The Indian government has imposed an anti-dumping duty on certain hot-rolled flat steel products imported from Vietnam, for a period of five years.
Key details:
- The duty covers hot-rolled flat products of alloy or non-alloy steel (non-clad, non-plated, non-coated) with thickness up to 25 mm and width up to 2100 mm.
- Originating in or exported from Vietnam (including via third-countries) under tariff headings 7208, 7211, 7225 and 7226.
- The levy is USD 121.55 per metric tonne for Vietnamese producers & exporters (except one company).
- Notably, one Vietnamese producer — Hoa Phat Dung Quat Steel JSC — has been exempted from the duty.
- The duty will remain in effect for five years unless revoked, superseded or amended earlier.
Why was this done?
According to the government notification and the investigation by Directorate General of Trade Remedies (DGTR):
- Vietnamese exporters were found to be selling the subject steel products in India at prices below their normal value (“dumping”).
- The domestic steel industry suffered material injury as a result of these dumped imports.
- There was also a threat of further aggravated injury if no intervention was taken.
What’s the scope & potential impact?
Scope:
- Applies to hot-rolled flat steel (alloy or non-alloy) from Vietnam, up to certain sizes as noted above.
- Covers direct imports from Vietnam and goods exported via other countries but with Vietnamese origin.
- Excludes stainless steel hot-rolled flat products.
Potential Impacts:
- Domestic steelmakers may benefit from reduced competition from cheap Vietnamese imports — giving them more pricing power.
- Importers of the subject goods will face higher landed cost (USD 121.55 per tonne) which may reduce import volumes or shift sourcing.
- However, some analysts note that the impact may be somewhat limited because importers might circumvent the duty via other steel forms (like semi-finished billets or slabs) which aren’t covered. mint
- On the stock markets, shares of Indian metal/steel companies responded positively to the announcement.
Background Context
- India’s steel industry has been grappling with cheap imports and pressure on margins. The government has earlier imposed safeguard duties and been under pressure to protect domestic capacity. mint+1
- The FTA (free trade agreement) and trade routes via countries like Vietnam have been flagged as potential channels for circumvention of steel dumping from other countries, which likely influenced the decision. mint
What to Watch Going Forward
- Import volumes of the subject hot-rolled flat products from Vietnam in coming quarters — whether they fall, or whether sourcing shifts to semi-finished imports.
- Domestic steel pricing — whether domestic producers raise or maintain prices given some relief from cheaper imports.
- Sourcing behaviour of importers — whether they shift to other suppliers/countries or other product forms not covered by the duty.
- Any amendments or challenges — As always with trade remedies, affected exporters or countries may challenge the duty, or it may be modified before full five years.
- Impact on Indian steel makers’ profitability & capacity utilisation — whether this intervention translates into tangible improvements for domestic industry.
Conclusion
The imposition of a five-year anti-dumping duty by India on certain hot-rolled flat steel imports from Vietnam marks a strategic move to protect its domestic steel industry. With a duty of USD 121.55 per tonne and specific product coverage, India aims to counter unfairly priced imports that were hurting local producers. While the move brings relief to domestic steelmakers, the true test will lie in whether the measure stops import circumvention and leads to improved industry health in the medium term.
