Quick News:
August 22, 2016, Chile National Imports Committee annouced to start anti-dumping investigations for originating in Chinese steel wire products (Tariff No. includes 72132000、72139110、72139120、72139190、72271000、72272000 and 72279000).
Backgroud:
Steel wire products refers to the rolled round or profiled shaped steel products with diameter between 5 to 22mm. steel wire also know as wire rod due to its delivery form. Ordinary low-carbon steel wire is made of low-carbon or low yield point structural rolling steel. It is the most widely used and largest amount of variety wire rod. The main purpose for ordinary low carbon steel wire rod is used for the construction of reinforced concrete structures reinforcement. Chile has been considered as one of the most competitve countries in Latin America. World Economc Forum's larges global competitiveness report shows that in 140 countries, the competitiveness ranking for Chile is 35th. Chile has a very open economy system, its import tariffs for imported goods is only 6% in average. In addition, since 1996, Chile has signed free trade agreements with various countries and regions. However, Chile's highly open economy can not cover up its economic development is highly dependent on mining issues.
Analysis:
According to import data, the first five month of 2015, Chile's steel imports from China has reached 48.8 million tons, with and increase of 66%. At the same time, steel mills in Chile keep complained about Chinese steel imports. Currently, the Chilean government is actively seeking measures to be on stee imports from China so as to implement more stringent quality standards. Latin America Iron and Steel Institute (ALACERO) , as the early month of 2015, has called on Latin American governments began to take restrictive measures on imports of steel from China, and put forward to implement strict quality standards and anti-dumping rules. Meanwhile, accordint to Chile Metallurgy & Metalworking Association (ASIMET) published data, during 2014 to 2015, Chile metallurgy and metal processing industries create 20,000 unemployed workers, and industries suffered a consecutive 36 month profit decline. Local steel suppliers believe that these problems are result from the fast growth in Chinese steel production and qulality cheap "unfair trade". They require government to increase the control efforts from Chinese steel imports. However, Chile builders disagreed with the anti-dumping investigation. Although Chinese steel prices relatively low in the international market, but these steel products all have the certificate of origin and inspected by the Chilean authorities.
