Antidumping Duties On Color-Coated Steel Imports From China And South AfricaAntidumping Duties On Color-Coated Steel Imports From China And South Africa

Antidumping Duties On Color-Coated Steel Imports From China And South Africa

Antidumping Duties On Color-Coated Steel Imports From China And South Africa:

Pakistan has slapped antidumping duties on color-coated steel imports from China and South Africa for five years, the National Tariff Commission said. Effective June 13, tariffs ranging from 5.36% to 10.88% were imposed on Chinese exporters/producers, while their South African counterparts were hit with 14.24% duty.

The commission determined that the imports caused material injury to the “domestic industry manufacturing color-coated coils/sheets.”

To determine the effect on dumping, an investigation focused on the period of January 1-December 31, 2016, while the probe for injury covered January 1, 2014 to December 31, 2016.

Antidumping Duties On Color-Coated Steel Imports From China And South Africa
Antidumping Duties On Color-Coated Steel Imports From China And South Africa

The investigations revealed that the domestic industry producing color- coated coils/sheets consisted of only one unit operated by International Steels at Karachi, with a production capacity of 84,000 mt/year of color-coated coils.

Noting this, the commission said: “The purpose of the imposition of the antidumping duties is to remove the unfair advantage being enjoyed by the exporters/foreign producers from the exporting countries, which are exporting the investigated product at dumped prices,” rather than “to create [a] monopoly of the domestic producer.”

NTC, following an investigation launched in June 2017, found that there was a significant increase in volume of dumped imports of the investigated product and significant price undercutting of the domestic-like products in the local market.

“Resultantly, the domestic industry suffered material injury on account of low level of production, low level of capacity utilisation, decline in market share, negative effect on inventories and growth,” it said.

“Besides, the commission determined that the dumped imports are posing imminent threat of material injury to the domestic industry… on account of likely further increase in the volume of dumped imports, idle capacities of like product in the exporting countries, inventories/excess production of like product in the exporting countries and trade defense actions taken by other countries against China steel products.”

Antidumping Duties On Color-Coated Steel Imports From China And South Africa
Antidumping Duties On Color-Coated Steel Imports From China And South Africa

The imposition of anti-dumping duties would prove positive for International Steels Limited (ISL) that has production capacity of color coated coils at 84,000 tons per annum.

“The imposition of this protectionist policy should facilitate the flat steel roller to better compete in terms of pricing and ultimately improve margins,” Akhtar said.

ISL, the sole local producer of color coated coils, was facing tough competition from the importers who supplied the steel products to domestic galvanised markets.

NTC, however, exempted imports destined to export-oriented industry from the latest anti-dumping duties.

Government has been imposing punitive duties on steel imports during the past years to protect local industry having more than 50 players.

In January last year, the government imposed definitive anti-dumping duties ‘retroactively’ in the range of 13.17 percent to 19.04 percent on cold rolled coils/sheets importable from China and Ukraine for a period of five years.

Antidumping Duties On Color-Coated Steel Imports From China And South Africa
Antidumping Duties On Color-Coated Steel Imports From China And South Africa

The World Steel Association termed Pakistan as one of the world’s fastest-growing steel producers.

The country’s crude steel output climbed nearly 40 percent to five million tons in 2017 due to growing demand for infrastructure and residential developments.

Construction sector that accounts for 2.7 percent to GDP grew nine percent during the last fiscal year of 2017, the State Bank of Pakistan said in its annual economic report.

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