Industry concerned over anti-dumping investigation on Vietnam steel imports

Tribune News Service

Advertisement

Ludhiana, August 19

The Chamber of Industrial and Commercial Undertakings (CICU) in Ludhiana has opposed the recent proposal to probe the import of and imposition of anti-dumping duty on hot rolled flat products of alloy or non-alloy steel originating in or exported from Vietnam. The decision, if implemented, could have a detrimental impact on the steel industry, particularly on the vibrant community of small and medium enterprises (SMEs) that drive the local economy.

CICU president Upkar Singh said the MSME industry was passing through tough times due to war in Europe and West Asia, a slacking global market, competition from China, Thailand, Vietnam and Indonesia, agitations in the country and rising input costs, among other reasons. If this goes on, the rising steel prices would stagnate the MSMEs’ growth.

He said that the recent financial reports clearly demonstrated the profitability of the steel industry, with healthy margins ranging between Rs 9,000-Rs 15,000 per ton. “The imposition of additional duties would not only be unjustified but could also pose a significant threat to the sustainability and growth of SMEs in the sector. These actions disrupt the delicate market balance, ultimately impacting domestic consumers,” Singh added.

CICU is pushing for a comprehensive review of the proposed anti-dumping duty to ensure the protection of all stakeholders’ interests, particularly of the SMEs.

The executive committee of Association of Trade and Industrial Undertakings (ATIU) held an emergency meeting to discuss the Ministry of Commerce and Industry’s decision to hike steel prices.

Pankaj Sharma, ATIU president, said the government’s decision to impose anti-dumping duty on steel from Vietnam was unwarranted. “It will negatively affect both the light and heavy engineering sectors. The MSME sector, still feeling the effects of the post-Covid slowdown, will be particularly hard-hit. Such decisions by the ministry threaten the future of the engineering MSME sector,” Sharma said.

With this decision, the Centre had shown a callous attitude towards the 60 lakh registered MSME units in the country, the ATIU president added.