Business
Indian stainless steel sector drowning in Chinese imports
The first half of 2021-22 has seen a 185 per cent increase in stainless steel imports compared to the average monthly imports in the last fiscal, creating havoc for the Indian players.
The import tide of stainless steel from China and Indonesia is fast turning into a deluge destroying many companies on its way, and threatening the very existence of the small, medium and micro industries in India. After all, the first half of 2021-22 witnessed a staggering 185% increase in import volumes of stainless steel flat products compared to the average monthly imports in the last fiscal, fuelled mostly by surge in Chinese and Indonesian imports.
The two countries China and Indonesia, which increased their exports by 300 per cent and 339 per cent, respectively, in the first half of this fiscal compared to the average monthly imports of the last fiscal, now have a share of 79 per cent of the total stainless steel flat product imports in the first half of FY22. It is a significant jump compared to the 44 per cent share in FY21. The average per month imports has jumped from 34,105 tonnes per month in FY21 to 63,154 tonnes per month this current fiscal–FY 22.
Indonesia’s imports share, which was virtually non-existent in 2016-17, has climbed to 23 per cent in the first half of this fiscal, with its average monthly exports increasing from 4,355 tonnes/month in the last fiscal to 14,766 tonnes/month in the first half of this fiscal. China’s average monthly exports too has jumped from 10,697 tonnes/month in the last fiscal to 35,269 tonnes/month in the first half of this fiscal.
The surge in imports was the result of the Finance Ministry’s decision of September 30, 2021 to revoke the imposition of CVD on China (September 2017) and end provisional duties on Indonesia (October 2020), which was based on the recommendations of the Director-General of Trade Remedies (DGTR), after a detailed investigation. The investigation had revealed that the two countries were resorting to non-WTO compliant subsidies to boost their exports to India and causing injury to Indian manufacturers.
In fact, the DGTR and their global counterparts had conclusively proved in its final finding that both these countries provide non-WTO compliant subsidies to the tune of 20 per cent to 30 per cent to their stainless steel manufacturers. And, these subsidies have created an imbalance in the Indian and international markets, reduced the competitiveness of Indian products in the domestic industry, causing material injury and persistent financial stress for home-grown businesses. It has forced the domestic industry to seek redressal from the surge in imports.
In fact, in India a disaggregated study of imported products in the first half of the current fiscal also reveals how excessive dumping has taken place in a particular J3 grade of stainless steel in the country. Imports of J3, a subsidised and dumped 200 series grade of stainless steel, with about 1 per cent nickel and 13 per cent chromium from China, has jumped from an average of 1,779 tonnes/month in 2019 to an average of 4,425 tonnes/month in 20-21 (249 per cent increase) and to average 25,346 tonnes to in just six months of 2021-22 (1,424 per cent) increase compared to the same period last year.
The share of this grade in total imports from China increased 23 per cent in 2019-20 to 72 per cent in 2021-22. Much of this import is even below the scrap prices and it hurts the MSME sector, the hardest. Such dumping also means major losses in terms of national exchequer through tax evasion and revenue losses.
This onslaught of Chinese exports to India has decimated the micro, small and medium enterprises (MSME), which had to bear the brunt of the impact. In fact, the imposition of provisional CVD on Indonesia in October 2020 and CVD on China in place from September 2017, had provided a “level-playing field” to these players, which got a much-needed relief from the dumped subsidised imports. The MSME, an industry having the capacity to produce about 1.2 lakh tonnes of hot and cold-rolled flat products, was able to operate at 90 per cent plus capacity utilization between October 2020 to February 2021.
However, the MSME sector suddenly finds itself grasping for breath to survive after the announcements of the 2021-22 Budget. Small-scale stainless- steel rollers and re-rollers, who make ingots from recyclable scrap as the first step in stainless- steel product manufacturing, and then produce hot and cold rolled materials for the all-India market, find themselves swamped by a massive and subsidised surge of imports from China and Indonesia.
Today, more than 80 induction furnaces and 500 patti/patta units, which provides primary raw materials for various downstream industries, are in dire straits. These downstream industries manufacture a variety of stainless steel household goods such as kitchenware, tableware, cooking range, sanitary items, cutlery pots, etc.
Prakash Jain, President, All India Stainless Steel Cold Roller Association, says: “The smaller Indian stainless steel players finds it virtually impossible to compete with the state-subsidised Chinese players, who get an 18 per cent incentive to export, under invoice their products by changing the label of the products to avoid paying duties and sell it at Rs 15 to Rs 17 per tonne cheaper in the Indian market.”
According to Jain, Gujarat has 70 rolling mills, each employing around 300 people and 50 induction furnaces, which makes ingots, the raw material for rolling mills and employs 500 each.
Not only will many of these jobs be lost resulting in massive unemployment but force many manufacturers to turn traders unless the CVD is imposed on imports from China and Indonesia.
Business
Panvel Municipal Corporation Clears ₹48.40 Crore Gadhi River Bridge Project To Ease Traffic Congestion On Panvel–Karanjade Stretch
Panvel, November 14: In a major infrastructure push aimed at reducing traffic congestion and improving connectivity, the Panvel Municipal Corporation has cleared a proposal to construct a new bridge over the Gadhi River near the Karanjade sewage pumping station.
Municipal Commissioner and Administrator Mangesh Chitale approved the plan following demands raised by Panvel MLA Prashant Thakur and Uran MLA Mahesh Baldi, who highlighted the daily inconvenience faced by commuters travelling between Panvel, Karanjade and Vadghar’s CIDCO colonies.
According to civic officials, the existing bridge toward Karanjade routinely experiences heavy traffic, often resulting in prolonged congestion. With the upcoming Navi Mumbai International Airport expected to increase traffic volumes even further, the civic body believes the new bridge will be a “critical link” on the Panvel–Karanjade stretch.
The project, with an estimated cost of Rs 48.40 crore, received administrative approval in the General Body. Construction is expected to begin soon.
As per the sanctioned plan, the bridge will feature four lanes, a length of 240 metres, and a width of 21.5 metres. “It will connect Panvel Municipal Corporation’s 40-feet-wide road on the eastern side with CIDCO’s 20-metre-wide road leading to the Karanjade node on the western side.
This connection will significantly streamline traffic and support future vehicular growth,” said Additional Commissioner Ganesh Shete.
For the project, No Objection Certificates (NOCs) will be sought from CIDCO, the Water Resources Department, and the Public Works Department. The conceptual design will undergo technical review and approval by either IIT Mumbai or VJTI Mumbai, City Engineer Sanjay Katekar confirmed.
The civic administration expects the bridge to provide major relief to residents and improve overall mobility in the rapidly developing Panvel–Karanjade region.
Mumbai, Nov 14: Indian equity indices recovered from early losses to end the session on a positive note on Friday as the National Democratic Alliance (NDA) headed towards a landslide win in the Bihar elections.
The key indices remained volatile throughout the session as counting for votes for Bihar’s Assembly election continues.
Sensex settled at 84,562.78, up 84.11 points or 0.10 per cent. The share index started the session at 84,060.14, falling over 400 points against last day’s closing of 84,478.67 amid caution ahead of Bihar election results. However, the index jumped over 550 points from the day’s low to close in green.
Nifty closed at 25,910.05, up 30.90 points or 0.12 per cent.
“Indian markets today witnessed a roller-coaster session with the benchmark index Nifty showing sharp two-sided moves. In the first half, Nifty surged and tested the crucial 26,000 level before facing resistance and slipping lower later in the day,” Ashika Institutional Equities said in its note.
Volatility remained elevated as investors stayed cautious ahead of Bihar election results, which hold significant political importance.
Tata Motors, Eternal, Axis Bank, BEL, Trent, SBI, Sun Pharma, Bajaj Finance, Adani Airports, Hindustan Unilever, Asian Paints, ITC and NTPC were the top gainers from the Sensex basket. Infosys, Tata Steel, Tata Motors PV, ICICI Bank, Maruti Suzuki and Tech Mahindra ended the session lower.
Sectoral indices experienced a mixed approach with selling in the IT and auto sectors and buying in the FMCG, banking and finance stocks. Nifty Bank rose 135 points or 0.23 per cent, Nifty Fin Services jumped 95 points or 0.35 per cent, and Nifty FMCG closed 317 points or 0.57 per cent higher. While Nifty IT slipped 378 points or 1.03 per cent, and Nifty Auto fell 143 points or 0.52 per cent.
Broader market followed suit as well, with Nifty Midcap 100 closed flat, Nifty Small Cap 100 rose 68 points or 0.38 per cent, and Nifty 100 ended the session slightly up.
Rupee traded in a narrow range near 88.70 as the dollar index remained flat around $99.20, offering limited directional cues.
“With no major U.S. data releases due to the recent shutdown, the market stayed largely dependent on flows, where mixed FII activity and consistent DII buying kept the rupee in a confined band. Crude prices have begun to rebound, and if WTI sustains above $60, it may add fresh pressure on the rupee in the coming sessions. Overall, the rupee is expected to remain range-bound with levels seen between 88.45–88.95,” said Jateen Trivedi of LKP Securities.
New Delhi, Nov 14: The Enforcement Directorate (ED) will not grant any virtual appearance to Reliance ADAG Group Chairman Anil D. Ambani after the latter sought it in response to a summons sent by the investigative agency to appear before it for questioning in a money laundering case, according to sources on Friday.
Anil Ambani skipped the ED summons to appear for the second round of questioning at the agency’s Delhi headquarters on Friday (November 14).
As per ED sources, no virtual appearance will be given to Anil Ambani, as requested. The regulator, however, has received an email from him regarding his availability via virtual means.
Anil Ambani, in a media statement, said that he is “willing to offer to appear by virtual means”, adding that he will “fully cooperate with ED on all matters”.
The statement claimed that “ED summons to Anil D. Ambani relate to a Foreign Exchange Management Act (FEMA) inquiry and not to any matter under the Prevention of Money Laundering Act (PMLA)”.
The summons concerns a 2010 domestic EPC contract for the Jaipur–Reengus (JR) Toll Road and concerns issues associated with a road contractor, with no foreign exchange component, it said.
“Anil D. Ambani is not a member of the Board of Reliance Infrastructure. He served the company for about fifteen years, from April 2007 to March 2022, only as a non-executive director, and was never involved in the day-to-day management of the company,” it added.
The ED had summoned Anil Ambani again on November 14 for questioning in the money laundering case against the conglomerate. He faced a gruelling, around nine-hour interrogation regarding an alleged Rs 17,000-crore loan fraud case at ED headquarters in August.
The financial probe agency had earlier attached 42 properties worth over Rs 3,083 crore in the bank fraud cases of Reliance Communications Ltd. (RCOM), Reliance Commercial Finance Ltd., and Reliance Home Finance Ltd.
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