India Imposes Anti-Dumping Duty on Vietnamese Steel Imports to Curb Chinese Steel Influx

India has implemented a five-year anti-dumping duty of $121.55 per tonne on specific hot-rolled flat steel imports originating from Vietnam. This trade measure is widely seen by industry observers as a strategic move by India to safeguard its domestic market from an influx of cheap steel, primarily from China. The rationale behind this duty is the common observation that Vietnamese steel often serves as a conduit for Chinese steel shipments to bypass trade barriers.

The decision follows a comprehensive investigation by the Directorate General of Trade Remedies (DGTR), which examined pricing practices and their detrimental impact on Indian steel producers. The duty is applicable to hot-rolled flat steel, including both alloy and non-alloy types, with specified dimensions (thickness up to 25 mm, width up to 2,100 mm). However, clad, plated, coated, and stainless steel products are excluded from this levy. Most Vietnamese exporters are subject to the full duty rate, though Hoa Phat Dung Quat Steel JSC has received an exemption due to a low calculated dumping margin.

Recent trade data shows significant steel imports into India, with 9.5 million tonnes in FY25, including 2.4 million tonnes from China in the first 11 months. Provisional data for FY26 (April-May 2025) indicates a substantial decrease in overall finished steel imports by 27.6% year-on-year, and a sharp 47.7% drop in imports from China.

Industry analysts view this anti-dumping duty as part of India's broader trade defense strategy, which includes other measures like safeguard tariffs. The government has articulated this move as a step towards achieving self-reliance in steel production, aligning with the "Aatmanirbhar Bharat" initiative.

Despite the welcome from the domestic industry, some experts caution that Vietnamese imports constitute a relatively minor portion of India's total steel imports. Therefore, targeting this segment may only yield limited success in curbing overall Chinese steel entry into the Indian market. Trade watchers are now closely monitoring potential responses from China and the domestic industry's capability to meet evolving demand.

Impact

This news has a direct impact on India's trade policy and its domestic steel industry. By raising the cost of imported Vietnamese steel, it aims to protect local producers from underpriced competition, potentially boosting their margins and market share. This could influence the profitability and stock performance of Indian steel companies. The move also reflects India's commitment to 'Make in India' and self-reliance, which are key economic themes.

Rating: 7/10

Difficult Terms:

• Anti-dumping duty: A protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value or are subsidized, to protect local industries.
• Hot-rolled flat steel: Steel that has been processed using a rolling mill at high temperatures. It is typically used in structural components, automotive parts, and appliances.
• Directorate General of Trade Remedies (DGTR): A government agency in India responsible for investigating dumping and subsidies of imported goods and recommending measures to protect domestic industries.
• Alloy steel: Steel that has been mixed with other elements (like nickel, chromium, vanadium) to improve its strength, hardness, or other properties.
• Non-alloy steel: Steel that contains carbon as the main alloying element, without significant amounts of other alloying elements.
• Dumping margin: The difference between the export price of a product and its normal value (usually the domestic selling price in the exporting country), expressed as a percentage of the export price.
• Aatmanirbhar Bharat: A Hindi term meaning 'Self-reliant India', an initiative launched by the Indian government to promote domestic manufacturing and production.
• Safeguard tariffs: Tariffs imposed by a country on certain imports to protect domestic producers from a sudden surge in imports that could cause serious injury.