03 June 2004 10:36
Makers oppose scrapping of anti-dumping duties on cold-rolled
Author: steel The anti-dumping duties on China's cold-rolled steel imports should be maintained to protect the
domestic steel manufacturing sector, steelmakers told the Ministry of Commerce. "The anti-dumping duties can
protect domestic steelmakers by preventing overseas rivals from dumping their products in China," an official
surnamed Bian from Shanghai Baosteel Group Corp, China's largest steelmaker, told the commerce ministry during a
public hearing on June 1. The ministry held the public consultation to review the anti-dumping duties on imports of
cold-rolled steel from Russia, South Korea, Ukraine, Kazakhstan and Taiwan, which were levied from January 14 this year.
The ministry made a final judgement on September 23 last year that the dumping of cold-rolled steel from those countries
has impaired the domestic industry. Cold-rolled steel is used to make home appliances, auto and truck parts. But
cold-rolled steel exporters from Russia, South Korea, Ukraine, Kazakhstan and Taiwan branded the anti-dumping duties as
unfair as China's steel manufacturers cannot meet domestic demand. Bian, who represented Baosteel, Angang Group and
Wuhan Iron & Steel (Group) Corp, said local cold-rolled steelmakers are attempting to improve the quality of their
products. "Baosteel conducted a technical upgrading to improve the quality and output of its cold-rolled steel
products, and now 80 percent of its products meet world standards as shown by soaring orders from General Motors and
Ford," Bian said. Wuhan Iron & Steel plans to expand its cold-rolled steel production capacity by building a
new plant, while Angang plans to invest 200 million yuan (US$2.42 million) in overseas technology to improve the quality
of its products, Bian added. But domestic auto and home appliance makers at the public hearing called for the removal of
the anti-dumping duties, saying they have hurt their profit margins due to increased production costs. The price of
cold-rolled steel coil reached 5,602 yuan (US$677) a ton on April 14 from 4,982 yuan three months earlier, the China
Daily reported. Wang Hejun, the MOC official who chaired the public hearing, said while the government is concerned
about overseas cold-rolled steel exporters dumping their products in China, it will not provide long-term protection for
domestic steelmakers. Wang said the commerce ministry will make its final ruling within the next 12 months. China's
annual production capacity of the product is currently 12 million tons, lower than domestic demand of 21 million tons,
the China Daily said. Investors are planning to build 21 more production facilities with an annual capacity of 25
million tons to meet rising demand, the paper added.
[Business Daily Update] |
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