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Steel Firms Reply to Dumping Charge
Chinese steel companies accused by the United States International Trade Commission (ITC) of dumping hot-rolled steel products on the US market will actively respond to the suit and are confident they'll prevail.
The five of the six steel companies involved in the case -- Shanghai Baosteel Group Corp, Anshan Iron and Steel Group Corp, Wuhan Iron and Steel Corp, Benxi Steel (Group) Co Ltd and Laiwu Iron and Steel Corp, said they are now preparing materials for the probe questionnaire drafted by the US Department of Commerce.
These five companies are among the nation's largest steel producers, with a combined production capacity of more than half the nation's total.
Officials with Anyang Iron & Steel Co Ltd, the sixth company in the case, said the company never sold any hot-rolled steel products to the US market during the investigated period and has no plan to appeal.
As a result of its investigation, the ITC announced on December 28 that there is a reasonable indication that the US steel industry is materially injured by imports of hot-rolled steel products from China.
The case alleges the companies sold steel below fair market value to the US market, the commission said.India and Ukraine also are charged as dumping the products in the same case.
According to Tao Jingzhou, the chief representative of Coudert Brothers' Beijing office, the decision from the ITC alone is not the final judge of the case. The US Department of Commerce is expected to announce a counter-dumping tax around April 23, he said.
"If the anti-dumping suit is upheld, the counter-dumping duty may range from 30 to 40 per cent, which means we may lose 70 or 80 per cent of our presence in the US market in five years," Tao said.
Bai Fang, director of the Public Relation Department of Wuhan Iron and Steel Corp, said even if the charges were upheld, it would not be a fatal blow for their business because most of their hot-rolled steel is sold on the domestic market, and the United States is not the only overseas importer of their products.
"But we will never give it up, because to fight against suit is not only to defend our interests and reputation but to express our stance," he said.
According to Tao, the case is significant for Chinese companies who are less experienced in the rules of the international market.
"More anti-dumping cases are to occur after China's entry to the World Trade Organization," Tao said. "It is vital for companies to learn more about the anti-dumping regulations."
Meanwhile, Chinese companies should shift their focus on lower prices to higher and consistent quality of products, Tao added.
Analysts say the case is closely related to the oversupply of steel in the US market.
Statistics indicate that US steel imports increased in 2000 by about 30 per cent year-on-year.
Source: China Daily
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