India has initiated an anti-dumping investigation into imports of hot-rolled flat steel products from Vietnam, including both non-alloyed and alloyed varieties. The investigation, led by the Directorate General of Trade Remedies (DGTR), follows a complaint by the Indian Steel Association (ISA) on behalf of domestic producers JSW Steel and ArcelorMittal Nippon Steel.
According to a notification from the Commerce Ministry, the domestic steel-makers have alleged that these products are being imported at "dumped prices," which they claim is causing significant material injury to the Indian steel industry. The steel-makers argue that there are no major differences between the products made in India and those imported from Vietnam, further stressing the need for anti-dumping duties to protect local manufacturers.
The products under investigation are widely used across various industries, including automotive, oil and gas, cold-rolled steel production, pipe manufacturing, construction, and capital goods. The petitioners maintain that the imported steel products are comparable to those produced domestically in terms of physical and chemical characteristics, manufacturing processes, and pricing.
This probe also follows concerns raised by the Steel Ministry over rising steel imports, particularly from China and Vietnam. Allegations of dumping by these countries have been under discussion between the Steel and Commerce Ministries for some time. It is suspected that China may be routing its lower-priced steel products through Southeast Asian countries like Vietnam to circumvent trade restrictions.
Vietnam has recently emerged as a significant steel exporter to India, transitioning from a key buyer to one of the top five sellers. Data from research firm BigMint indicates that India imported 3.55 million tonnes of hot-rolled coils (HRC) and plates in FY24, with Vietnam accounting for 0.62 million tonnes—nearly 20% of the total. This marks a substantial increase from 0.22 million tonnes in FY23.
Domestic steel prices are currently hovering around Rs 50,300 per tonne, adding to the pressure on local producers who are grappling with the influx of cheaper imports. The outcome of the anti-dumping investigation will be closely watched as it may have significant implications for trade dynamics between India and Vietnam, as well as broader regional trade relations.
