South Asia: Pakistan's shipbreakers have welcomed a
new 15% tax on imported steel billet, bar and wire rod which has been
introduced to boost stability in the local market and to counter dumping,
reports IHS Maritime. However, they are unconvinced that the tax will
successfully stem the flood of cheap imports from China.
Although India reduced its basic customs duty on
imported scrap ships from 5% to 2.5%, the inflow of cheap products has
continued to undercut the ship steel market. 'The regulatory import duty is
definitely hailed by the Pakistan Ship Breakers Association, which expects it
to reduce imports of Chinese finished steel alloy products,' says its secretary
Asif Khan, who is based at shipbreaking giant Gadani.
Meanwhile, Chinese steel producers are said to be
'bracing themselves' to cut prices to 'nullify the impact'. Khan expects the
situation to become clearer in the weeks ahead. 'But we understand that China
has a large ready inventory for export at cheap prices, which is disturbing the
market prices equilibrium,' he adds.
Source: recycling international. 28 January 2015
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