Thailand expands antidumping duty over Chinese alloyed HRC

Thailand has expanded an antidumping duty of 30.91% CIF on alloyed hot-rolled coil imported from China to address alleged circumvention by 17 Chinese steelmakers, data from the Department of Foreign Trade showed.

The expansion results from a DFT investigation that began on Sept. 16, 2023, over concerns that HRC from 17 Chinese steel companies was circumventing existing antidumping duties by adding alloys, thus allowing them to be defined under different HS codes.

The expanded duty took effect on Aug. 2 and covers HRC under HS codes 72253090022, 72253090023, 72253090024, 72253090042, 72253090090, 72254090034, 72254090090, 72269110022, 72269110023, 72269110024, 72269110042, 72269110090, 72269190022, 72269190023, 72269190024, 72269190042 and 72269190090.

China's total finished steel exports to Thailand were up 2.2% on the year to 3.92 million mt in 2023, CEIC data showed.

The export volume of the above-mentioned HS-coded products to Thailand was 567,411 mt in 2023, marking a 50.4% increase from 2022 and more than threefold of 2021. However, for the first five months of 2024, total import volumes fell to 64,735 mt, according to S&P Global Trade Analytics Suite.

The 30.91% duty started on July 11, 2023, and expires on July 10, 2028, running concurrently with a 23.57% to 42.51% duty on HRC from Malaysia. The duty expansion will be applied retroactively from Sept. 16, 2023, when the investigation began.

The expanded duty will be imposed on 17 Chinese steelmakers, including Angang Steel Co. Ltd and Baoshan Iron & Steel Co. Ltd, among others.

Chinese market participants expect limited impact from the expanded antidumping duty.

"The exports of targeted HRC products are relatively small, and HRC with a width of more than 1650 mm is not included in the antidumping case, so it can continue to be exported," said a Chinese trader.

"The impact [of the antidumping duties] on China's total steel exports to Thailand will be limited, as a large portion of the exports were coated strips or sheets, not HRC," said another trader.

Some Chinese export traders expect the country's total steel exports to remain relatively strong in the second half of the year but could decline from the first half due to weaker overseas demand.

However, Thailand-based market sources deemed this act necessary for protecting their domestic steel industry.

Local production costs of HRC in Thailand were heard at $650/mt, with domestic sale prices at $690/mt ex-works, whereas Chinese-origin materials were recently offered at $500/mt CFR Thailand, which would be much more price competitive even after considering a local logistic fee of $25/mt, according to a Thailand-based trader.