New Delhi, Jan 19 (KNN) Indian Stainless Steel Development Association (ISSDA) has recommended the Government to increase the basic import duty on stainless steel flat products from 7.5% to 15%.

To remain globally competitive, ISSDA has come with this recommendation which also included the decrease in the import duty on key raw materials like Ferro Nickel, Pure Nickel, Ferro Moly and Stainless steel scrap to nil.

According to the ISSDA, main reasons for this is the huge import surge, especially from China, which has primarily contributed to the deteriorating condition of the stainless steel industry. The imports of stainless steel flat products rose from 3,24,460 million tonnes in 2013-14 to the highest ever record of 5,32,033 MT in 2015-16.

ISSDA claimed that China now accounts for more than 50% of the import basket and this is the single largest threat for the Indian stainless steel industry today.

While expressing its concern ISSDA added if this trend continues, a situation may come when the domestic stainless steel requirements will be completely met through imports.

The association also revealed the data according to which an investment of approximately Rs 35,000 crore by both public and private sectors towards capacity expansion and modernization, has made by the Indian stainless steel industry. Most of the capacities which were added in the last four-five years were based on healthy estimates of demand growth. But this investment is under serious threat.

According to ISSDA, the availability of large coking coal deposits in China has ensured that local coking coal prices are significantly lower as compared to other countries. The borrowing cost in China is about 4-5% as compared to 12-13% in India.

Due to unprecedented surge in imports in the last three years, especially from China, the ISSDA requests a level playing field for domestic stainless steel producers. (KNN)