New Delhi, Nov 25, 2008 (Asia Pulse Data Source via COMTEX) -- IPITF | Quote | Chart | News | PowerRating -- Steel industry today sought an early imposition of 14 per cent countervailing duty on imported TMT bars and structurals, which are widely used in construction sector, to protect domestic industry from cheaper imports of the commodity.

"Government should restore the countervailing duty on the long products (TMT bars) to avoid its dumping in the domestic market. Such a move will benefit the infrastructure and construction sector, which is reeling under the heat of the global economic slowdown," Ispat Industries Vice-Chairman and Managing Director Vinod Mittal said.

Countervailing duty is equivalent to the excise paid by domestic manufacturers. Its imposition is expected to benefit leading steel producers like SAIL, RINL, Tata Steel, JSW and Ispat by making the imports of the commodity dearer.

"Non-application of the duty benefits the traders. It distorts the domestic pricing mechanism. Countervailing duty should be levied as soon as possible," said JSW Group CFO Seshagiri Rao.

Echoing similar views, country's largest steel producer SAIL said that the duty was removed when steel prices were at the peak earlier this year, on surge in global offtake and since the demand is wanning now, there is a case for imposition of the countervailing duty.

"World steel prices were going through the roof when the countervailing duty was removed. But such circumstances no more exist and so the duty should be imposed," SAIL Chairman Sushil Kumar Roongta had said.