The Indonesian Iron and Steel Industry Association has submitted an anti-dumping petition against hot-rolled coil and plate (HRC/P) alloy imports from China to the Indonesian Anti-Dumping Committee, said the chairman on Feb. 17 - Photo by the Company

JAKARTA (TheInsiderStories) – The Indonesian Iron and Steel Industry Association has submitted an anti-dumping petition against hot-rolled coil and plate alloy imports from China to the Indonesian Anti-Dumping Committee, said the chairman on Feb. 17.

According the chairman, Silmy Karim, the move had been taken to secure the national steel market from the practice of diversifying imported steel HS codes and securing potential import duties that the government should have obtained from these practices.

On July 23, China has imposed anti-dumping duties on some stainless steel products imported from Indonesia, European Union (EU), Japan, and South Korea. The decision has been taken after an anti-dumping after a complaint was filed by the state-owned Taigang Shanxi Stainless Steel Co. Ltd.

“Investigative agents have made the final decision that there is the disposal of the products being investigated and have caused substantial damage to the industry in China,” said the trade minister Zhong san.

In 2018, the ministry of commerce of the People’s Republic of China (MOFCOM) received an application for anti-dumping investigation formally submitted by Shanxi, on behalf of domestic industry of stainless steel billet and hot-rolled stainless steel plate.

The Applicant requested for an anti-dumping investigation against imports of stainless steel billet and hot-rolled stainless steel plate (coil) originating in the EU, Japan, the Republic of Korea and Indonesia.

At that time, MOFCOM decided based Article 16 of the Anti-dumping Regulations of China to file an anti-dumping investigation against imports of stainless steel billet and hot-rolled stainless steel plate (coil) originating in the EU, Japan, the Republic of Korea and Indonesia.

The imposing of anti-dumping tariffs from 18.1 percent to 103.1 percent and to be applied to stainless steel billets and hot rolled stainless steel plates from companies in the EU and three Asian countries.

For information, stainless steel billets and hot rolled stainless steel plates are mainly used as raw materials for making cold rolled steel products or used in shipbuilding, containers, trains, electricity and other industries.

According to the China Stainless Steel Association, the country is the world’ largest stainless steel producer by producing 26.71 million tons of non-steel products in 2018, up 2.4 percent from a year ago. Since 2017, the country imported 1.85 million tons of stainless steel products last year, up 53.7 percent.

The association chairman, Silmy Karim, making the petition was one of the efforts to control the import of iron and steel into Indonesia, especially from China which was carried out by way of unfair trade.

“Currently, many exporting countries export steel products in an unfair manner, such as dumping, when in fact the real alloy steel or special steel should have a high selling price because it is only used by certain industries. While steel “alloys” from China have most of the same specifications as ordinary carbon HRC products produced by domestic steel producers and are currently experiencing oversupply,” he claimed.

Karim also said that the imposition of anti-dumping import duty was important for the national steel industry, considering that the Most Favored Nation tariff for steel products had been largely reduced (even up to 0 percent).

“With the free trade agreement between Indonesia and major steel producing countries, one of them with the China has reduced import duty to 0 percent. This certainly needs to be an attention for us as industry players also the government,” he said.

Karim stated, that the protection applied by the Indonesian government is very important role in the sustainability of the national industry as an effort to support and protect domestic producers by controlling the entry of foreign products into the local market and increasing the use of the dometic products.

“The tendency of every country now is protectionism. The United States has begun imposing import tariffs on steel products at 25 percent and aluminum at 10 percent and is the most active country in implementing Trade Remedies,” said the CEO of PT Krakatau Steel Tbk (IDX: KRAS).

Meanwhile other countries such as the European Union and Turkey have made efforts to secure their domestic markets by safeguarding steel imports, added by Silmy. He conveyed the steelmaker efforts to impose the anti-dumping on imported steel products needs full support from the government.

Since 2013 the national steel industry has experienced a decline in capacity utilization due to falling world steel prices and oversupply of world steel, especially from China, the influx of imported steel from various countries, which dominates the national steel market, and the presence of circumvention practices in the importation of steel products in the form of diverting carbon steel tariff posts into alloys which are unfair attempts from exporters to obtain the avoidance of import duty and export tax rebates.

Imports of alloy steel products such as boron steel which are in fact a similar product produced by domestic producers and intended for commercial use have disrupted the performance of national steel producers. In the last 5 (five) years, the import of alloy steel has continued to grow from 1.4 million tons in 2015 to 3.2 million tons in 2019, where the condition is that the volume of carbon steel imports continues to decline which is substituted by increasing significantly imported alloy steel volumes.

Based on Statistics Indonesia data, in 2019, the number of imported of Alloy Hot Rolled Steel Sheets reached 675,000 tons, considering that 65 percent of them can be produced by national steel producers.

Written by Staff Editor, Email: theinsiderstories@gmail.com