Coiled steel rod of Hoa Phat Group. — Photo courtesy of Hoa Phat
After a year of thorough investigation into the anti-dumping and anti-subsidisation case of Vietnamese coiled steel rod, the Australian Anti-Dumping Commission (ADC) has closed the matter.
No further anti-dumping subsidies will be imposed.The Vietnam Steel Association (VSA) on Wednesday said ADC had issued termination report No 416 on Monday in the case against coiled steel rod imported from South Korea, Indonesia and Vietnam.
ADC concluded that there was no evidence to suggest that Vietnamese steel maker Haa Phat Group and other steel producers had been selling under market price in Australia’s steel market.
ADC’s conclusion also defined the dumping margin for exports from South Korea and Indonesia at 20.9 per cent and 16 per cent, respectively.
According to regulations of the World Trade Organisation and Australian Trade Law, dumping of imported goods into the country with a margin of less than two per cent would not be considered dumping. The Vietnamese steel exported to Australia was dumped at a margin of less than 2 per cent.
ADC’s decision is good news for Vietnamese steel producers as Australia is a potential steel market.
A representative of Hòa Phát Group said they had cooperated with relevant agencies and ADC in answering questions and providing adequate information and documents for direct examination in August 2018.
In addition to this, the group also submitted the plaintiff’s arguments against an application lodged by OneSteel Manufacturing Pty Ltd.
ADC concluded that there was no support from the Vietnamese Government relating to power tariffs and input material for steel producers, including Hoa Phat Group, as well as no special market situation for coiled steel rod in Vietnam.
ADC used the normal price comparison method in the local market and export prices to define the dumping margin. It decided to terminate the investigation as Vietnamese steel exports had not harmed the Australian steel industry.
Following an application by One Steel Manufacturing Pty Ltd,on June 7, 2017, ADC initiated an investigation into the alleged dumping of coiled steel rod exported to Australia from Indonesia, South Korea and Vietnam.
OneSteel claimed that goods were being exported to Australia at prices lower than their normal value and that dumping had damaged the Australian steel industry through loss of sales, market share and profits.
Last year, Hoa Phat Group shipped 36,000 tonnes of coiled steel rod and steel bars to Australia. The group exported some 42,000 tonnes of steel to Australia in the first three months of the year. — VNS