Steel-related share prices cooled on the TAIEX yesterday following news that the Ministry of Finance (MOF) (財政部) may temporarily suspend its anti-dumping tariffs on Japanese, South Korean, Russian and Polish H-shaped beam manufacturers. After rising over 15 percent since the earthquake, the steel sub-index fell by 1.38 yesterday to 71.94.
According to John Brebeck, a steel analyst from Jardine Fleming Taiwan Securities Ltd, while the news did have a negative effect on steel share prices, he pointed out it is also natural that steel share prices drop back after soaring for days since the earthquake.
According to officials from the International Trade Commission, under the Ministry of Economic Affairs (經濟部), a draft has been prepared in which the ministry suggests that the MOF request from the Executive Yuan the right to temporarily suspend the punitive anti-dumping duties imposed on Japanese, South Korean, Russian and Polish H-beam manufacturers if the demand for H-beams exceeds supply as a result of the reconstruction efforts following Taiwan's mammoth earthquake. South Korean, Russian and Polish H-beam manufacturers have had anti-dumping duties of 31.48 percent, 34.65 percent, and 6.12 percent respectively slapped on them since 1998. Japanese manufacturers were also found guilty of dumping H-beams in Taiwan earlier this month. As a result, Japanese manufacturers are facing the prospect of dumping duties of 10-24 percent once they are approved by the Executive Yuan.
In case of a possible shortage in H-beams, the Importers and Exporters Association of Taipei has sent memorandums to government bureaus including the MOEA and Executive Yuan, asking them not to impose anti-dumping tariffs on Japanese H-beam manufacturers. According to the association, the huge demand for H-beams caused by the earthquake pushed up their price by 4 percent to US$300 per metric ton in just ten days.
But steel manufacturers disagree. "The government has followed legal procedure in finding Japanese manu-facturers guilty of dumping H-beams in Taiwan," said Chang Chuang-hsi (張壯熙), spokesman for Tung Ho Steel Enterprise (東鋼). As a result, anti-dumping duties have to be imposed, he said. "That's the law. Implementing the law is one thing; the earthquake is another," said Chang.
Further, H-beam prices have remained unchanged since the earthquake, according to Chang, currently around NT$9,600 per ton. "Though prices may rise in the future, the rise will be limited because demand won't exceed supply," Chang said.
Chang further pointed out that many importers have been reaping huge profits by importing low priced H-beams.
"They are just using the earthquake as an opportunity to avoid the anti-dumping duties. The MOEA has got the wrong information," said Chang.
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