Unfair pricing risks steel industry: Gapipa<\/p>\n
JAKARTA (JP): The Association of Indonesian Steel Pipe
\nManufacturers (Gapipa) voiced concern on Monday over alleged
\ndumping practices by steel pipemakers from Japan, South Korea and
\nChina, saying the unfair business practices had put the country's
\nsteel industry on the brink of bankruptcy.<\/p>\n
The association's chairman, Warasdimulya, said the economic
\ncrisis which had been battering the country for almost two years
\nhad deeply affected the country's steel industry.<\/p>\n
But, he said, the hardship experienced by the industry had
\nbeen aggravated by the unfair competition created by the steel
\npipe producers from the three countries.<\/p>\n
He therefore called on the government to impose antidumping
\nduties on steel pipes imported from the three countries, noting
\nthe they had been flooding the domestic market with low-priced
\nsteel pipes.<\/p>\n
For instance, Japan's steel pipe manufacturers sell their
\nproducts on the domestic market for US$540 per ton, compared to
\n$1,000 per ton in Japan.<\/p>\n
\"Gapipa does not ask for facilities ... What we want the
\ngovernment to do is create fair business competition. Dumping is
\nunfair, it's no good. The government should apply antidumping
\nrules to protect the country's steel industry,\" Warasdimulya said
\nin a statement.<\/p>\n
\"Even the United States protects its steel industry. Why don't
\nwe?\" he added.<\/p>\n
According to Warasdimulya, most of the association's 15
\nmembers have been forced to reduce the number of their workers to
\ncope with the decrease in output.<\/p>\n
In the past, local manufacturers could utilize 80 percent of
\ntheir plants' capacity to produce a total 1.5 million tons of
\nsteel pipes per year. The output has dropped to a mere 200,000
\ntons per year.<\/p>\n
Warasdimulya warned that the hardships experienced by the
\nsteel industry could in turn affect the country's banking sector,
\nwhich put $1 billion into financing the development of the
\nindustry.<\/p>\n
\"Local steelmakers are going on the skids. I think it
\nreasonable to assume that they will default on their debts (to
\nbanks),\" he said.<\/p>\n
He said the country's steel pipe industry was trying to
\nsurvive by exporting their products, but the move had not proved
\nvery successful.<\/p>\n
\"He have to compete again with Korea, China and Japan (in
\noverseas markets), while the United States slaps a 67 percent
\nimport duty on imported steel pipes,\"<\/p>\n
Warasdimulya also blasted the West Natuna gas consortium for
\nfavoring imported steel pipes over locally made ones to use in
\nthe construction of its 650-kilometer underwater gas pipeline
\nlinking west of Natuna island to Singapore.<\/p>\n
The consortium comprises Britain's Premier Oil, Canada's Gulf
\nResources and Conoco Corp. of the United States.<\/p>\n
Last month, the government slapped antidumping duties of
\nbetween 8.2 percent and 62 percent on certain types of
\nconstruction steel imported from Russia and Poland. The surcharge
\nwill be effective for five years.<\/p>\n
However, steelmakers from Indonesia along with dozens of other
\ncountries have been accused by the United States's steel pipe
\ncoalition of dumping practices in the country. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/unfair-pricing-risks-steel-industry-gapipa-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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