The same problems that plagued the domestic steel industry continue to be repeated. Imports of steel from China have flooded the market again.
Imports of steel in semester I-2021 amounted to 5.36 billion USD. This is an increase of 51.18%. It also ranked second for imported commodities, behind 2020s 3.55 billion USD. According to data from the Central Statistics Agency (CSTA), China’s imports reached 166% in the second half of 2020.
The iron and steel industry players are now agitated, asking the government to take a more serious approach in protecting their domestic industry from imports. The Government has not approved several instruments that would protect against unfair trade, as proposed by steel producers in the country.
“The Chairman of the Iron and Steel Association stated that the application for extension and application for BMAD for Cold Rolled Coil / Sheet and Hot Rolled Coil and Wire Rod, Cold Rolled Coil Stainless Steel and BJLAS, and safeguard extensions for Section I & H have not received approval. Silmy Karim, Chairman of the Iron and Steel Industry Association of Indonesia (IISIA), in an official statement on Thursday (12/8/21).
Globally, the steel production of the 64 largest steel-producing countries increased by 14% in the first semester of 2021 compared to 2020 to 1.0 million tons.
This could have a significant impact on the Indonesian market. It can be seen in the increase in steel imports from Indonesia of 5.5 million tonnes and an increase of 1 million tons to 6.66 million tons in the first semester of 2021.
He stated that “it is possible that the increase of iron and steel exports will continue through 2021.” The Government should take swift steps to prevent any negative effects on the industry. With the support of Government policies, the government will promote the growth and performance to improve the nation’s steel industry. President Director of PT Krakatau Steel Tbk.
Based on data from 2020, the World Trade Organization (WTO), Indonesia, business actors request that the government act immediately. Indonesia has not used many trade remedies to protect its domestic industries.
Indonesia has applied trade remedies in 43 cases, mainly for iron and steel products. This is far less than the US (353), European Union (1149), Canada (146), Australia (880), India (69), Thailand (52), and Canada (146).
He stated that “the trade remedies policy, aside from providing protection to the national steel industry,” also had a positive effect on the overall economy. According to the most recent LPEM University of Indonesia study, the imposition of BMAD duties and safeguards on steel imports can boost the national GDP by 0.15%, or Rp 2.3 trillion, and increase the national trade balance up to Rp 5.6 trillion.
Thailand, for example, has made a final anti-dumping decision regarding imports of Aluminum Zinc Plated Steel from South Korea and China for a 5-year period.
Malaysian authorities have also imposed Anti-Dumping Duties on cold-rolled stainless steel imports in sheets, coils, or other forms originating from Vietnam and Indonesia.
Resolution No. 1283/QD–BCT was issued in April 2021. It released the results of the final antidumping review for imported color-coated steel sheet products from South Korea and China. Imported from Malaysia in April 2021.
The Permanent Committee of the Gulf Cooperation Council has also recommended that certain steel products be subject to definitive safeguard duties for three years. The United States has already implemented a 25% steel import tax and is still protecting the domestic steel sector through an antidumping policy for prestressed concrete-rolled steel wire products.
READ ALSO:At the fringe no more: Bernie Sanders muses on historic budget bill and the hurdles ahead
Silmy said that BMAD could be used to protect the domestic steel market, as other countries are already implementing it.