India is likely to impose anti-dumping duty on imports of steel wire rods from China that will shield the domestic steel firms.

An anti-dumping probe determines if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multilateral WTO regime. They are not a measure to restrict imports or cause an unjustified increase in cost of products.

Commerce Ministry on Thursday recommended Finance Ministry to impose anti-dumping duty on imports of steel wire rods from China to protect the interest of domestic players from low cost steel. According to preliminary findings, by the directorate general of anti-dumping and allied duties (DGAD), a few Chinese companies were found to be shipping steel at a lower duty.

Steel Authority of India, Rashtriya Ispat Nigam, Usha Martin and JSW Steel had jointly filed the application to probe the dumping of these products from China. DGAD study found that the product has been exported to India at “below the normal value” due to which “the domestic industry has suffered material injury”.

The Commerce Ministry has recommended duty on imports of ‘wire rod of alloy or non-alloy steel’, used in many applications and sectors including in automotive components. Imports of these steel products had  increased to 4,95,732 tonnes in July-December 2015) from 1,60,582 tonnes in 2012-13.