Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


MBIE launches new investigations on Chinese steel dumping

MBIE launches two new investigations into claims of Chinese steel dumping

By Rebecca Howard

Oct. 16 (BusinessDesk) - The Ministry of Business, Innovation and Employment is taking a new look at claims Chinese steel imports are being dumped in the local market after Australian-owned New Zealand Steel complained it's being unfairly undercut by Asian rivals.

The ministry is investigating the alleged dumping of reinforcing steel bar and coil or rebar from China and Malaysia and rebar subsidisation from China, according to a note in the government's New Zealand Gazette. Commerce Minister Jacqui Dean signed off on the investigations on Aug. 15, a week before the parliament was dissolved for the general election, and the public notice was issued on Aug. 24.

"This initiation follows the receipt of an application made by the New Zealand industry providing sufficient evidence justifying the need for investigations," Peter Crabtree, general manager of science, innovation and international for MBIE, said in the note. Dumping essentially involves a situation where the export price of goods imported into New Zealand or intended to be imported into New Zealand is less than the normal value of the goods.

Chinese steel imports have been a bone of contention around the world as US and European producers claimed their own industries were being undercut by the dumping of subsidised steel in their markets.

The application was submitted by Pacific Steel, the sole producer of rebar in New Zealand. Pacific Steel is a wholly owned subsidiary of New Zealand Steel Holdings whose parent company is ASX-listed BlueScope Steel.

NZ Steel filed a similar complaint with MBIE last year claiming imports of Chinese steel coil were subsidised by the government of China and caused material injury to the New Zealand industry. MBIE's final report into that complaint found Chinese imports were undercutting NZ Steel prices, but that it couldn't be blamed on government support for Chinese manufacturers, which was minimal at most. Last July, Minister Dean accepted the that they're too small to have injured the domestic industry.

At the time, E tū industry coordinator Joe Gallagher said there were serious questions about the rigour of the research underpinning the report, while NZ Steel "strongly disagreed" with the findings and said the ministry wrongly overlooked compelling evidence, placed too much weight on irrelevant evidence, and focused too much on finding incontrovertible evidence of the subsidies.

BlueScope also cited anti-dumping and trade relations as a "key public policy matter" at its latest annual general meeting.

In the latest case, MBIE said it was satisfied the complainant had provided enough evidence to open the two latest investigations.

"Sufficient evidence has been provided that rebar from China and Malaysia is being dumped, and sufficient evidence has been provided to show that material injury to the New Zealand industry is being caused by dumped goods imported from China and Malaysia," MBIE said. The same was true for the subsidisation claim.

The investigations must be completed within 180 days and should be wrapped up around March 3. After its investigation, MBIE will make a recommendation to the Minister of Commerce and Consumer Affairs who then makes a final determination on the investigation, including whether to impose duties.

In order to impose anti-dumping duties, "the investigation will need to establish to a higher standard of proof that dumped imports are causing material injury," MBIE said in the two latest reports.

Among other things, Pacific Steel argues its prices are being undercut which causes price suppression and price depression and the "evidence shows clearly that dumped goods are having injurious effects on the local market" and it is experiencing an adverse impact on sales, profits, return on investment and cash flow.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>


Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>