ET reported that the end user industry of high grade stainless steel in India, including pesticides and chemicals, refinery, auto components, utensil manufacturers, plant and machinery manufacturers and kitchen equipment makers presently importing stainless steel for their respective industries, has strongly protested against the proposed levying of anti-dumping duty on import of stainless steel.

Mr Pradip P Dave president Pesticides Manufacturers & Formulators Association of India said that "The proposed high anti dumping duty on stainless steel recommended by ministry of commerce will have serious implications on the chemical industry which employs millions of workers in the small and medium enterprises in India. The industry imports stainless steel flat products, because the domestic producers are not offering special grades and wider sizes needed for the industry."

PMFAI has also written a letter to Prime Minister Mr Manmohan Singh seeking an immediate withdrawal of anti dumping investigations against stainless steel import and protect the right of industry to choose their vendors, especially during the time of a slowdown.

Mr Dave said that "Imposing of anti dumping duty on behest of single manufacturer namely Jindal Stainless steel is not fair and ethical as it takes away our right to choose our vendor. We have about 225 members and most of them are exporters and we need to be globally competitive and we need to import stainless steel in wider sizes and qualities to bag export orders."

Mr Badri Baldawa president of AISSIA said that "More than 5000 stainless steel utensil and cutlery manufacturing and exporting units employing about 300,000 workers across the country are facing closure as they have been adversary hit by the recession and the proposed duty hike on stainless steel, the basic raw material will work as the last nail in the coffin of ailing industry. The government should rather provide stimulus package for stainless steel units, mostly in small scale manufacturing units of stainless steel utensils, cutlery, knives and other household and kitchen products. These units are dependent on import of stainless steel and are exporting material worth INR 1800 crore."

Mr Ramachandran secretary of Process Plant Machinery Association of India said that "Commerce ministry officials believed the data compiled by a novice organization without asking the Joint Plant Committee. The commerce ministry also did not take the pains to discuss the matter with the end users."

Mr NC Mathur president of Indian Stainless Steel Development Association said that "Indian stainless steel prices are almost half of what they were in 2007 because of steep fall in nickel prices. But, slowdown in global demand has increased low cost imports from countries such as China, South Korea and Taiwan. As a result, domestic players are suffering."

It may be noted that union commerce ministry has recently recommended levying of anti-dumping duty on import of stainless steel from China, the European Union, the US, Japan, South Korea, Taiwan, South Africa and Thailand. The recommendation comes following a petition by JSL Limited to the Directorate General of Anti dumping & Allied Duties which, in turn, has recommended a maximum levy of duty from USD 1,823 a tonne from China on import of cold rolled flat stainless product. The level of such duty on the product varies from country to country.

(Sourced from Economic Times)