Indonesia may continue anti-dumping duty on Essar, JSW, 15 other hot-rolled steel makers

02/04/2013 12:00 - 450 Views

Indonesia's anti-dumping investigation agency has asked its government to continue with the anti-dumping duty on two Indian steel companies — Essar and JSW. The agency says withdrawal of the duty can trigger further troubles for the domestic steel companies already struggling to retain their market share.

The recommendation by Komite Anti-Dumping Indonesia (KADI) comes after extensive investigation on a complaint by Indonesia's top steel company PT Krakatau. The Indonesian commerce ministry is expected to take a call on the matter soon.

The KADI report which was forwarded by India's ambassador to Indonesia to the steel ministry highlights how the agency is wary of possible withdrawal of the duty on hot-rolled coils.

Essar and JSW along with 15 steel companies from Russia, China, Thailand and Taiwan were subjected to anti-dumping duty in 2008 for a period of five years. Essar was levied 12.25 per cent and JSW 22.25 per cent duty in 2008.

While JSW has responded to KADI by conveying that it did not export any of its hot-rolled produce to Indonesia during the period of investigation (from January-December 2011), but Essar, which has a plant in Indonesia, is understood to have remained silent.

The investigating agency has said that imposition of anti-dumping duty in 2008 gave cushion to local steel companies as their sales volume dropped by 24 per cent. But during the period of investigation, imports from India, Taiwan and Thailand continued.

"Considering the increasing trend in import, if the imposition of anti-dumping duty from these five nations is abolished, imports will likely increase sharply," the KADI report said.

Responding to an e-mailed questionnaire, a spokesman at Essar Steel said the company is upset with the decision of KADI. "Essar India has not been making any shipments of hot-rolled coils to Indonesia since the imposition of anti-dumping duties by KADI," the company said. The firm said it has been representing KADI to ensure that sufficient raw material is available to meet the value add domestic downstream industries.

"The adequate availability of basic raw material will be critical in determining further investments in Indonesia especially on the steel front," the spokesman cautioned.

A senior steel ministry official said, "We have been conveyed KADI's concerns and have a hunch about the possible outcome, but there has been no representations from either of these two firms on the anti-dumping duty."

New Delhi, Sat Mar 30 2013

By Priyadarshi Siddhanta

Source: indianexpress.com