ISLAMABAD: The National Tariff Commission (NTC) has imposed a definitive anti-dumping duty of 19.15 percent on import of deformed concrete reinforcing steel bars (rebars) into Pakistan from China.
According to details received by the NTC, it is to clarify that the duty will be in addition to the 30 percent regulatory duty already in place on import of rebars.
It briefed that the difference between local price of rebar and price of imported rebar currently stands at Rs24000 to Rs25000 per ton; therefore the imposition of duty is considered a positive for the sector as it increases the import protection for local producers.
It said, however, there is no impact in short term as local producers will find it hard to increase prices given the fragmented nature of the industry.
The NTC further added, “A complete pass on is not a possibility, in our view as a total pass on of Rs11000 to Rs13000 per ton will render imports from Turkey feasible which come in at $40-50/ton higher than Chinese rebar, making feasible an increase of only Rs5000 to Rs6000 per ton in local prices.”
In case, local producers increase prices by Rs5000 to Rs6000 per ton, whereas, an increase in gross margins of MUGHAL by two percent having an impact on EPS of rupees 1.5-2/sh. This is also positive for other listed manufacturers of rebar namely, ASTL and ITTEFAQ.
Anti-dumping investigations are also currently underway on color coated steel coils/sheets originating from People’s Republic of China & Republic of South Africa.
