India's decision to refrain from imposing Countervailing Duty (CVD) on specific steel imports from China, despite opposition from trade lobbies and domestic manufacturers. This decision is aimed at supporting consumers, although it may have adverse effects on domestic steel producers.
Furthermore, market participants suggest that the Treasury might reject the recommendation to impose a countervailing duty on certain Chinese steel products, as advised by the Directorate General of Trade Protection. If implemented, this duty would be applicable for a period of five years.
Regarding trade dynamics, India has experienced a significant increase in steel imports from China, with a surge of 62% year-on-year in April-May 2023. In contrast, China's steel purchases have reached a six-year high during the same period.
On the export front, India witnessed a rise in its exports of rolled steel products to 502,000 tons in June 2023. However, this coincided with a decline of 21.4% compared to the previous year, attributed to reduced demand in Europe and increased competition from Asian countries. The overall export volume of rolled steel products from India during April to June 2023 reached 2.05 million tons, representing a 6.4% year-on-year decrease.
As per certain sources, the volume of steel product shipments for export is expected to remain low in July and August.
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