Question : IMPORT OF STEEL FROM CHINA

(a) whether steel is being imported from China at the rates lower than the rates in the country;

(b) if so, the steps being taken by the Government to safeguard the interests of the Indian steel industry facing competition from the cheaper imports of Chinese steel;

(c) whether the Indian steel industry is demanding ban on the import of such steel from China;

(d) if so, whether the Government proposes to ban the import of steel in view of the said demand; and

(e) if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF STEEL(SHRI A. SAI PRATHAP)

(a) Ministry of Steel monitors the average indicative price of imports from China and other countries. According to this information, the landed cost of import in respect of major steel categories keeps fluctuating on month-to-month basis.A comparison of landed cost of import from China in respect of two major categories of steel items Hot Rolled (HR) Coil and Rebar, vis-Ã -vis net sales realization of domestic market price is given in Table below for the past six months.


(in Rs/tonne)
Period	Landed Cost of Import	Net Sales Realization of	from China	Domestic Market Price

Hot Rolled	Rebar	Hot Rolled	Rebar

June 2009	27117	27870	28585	29593

July 2009	29422	29422	28589	29632

August 2009	29701	35283	29679	28637

September 2009	29172	30196	29800	28496

October 2009	26322	27116	29782	28247


November 2009	25661	26269	29281	27968

Source: Economic Research Unit (ERU)

(b) During the past one year, the government has taken the following measures to assist the domestic steel industry tide over the global economic crisis, which inter-alia includes discouraging of cheaper imports and encouraging of export of steel products. These are:

(i) Export duty on all steel items withdrawn from 31.10.2008.

(ii) Re-imposition of import duty on steel items at 5% (except steel melting scrap) on 18.11.2008.

(iii) Re-introduction of Duty Entitlement Pass Book (DEPB) Scheme on steel items on 14.11.2008.

(iv) Reduction of Excise Duty on steel items from 14% to 10% in December, 2008 and further to 8% in February, 2009.

(v) Re-introduction of Countervailing Duty on TMT bars and rods.

(vi) Import of Hot Rolled Coil brought into â€œRestricted Categoryâ€ of imports with effect from 21.11.2008.

(c) A section of the steel industry has represented for necessary fiscal action to protect the domestic steel industry from any kind of import at lower rates.

(d)&(e): There is no proposal in the Ministry of Steel for imposition of ban on steel imports.

Question : IMPORT OF STEEL FROM CHINA

Answer given by the minister

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