Source: The Bangkok Post
The Federation of Thai Industries (FTI) is calling on the government to speed up new measures to protect local steel makers after seeing Chinese steel dumping become a serious problem.
The reaction came after China started its new tax rebate structure for up to 397 exports, including 85 steel items such as cold-rolled iron plate, colour-coated steel, steel pipe, nails and iron scaffold.
China's new tax rebate for steel exports has increased from 0% to 9% and 9% to 13%, depending on the steel products. The new structure has been effective since Sept 15.
"These measures are leading to unfair export conditions and encouraging Chinese steel traders to increase their shipment volume to other countries to enjoy the tax rebates,” said Wikrom Vajragupta, Chairman of FTI’s iron and steel industry club.
“Many of those steel products are dumped in Thailand and local steel makers are concerned about this issue because it is destroying the country’s supply chain.”
The club is teaming up with the Iron and Steel Institute of Thailand as both parties agree the government should accelerate the country’s anti-dumping measures to protect the local steel industry.
Mr Wikrom said the country could lose much value while steel producers would suffer in the near term if the government ignores the problem and does not enact protection measures.
The origin of the problem for the global steel market was when the US applied import duties on March 23 of 25% for steel products under section 232 of the US Trade Expansion Act of 1962.