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  • Pakistan supports its local steel industry with antidumping duties

Pakistan supports its local steel industry with antidumping duties

by Commodity Inside / Monday, 18 June 2018 / Published in Steel

Pakistan National Tariff Commission (NTC) imposed up to 14.24% anti-dumping duties on imports of colour coated galvanised steel coils (organic coated steel) from China and South Africa for the next five years. The decision was made in June 2018 on the basis that the imported steel coils were potentially being imported at dumped prices causing material injury and a threat to the domestic steel industry. Chinese colour coated coils bear 5.36% duty while South African materials to face 14.24% duties.

Commodity Inside View:

Commodity Inside expects that impositions of these duties would improve the domestic organic coated markets and is likely to increase capacity utilisation of International Steels Limited (ISL), a sole producer of colour coated steel coils in Pakistan which can produce 84,000 tonnes/year colour coated steel.

Pakistan has been supportive to the domestic steel industry by protecting it through anti-dumping duties over the last few years. Previously, the government enforced 13.17% to 19.04% anti-dumping duty on the imports of Cold rolled coils (CRC) from China and Ukraine in January 2017 for the five years period.

The country steel industry consists of Pakistan Steel Mill (the country sole integrated steel producer) which has been struggling and a few dozens of small EAF and induction producers. The domestic steel industry has been increasing with fast growth. Pakistan steel production reached around 5 million tonnes in 2017 from around 3 million tonnes in 2012.

Some local steel producers plan to ramp up their production capacity including Aisha Steel Mill (ASM), Amreli Steels and Agha Steel Industries. For Instance, ASM intends to increase its capacity from 220k tonnes to 700k tonnes. Similarly, Amreli Steels contemplates expanding its long steel capacity to 750k tonnes by 2020.

The construction sector plays a crucial role in driving the steel demand. Commodity Inside ascertains that the construction sector accounts for around 2% of the country’s GDP in 2017, valued the sector worth at $4.6 billion.

The growth in the construction sector has recently fuelled by China’s One Belt One Road (OBOR). Pakistan Economic Corridor (CPEC) which is a part of the OBOR initiative, China has started a raft of energy and infrastructure projects in Pakistan.

To learn more about this article or want to explore how we can help in your research please feel free to contact us at info@commodityinside.com

We are independent and highly approachable experts available to support you.

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Tagged under: flat steel, OBOR, steel

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