How China Is Dodging Duty Wall To Continue Dumping Stainless Steel In India

- Feb 06, 2019-

Responding to the Indian government's move to levy 18.95 per cent countervailing duty (CVD) on direct imports from China, companies from that country have started using the Indonesian route to continue dumping stainless steel into India.


Over the past couple of years, investors have installed three million tonnes of production capacity in Indonesia against that country’s total consumption of 150,000 tonnes. Indian stainless steel producers fear that the new capacity installed in Indonesia is primarily coming in from Chinese companies, whose aim is to continue dumping the product into India under the South Asian Free Trade Area (SAFTA). 


“The stainless steel industry is facing several challenges such as high cost of finance, regional and free trade agreements (FTAs) signed with partner countries, said Abhyuday Jindal, Managing Director, Jindal Stainless Ltd. He asserted that the capacity build-up in Indonesia is posing another threat to an already beleaguered sector in India.


India has a total stainless steel production capacity of 5.4 million tonnes which is underutilized. With an estimated consumption of 3.2 million tonnes per annum, India’s capacity utilisation stands at around 70 per cent. This means nearly, 30 per cent installed capacity remains idle.


India imports around 0.5 million tonnes of specialized stainless steel and exports an equal quantity annually.


Another challenge that the Indian stainless steel industry facing is the inverted duty structure. India has signed FTAs with Japan and Korea from where finished stainless steel (both flat and long) is imported duty free. By contrast, import of ferro nickel, a raw material, attracts 2.5 per cent import duty.


“Since India does not produce ferro nickel, the government must provide a level-playing field to domestic producers which may promote ‘Make in India’ initiative also,” said Vijay Sharma, Senior Vice President, Jindal Stainless.


On the issue of competitiveness, Jindal said the interest cost on working capital works out to 10-12 per cent in India as compared to 5-6 per cent in China and other competing countries.


“With growing impetus from the government on infrastructure such as railway wagons, coaches, airports, the overall use of stainless steel is set to grow in future,” Sharma added

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1. Grade: L175,L210 ,Q235B ,Q345B ,X42, X46,X52,X56, X60 and so on 

2. Size: outer diameter is 219 mm to 920 mm, thickness is 8 mm to 25.4 mm ,length is 1m to 12 m

3. Standard: GB/T9711.1 , GB/T9711.2 ,SY/T5037 ,SY/T5040 SPI5L

4. Certification: ISO9001, SGS, CE

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API 5L X56 SSAW 42 inch 3PLE Lined carbon steel oil gas spiral welded pipe
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GB/T9711.1 , GB/T9711.2 ,SY/T5037 ,SY/T5040 SPI5L
L175,L210 ,Q235B ,Q345B ,X42, X46,X52,X56, X60 and so on
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Cangzhou Steel Pipe Group (CSPG) Co., Ltd. is a large-sized, key metallurgic enterprise of Hebei Province in North China, whose history dates back to 1994. CSPG currently em/paces six member companies with products varying from SSAW, LSAW, ERW, seamless steel pipes to 3PE pipes, galvanized pipes, casing pipes, etc. A Joint-stock corporation, CSPG occupies an area of 600,000 square meters with a total asset of $530 million.

Specialized in the production of straight welded pipe spiral pipe galvanized pipe 3PE/3PP/FBE/TPEP internal and external epoxy powder internal and external epoxy resin cement mortar two cloth three oil buried pipeline IPN8710 non-toxic drinking water internal and external plastic coated lining plastic and other anti-corrosion pipe fittings for oil and gas pipeline water conservancy projects

Executive standard :DIN30670 DIN30678 CSA Z245 AFNOR nf49-710/711 NACE rp0394/0490 AWWAC 210/C213GB/T9711 API 5L ISO 3183Material: Q235B/Q355BGR A GR B x42-x80 l245-l555


Business scope: 21.3mm-3620mmLSAW submerged arc welded pipe 325-2020mmERW straight welded pipe 6mm-711mmSMLS seamless tube 10-1120mmSSAW spiral steel tube 219-3620mmDemand for quality suppliers and partners