Australia said it will impose import duties on certain kinds of steel from China to protect domestic steelmakers from a flood of surplus product being exported by the world’s top producer of the metal.
It said in a statement that local steel manufacturers have a greater opportunity to compete on a level playing field after the government accepted two Anti-Dumping Commission recommendations to impose dumping duties on Chinese-made steel reinforcing bar and rod in coil imported into Australia.
“Australia takes pride in the quality and reliability of locally-produced steel products, so it’s only reasonable that our manufacturers compete in a fair market,” Minister for Industry, Innovation and Science Christopher Pyne said, adding that these decisions were another step forward for local producers.
“The Australian Government is working to sustain the local steel industry, while acting within World Trade Organization rules.”
The commission has found that Chinese steel reinforcing bar is being dumped at margins from 11.7 percent to 30 percent and Chinese rod in coil is being dumped at margins from 37.4 percent to 53.1 percent, which has caused material injury to Australia’s steel industry, the statement said.
It said duties applying to rod in coil from China will range from 37 percent to 53 percent of the export price depending on the exporter, while reinforcing bar from China will be subjected to a fixed duty ranging from 11.7 percent to 30 percent depending on the exporter, as well as an additional duty should the export price fall below a specified floor price.
These anti-dumping decisions have ensured that Australian steel manufacturer; Arrium, can compete on even ground with imports from other countries such as China, South Korea and Taiwan in the local market, the statement said.
There are currently some 44 anti-dumping measures in place in Austrlalia on 12 steel products from 14 countries.
China has been accused of dumping cheap steel into countries as it battles overcapacity due to a slowing economy, a charge Beijing denies saying it had taken streingent steps to curb over production and the overcpacity was laregely due to a global slowdown.