Local steelmakers yesterday welcomed the government’s decision to extend anti-dumping taxes on imports from six countries by five years, which is expected to curb unreasonably low prices for steel imports.
The Ministry of Finance on Monday announced the continuation of anti-dumping duties on carbon steel plates and galvanized steel products imported from China, South Korea, Brazil, Indonesia, India and Ukraine.
The ministry, which started to levy the anti-dumping taxes on a temporary basis last year, said that taxes would range from 8.66 percent to 80.5 percent.
“The measure could help sustain the development of the nation’s steel market,” said Wang Shyi-chin (王錫欽), executive vice president of China Steel Corp (CSC, 中鋼), the nation’s largest steelmaker.
Without related anti-dumping duties, steep price competition would erode profits and lower the capacity utilization rates of local steelmakers, Wang said.
CSC distributes about 70 percent of its steel products to domestic companies, data showed.
Chung Hung Steel Corp (中鴻鋼鐵) vice president Li I-hsiang (李逸湘) said that before the introduction of the taxes, some Chinese steelmakers sold products 30 percent cheaper than products made in Taiwan.
“Under the WTO framework, local companies are more vulnerable to fluctuations in product prices,” he told the Taipei Times, adding that foreign companies also take advantages of zero tariffs on their galvanized steel exports to Taiwan.
Sheng Yu Steel Co (盛餘鋼鐵) welcomed the measures, but expressed concerns over rapid growth in low-priced steel imports from Vietnam.
Galvanized steel imports from Vietnam doubled to 16,000 tonnes last month, compared with only 7,800 tonnes in December last year, a Sheng Yu official said.
In related news, Taiwan Cement Corp (台灣水泥), the nation’s largest cement maker, said it is pleased that ministry is extending an anti-dumping tax on Chinese cement imports by five years.
The government has imposed a 91.58 percent anti-dumping tax on cement imported from China since 2011.
“The oversupply problems in China’s cement market are not yet resolved, which means some Chinese cement makers try to sell their products at uncompetitive prices to attract foreign customers,” a Taiwan Cement official said by telephone.
The official, who declined to be named, said Chinese cement makers would rather bear losses and grab more of the overseas market, including Taiwan.
“The anti-dumping duty is expected to ensure reasonable profits for Taiwanese companies,” he said.
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