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UK Revokes Countervailing Measure on Indian Stainless Steel Import The Trade Remedies Authority (TRA) has announced that the UK Government has agreed to revoke the countervailing measure on imports of stainless steel bars and rods from India. Countervailing measures are implemented to counteract unfair pricing resulting from government subsidies in the country of origin. The TRA conducted an investigation and determined that the UK industry would not be significantly impacted if the measure was removed. UK Steel, the trade association representing the UK steel industry, stated that the risk of injury to domestic producers resulting from the removal of the measure is very low. The UK market has minimal supply of stainless steel bars and rods from domestic producers. Therefore, the TRA concluded that revoking the measure would not harm UK producers but would allow for competitively-priced imports from India to continue. India has been the third-largest source of stainless steel bars and rods for the UK in terms of tonnage in 2022. Previously, importers had to pay a tariff of 0%-4% due to the countervailing measure. However, the TRA's investigation revealed that market conditions, historical injury data, and international competition did not indicate potential harm to UK producers if the measure was lifted. Stainless steel bars and rods are widely used across various industries, including automotive, aerospace, and food processing. They serve as essential components in larger products or are further processed into precision components. By allowing competitive imports from India to continue, revoking the countervailing measure supports the availability of these materials in the UK market.
Commerce Ministry Recommends Continuation of CVD on Stainless Steel In a recent development, India’s commerce ministry has put forth a recommendation to extend the countervailing duty on specific flat-rolled steel products imported from China for a duration of five years, as per media reports. The proposal follows an investigation conducted by the Directorate General of Trade Remedies, which highlighted the need to address the issue of undercutting domestic steel prices. The ministry's suggestion aims to safeguard the interests of the domestic steel industry by countering potential subsidization from Chinese producers. Vivek Johri, chairman of the Central Board of Indirect Taxes and Customs, confirmed that the finance ministry is currently examining the recommendation and has not yet reached a final decision. This step is crucial in assessing the potential impact of the countervailing duty on steel imports from China. The commerce ministry's suggestion comes as a response to an application jointly filed by Jindal Stainless Ltd and Jindal Stainless (Hisar) Ltd, who sought the continuation of the duty. The DGTR's investigation findings support the need for the countervailing duty extension, as they reveal that Chinese imports have been undercutting domestic steel prices. Furthermore, there is a significant possibility of continued subsidization by Chinese producers, considering their surplus capacities. The continuation of the CVD would act as a measure to mitigate these challenges and level the playing field for the domestic steel industry.
Global Stainless Steel Output Witnesses 5% Decline in Q1 In the first quarter of this year, the global production of stainless crude steel experienced a slight decline of 0.3% compared to the previous quarter, amounting to 13.66 million metric tons, as reported by the International Stainless Steel Forum. Moreover, it recorded a more significant decrease of five percent compared to the same quarter in the previous year. Analyzing the ISSF data, it is observed that stainless crude steel production in China witnessed a growth of 4.1% in the first quarter of this year. However, in the Asia region excluding China and South Korea, it declined by 16.6%. Similarly, stainless crude steel production in the United States decreased by 16.0%, while in Europe, it witnessed a decline of 12.0%, all in comparison to the first quarter of 2022. • Europe: 1.637 million metric tons (8.9% QoQ increase) • US: 0.478 million metric tons (11.5% increase) • China: 8.273 million metric tons (-2.9% decrease) • Asia (excluding China and South Korea): 1.631 million metric tons (-8% decrease) • Others: 1.646 million metric tons (11% increase) • Total: 13.665 million metric tons (-0.3% decrease) The decline in global stainless steel output during the first quarter reflects the varying trends across different regions, with China showing growth while other major regions experiencing decreases. These figures shed light on the dynamics of the stainless steel industry and provide insights into the global market landscape. Bron Steelguru (via email)
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