Indian Seamless Tube Industry Calls For Protection Against Chinese Imports

(MENAFN- KNN India) New Delhi, Aug 28 (KNN) The Seamless Tube Manufacturers' Association of India (STMAI) has called upon the government to implement stricter measures against low-cost Chinese pipe imports, asserting that domestic production capacity is adequate to meet national demand.

The industry body made this appeal on Thursday, citing concerns over unfair trade practices that are undermining local manufacturers.

According to STMAI President Shiv Kumar Singhal, India's domestic seamless pipes and tubes industry possesses an installed capacity of approximately 1.95 million metric tonnes, which exceeds the country's total demand of 1.32 million metric tonnes.

This surplus capacity, he emphasized, demonstrates the industry's ability to fulfill domestic requirements without relying on imports.

Despite government support through various safeguard measures designed to protect the domestic seamless pipe sector, Chinese imports have witnessed exponential growth over the past three to four years.

Singhal noted that these protective measures have proven largely ineffective in restricting the influx of Chinese products into the Indian market.

The STMAI has raised concerns about alleged malpractices by Chinese importers, who are reportedly declaring inflated invoice values during customs clearance procedures.

These same products are subsequently sold in the Indian market at prices significantly lower than those offered by domestic manufacturers, creating an unfair competitive disadvantage for local producers.

Singhal characterized this practice as undermining fair trade principles and placing Indian manufacturers at a serious disadvantage in their home market.

He has urged the Directorate of Revenue Intelligence to conduct a thorough investigation into these alleged pricing discrepancies and customs declaration practices.

The domestic pipe manufacturing sector has invested substantially over recent decades to develop a comprehensive range of import-substitute products, including specialized items such as oxygen cylinder pipes and drill pipes.

These investments align with the government's Make in India initiative, which aims to promote domestic manufacturing and reduce import dependency.

Despite establishing significant production capacities for these critical products, domestic mills continue to face challenges in securing orders, with a substantial portion of their manufacturing capacity remaining underutilized due to competition from low-priced imports.

(KNN Bureau)

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