Govt launches anti-dumping probe into electrical steel imports from China, Japan, Korea and Russia amid transformer demand boom

The government has initiated an anti-dumping investigation into imports of Cold Rolled Grain Oriented (CRGO) Electrical Steel and Amorphous Metal from China, Japan, South Korea and Russia, amid concerns that low-priced shipments are adversely affecting domestic manufacturers serving India's growing power infrastructure sector.

The Directorate General of Trade Remedies (DGTR), the investigative arm of the Commerce Ministry, launched the probe following a complaint by JSW JFE Electrical Steel Nashik Pvt Ltd, which alleged that dumped imports are causing material injury to the domestic industry.

JSW JFE complaint prompts trade remedy action

In a notification, the DGTR said it had found sufficient prima facie evidence to begin a detailed examination of the alleged dumping and its impact on Indian producers.

“On the basis of the duly substantiated written application submitted by the applicant and having reached satisfaction based on the prima facie evidence submitted by the applicant concerning dumping of the product...the authority hereby initiates an anti-dumping investigation,” the notification said.

The investigation will assess the existence, extent and impact of the alleged dumping by exporters from the four countries. If injury to domestic manufacturers is established, the DGTR may recommend anti-dumping duties, with the final decision resting with the Ministry of Finance.

Key input for transformers and grid infrastructure

CRGO electrical steel and amorphous metal are critical raw materials used in transformer cores, making them essential for electricity transmission and distribution networks.

The products are widely used by transformer manufacturers supplying state utilities, industrial consumers and renewable energy projects. Demand for transformers has increased sharply in recent years as India expands transmission capacity, modernises distribution infrastructure and accelerates renewable energy integration into the grid.

With large investments underway under various power sector programmes, the availability of domestically produced transformer-grade steel has assumed greater significance for the country's energy transition plans.

Wider crackdown on unfairly priced imports

The electrical steel investigation is part of a broader trade-remedy push by the government. The DGTR has also initiated anti-dumping probes into sodium nitrite imports from China and Para Nonylphenol imports from Russia and Taiwan.

Anti-dumping investigations are conducted under World Trade Organization (WTO) rules to determine whether imported goods are being sold below fair market value and causing injury to domestic producers. Where dumping and injury are established, countries can impose anti-dumping duties to restore fair competition.

India has increasingly relied on such measures in recent years, particularly in sectors where domestic manufacturing capacity is being expanded under industrial policy initiatives. The latest probe also comes against the backdrop of rising investments in power transmission, distribution and renewable energy infrastructure, all of which are expected to sustain strong demand for transformer-grade electrical steel in the coming years.