSTRY
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR, ANANDRAO  ADSUL, PRALHAD VENKATESH JOSHI, DHARMENDRA YADAV, SHIVAJI ADHALRAO PATIL, Shrirang Appa Barne

**GOVERNMENT OF INDIA**

MINISTRY OF COMMERCE & INDUSTRY

(DEPARTMENT OF COMMERCE)

## LOK SABHA

**UNSTARRED QUESTION NO. 783**

**TO BE ANSWERED ON 24** **TH** **JULY 2015**

**IMPORT OF STEEL**

**783. 	ADV. NARENDRA KESHAV SAWAIKAR:**

**SHRI ANANDRAO ADSUL:**

**SHRI PRALHAD JOSHI:**

**SHRI DHARMENDRA YADAV:**

**SHRI ADHALRAO PATIL SHIVAJIRAO:**

**SHRI SHRIRANG APPA BARNE:**

Will the Minister of **COMMERCE & INDUSTRY (´ÉÉÉÊhÉVªÉ A´ÉÆ =tÉÉäMÉ àÉÆjÉÉÒ)** be pleased to state:

- 1.1. whether the domestic steel industry is reportedly suffering due to cheap import of industrial grade stainless steel from China, Malaysia, South Korea and Japan under Free Trade Agreement;
- 1.2. if so, reaction of the Government thereto along with the details of such imports during each of the last three years and the current year, country-wise;
- 1.3. whether the Government has imposed anti-dumping duty on such imports and if so, the details thereof; and
- 1.4. the other measures taken/being taken by the Government to safeguard the interest of domestic steel industry?

### ANSWER

**okf.kT; ,oa m|ksx jkT; ea=h  )Lora= izHkkj)** ( **Jherh fueZyk lhrkje.k** )

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a) & (b):	The total value of imports of industrial grade stainless steel from Free Trade Agreement (FTA) partners such as Japan and South Korea over the last 3 years has shown a negative growth rate. Moreover, there is no FTA with China and the FTA utilisation rate with Malaysia is less than 10%. Hence, one cannot attribute any sufferings of this sector to Free Trade Agreements (FTA).  The details of the imports (in Rupees) of industrial grade stainless steel over the last three years and in 2015-16 (April-May, 2015) is given in Annexure 1

(c): The government has imposed anti-dumping duty on stainless steel as per details given in Annexure 2.

(d):	Before entering into Free Trade Agreement (FTA) negotiations with its trading partners, studies are undertaken internally, as well as through the Joint Study Group (JSG) to study the feasibility of the proposed Free Trade Agreements.  Consultations are also held with the domestic stakeholders including the Apex Chambers of Commerce and Industry, Industry Associations as well as the Administrative Ministries and Departments.  In order to protect the interest of the domestic industry these agreements provide for maintaining sensitive/negative lists of items on which limited or no tariff concessions are granted under the FTA.  In addition, in case of a surge in imports and injury to the domestic industry, a country is allowed to take recourse to the measures such as anti-dumping and safeguards.

******

| Annexure 1  COUNTRY-WISE IMPORT OF INDUSTRIAL GRADE STAINLESS STEEL DURING 2012-13,2013-14,2014-15 AND  2015-16(APR TO MAY)   |          |             |           |             |           |             |                     |                     |
|-------------------------------------------------------------------------------------------------------------------------------|----------|-------------|-----------|-------------|-----------|-------------|---------------------|---------------------|
|                                                                                                                               |          |             |           |             |           |             |                     |                     |
| **HS 7219 -  Flat rolled products of stainless steel of a width 600 mm or more**                                              |          |             |           |             |           |             |                     |                     |
| COUNTRY                                                                                                                       | 2012-13  | 2012-13     | 2013-14   | 2013-14     | 2014-15   | 2014-15     | 2015-16(Apr to May) | 2015-16(Apr to May) |
|                                                                                                                               | QTY(KG)  | VAL(INR)    | QTY(KG)   | VAL(INR)    | QTY(KG)   | VAL(INR)    | QTY(KG)             | VAL(INR)            |
| CHINA P RP                                                                                                                    | 65900459 | 8947682206  | 51907799  | 6591364524  | 95987538  | 13361489929 | 18481991            | 2622816632          |
| JAPAN                                                                                                                         | 35229880 | 4028434241  | 30672726  | 3322428874  | 41634244  | 4235742415  | 7355265             | 789704833           |
| KOREA RP                                                                                                                      | 45809292 | 4804278521  | 39531984  | 3947261530  | 37980469  | 3848617498  | 4352966             | 460248386           |
| MALAYSIA                                                                                                                      | 17593020 | 2528525089  | 11273117  | 1617447078  | 25810526  | 3841308963  | 8249350             | 1248286423          |
| **HS7220 - Flat rolled products of stainless steel of a width less than 600mm**                                               |          |             |           |             |           |             |                     |                     |
| COUNTRY                                                                                                                       | 2012-13  | 2012-13     | 2013-14   | 2013-14     | 2014-15   | 2014-15     | 2015-16(Apr to May) | 2015-16(Apr to May) |
|                                                                                                                               | QTY(KG)  | VAL(INR)    | QTY(KG)   | VAL(INR)    | QTY(KG)   | VAL(INR)    | QTY(KG)             | VAL(INR)            |
| CHINA P RP                                                                                                                    | 24844282 | 2226053301  | 59857337  | 5625966815  | 135614967 | 11789324106 | 17906733            | 1472880981          |
| JAPAN                                                                                                                         | 4107268  | 1248545300  | 3354508   | 1090687750  | 2950647   | 937326014   | 703451              | 167946145           |
| KOREA RP                                                                                                                      | 4429540  | 794141238   | 13423901  | 1086971025  | 3458758   | 574107593   | 536423              | 104737814           |
| MALAYSIA                                                                                                                      | 1623982  | 208481128   | 629200    | 88622701    | 1718373   | 239158138   | 536314              | 80110853            |
| **HS 7721 - bars and rods, hot rolled, in irregularly wound coils of stainless steel**                                        |          |             |           |             |           |             |                     |                     |
| COUNTRY                                                                                                                       | 2012-13  | 2012-13     | 2013-14   | 2013-14     | 2014-15   | 2014-15     | 2015-16(Apr to May) | 2015-16(Apr to May) |
|                                                                                                                               | QTY(KG)  | VAL(INR)    | QTY(KG)   | VAL(INR)    | QTY(KG)   | VAL(INR)    | QTY(KG)             | VAL(INR)            |
| CHINA P RP                                                                                                                    | 1636702  | 259198124   | 4686913   | 691018671   | 8144588   | 1165712986  | 408680              | 55897569            |
| JAPAN                                                                                                                         | 2824156  | 536408942   | 593128    | 135385411   | 1129021   | 246071250   | 69849               | 18826073            |
| KOREA RP                                                                                                                      | 31036    | 8225569     | 282271    | 41637095    | 959658    | 154433690   |                     |                     |
| MALAYSIA                                                                                                                      | 38000    | 3584197     | 47700     | 6563998     | 71546     | 9574293     |                     |                     |
| **Total of HS 7219, 7220 and 7221**                                                                                           |          |             |           |             |           |             |                     |                     |
| COUNTRY                                                                                                                       | 2012-13  | 2012-13     | 2013-14   | 2013-14     | 2014-15   | 2014-15     | 2015-16(Apr to May) | 2015-16(Apr to May) |
| CHINA P RP                                                                                                                    | 92381443 | 11432933631 | 116452049 | 12908350010 | 239747093 | 26316527021 | 36797404            | 4151595182          |
| JAPAN                                                                                                                         | 42161304 | 5813388483  | 34620362  | 4548502035  | 45713912  | 5419139679  | 8128565             | 976477051           |
| KOREA RP                                                                                                                      | 50269868 | 5606645328  | 53238156  | 5075869650  | 42398885  | 4577158781  | 4889389             | 564986200           |
| MALAYSIA                                                                                                                      | 19255002 | 2740590414  | 11950017  | 1712633777  | 27600445  | 4090041394  | 8785664             | 1328397276          |

Note: The figures for 2014-15 and 2015-16 (April-May)  are provisional.

Annexure 2

| **S.**  **No.**   | **Product/**  **HS Classification/**  **Applicant(s)**                             | **Country (ies)**  **involved**                              | **Range of definitive Anti-dumping**                                                                                                                                                               |
|-------------------|------------------------------------------------------------------------------------|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   | Cold Rolled Flat products of Stainless Steel                                       | EU, Canada, Japan & USA                                      | Difference between US$ 1470 to 2431 and landed value per MT w.e.f. 28.12.2001. Duty expired on import from EU and Canada on 25.11.2005.  Duty expired on imports from Japan and USA on 27.12.2006. |
|                   | Cold Rolled Flat products of Stainless Steel                                       | China PR, Korea RP, EU, South Africa, Taiwan, Thailand & USA | US$ Nil to 2254.69 per MT w.e.f. 22.4.2009. Duty expired on 21.4.2015. Sunset review is under investigation and the investigation has been extended upto 16.10.2015                                |
|                   | Certain Hot Rolled Flat Products of Stainless Steel                                | European Union, South Africa, Taiwan & USA                   | US$ Nil to 1130.28/MT w.e.f. 25.11.2011                                                                                                                                                            |
|                   | Stainless Steel Cold Rolled Flat products of 400 series having width below 600 mm. | European Union, Korea & USA.                                 | Difference between US $ 1491 and  landed value per MT  w.e.f. 4.10.2012                                                                                                                            |
|                   | Hot Rolled flat product of Stainless Steel of 304 Grade                            | China PR, Korea RP and Malaysia                              | US$ 180 to 316 per MT w.e.f. 5.6.2015                                                                                                                                                              |

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