India's trade watchdog recommends anti-dumping duty on Chinese electrical steel imports

India’s trade watchdog has recommended the imposition of anti-dumping duties for five years on imports of cold rolled non-oriented electrical steel from China, in a bid to shield domestic producers from cheap inbound shipments.

In its final findings, the Directorate General of Trade Remedies (DGTR) concluded that the product was exported to India at prices below normal value, amounting to dumping.

The watchdog proposed duties of $223.82 per tonne on some Chinese firms and $414.92 per tonne on others.

“The authority recommends imposition of anti-dumping duty... for a period of five years,” the DGTR said in a notification.

While the DGTR issues recommendations, the finance ministry makes the final decision on whether to impose the duties.

Anti-dumping measures are allowed under World Trade Organization (WTO) rules to protect local industries against unfairly low-priced imports.

India has already imposed similar duties on a range of products from multiple countries, including China, with which it runs a trade deficit of about $100 billion.

China to cut steel output

The recommendation comes as Beijing moves to curb overcapacity in its steel sector, which has driven down prices globally and triggered protectionist measures in several countries.

A government plan unveiled this month said China would strictly limit new steelmaking capacity and cut production between 2025 and 2026, partly by closing outdated furnaces.

China, the world’s largest steel producer, exported a record volume of steel between January and July, keeping shipments on track to surpass the previous annual peak set in 2015.

The steel industry faces “excess supply and insufficient effective demand, leading to a supply-demand imbalance,” according to the Chinese government document.

Despite pledges to trim output, Beijing is also targeting annual growth of 4% in the industry’s value-add through investments in technology and expanded use of steel in infrastructure and housing.