Chinese Steel: Local industry rejoices as NTC imposes anti-dumping duty
Imported re-bars will be subject to 19.15% duty in addition to 30% already imposed
PHOTO: REUTERS
KARACHI:
In another positive development for the local steel industry, the National Tariff Commission (NTC) has notified a 19.15% definitive five-year anti-dumping duty (ADD) on deformed concrete reinforcing steel bars (re-bar) imported from China.
This is in addition to a 30% regulatory duty on imported re-bars already imposed.
Soon after the imposition of anti-dumping duty on Chinese and Ukrainian flat steel products in early 2017, analysts were predicting similar duties on long steel products (mainly re-bars that are used in construction of buildings, bridges etc.) that have now been notified.
Aisha Steel Mills posts profit of Rs1.01b
“This measure will further cement protection for the domestic long steel industry and provide them a level playing field,” Topline Securities commented on Monday.
The imposition of new duties will help Aisha Steel Mills Limited, Dost Steels Limited, Mughal Steel - companies that make re-bars and are currently expanding their production capacity. Domestic steel industry is upbeat after the reactivation of NTC in recent years as it is now acting on its complaints of steel dumping (mainly from China) in Pakistan, causing material damages to local producers.
With government subsidies, Chinese steel companies grew phenomenally in last few decades to meet the country’s extraordinary infrastructure requirements. However, due to economic slowdown in recent years, these companies started dumping their stocks in different countries that ultimately prompted governments to slap anti-dumping duties on Chinese steel firms.
China has an installed capacity of over 800 million tons of steel per annum and is, by far, the largest steel producer in the world. Its nearest competitor Japan produces a little over 100 million tons of steel a year.
Aisha Steel Mills’ plans to expand are all ‘laid out’
Anti-dumping duty on rebar has been imposed to rationalise the duty structure between raw material and finished imports. Billet earlier had 24.04% anti-dumping duty and 15% duty (which goes to 39.04% in total) while re-bar, which previously had only 30% regulatory duty, now has 19.15% anti-dumping duty on top (which goes up to 49.15% in total).
The report pointed that out that Aisha Steel, part of Arif Habib Group, will not increase prices to take advantage of the duty as imports from China (under Pakistan Customs Tariffs (PCT) of codes 7214, 7215 & 7228) have already dried up due to imposition of regulatory duty. Imports totalled $13 million in fiscal year 2017, down from $51 million last year.
Published in The Express Tribune, October 24th, 2017.
In another positive development for the local steel industry, the National Tariff Commission (NTC) has notified a 19.15% definitive five-year anti-dumping duty (ADD) on deformed concrete reinforcing steel bars (re-bar) imported from China.
This is in addition to a 30% regulatory duty on imported re-bars already imposed.
Soon after the imposition of anti-dumping duty on Chinese and Ukrainian flat steel products in early 2017, analysts were predicting similar duties on long steel products (mainly re-bars that are used in construction of buildings, bridges etc.) that have now been notified.
Aisha Steel Mills posts profit of Rs1.01b
“This measure will further cement protection for the domestic long steel industry and provide them a level playing field,” Topline Securities commented on Monday.
The imposition of new duties will help Aisha Steel Mills Limited, Dost Steels Limited, Mughal Steel - companies that make re-bars and are currently expanding their production capacity. Domestic steel industry is upbeat after the reactivation of NTC in recent years as it is now acting on its complaints of steel dumping (mainly from China) in Pakistan, causing material damages to local producers.
With government subsidies, Chinese steel companies grew phenomenally in last few decades to meet the country’s extraordinary infrastructure requirements. However, due to economic slowdown in recent years, these companies started dumping their stocks in different countries that ultimately prompted governments to slap anti-dumping duties on Chinese steel firms.
China has an installed capacity of over 800 million tons of steel per annum and is, by far, the largest steel producer in the world. Its nearest competitor Japan produces a little over 100 million tons of steel a year.
Aisha Steel Mills’ plans to expand are all ‘laid out’
Anti-dumping duty on rebar has been imposed to rationalise the duty structure between raw material and finished imports. Billet earlier had 24.04% anti-dumping duty and 15% duty (which goes to 39.04% in total) while re-bar, which previously had only 30% regulatory duty, now has 19.15% anti-dumping duty on top (which goes up to 49.15% in total).
The report pointed that out that Aisha Steel, part of Arif Habib Group, will not increase prices to take advantage of the duty as imports from China (under Pakistan Customs Tariffs (PCT) of codes 7214, 7215 & 7228) have already dried up due to imposition of regulatory duty. Imports totalled $13 million in fiscal year 2017, down from $51 million last year.
Published in The Express Tribune, October 24th, 2017.