KARACHI: Pakistan’s steel industry is in a quandary as manufacturers have reported that smuggling is soaring, and imports are taking place at cheap rates after the government’s proclamation of establishing low-cost houses and dams.
To curb cheap imports of steel, the National Tariff Commission (NTC) had levied anti-dumping duty in June on colour-coated steel, which mainly is imported from Ukraine, China and South Africa reports Express Tribune.
Previously, the NTC had imposed an anti-dumping duty in February on galvanized steel coils/sheets manufactured by China for a duration of five years.
The NTC anti-dumping duties haven’t thwarted the imports, as Pakistan retains its status as a favourite for the dumping of goods by Iran, Russia, China and some European countries.
According to a report of Aisha Steel for the 1st quarter of FY19, it and International Steels Limited (ISL) had already filed anti-dumping cases against Russian steel manufacturers and legal proceeds are about to commence soon.
The report from Aisha Steel highlighted that sales in the first quarter of FY19 had been impacted because of the gloomy domestic market and also due to heavy imports of cold-rolled coils (CRCs) at dumping prices from Russia.
A report by Topline Securities’ said the NTC’s levying of anti-dumping duty had contributed to a reduction in steel imports from China, however, the overall volume couldn’t be fully abolished.
The report added influx from Russia had risen and “International Steels’ earnings were trimmed when we visited Karachi’s steel market and observed the influx of imported CRC steel from European, North American and some Asian countries (including China and Russia).”
Moreover, Topline Securities’ said the availability of imported flat street products at relatively cheaper rates and lesser than projected economic growth caused them to lower their utilization assumption of ISL to 60-62% from 75% previously.
The US sanction on Iran have also impacted Pakistan’s market since Iran’s steel which is supposed to be exported to various countries is being transported through Pakistan’s land route, said the head of a major steel manufacturer who declined to be named.
