Pakistan’s steel industry receives a boost with the extension of anti-dumping duty on steel imports from China. The National Tariff Commission (NTC) announced a five-year continuation of the 19.15% duty on Chinese steel rebar imports, effective from October 17th, 2022.
This decision aims to protect domestic steel producers from unfair competition caused by steel import from China. The duty applies to steel rebars, which are crucial raw materials used in construction projects.
Previously, in 2017, the NTC imposed the initial anti-dumping duty on steel for five years after local manufacturers, Amreli Steels, Agha Steels, and Abbas Engineering, raised concerns about dumped Chinese imports harming the domestic industry.
Following the expiry of the initial duty period in October 2022, Amreli Steels, Agha Steels, and a new applicant, Mughal Steels, filed for a sunset review. This review process confirmed the continued need for protection, leading to the current five-year extension.
The impact of the duty has been significant. Prior to the duty’s implementation in 2017, Chinese rebar imports exceeded 125,000 tons in a year. However, with the duty in place, these imports have significantly declined, reaching a mere 3,000-4,000 tons in FY22.
Analysts at Topline Securities predict a neutral to positive outcome for Pakistani steel manufacturers like Amreli Steels, Agha Steels, and Mughal Steels. The minimal Chinese imports in recent years suggest the continued effectiveness of the duty in protecting local players.
This extension of the anti-dumping duty on steel signifies the government’s commitment to fostering a competitive domestic steel industry. It will likely create a stable environment for Pakistani steel manufacturers to thrive.
