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TATA Steel urges AD of at Least 20pct on Steel Wire From China

por wireworld en 01/10/2012 - 05:35

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TATA Steel Plc has asked the government to impose anti dumping duties of at least 20% on steel wire from China as the company struggles to compete against subsidized imports that are as much as 14% cheaper than its own products in the local market.


Mr Thana Reungsilasing VP of TATA Steel Plc said that Chinese steel wire is priced between THB 17,000 and THB 18,000 per tonne as compared to THB 21,000 for the domestic variety. He added that "Steel wire is our major product, accounting for about 40% of our total production capacity of 1.2 million tonnes a year."


Chinese firms can sell steel wire at below Thai market prices because Beijing subsidizes the products in the form of export tax rebates of about 9%. At the same time, the firms declare their steel wire exports to be a compound of boron and chromium, which qualifies them for import duty exemptions.


Mr Thana said that "When they declare the products to be steel wire, they would face import tax of 5%. That means they save tax of about 19% when exporting to Thailand. As a result they can sell at lower than domestic prices."  He added that if the government did not protect local producers, they would have to switch from steel wire to other products that can compete with imports.


The company said it would continue to closely monitor the trend of raw material prices and changes in the market environment with an eye on returning its operations to normalcy.  TATA Steel reported total revenue of THB 5.9 billion and net loss of THB 200.85 million in the first quarter of 2012.