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

[VCheng]

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.

Both Pakistan and China are members of WTO. It is not correct to unilaterally impose such duties. A case for dumping must be lodged with WTO and duties imposed only after it has been been proven. That is the correct process.

 

[MultaniGuy]

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

We need to learn to be self-sufficient as much as possible.

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.

Agreed with you that both China and Pakistan are allies.
One simply just google it.

Even major newspapers have picked that up.
https://www.foreignaffairs.com/articles/china/2015-10-15/thank-you-being-friend

 

[Max]

ts 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.

i think its for the sake of Chinese investors who are planning to build some large steel mills in Pakistan including 1 in Gawadar..

 

[Shotgunner51]

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

It's economically attractive to increase domestic production when import tariffs are raised, that's why I expect investment may pick up speed. From China's perspective, current steel production is massive, but installed capacity is even bigger (production at 800+ million p.a., installed capacity est 1.2 billion) so that some steelmakers like Angang are selling at cut-throat price. In the long run, China needs to relocate capacity offshore anyway, they have already started the process, I say let's do it swiftly.

https://defence.pk/threads/china-co...the-rest-of-the-world-combined.457241/page-20

Agreed with you that both China and Pakistan are allies.
One simply just google it.

Absolutely. Pakistan is an ally, a time-tested friend, I believe Beijing should accommodate Pakistan's genuine need to grow steelmaker capacity, which is currently running at 3.55 million p.a., a level far from enough for infra boom. I say at least 10-15 million tonnes p.a. should be installed asap, China should help to expedite the process.

 

[MultaniGuy]

It's economically attractive to increase domestic production when import tariffs are raised, that's why I expect investment may pick up speed. From China's perspective, current steel production is massive, but installed capacity is even bigger (production at 800+ million p.a., installed capacity est 1.2 billion) so that some steelmakers like Angang are selling at cut-throat price. In the long run, China needs to relocate capacity offshore anyway, they have already started the process, I say let's do it swiftly.

https://defence.pk/threads/china-co...the-rest-of-the-world-combined.457241/page-20


Absolutely. Pakistan is an ally, a time-tested friend, I believe Beijing should accommodate Pakistan's genuine need to grow steelmaker capacity, which is currently running at 3.55 million p.a., a level far from enough for infra boom. I say at least 10-15 million tonnes p.a. should be installed asap, China should help to expedite the process.

Thank you my friend. China should help Pakistan develop national industries so Pakistan becomes self-sufficient.
This is worth all the trouble for China. China could use a permanent ally.

 

[cloud4000]

What happened to privatization of white elephant PSM?

Must be one hell of a white elephant because not even the Chinese are interested in PSM. May be it just be shuttered permanently.

Both Pakistan and China are members of WTO. It is not correct to unilaterally impose such duties. A case for dumping must be lodged with WTO and duties imposed only after it has been been proven. That is the correct process.

China could lodge a protest against the tariff through WTO, but it will probably let it pass. I mean why have a public spat with one of your closest friends. Most probably, the issue, as issues are usually dealt within China-Pakistan relations: will be resolved behind the scenes.

 

[VCheng]

China could lodge a protest against the tariff through WTO, but it will probably let it pass. I mean why have a public spat with one of your closest friends. Most probably, the issue, as issues are usually dealt within China-Pakistan relations: will be resolved behind the scenes.

But then other countries may cite Chinese non-action over Pakistan's imposition of anti-dumping duties as admitting the charge.

 

[Thəorətic Muslim]

Anti-Dumping makes sense if there is a Steel manufacturing plant in Pakistan.

Wonder who has the few actual working steel plants in Pakistan.

Pakistan doesn't need the WTO or it's approval. The WTO exists to work out trade disputes.

 

[naveen mishra]

babaji ka ghanta hoga , nothing is going to happen , trader will find out some other way ,its all about money and profit,steel business is so volatile and unpredictable
i am working in galvanized and rolling industry since long, ESSAR steel India has 13 million ton capacity to produce steel , but ESSAR Indonesia is not buying single ton steel from India ,our 80% hot rolled coil procurement is from china ,
since long in Indonesia ,industrialist lobbing for anti dumping ,even Indonesian government also have anti dumping policy , but it doesn't effect much , for sure trader will find some other way ,

 

[Shotgunner51]

Thank you my friend. China should help Pakistan develop national industries so Pakistan becomes self-sufficient.
This is worth all the trouble for China. China could use a permanent ally.

You're welcome my friend. Yes that's the idea, first of all is infra, then heavy industries, then manufacturing and last is services. Steel/metallurgical is like "mother" of all industries, not just the pipes or steel bars in concrete walls, even wooden furniture or the plastic mouse are made with steel cutting tool, die (mold, press, die) steel or machines tools. China is already expanding steel capacities in other countries like South Africa and Indonesia, I wish China-Pakistan should expand Gwadar plant or other projects asap. Good luck iron bros!

 

[RealNapster]

It's economically attractive to increase domestic production when import tariffs are raised, that's why I expect investment may pick up speed. From China's perspective, current steel production is massive, but installed capacity is even bigger (production at 800+ million p.a., installed capacity est 1.2 billion) so that some steelmakers like Angang are selling at cut-throat price. In the long run, China needs to relocate capacity offshore anyway, they have already started the process, I say let's do it swiftly.

https://defence.pk/threads/china-co...the-rest-of-the-world-combined.457241/page-20

 

[MultaniGuy]

You're welcome my friend. Yes that's the idea, first of all is infra, then heavy industries, then manufacturing and last is services. Steel/metallurgical is like "mother" of all industries, not just the pipes or steel bars in concrete walls, even wooden furniture or the plastic mouse are made with steel cutting tool, die (mold, press, die) steel or machines tools. China is already expanding steel capacities in other countries like South Africa and Indonesia, I wish China-Pakistan should expand Gwadar plant or other projects asap. Good luck iron bros!

Yes Pakistan and China should work together on Gwadar. Indeed we are iron brothers.

 

[Nilgiri]

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

I guess if it has been done in consultation with Chinese over those projects, sure. But there needs to be a long term analysis of what higher steel prices (from this protection afforded and insulation set up through tariffs) creates more jobs (in steel) than are prevented from being created (from steel processing/consuming industries).

I hope Pakistan has done a study on this matter and releases a white paper somewhere...rather than doing a haphazard short term protection on one industry without looking at the overall supply chain and complete job chain.

@Shotgunner51

 

[RealNapster]

I guess if it has been done in consultation with Chinese over those projects, sure. But there needs to be a long term analysis of what higher steel prices (from this protection afforded and insulation set up through tariffs) creates more jobs (in steel) than are prevented from being created (from steel processing/consuming industries).

I hope Pakistan has done a study on this matter and releases a white paper somewhere...rather than doing a haphazard short term protection on one industry without looking at the overall supply chain and complete job chain.

@Shotgunner51

dumping duty on a product for 5 years is not something you do without Consulting Trade Partners or Proper study. i am sure this decision have some studies behind.

 

[Star Expedition]

It is usually a Double-edged sword.