Last Updated On 13 June,2018 10:05 pm
The imposition of the anti-dumping-duty is a material positive for International Steel Limited
ISLAMABAD (Dunya News) – National Tariff Commission (NTC) has imposed anti-dumping duties in the range of 5.36 percent to 14.24 percent on companies belonging to China and South Africa as they were making shipments of color coated steel coils/sheets on cheaper rates compared to produce in the country, giving material injury to local industry.
Pakistan’s National Tariff Commission (NTC) initiated an anti-dumping investigation on June 10, 2017 at the behest of an application lodged by International Steels Limited (ISL).
According to information available from NTC, fourteen (14) exporters/producers of investigated product from China provided information in response to the questionnaire and no exporters/producers from South Africa provided information in response to the questionnaire.
The Commission selected only three exporters/producers from China on the basis of highest import of color coated coils/sheets to Pakistan for calculation of individual dumping margin.
The Commission is satisfied in terms of Section 14 of the Act that the number of the exporters/producers involved is so large and its impracticable to determine an individual dumping margin of all cooperating exporters/producers from China.
Normal value and export price of the investigated product has been determined on the basis of the information provided by three exporters/producers from China in response to the Commission’s questionnaire and verified during the verification visit.
The Commission established that the domestic industry producing Color Coated Steel Coils/ Sheets suffered material injury due to the increase in volume of dumped imports and price undercutting of the domestic like product in the local market leading to i) low levels of production, ii) capacity utilization, iii) declining market share, and iv) damaging effects on inventories and growth for domestic manufacturers of the product.
The Commission has thus decided to impose definitive Anti-dumping Duties effective from June 13, 2018 at the rates mentioned on C&F value on imports of color coated steel coils originating from China & South Africa in the range of 5.36 percent to 14.24 percent for a period of five years effective up till June, 2023.
However, the Anti-dumping Duty will not be levied on producers who import said goods as inputs in products destined solely for exports.
The imposition of the anti-dumping-duty is a material positive for International Steel Limited (the sole listed color coated coils producer), who has been facing stiff competition from imported products in both, domestic color coated coils and Galvanized coils markets.
This is as importers would routinely import color coated coils and dispatch it to domestic galvanized markets to avoid anti-dumping duty previously imposed on imported galvanized steel products (as some consumers are able to substitute Galvanized coils by Color coated coils for their projects).
International Steel Limited has Color Coated Coils production capacity of 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.