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FerrumFortis

Korea & Spain Face Scrutiny as Australia Mulls Extension of Steel Tariffs

गुरुवार, 22 मई 2025

Synopsis: - Australia's Anti-Dumping Commission has initiated Continuation Inquiry 660 to determine whether to extend existing anti-dumping measures on hot-rolled deformed steel reinforcing bar from Korea and Spain, following an application from InfraBuild (Newcastle) Pty Ltd claiming continued protection is necessary to prevent material injury to domestic manufacturers.

Anti-Dumping Measures Face Renewal Decision

The Australian Anti-Dumping Commission has launched a formal investigation to determine whether existing anti-dumping measures on hot-rolled deformed steel reinforcing bar imported from Korea and Spain should be continued. The inquiry, designated as Continuation 660, follows an application from InfraBuild (Newcastle) Pty Ltd, which argues that the expiration of current measures would likely result in continued or recurring dumping and material injury to the Australian industry. The investigation targets reinforcing bar in various diameters up to and including 50 millimeters, containing indentations, ribs, grooves, or other deformations produced during the rolling process. These products, commonly known as rebar or debar, are essential materials for Australia's construction sector, used primarily to strengthen concrete structures in buildings and infrastructure projects. The Commission has established a review period from October 1, 2023, to September 30, 2024, to assess current market conditions, while examining industry injury data dating back to October 2020 to provide historical context for its analysis. This comprehensive approach aims to determine whether the economic conditions that initially justified the imposition of anti-dumping duties continue to exist.

 

Korean Steel Giants Defend Export Practices

Major Korean steel producers have responded vigorously to the continuation inquiry, with both Daehan Steel Co., Ltd and Dongkuk Steel Mill Co., Ltd submitting extensive documentation to defend their pricing practices. These companies rank among Korea's largest steel manufacturers and have significant export operations across Asia-Pacific markets, including Australia. Daehan Steel submitted its exporter questionnaire response on February 28, 2025, accompanied by a company brochure detailing its production capabilities and product specifications. The company later filed a submission on May 16, 2025, addressing cost data error corrections, highlighting the technical complexity involved in these proceedings. Similarly, Dongkuk Steel Mill provided a comprehensive 25.91 megabyte response to the exporter questionnaire, containing detailed information on its domestic pricing, export strategies, and production costs. Korean producers face particular scrutiny in this investigation as they represent a significant source of Australia's rebar imports. Their responses aim to demonstrate that their export prices reflect legitimate commercial considerations rather than dumping practices, potentially challenging the basis for continuing the existing measures. The thoroughness of these submissions underscores the significant commercial interests at stake for Korean manufacturers in maintaining access to the Australian market.

 

Spanish Producer Contests Dumping Allegations

Spain's Compañía Española de Laminación, S.L. has also engaged actively in the continuation inquiry, submitting its exporter questionnaire response on April 28, 2025. As one of Europe's leading steel producers, CELSA operates modern production facilities capable of manufacturing high-quality reinforcing bar that meets Australian standards. The company's submission likely addresses key issues including domestic pricing in the European market, export costs to Australia, and production efficiencies that might explain price differentials. Spanish steel exports to Australia face different logistical challenges compared to Korean producers due to greater shipping distances, potentially affecting price competitiveness through higher transportation costs. Additionally, European steel production operates under different regulatory frameworks, including stringent environmental standards and the EU's carbon pricing mechanism, which may impact cost structures compared to Asian competitors. The Commission will need to account for these factors when assessing whether Spanish exports continue to be dumped in the Australian market. CELSA's participation in the investigation highlights the global nature of steel trade and the interconnectedness of markets across continents, with producers from diverse regions competing in the Australian construction materials sector.

 

Australian Industry Pushes for Continued Protection

InfraBuild (Newcastle) Pty Ltd, the applicant for the continuation inquiry, has been actively advocating for the extension of anti-dumping measures, arguing that their removal would lead to renewed injury for domestic manufacturers. On March 7, 2025, the company submitted a pre-verification exporter briefing document, providing detailed information to assist the Commission in verifying data submitted by foreign exporters. This 2.67 megabyte submission likely contains InfraBuild's analysis of market conditions, pricing trends, and potential injury indicators that support its case for continued protection. As one of Australia's primary manufacturers of reinforcing bar, InfraBuild plays a significant role in domestic construction supply chains, with production facilities capable of meeting a substantial portion of national demand. The company's application for continuation, submitted on December 9, 2024, included a statement of reasons outlining the basis for its concerns about dumped imports. InfraBuild's position reflects broader challenges facing Australia's steel industry, including high energy costs, relatively small production scale compared to global competitors, and the cyclical nature of construction demand. The company likely argues that these structural factors necessitate continued trade remedies to ensure fair competition with imported products that may benefit from different cost structures or government support in their home markets.

 

Investigation Timeline Extended Amid Complexity

The Anti-Dumping Commission has acknowledged the complexity of this continuation inquiry by extending key deadlines in the investigation process. On March 26, 2025, the Commission published Anti-Dumping Notice 2025/025, announcing an extension of time to publish both the Statement of Essential Facts and the Final Report. This extension reflects the technical nature of the investigation and the volume of data being analyzed from multiple parties across different countries. The SEF, now due by July 8, 2025, will present the Commission's preliminary findings and the facts upon which it intends to base its recommendation. Following the SEF publication, interested parties will have 20 days to submit responses addressing any concerns with the Commission's analysis or conclusions. The final recommendation to the Minister is now scheduled for no later than September 12, 2025, with a ministerial decision expected within 30 days thereafter. This extended timeline ensures thorough consideration of all relevant factors while still providing certainty to market participants within a reasonable timeframe. The Commission's approach balances procedural thoroughness with the need for timely resolution, recognizing the commercial significance of these measures for both domestic producers and importers.

 

Technical Specifications Define Investigation Scope

The precise definition of goods under consideration plays a crucial role in determining the investigation's scope and ensuring appropriate comparison between domestic and imported products. The continuation inquiry covers hot-rolled deformed steel reinforcing bar whether or not in coil form, with specific physical characteristics including indentations, ribs, grooves, or other deformations produced during the rolling process. These deformations are not merely decorative but serve the critical functional purpose of improving bonding between the steel and concrete in construction applications. The goods include all steel reinforcing bar meeting this description regardless of grade, alloy content, or coating, while specifically excluding plain round bar, stainless steel, and reinforcing mesh. This definition encompasses products classified under multiple tariff codes, including 7213.10.00, 7214.20.00, 7227.90.10, 7227.90.90, 7228.30.10, 7228.30.90, and 7228.60.10, reflecting the variety of forms and compositions that reinforcing bar may take. The Commission has invited proposals to modify the Model Control Code (MCC) structure, which systematically categorizes different types of rebar based on physical and technical characteristics, with submissions due by January 23, 2025. This technical framework ensures that price comparisons between domestic and imported products account for meaningful physical differences that might affect market value.

 

Global Steel Market Dynamics Influence Decision

The continuation inquiry unfolds against a backdrop of complex global steel market dynamics that will inevitably influence the Commission's assessment. World steel markets have experienced significant volatility in recent years, with fluctuating raw material costs, energy price spikes, and shifting demand patterns creating challenging conditions for producers worldwide. Global steel production capacity continues to exceed demand, creating persistent downward pressure on prices and incentivizing export-oriented strategies among manufacturers in many countries. Korea's steel industry, in particular, has developed substantial production capacity oriented toward export markets, while Spanish producers operate within the European Union's regulatory framework, which includes carbon pricing mechanisms that may affect cost structures. Australia's relatively small domestic market makes it an attractive destination for excess production from larger steel-producing nations, potentially exacerbating dumping risks during periods of global oversupply. Additionally, geopolitical tensions and trade disputes between major economies have disrupted traditional steel trade flows, potentially redirecting exports toward markets like Australia where access remains relatively open. The Commission must consider these broader market forces when assessing whether dumping is likely to continue or recur if measures are allowed to expire.

 

Construction Sector Stakes High in Outcome

The investigation's outcome will have significant implications for Australia's construction industry, which relies heavily on reinforcing bar for concrete structures in residential, commercial, and infrastructure projects. Rebar represents a fundamental input for the sector, with pricing and availability directly affecting construction costs and project feasibility. The construction industry contributes approximately 9% to Australia's GDP and employs over one million people, making the economic stakes of this decision particularly high. Downstream users of reinforcing bar, including concrete product manufacturers, construction companies, and engineering firms, may benefit from lower prices if anti-dumping measures are removed, potentially reducing building costs. Conversely, domestic steel producers and their employees could face increased competitive pressure if lower-priced imports gain market share. The Commission must balance these competing interests when formulating its recommendation, considering not only the direct impact on steel producers but also broader effects on construction activity, employment, and Australia's industrial capability. This balancing act reflects the complex economic trade-offs inherent in trade remedy decisions, particularly for essential construction materials like reinforcing steel that affect multiple sectors of the economy.

 

Key Takeaways:

• Australia's Anti-Dumping Commission has initiated Continuation Inquiry 660 to determine whether to extend existing anti-dumping measures on hot-rolled deformed steel reinforcing bar from Korea also Spain, with major producers including Daehan Steel, Dongkuk Steel Mill, also Compañía Española de Laminación submitting extensive documentation defending their pricing practices

• The investigation covers reinforcing bar in various diameters up to 50 millimeters containing indentations, ribs, or grooves that improve concrete bonding, with the Commission extending its timeline to publish the Statement of Essential Facts by July 8, 2025, also the final recommendation by September 12, 2025, reflecting the technical complexity also volume of data being analyzed

• The outcome will significantly impact Australia's construction industry, which contributes approximately 9% to the country's GDP also employs over one million people, as reinforcing bar represents a fundamental input for concrete structures in residential, commercial, also infrastructure projects, directly affecting construction costs also project feasibility

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