Review Process Commences for Expiring Duties

Thailand's trade authorities have launched a formal review of anti-dumping measures targeting Chinese high-carbon wire rod imports as the current duty structure approaches its five-year expiration date. The Ministry of Commerce is evaluating whether the protective tariffs, which have been in place since their renewal in May 2020, should be extended, modified, or allowed to lapse. This review represents a critical juncture for Thailand's domestic steel industry, which has operated under the protection of these measures for nearly a decade, with the original duties first implemented in October 2014. The process will involve comprehensive analysis of market conditions, import volumes, domestic production capacity, and the potential impact of duty removal on local manufacturers.

Product Specifications Define Scope

The review specifically targets high-carbon wire rod with carbon content between 0.76% and 0.92%, measuring less than 14mm in diameter. These specialized steel products, primarily used in manufacturing high-tensile applications such as springs, tire cord, and specialized fasteners, fall under 21 distinct Harmonized System (HS) tariff classifications. The detailed product definition reflects the technical nature of the steel trade and the importance of precise categorization in trade remedy cases. By focusing on these specific grades, Thailand aims to protect domestic producers of high-value steel products while allowing other steel imports to enter under standard tariff rates.

Tiered Duty Structure Targets Major Producers

The current anti-dumping regime employs a differentiated approach, imposing varying duty rates on Chinese exporters based on their individual circumstances and market behavior. Benxi Beitai Gaosu Steel Wire Rod faces the lowest duty at 12.26%, while six entities under the Jiangsu Shagang Group, including Zhangjiagang and Jiang Sheen-faith, are subject to a 15.04% rate. Jiangsu Yonggang Group encounters a higher 20.56% duty, reflecting differences in dumping margins determined during previous investigations. All other Chinese exporters face the highest rate of 36.79%, creating a significant barrier to market entry for smaller or newer Chinese producers seeking to export to Thailand.

Interim Measures Maintain Market Stability

During the review period, the Ministry of Commerce has implemented interim measures to ensure continuity and prevent potential market disruption. Importers must establish bank guarantees to cover potential duty payments, maintaining the financial impact of the measures while the review proceeds. This approach balances the need for continued protection of domestic industry with recognition of the temporary nature of the review process. The requirement for financial guarantees rather than direct payment provides some flexibility for importers while ensuring they cannot circumvent the potential duties during this transitional period.

Historical Context Shows Long-term Protection

Thailand's action represents the continuation of a long-standing trade remedy case, with the original anti-dumping duties on these products dating back to October 17, 2014, when rates between 5.17% and 33.98% were first imposed. The first sunset review was initiated on May 15, 2019, leading to the current duty structure that has been in place since 2020. This extended timeline of protection raises questions about the development of Thailand's domestic steel industry's competitiveness and whether nearly a decade of tariff protection has achieved its intended goals of allowing local producers to adapt and compete internationally.

Regional Steel Trade Dynamics

The review occurs against a backdrop of complex regional steel trade dynamics in Southeast Asia, where multiple countries have implemented trade remedies against Chinese steel imports. Thailand's decision will influence regional steel flows and potentially affect pricing in neighboring markets. As one of the region's more developed economies with significant manufacturing capacity, Thailand's approach to steel trade protection serves as an indicator of broader ASEAN attitudes toward managing Chinese industrial exports. The outcome may signal whether Southeast Asian nations are moving toward greater openness in steel trade or continuing protective measures in response to China's substantial production capacity.

Industry Stakeholders Await Outcome

Domestic steel producers, downstream manufacturers, construction companies, and importers are closely monitoring the review process, as its outcome will significantly impact their operations and cost structures. For Thai wire rod manufacturers, the continuation of duties provides crucial protection against what they perceive as unfairly priced imports. Conversely, downstream industries that use wire rod as an input material may advocate for duty reduction to lower their production costs and improve international competitiveness. The Ministry of Commerce faces the challenge of balancing these competing interests while adhering to World Trade Organization principles and Thailand's international trade commitments.

Key Takeaways:

• Thailand's Ministry of Commerce is reviewing anti-dumping duties ranging from 12.26% to 36.79% on Chinese high-carbon wire rod imports as the current measures approach their May 2025 expiration date

• The targeted products include high-carbon wire rod with 0.76-0.92% carbon content under 14mm in diameter, classified under 21 specific HS tariff codes, with importers required to provide bank guarantees during the review period

• The protective measures have a long history in Thailand, with the original anti-dumping duties imposed in October 2014 at rates between 5.17% and 33.98%, followed by a first sunset review in May 2019 that led to the current duty structure