Peru Takes Action Against Alleged Dumping of Chinese Steel Pipes
On January 16, 2025, Peru's Commission on Dumping, Subsidies, and Elimination of Non-Tariff Trade Barriers launched an anti-dumping investigation into the import of hot-rolled carbon steel welded pipes originating from China. The focus of the investigation is on pipes of round, square, and rectangular types with thicknesses ranging from 1.3mm to 12mm and lengths of 5.8 meters and 12 meters, which are primarily used in the production of steel structures.
This investigation was prompted by a formal request submitted by Corporación Aceros Arequipa SA, Tubos y Perfiles Metálicos SA, and Precor SA, three prominent Peruvian steelmakers. These domestic producers argue that the Chinese products have been dumped into the Peruvian market at artificially low prices, potentially harming local production and the overall steel industry.
Products Under Investigation and Timeline of the Probe
The investigation specifically targets welded pipes that fall under the HS codes:
• 7306.30.10.00
• 7306.30.99.00
• 7306.61.00.00
• 7306.69.00.00
• 7306.90.00.00
The probe will focus on imports during the period from July 2023 to June 2024, while the damage investigation period will cover January 2021 to June 2024. This extended investigation timeline will enable the Commission to assess the impact of these imports on the local market, especially on pricing, production, and sales by Peruvian manufacturers.
Allegations of Unfair Trade Practices
The investigation will aim to uncover whether dumping has occurred, which happens when foreign companies export goods at prices below their market value, typically as a result of subsidies or other unfair trade practices. If Peru’s Commission finds evidence of dumping, it could impose anti-dumping duties on Chinese welded pipes to protect local manufacturers from unfair competition.
The Peruvian steel industry has long been a vital sector of the national economy, and local producers have voiced concerns over the growing influx of cheap imports from China, which could undermine their market share and profit margins. These concerns have sparked the call for a thorough investigation to safeguard the interests of domestic steelmakers and ensure a level playing field in the industry.
Economic Impact on the Peruvian Steel Market
The outcome of this anti-dumping investigation could have significant implications for both the local steel industry and the broader trade relations between Peru and China. For Peruvian steel manufacturers, the investigation could result in protective measures that could reduce competition from cheap imports, stabilize local prices, and prevent further harm to their operations.
Conversely, if the anti-dumping duties are imposed, Chinese exporters might look to shift their focus to other markets, or attempt to renegotiate their pricing structure to comply with Peruvian trade regulations. The decision could also spark diplomatic tensions between the two nations, who share significant trade ties, especially in commodities and industrial goods.
