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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