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Canada lifts SA steel duties

Jan 14 2008 11:28 Sherilee Bridge

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Johannesburg - The Canadian International Trade Tribunal, an independent quasi-judicial body, has lifted anti-dumping duties on hot-rolled steel plate from South Africa and Russia, saying they aren't likely to harm Canadian steel producers.

However, the tribunal ruled that anti-dumping duties would continue on hot-rolled steel plate from China.

It stated that the "dumping of hot-rolled steel plate from South Africa and Russia is unlikely to result in injury or retardation."

"The Canada Border Services Agency will therefore no longer impose anti-dumping duties on these products," the tribunal added.

Dumping not on

Under international trade rules, dumping occurs when products are exported or sold in another country at prices below their cost in the producer's home market.

The Canadian press said the anti-dumping duties were imposed after Hamilton-based Stelco, backed by other Canadian steel producers, brought a complaint in 1997 against several countries comprising South Africa, Russia and China, Mexico and Poland.

Since then, all of Canada's major publicly traded steel producers - Stelco, Ipsco, Algoma and Dofasco - have been bought by foreign companies and taken private, although they continue to operate.

Hot-rolled carbon steel is used in making such things as rail cars, fuel storage tanks, construction machinery, agricultural equipment, bridges, industrial buildings, high-rise office towers, automobiles and truck parts and ships.

China produces most

According to International Iron and Steel Institute (IISI) statistics Canada is the world's 16th-largest steel producer with an annual crude steel production of 15.4 million metric tons.

Its production exceeds that of South Africa, which sits at 21 in the ranking of world producers with its production of 9.7 million metric tons per year.

Russia, the world's number four producer, has an annual production of 70.8 million metric tons, but the world's largest steel producer, China, produces more than these three countries combined with a 442.7 million metric ton output a year.

The IISI said hot-rolled steel plates comprised just 26.2 million tons - or 7.9% - of the world's 331.9 million ton exports in 2005.

Canada's decision to lift the anti-dumping duties comes three months after a US International Trade Commission (ITC) ruling to eliminate tariffs on hot-rolled steel products from South Africa.

- I-Net Bridge

 
 
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