India Stainless Steel Import Tax to 10.5%, Countervailing Duty Comes Back
India's finance minister Nirmala Sitharaman plans to submit 2022-23 year finance budget on 1st Feb 2022. Before that budget, FICCI already requires India's government to raise stainless steel coil import tax up to 12.5% (current is 7.5%).
The stainless steel price in India has a sharp raise, it has a bad effect for the small factory to increase their working opportunity. India decrease the stainless steel import tax down to 7.5%, and pause the hot and cold rolled stainless steel countervailing duty to China, after that many competitive Chinese stainless steel goes to the Indian market.
Based on the custom data, from Jan to Nov 2021, china has already exported 380 thousand tons to India, which is a 121.7% increase. By now, India has already become the second-largest export market in China.
Apart from the con-various in 2 India's stainless steel keeps climbing, it nearly produce 4 million tons of stainless steel in 2019, it becomes a big producing stainless steel country in the world.
As the lock down of con-various in season 2 2021, the production of stainless steel goes down, till season 3 it comes back to normal. They estimate the production of stainless steel in 2021 will be around 3.8-3.9 million tons.
The FICCI said the volume of stainless steel is 5 million tons, this can totally support their market requirement. And also the Indian factories are able to produce all grades of stainless steel, that’s they declare no need to import stainless steel.
The import price of stainless steel is raising in the following months, the high import causes cause the local factories damage. So they require the government to raise the import tax to 12.5% to support their local market.
The AISSCRA also said on 28th Sep 2021, due to the CVD stop, the import volume increased sharply, so they require the government to start CVD again. They also said as the con-various, the whole India factories will be forced to close.
If India start to increase the stainless steel import or start the CVD again, it will increase the cost of Chinese stainless steel export to India, with the advantage of export price getting lower, the volume will goes to other countries.
