Asia Trading Partners to Be Probed Over Steel Dumping

By webadmin on 09:11 am Jul 25, 2012
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Investor Daily

The Indonesian committee responsible for monitoring dumping is investigating allegations that five Asian countries engaged in the anti-competitive practice.

Bachrul Choiri, chairman of the Indonesian Antidumping Committee (KADI), said it was probing claims that Taiwan, Japan, Vietnam, China and South Korea each engaged in dumping — selling excess product into a market below the cost of production — cold-rolled steel coil.

He said the committee was verifying data related to the allegations, which were made by state-controlled steel maker Krakatau Steel in June last year.

“The data are in and KADI is verifying and studying them. We will decide whether dumping practices took place and whether there was any damage to domestic industries,” Bachrul said.

The results of the investigations will be submitted to the Trade Ministry, he said, adding that if any dumping activity was proved, the government could impose an additional tax on the import of cold-rolled steel coils.

Under the law, KADI has 12 months to deal with a complaint but can extend the processing time by another six months if needed. “That means only six months are left for our investigation,” Bachrul said.

He said the data being studied concerned 2008 to 2010, adding that Krakatau Steel claimed it suffered losses during all of 2010 because of the alleged dumping.

Meanwhile, Industry Ministry official Haris Munandar said Krakatau Steel’s complaint concerned steel for the automotive industry, a major buyer of cold-rolled steel coil.

He added that the ministry had consulted with the Association of Indonesian Automotive Industries (Gaikindo) and the Indonesian Automotive Parts and Components Industries Association (Giamm).

The industry bodies argued that the steel produced by Krakatau Steel for the automotive industry did not meet the specifications for the needs of the industry.

Krakatau Steel argued that it was difficult for the company to invest in the mold and dyes needed because the profit margin was too thin.