Daily Times

KARACHI: To address the issues being faced by local steel producers due to relentless dumping of steel products from China, the National Tariff Commission of Pakistan (NTC) has decided to initiate investigation into the matter.

Pakistani steel manufacturers have been complaining about unfair practices adopted by Chinese exporters citing that dumping of CRC, billet, rebar & wire rod is causing massive losses to the local steel industry.

In this regard, Amreli Steels Limited, largest selling steel re-bars maker of Pakistan, being a party with other producers of Deformed Steel Concrete Reinforcing Bars (Rebars) had submitted an application with the NTC.

Thus, the NTC while accepting the application submitted by the Amreli Steel limited under section 20 and 24 of Anti-Dumping Duties Act, 2015 has decided to start investigations against dumping of Rebars from People’s Republic of China at larger level.

The Amreli Steels Limited stated in its application that dumping of Rebars from People’s Republic of China by local importers is threatening to cause material injury to the domestic industry producing Rebars.

The NTC, in its investigations against dumping of Rebars from China, will determine whether the Rebars originating in and / or exported from China are being dumped into Pakistan and whether such dumping has caused material injury to the domestic industry. Earlier in March this year, the government had increased the regulatory duty by 15 percent on a number of items including steel rebars, which remained effective until June 30, 2016. The steel industry urged the government to continue with the existing regulatory duty (RD) of 30 percent on steel imports as 300 steel melting units and more than 500 re-rolling mills in Pakistan were currently running below 30 percent capacity due to heavy influx of import of finished steel products particularly from China.

Pakistan is likely to witness increased demand of steel mainly due to the China Pakistan Economic Corridor (CPEC) which has kicked off last year with power plants, dams, airports and highway projects in the pipeline. These projects will require steel that is of the highest quality and steel manufacturers to deliver in bulk. Collectively, the CPEC projects estimated at $ 46 billion will require millions of tons of steel and its completion is expected to generate much-needed economic stimulus. CPEC being significant per cent of Pakistan’s GDP and promises to help policymakers shift gears from stabilization to growth.