Indonesia to apply safeguard measures against Chinese import sections
World Steel News 15.10.2014
Indonesia launches a safeguard investigation regarding imports of Chinese sections as recommended by the Committee on Safeguards of the World Trade Organisation (WTO).
The investigation concerns 100x600 mm I-beams and 100x350 mm H-beams from alloyed steel under HS codes of 7228.70.10.00 and 7228.70.90.00 imported in 2010-2013. Over the period, imports of the products increased by almost 20 times to 395,000 t, harming domestic production. Chinese import share soared from 59.78% to 96.62% and forced Singaporean material out of the market. In addition, higher supply caused a 8% drop in prices for the above products, the Committee's report states.
Indonesian competent authorities have not made a final decision regarding the WTO recommendation yet. However, a TangShan-based trader tells Metal Expert that if the measures are applied “Chinese exporters will not retain their share in the Indonesian market.”
The investigation was initiated by Indonesia's PT Gunang Garuda, which manufactures 91% of the products in Indonesia. The company filed a petition back in January 2014 to the Indonesian Trade Safeguard Committee, pointing to significant material damage Indonesian producers suffered over increased sections imports.
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