The basic tariff will be raised by 2.5 percentage points. Flat steel import tariff rate from currently up 10% to 12.5%, long products import tariff rates from the current 7.5% increase to 10%, the upper limit of the basic tariff of imported steel is expected to adjust to 17.5%. Once approved by Congress, the minister will announce an upward and immediate entry into force, which will also become the second time in India this year to increase the import tariffs on steel products. In June this year, the implementation of the increase rate of flat material increased by 2.5 percentage points to 10%, 7.5%.
Because of China's steel prices have been at a low price, resulting in India local mills is difficult to have a place to live in. According to local manufacturers said, although the amount of steel demand in India continued to grow, but by the low price of steel dumping, leading to a sharp decline in local steel mills. Therefore, India has to take measures to plan for the second time in the year to raise steel import tariffs, to protect the interests of steel mills. But the industry believes that the role of a limited increase in tariffs. One is China's steel prices are low, the basic tariff increase 2.5% impact is not obvious, China's steel prices are still in low. Two is the recent devaluation of the RMB, is conducive to China's steel mills to further reduce the export quotation.
In fact, not only in India, other countries are also the same for China's steel anti-dumping. Combing the first half of this year on the anti-dumping cases, a total of 58, involving 20 countries in Europe, America, Asia, Africa, Latin America and other places. Among them, the largest trade friction China is the United States, there are 11; Australia and the European Union were ranked 9, third, respectively, second, 7; followed by Malaysia, Canada, Thailand, Mexico, India, Indonesia and Argentina, Brazil, respectively, from 1 to 5.
In recent years, China's steel production continues to rise, according to the statistics of the basic every two years, an increase in the number of. Bring the excess steel capacity expansion and price oversold. China's steel price advantage, have been exported to transfer excess capacity, while other countries to protect their own interests, China launched a variety of trade remedy investigations, trade friction.
In addition, the recent concern of the RMB devaluation, but also conducive to steel exports. Previously, the RMB has been followed by pace USD go, lead to rise too quickly, with other countries trade blocked due to the many countries currency devaluation. With the devaluation of the renminbi is expected to increase, to help stimulate the economy, while attracting foreign capital inflows, increase investment strength. Recent domestic steel prices by the devaluation of the renminbi, continue to cut export prices.