Pakistan starts AD duty review on CR steel from EU, Korea, Taiwan, Vietnam

Pakistan's National Tariff Commission (NTC) has initiated a sunset review of anti-dumping duties on cold-rolled steel coils and sheets imported from the European Union, South Korea, Taiwan, and Vietnam, according to a notice issued by the NTC on August 19.

The review follows a formal request filed by M/s Aisha Steel Mills Limited and M/s International Steels Limited, two CRC producers based in Karachi. The applicants argue that the expiry of existing AD duties would likely result in continued dumping of cold-rolled steel products into Pakistan, causing further injury to the domestic industry.

The review covers flat-rolled iron or non-alloy steel, with thicknesses ranging from 0.15mm to 3.00mm and widths up to 1250 mm, in both prime and secondary quality. It excludes certain automotive-grade steels used for four-wheeler outer body panels and Tin Mill Black Plate, according to the notice.

The targeted products are generally used in the production of automotive parts, sub-assembly and inner body components, as well as fabricated goods such as doors, cabinets, pipes, tubes, refrigerators, washing machines, geysers, and ovens, falling under Pakistan Customs Tariff headings of 7209.1510, 7209.1590, 7209.1610, 7209.1690, 7209.1710, 7209.1790, 7209.1810, 7209.1899, 7209.2510, 7209.2590, 7209.2610, 7209.2690, 7209.2710, 7209.2790, 7209.2810, and 7209.2890.

The sunset review covers a three-year investigation period from April 1 2023 to March 31 2026. The existing AD duties, first imposed on August 23 2021 and effective for five years until August 22 2026, will remain in force pending the outcome of the sunset review.

The AD duty rates vary significantly by source, with Vietnam facing the highest rate at 17.25%, followed by South Korea at 13.24%, the European Union at 6.5%, and Taiwan at the lowest rate of 6.18%.

For steel traders and exporters active in the Pakistani market, the outcome of this review carries considerable strategic weight, industry analysts note. If the current high duties on Vietnam and South Korea are maintained, their products would struggle to compete on price in Pakistan. Should the duties be lifted, however, Vietnam - as a major steel exporter in Southeast Asia - could quickly capture a larger share of Pakistan's import market.

Written by Tiffany Hou, houtianhui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com