The government has scrapped antidumping duty imposed on some grades of alloy and non-alloy steel billets, bars and rounds imported from Russia, China and Ukraine. Industry expects a big surge in imports as the road opens up for China, which has a huge capacity for long products.

A provisional anti-dumping levy was imposed in 2000, followed by a definitive impost in 2001. This had enforced an anti-dumping duty of $14.9 per tonne on products from Oscol Electrometallurgical Combinat of Russia, while all other producers from that country were subject to an anti-dumping levy of $90 duty per tonne. In the case of Chinese suppliers, the duty was fixed at $133 per tonne. A mid-term review by the commerce ministry did not establish that injury to the domestic industry would persist if the duty was removed. The duty has been scrapped ahead of schedule.

A finance ministry notification said a situation of continuation of injury caused "by the dumped imports" to the domestic industry could not be established. This suggests dumping is on but not disturbing enough to warrant anti-dumping measures. The other reason for the inability to establish evidence of injury may be the buoyancy in the steel market.

"Rescinding the duty may trigger a surge in imports. China has a huge capacity in long products and has exported 3-4 mt in the past six months. Chinese suppliers could not afford to export to India with the duty of $133 per tonne but doors have now opened up," industry sources said. SAIl may be hit. As per the commerce ministry's findings, up to May 20 this year, there were no imports from China. It was found that goods were exported below their normal value from Russia during the period. The ministry considered the dumping margin during the original investigation for China in the review investigation.