NEW DELHI: The government has imposed import restrictions on specific steel products used by a number of sectors including construction, automobile and oil. Seamless tubes and pipes would now be classified as restricted items and can be imported only by actual users through licences issued by the government.

Last week, the government had placed hot-rolled steel in the restricted list. Import of wood and certain wood products have also been put on the restricted list, according to a notification issued by the directorate general of foreign trade (DGFT) under the ministry of commerce.

Transferring items from the free import list to the restricted import list would bar traders from importing them and would, therefore, make imports relatively less accessible for the domestic industry.

The move to restrict import of steel products is mainly aimed at containing exports from China, which supplies more than 90% of the total steel imported by India. With reports of China planning to do away with its export duty on steel in December doing the rounds, domestic steel producers have been worried about competition stiffening next month. The government’s decision to restrict import of hot-rolled steel and steel products is expected provide some relief to the domestic industry.

Steel producers world-wide have been hit by a sharp fall in international prices over the last few months due to the global economic slowdown. With demand falling, prices have come down from about $1,250 a tonne earlier this year to $500 a tonne forcing producers to reduce production.

Another measure by which India could prevent cheap imports from China is by putting in place anti-dumping measures. However, it is an arduous and time-consuming process as there are several steps to be followed before a case of dumping against a company is established and the duties imposed.