Demanding further protection for the local industry, the Pakistan Steel Melters Association (PSMA) and Large Scale Re Rollers have asked for a levy of 40% regulatory duty on the imports of steel billets, bars and wire rods. This comes after steel importers already enjoy a 15% regulatory duty that was imposed earlier this year.
Unfortunately, the effect of the 15% duty has been nullified because of increased dumping margins by foreign manufacturers, reduction in customs valuations, and falling prices of steel in the international market. The steel oversupply problem is getting more acute and it is due to the government handing out subsidies disguised under policy initiatives to keep their steel industries alive.
Member of the PSMA executive committee said that “We must take a stand against unfair trade practices and provide an environment of fair competition by imposing 40% duty.”
The PSMA and LSR represent majority of the Pakistan’s steel industry with a processing capacity of over 4 million tonnes per year. The industry’s total investment base is over PKR 100 billion and it contributes over PKR 20 billion to the national exchequer every year. The government imposed 15% duty in January 2015, which had been a resounding success for all the stakeholders involved.
Source : THE EXPRESS TRIBUNE
Zhejiang Yaang Pipe Industry Co., Limited (www.yaang.com)