Initiation of Bilateral Safeguard Investigation on imports of Ferro Molybdenum from Korea RP (30.09.2022)

Product Description – Ferro Molybdenum is a hardening agent and is found in many alloy steels that are heat-treatable. Molybdenum prevents corrosion in stainless steel and alloy steel. Cost on account of this input is insignificant for the consuming industry and is in the region of 0.55-1.00%of their full costs.

HS Codes – Chapter 72 of the Customs Tariff Act, 1975 under 72027000.

Uses – Its applications are in alloy steel, nickel, cobalt, and titanium alloys which are

used for the manufacture of various products of strategic importance such as machine parts & tools, military hardware, magnetic alloys, special steel etc.

Applicants – The Indian Ferro Alloy Producers’ Association along with Boon Metal & Alloy Corporation, Premier Alloys & Chemicals Private Limited and Team Ferro Alloys Private Limited.

Period of investigation – April 2018- March 2022 with October 2021 to March 2022 as the most recent period.

Facts of the present case – 

  1. There is a sudden, sharp and significant increase in imports of the product between 2018-19 and 2021-22.
  2. There is a significant increase in imports before and after the tariff concessions started.
  3. The market share of the Indian industry has declined, whereas the market share of subject imports has increased. The performance of the domestic industry has declined in respect of parameters such as production, capacity utilization, sales, and profits.