Thailand Investigates Chinese Rolled Steel Imports for Anti-Dumping Evasion

Thailand Investigates Chinese Rolled Steel Imports for Anti-Dumping Evasion

Thailand Launches Anti-Dumping Investigation

The Ministry of Commerce in Thailand has embarked on an investigation into imports of Chinese rolled steel for potentially circumventing anti-dumping measures. The scrutiny is concentrated on hot-rolled steel sheets in coil and non-coil form from 17 manufacturers in China. This activity was instigated by a complaint filed by four Thai steelmakers with the Foreign Trade Department, asserting avoidance of anti-dumping duties.

Support Requested by The Iron and Steel Institute of Thailand

The Iron and Steel Institute of Thailand has appealed to the new government for backing, citing the industry’s substantial contribution to the economy. It emphasized that Thailand imports approximately 63% of the steel it consumes, a figure significantly above the regional average of 22%. The value of imported steel products surpasses that of exports by about 200 billion baht per year, signifying a considerable imbalance in trade.

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Challenges in the Global Steel Market

Somsak Leeswadtrakul, a senior director at the Institute, further clarified the obstacles encountered by the global steel market due to the downturn of the real estate sector in China and the alleged evasion of anti-dumping laws by some companies. He urged the government to enforce the Anti-Dumping and Anti-Circumvention Act to deter companies from adding alloys to hot-rolled steel coil to sidestep the law against imported hot-rolled coil.

Anti-Dumping Measures in the Past

In the past, Thailand has initiated similar investigations into alleged anti-dumping activities. On August 17, 2012, the Thai authorities initiated an anti-dumping investigation on imports of flat cold-rolled stainless steel from China. The dumping is suspected to have occurred between July 1, 2011, and June 30, 2012. Subsequently, on December 10, 2013, the Thai authorities imposed a definitive anti-dumping duty on imports of flat cold-rolled stainless steel from China. The rate of duty ranged from 8.50% to 33.32%, depending on the exporting company.

Continuation of Anti-Dumping Duties

On December 3, 2019, the Thai authorities issued a notice extending the definitive anti-dumping duty imposed on imports of flat cold-rolled stainless steel from China following the conclusion of a sunset review. The rate of duty is between 8.5% and 33.32%. The duty entered into force on December 4, 2019, for a period of five years, indicating Thailand’s ongoing efforts to address the issue of dumping.

Looking Forward

As the investigation progresses, it will be crucial to monitor how these allegations of anti-dumping evasion shape the relationship between Thailand and China, two significant players in the global steel market. It will also be interesting to observe the impact of these developments on existing trade dynamics and how the international community responds to these actions.

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