Govt continues anti-dumping reforms in effort to save steel industry

The Government has initiated the development of a second stage of its anti-dumping reforms in the wake of speculation that Arrium’s Whyalla’s steelworks may close.

As part of the reform, Minister for Industry, Innovation and Science Christopher Pyne has commissioned a report on the impact of Asian steel makers in the Australian market.

Pyne said in a statement that the report will aim to identify trends in dumping and circumvention behaviour in Asian steel and aluminium markets; and identify existing dumping duties across all steel and aluminium products

It will also make recommendations on the most effective measures where there is evidence of these activities.

“The findings of the report, expected to be delivered in early April, will inform the next tranche of anti-dumping reforms,” Pyne said.

“Input into the reforms from stakeholders will also be critical so we’ll be out seeking feedback and ideas from Australian industry groups, manufacturers and producers over the coming months.”  

Yesterday, Arrium admitted that its Whyalla’s steelworks, which employs around 1,100, could shut down unless the company found $60 million in savings.

The news came as the company announced an after-tax loss of $235.8 million for the six months to December 31, an improvement on the $1.5 billion loss the year before.

As the Adelaide Advertiser reports, in January the anti-dumping commission made a preliminary finding that unfair and damaging imports were harming Arrium. The commission imposed a dumping penalty on China as a result.

Pyne said that Tranche one of the anti-dumping reforms, implemented last year are already having an impact on the industry overall.

He said the newly-established Anti-Dumping Information Service (ADIS), within the Anti-Dumping Commission, will prepare the steel and aluminium report.