Steel from China subject to antidumping duties

JAKARTA (JP): Indonesia's Anti-Dumping Committee has decided to impose temporary countervailing duties, ranging between 22 percent and 42 percent on imports of hot rolled coil or plates from China, India, Russia and Ukraine.

A statement issued by the Ministry of Industry and Trade said the decision was based on a proposal from the Minister of Industry and Trade, Tunky Ariwibowo, who is also chairperson of the Indonesian Anti-Dumping Committee.

Under Ministerial Decree No. 176, 1997, signed on April 17 by the Minister of Finance, hot rolled coil or plates from China are subject to a 30-percent anti-dumping tariff, from India, a 26- percent to 38-percent tariff, from Russia, a 39-percent tariff, and from Ukraine, a 22-percent to 42-percent duty.

The ruling went into effect starting April 17.

The decision came after state-owned steel manufacturer PT Krakatau Steel filed dumping claims against imports of hot rolled coil and plates more than a year ago.

The statement said the anti-dumping commission was now also investigating dumping claims filed by Krakatau Steel on imported wire rods.

It was reported last year that the sale prices of hot rolled coil continued to drop since the end of 1995. The drop, reaching 6.66 percent below Krakatau Steel's sale prices, was allegedly a result of huge amounts of steel imported from Eastern Europe.

At that time, Krakatau Steel was forced to sell below its production cost.

In 1995, steel imports from Eastern Europe reached 700,000 tons, twice the amount in 1994.

Meanwhile, the domestic demand that year showed an insignificant increase, resulting in an excess of 100,000 tons of steel imports in Indonesia.

Krakatau Steel that year increased its production by 200,000 tons.

The April 17, 1997 ministerial decree stated that the anti- dumping committee's initial investigations found positive evidence that there were imports which incurred losses for the domestic industry.

"To prevent further loss during the investigation period, it is deemed necessary to impose... temporary anti-dumping duties on hot rolled coil/plates," the decree stipulates. (pwn)

Exporter Manufacturer Anti-dumping country duty ---------------------------------------------------- China All producers 30 percent India 1. Tata Iron & Steel 26 percent

2. Essar Iron & Steel 38 percent

3. other producers 38 percent Russia 1. Novolipetsk 39 percent

2. other producers 39 percent Ukraine 1. Ilych Iron & Steel Works 22 percent

2. Zaporizhstal Works 30 percent

3. other producers 42 percent

Source: Ministry of Industry and Trade