Daily Times

KARACHI: Pakistan has slapped anti-dumping definitive duty of up to 24.04 percent on imports of billets from China to protect domestic producers from below-cost inbound shipments.

On Thursday, the National Tariff Commission (NTC) communicated its final determination of anti-dumping duties on import of billets from China where it imposed definitive duty of 24.04 percent for the period of five years effective from 22nd June 2017. CC Billets imported from other sources other than China shall not be subject to the definitive anti-dumping duty, the NTC added.

The decision will replace 15 percent regulatory duty with 24 percent anti-dumping duty, resulting in net 9bps increase in duty. This is expected to cause Rs 4,000/ton or 6 percent increase in cost of imported billets and it is expected that the increased costs to be partially passed on to consumers.

The NTC had initiated and conducted investigation into dumping, injury and causal links between dumping and injury to the domestic industry. Pakistani steel manufacturers had 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.

Amreli Steels Limited (ASL), largest selling steel re-bars maker of Pakistan, being a party with other producers of Deformed Steel Concrete Reinforcing Bars (Rebars) including Agha Steel and ASG Metals had submitted an application with the NTC.

“ASL is a major beneficiary of this development as its billets production is self-sufficient. Whereas we reckon it to be partially negative for Mughal Steel as its billets’ requirement is significantly met though imports (60% billets requirement was through imports in FY16) due to energy shortage, however, this would be outright negative for Dost Steels (DSL) which does not have melting facility of its own in place”, said Elixir Research’s analyst.

In its probe, the NTC had concluded that CC billets have been imported into Pakistan at dumped prices and the domestic industry suffered material injury on significant increase in volume of dumped imports, significant price undercutting by the dumped imports, decline in market share, decline in sales, decline in return on investment, and negative effects on inventories/ profits/ employment/ margins.

NTC alluded that it concluded its investigation by 3rd February 2017; however, it did not disclose its results due to interim order of the Sindh High Court which was later dismissed on 2nd June 2017 leading to this final determination.

Published in Daily Times, June 23rd, 2017.