Seamless pipe industry urges PM to curb imports

Industry body STMAI has urged Prime Minister Narendra Modi to take steps to curb rising imports of seamless pipes, particularly from China, warning that unchecked inflows are eroding domestic capacity utilisation and causing a substantial outflow of foreign exchange.

The development assumes significance in the wake of Prime Minister Modi’s call for energy conservation and austerity measures amid the West Asia crisis.

In a representation to the Prime Minister, Seamless Tube Manufacturers’ Association of India (STMAI) said India’s installed seamless pipe manufacturing capacity stands at about 1.95 million tonnes per annum. However, fluctuating domestic demand and a sharp rise in imports, particularly from China and other countries, have led to sustained underutilisation of the country’s manufacturing base.

“Over the past several years, the Association has continuously represented these concerns before the Ministry of Steel, Ministry of Commerce, Directorate of Revenue Intelligence (DRI), Directorate General of Trade Remedies (DGTR), and other concerned authorities. However, despite repeated representations, imports continue to rise steadily, adversely affecting domestic industry and leading to increased foreign exchange outflow,” STMAI said.

Further, the Indian seamless pipe industry is predominantly utilising domestically manufactured steel for production, thereby strengthening the entire steel and manufacturing value chain in the country, while once again conserving valuable foreign exchange reserves, it said.

“In view of the above, we humbly request your kind intervention and support for the measures in the larger national interest,” the industry body said.

STMAI appealed to the Prime Minister that appropriate measures should be introduced to stop or strictly regulate imports of seamless pipes from China and other countries, particularly where concerns relating to quality and dumping exist.

The seamless pipe industry body also said that anti-dumping, safeguard and other trade remedy measures should be strengthened and implemented expeditiously to ensure a fair and level playing field for Indian manufacturers.

“Mandatory quality control orders, certification requirements, and traceability standards may be enforced rigorously, especially for products used in government projects and strategic sectors,” it said, adding that public sector undertakings and government agencies may be encouraged to procure from certified Indian seamless pipe manufacturers wherever domestic capability exists.

“Temporary and calibrated restrictions on seamless pipe imports would provide substantial benefits to the country, including...conservation of valuable foreign exchange reserves,” STMAI said.