Federal Government takes action against dumped Chinese steel products to protect Whyalla steelmaker Arrium from unfair competition

THE Federal Government will protect Whyalla steel company Arrium from unfair international competition by slapping import duties on cheap, Chinese-made steel products.

Industry Minister Christopher Pyne will announce duties ranging from 11.7 per cent and 53 per cent.

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THE Federal Government will protect Whyalla steel company Arrium from unfair international competition by slapping import duties on cheap, Chinese-made steel products.

Industry Minister Christopher Pyne will on Saturday announce that duties of between 11.7 per cent and 53 per cent will be imposed on Chinese steel reinforcing bars and “rod in coil” after an investigation by the Anti-Dumping Commission.

The embattled Arrium, which is in administration, makes the same products but is forced to compete with government-subsidised Chinese steelmakers.

Mr Pyne said anti-dumping action was designed to ensure that Arrium could compete on even ground with imports from other countries, including China, South Korea and Taiwan.

“Australia takes pride in the quality and reliability of locally produced steel products, so it’s only reasonable that our manufacturers compete in a fair market,” Mr Pyne said.

“The Australian Government is working to sustain the local steel industry, while acting within World Trade Organisation rules.”

Industry Minister Christopher Pyne will announce duties ranging from 11.7 per cent and 53 per cent.

Between 550,000 tonnes and 630,000 tonnes of steel rod in coil is sold in Australia every year and the market is growing.

The Anti-Dumping Commission found Arrium, formerly known as OneSteel, had been forced to reduce prices and staff numbers had been cut at rod mills.

“The commission has found that OneSteel’s attempts to maintain volume have had an impact on profits and profitability as OneSteel has been forced to reduce prices to remain competitive,’’ the commission's report said.

“This has had a demonstrated impact through the price suppression, price depression and undercutting.’’

Under anti-dumping rules, action can be taken against foreign companies which sell goods in Australia at a lower price than they charge in their home markets.

Two Chinese steel companies co-operated with the Anti-Dumping Commission but others were declared “uncooperative exporters’’ and will be hit with the highest duties.

“The Commission has found that support from national, regional, and local government (in) China allows Chinese steel manufacturers to produce steel at costs not subject to market forces and to operate in a manner that allows them to sell steel at dumped prices,” the report said.

The Government is still considering the results of a separate Anti-Dumping Commission investigation which looked more broadly at steel and aluminium imports.

Assistant Science Minister Karen Andrews told an OECD symposium on steel in Brussels this week that Australia was reforming its anti-dumping system to ensure the local Steel industry was not disadvantaged by the unfair practices of foreign companies.

“There are currently some 44 anti-dumping measures in place on 12 steel products from 14 countries and we will be closely monitoring the effect of our reforms and developments in other countries to determine whether further changes are warranted,’’ Mrs Andrews said.

Arrium administrator KordaMentha is attempting to finalise a $200 million funding deal with Australia’s big four banks.