2017年8月2日星期三

The impact of anti-dumping to Steel market

One of my Pakistan friends shared news that their Prime Minister Nawaz Sharif faces lifetime disqualified against for corruption. This man person finance minister imposed CRC (cold rolled steel), GI (Galvanized steel) and next PPGI (Pre-painted Galvanized steel) antidumping duties from local mill paid black money after imposed for steel business. My friend said it is really very good news for Pakistan.


What conclusion you can get from this sharing? To me, I can see Pakistan steel business man is sick of the anti-dumping policy and the big impact of steel to construction industry.


Firstly, why say Pakistanis hate the anti-dumping policy? As we all know, this country is a big steel import country because his local steel mill is few. However, due to economic conditions and many other factors, their importers and end users tend to use low quality products to achieve the lowest cost. Once the implementation of anti-dumping, due to the high import tariffs, their import costs will increase dramatically, even worse, business man must buy domestic high-price steel. The cost increases, the profit margins will be relatively reduced. If profit less, business will be hard to continue.

Steel products, especially galvanized steel plate, galvalume steel plate, pre-painted steel plate affect much of the construction industry. Buildings, construction, transportation, Home appliances, Agriculture and other applications use steel material. A reasonable price can meet reasonable quality. Now the steel market is more transparent, and a reasonable market price is one of important factors for stable building material industry
development. Therefore, the buyer cannot ignore the quality of the commodity itself only in pursuit of lower prices.

No low price, no low quality, then the probability of anti-dumping will be small, and the steel market will be running better. 

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