The Federation of Thai Industries (FTI) is calling on the government to expedite new measures to protect local steelworkers after Chinese supplies become a major concern.
The backlash came after China launched a new tax incentive structure for up to 397 items, including 85 steel products such as cold rolled flat products, nonferrous rolled products, steel pipes, and more.
China's new steel export tax rate increased from 0% to 9% and 9% to 13%, depending on steel products. The new structure has been operating since September 15.
“These measures are leading to unfair export conditions and encouraging Chinese traders to increase their supplies to other countries in order to benefit from tax rebates,” said Vikrom Vairagupta, chairman of the FTI Iron Ore and Iron and Steel Club.
"Many of these steel products are dumped in Thailand, and local manufacturers have become concerned about this problem as it disrupts the country's supply chains."
The club is teaming up with the Steel Institute of Thailand as both sides agree that the government should expedite the country's anti-dumping measures to protect the local steel industry.
Vikrom said the country could lose while steelmakers would suffer in the short term if the government ignored the problem and failed to take protective measures.
The origin of the problem for the global steel market is that the US imposed import duties on March 23rd of 25% on steel products under section 232 of the US Trade Expansion Act 1962.
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