Anti-dumping move helps MSL win Oil India jobs

Vol 20, PW 9 (26 Jan 17) People & Policy
     

New anti-dumping restrictions on steel pipe and tube imports from China have started to benefit Indian companies.

Take BSE-listed Gurgaon-based Maharashtra Seamless (MSL), a DP Jindal group company. After the anti-dumping duty was made a permanent feature by the government on December 6, 2016, MSL won three Oil India pipe and tube contracts on December 21 beating Chinese companies Hengyang Steel Tube and International Trading.

MSL won a Rs15.87cr ($2.4m) contract to supply 13.3/8-inch casing; a Rs22.59cr ($3.4m) contract to supply 9.5/8-inch casing; and a Rs7.10cr ($1m) contract to supply 2.7/8-inch tubing. MSL expects to complete supplying the casing and tubing by end-April this year.

While the two Chinese companies were thwarted by anti-dumping regulations, Tenaris Global Services failed to clear technical evaluation, leaving only MSL, Hyderabad-based Oil Country Tubular and UAE-based companies Offshore Engineering and Marketing, ITECO and Petroleum Pipe in the race. "With the Chinese out MSL could offer competitive bids," says a source.

"Chinese companies had cornered a bulk of the pipes and tubes market but MSL is now hoping to corner at least 60% of the market by winning ONGC and Oil India contracts." Following months of aggressive lobbying from Indian companies including MSL, the government set the anti-dumping duty on steel pipes and tubes imported from China in the range of $961.33 to $1610.67 per tonne.