Pakistan imposes anti-dumping duty on China’s steel products

[Devil Soul]

Pakistan imposes anti-dumping duty on China’s steel products
By Farhan Zaheer
Published: February 9, 2017
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Galvanised steel coils/sheets of primary and secondary quality under different headings of Pakistan Customs Tariff (PCT) were under investigation. PHOTO: REUTERS

KARACHI: International Steel Limited (ISL) said that the National Tariff Commission (NTC) has decided to impose definitive anti-dumping duties on galvanised steel coils/sheets for a period of five years with effect from February 8, 2017, according to a company notice sent to the Pakistan Stock Exchange (PSX).

The NTC initiated an anti-dumping investigation on August 11, 2015 on the request of the domestic industry that produces galvanised steel coils/sheets against its dumping from China into Pakistan.

The industry lodged a complaint that the dumping was causing material injury to the domestic players.

Galvanised steel coils/sheets of primary and secondary quality under different headings of Pakistan Customs Tariff (PCT) were under investigation.

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The period of investigation of dumping was from July 1, 2014 to June 30, 2015 while the period of investigation of injury was from July 1, 2012 to June 30, 2015, according to the company notice.

The commission established that the domestic industry suffered material injury on account of increase in volume of dumped imports, price undercutting, price depression, decline in market share, sales, capacity utilisation, return on investment and negative effect on cash flow and increase in inventories.

The duty is imposed on Cost and Freight (C&F) value in advance value on imports of galvanised steel coils/sheets from China on the exporters/producers of this origin.

However, it would not be levied on imports from other sources (other than China) and in terms of Section 51(1) (e) of the Act on imports that are to be used as inputs in products destined solely for exports and are covered under any scheme exempting customs duty for exports under the Customs Act, 1969.

The dumping margin would be 40.47% for Angang Steel Company Limited, Anshan City, China and all other producers/exporters from China. The dumping margin for Hebei Iron and Steel Company Limited, Handan City China would be 31.31%.

The dumping margin for Bengang Steel Plates Co. Ltd, Benxi City, China is fixed at 9.13% while the margin for Maanshan Iron and Steel Company Limited, Maanshan City, China would be just 6.09%.

In September last year, the NTC was made operational after remaining virtually defunct for more than a year when the prime minister appointed its chairman and four other members, fulfilling longstanding demands of local industries to address the issues.

The government failed to appoint NTC members, despite the enactment of its act, making the important body virtually dysfunctional for the past one year.

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Moreover, the domestic industry continued to suffer due to non-action against dumping – a practice where low-priced foreign goods make their way into the domestic market, rending local industries uncompetitive.

Under the new law, the functions of the NTC include advising the federal government on tariff and other trade measures to provide assistance to and improving competitiveness of the domestic industry.

Other key functions of the NTC are trade remedies for problems being faced by domestic producers and exporters, tariff rationalisation and proposals for tariff reforms, removal of tariff anomalies and any other matter relating to tariff or trade measures that the federal government may refer to the commission.

Published in The Express Tribune, February 9th, 2017.

 

[Nilgiri]

Its best to let in the cheapest steel you can find (which is generally China these days), shut down the pakistan steel industry (which jobs wise is not a big one) and allow the cheap imported steel supply to make more profitable manufacturing industries (where the real jobs are created). Or at least have a plan that moves to this direction.

Pakistan is very much neither here nor there in steel industry...it should make up its mind, pick a strategy and commit to it. A few jobs should not be subsidised by tariffs so much when they come at the cost of more jobs in other industries.

@Shotgunner51 I would like to hear your views on this matter.

 

[I S I]

Good.

 

[Arsalan]

Good decision. Hopefully they will make some policy to help bring the local steel plants back on their foot and then continue from there.

 

[Chinese-Dragon]

Your country your rules.

 

[Jugger]

I think it's a wise decision by the GOP.

 

[Manidabest]

Good move for local industry and also encourage joint ventures with foreign firms too or sell stakes in existing steel mills

 

[ali_raza]

its sometimes abused by indians.on fake names they dump there crap here to be taken to afghanistan and even uper country this usually happens through dubai channel

 

[Tshering22]

Well that's not a good sign for Pakistan, considering that lower imports from China would likely have an impact on the infrastructure and industrial development of the country. With the current level of production in terms of steel, Pakistan doesn't have a significant critical mass whereby these anti-dumping measures would result in a consequent increase in job and wealth creation.

A hybrid approach is best served where you guarantee a steel market for Chinese suppliers but ask them to set them up in Pakistan for Pakistani market. Only steel from these plants would be purchased at preferential terms, and will create jobs for Pakistanis while Chinese expertise further aids your infrastructure improvements.

its sometimes abused by indians.on fake names they dump there crap here to be taken to afghanistan and even uper country this usually happens through dubai channel

Are you telling that your trade registration agency or ministry of commerce is so incompetent so as to not conduct proper investigations before approving corporates?

Please make up your mind.

 

[AMG_12]

its sometimes abused by indians.on fake names they dump there crap here to be taken to afghanistan and even uper country this usually happens through dubai channel

Please don't bring in India or derail this thread.

 

[Sugarcane]

What happened to privatization of white elephant PSM?

 

[Sine Nomine]

What happened to privatization of white elephant PSM?

Wo akhri saal ka plan haa chacha,

 

[AZADPAKISTAN2009]

Obviously there should be import of Steel done , once the local market cannot supply the necessary demand.

• For critical projects , the steel should be used immediately (Chinese or local) , helps bring cost down. Wait times are reduced etc material of high quality.
  
• Chinese Steel companies should be given incentive to revive the PSM

There should be a National Body , to approve orders for Imports for Steel ? !

If dealing with Local Pakistani Steel companies will delay projects , or cause wait times and lazy stories , rather have Chineses Steel which is available immediately

Debate is about PERFORMANCE !!!

Can Pakistani Steel companies PERFORM ?

If , situation is such that MEGA project is waiting for STEEL and lazy Pakistani companies are saying 7 month delay in delivery , sorry I rather have Chinese steel !!! IMMEDIATELY

 

[Shotgunner51]

Its best to let in the cheapest steel you can find (which is generally China these days), shut down the pakistan steel industry (which jobs wise is not a big one) and allow the cheap imported steel supply to make more profitable manufacturing industries (where the real jobs are created). Or at least have a plan that moves to this direction.

Pakistan is very much neither here nor there in steel industry...it should make up its mind, pick a strategy and commit to it. A few jobs should not be subsidised by tariffs so much when they come at the cost of more jobs in other industries.

@Shotgunner51 I would like to hear your views on this matter.

Thanks for tagging. On one hand I believe firms like Angang (see below extracts from OP) do compete with excessively low price (note Yuan valuation is also a factor, Pakistan is not the target but still affected), Pakistan is an ally so Beijing should help growing Pakistani indigenous steel industry. On the other hand it's also an incentive to speed up FDI in steel sector, China is already planning a large plant in Gwadar, and perhaps should look at some existing plants as well, anyway hope these plans go faster.

The dumping margin would be 40.47% for Angang Steel Company Limited, Anshan City, China and all other producers/exporters from China. The dumping margin for Hebei Iron and Steel Company Limited, Handan City China would be 31.31%.

The dumping margin for Bengang Steel Plates Co. Ltd, Benxi City, China is fixed at 9.13% while the margin for Maanshan Iron and Steel Company Limited, Maanshan City, China would be just 6.09%.

 

[RealNapster]

Its best to let in the cheapest steel you can find (which is generally China these days), shut down the pakistan steel industry (which jobs wise is not a big one) and allow the cheap imported steel supply to make more profitable manufacturing industries (where the real jobs are created). Or at least have a plan that moves to this direction.

Pakistan is very much neither here nor there in steel industry...it should make up its mind, pick a strategy and commit to it. A few jobs should not be subsidised by tariffs so much when they come at the cost of more jobs in other industries.

@Shotgunner51 I would like to hear your views on this matter.

Your country your rules.

I think this decision is to speed up the FDI from China in Steel mills at Chiniot and Gawadar. as they have already planned.

what are your thoughts sir ?

Thanks for tagging. On one hand I believe firms like Angang (see below extracts from OP) do compete with excessively low price (note Yuan valuation is also a factor, Pakistan is not the target but still affected), Pakistan is an ally so Beijing should help growing Pakistani indigenous steel industry. On the other hand it's also an incentive to speed up FDI in steel sector, China is already planning a large plant in Gwadar, and perhaps should look at some existing plants as well, anyway hope these plans go faster.

Exactly mu query sir. what you think will it help in making china speed up the work on Steel mills at Gawadar and Chiniot ?