On 19 iron and steel products until February 4th, the Centre has extended MIP (Minimum Import Price). From cheap imports, to safeguard the domestic steel industry this has been done.
The Directorate General of Foreign Trade, in a notice, told that till February 4, 2017, the applicability of MIP beyond December 4 for two months hereby extends by the Central Government.
In the range of $643-¬752 per tonne, the MIP is fixed. The 19 products including finished products of iron or non-alloyed steel, flat-rolled products of different widths, bars and rods for which MIP extension has been done.
For a period of six months in February 2016, the government had put MIP on 173 steel products to maintain the domestic steel industry from cheap imports which are below cost in rates. In the range $341 to $752 per tonne, the MIP was compulsory.
For 66 steel products, the government had extended this MIP for two months in the month of August 2016. It was further extended for two months in the month of October 2016.
To prolong MIP on some products citing that the MIP imposition on these products has brought back the steel industry to profit which was suffering from a long time, Indian steel association had requested the government.
From September 2014, due to cheap steel imports from China, Japan, and Korea, the domestic steel industry was facing stiff problems. With MIP imposition by the government from February 2016, the industry felt better and the profit margins have started improving.
Source : importexportmarketing.in