India’s CRGO Demand–Supply Gap

The Directorate General of Trade Remedies (DGTR) initiates an anti-dumping probe against imports of CRGO steel. The move is linked to India’s demand–supply gap in CRGO, a key input used for the core of electrical transformers.

Anti-dumping probe on CRGO steel (Cold Rolled Grain Oriented steel):

Dimension	Key Details
What is CRGO steel	CRGO steel comprises a special type of high-tech iron and steel blend made specifically for the core of electrical transformers.
Functional property	The metal crystals are lined up in a single direction, enabling smooth flow of electricity and magnetism with very little resistance.
Technical features	CRGO steel provides for low core loss, high magnetic permeability, and thickness range of 0.23–0.35 mm, with modern grades as thin as 0.18 mm.
India consumption and domestic output	India consumes 400,000–450,000 tonnes of CRGO steel annually, and domestic output is 40,000–50,000 tonnes.
Import dependence and sources	Imports from China, Japan, South Korea, and Russia meet about 90% of India’s CRGO demand.
Anti-dumping duty (definition)	Anti-dumping duties are tariffs designed to shield domestic industries from foreign products priced below fair market value.
Risks of anti-dumping duty	Imposing duties may increase transformer prices, could delay investments in transmission infrastructure, renewable integration, and electricity distribution, and is unlikely to significantly reduce import dependence since domestic production meets less than one-tenth of demand.
Power sector implications cited	Increasing transformer costs may adversely affect grid expansion timelines, and the integration of solar and wind projects may experience delays due to higher equipment costs.
Manufacturing implications cited	Manufacturers may encounter challenges due to increased input costs, which could negatively impact competitiveness.