Government launches probe into hot-rolled steel dumping

Following up on a complaint by JSL Ltd (formerly Jindal Stainless), the government has initiated a probe into the alleged dumping of hot-rolled flat stainless steel products by the EU, South Korea, South Africa, Taiwan and the USA.

The products are used mainly by the auto-component, building and fabrication industries.

JSL Ltd had approached the union government for initiation of the investigation into the alleged dumping, saying it was causing injury to the domestic industry.

The directorate general of anti-dumping and allied duties (DGAD), under the commerce and industry ministry, is conducting the probe, an official said in New Delhi on Monday.

"The authority (DGAD) ... hereby initiates an investigation into the alleged dumping and consequential injury to the domestic industry... to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty," the DGAD said.

The goods under investigation are also used for manufacture of reactor vessels, material handling equipment, railways, and pipes and tubes.

While the commerce ministry recommends anti-dumping duty, the finance ministry imposes it.

The principle of anti-dumping duty is to ensure fair trading practices and to create a level playing field for domestic producers in relation to foreign producers and exporters resorting to dumping, or selling products abroad at prices lower than domestic ones.