Thailand's Ongoing Anti-Dumping Measures on Aluminum-Zinc Coated Sheets
On December 19, 2024, Thailand concluded its second anti-dumping sunset review on certain cold-rolled steel sheets that are plated or coated with hot-dip aluminum and zinc alloys. This review focused on imports from South Korea, China, and Taiwan. The decision was to continue the imposition of AD duties, which will remain effective for five more years, until December 19, 2029.
The AD duties will range from 0% to 22.55% for South Korea, 0% to 29.50% for China, and 5.85% to 24.14% for Taiwan. These duties apply to specific products under tariff codes related to cold-rolled sheets and galvanized steel products used across various industries, including construction, automotive, and manufacturing.
The Role of Anti-Dumping Duties in Protecting Domestic Industries
The continuation of the anti-dumping measure reflects Thailand's ongoing efforts to protect its domestic industry from unfair trade practices. Dumping occurs when a country exports a product at a price lower than its market value, often due to government subsidies or other factors. This can harm local manufacturers who cannot compete with these artificially low prices, which could lead to a loss of market share and potentially force them out of business.
By imposing anti-dumping duties, Thailand aims to level the playing field for domestic manufacturers and ensure that imported products do not undermine local production. The decision is seen as a protective measure to maintain fair competition and safeguard jobs within the steel and manufacturing sectors.
Impact on South Korea, China, and Taiwan
The countries affected by this decision are major players in the global steel industry. South Korea, China, and Taiwan are all significant exporters of aluminum-zinc coated sheets to Thailand. The new AD duties will directly impact their export pricing and competitiveness in the Thai market. For example, China faces the highest potential duties, with rates ranging up to 29.50%, which could make their products less competitive compared to local or other foreign suppliers.
On the other hand, South Korea's rates are lower, but the continued duties still pose a challenge for exporters. Taiwan, facing duties ranging from 5.85% to 24.14%, will likely have to adjust its pricing and export strategies to maintain its market presence in Thailand.
Product Categories Affected by the AD Measure
The products involved in this anti-dumping measure are cold-rolled steel sheets coated with hot-dip aluminum and zinc alloys. These products are essential in various industries, including construction, transportation, energy, and infrastructure development. They are used in the production of durable and corrosion-resistant materials required in a variety of applications such as roofing, automotive parts, and pipelines.
The specific tariff codes involved in this measure include a wide range of products, all of which are crucial for industries relying on high-quality steel materials. These include codes for sheets in different sizes and forms, whether for use in flat or coil configurations, or as part of more specialized applications.
Implications for Global Trade and Policy
Thailand's decision to extend its anti-dumping measures reflects the broader trend of countries using trade defense mechanisms to protect their industries. The global steel market has been under scrutiny in recent years, with many nations imposing tariffs and duties to combat dumping. These measures are part of an ongoing effort to ensure that international trade remains fair and does not harm domestic industries through unfair pricing strategies.
Furthermore, this move highlights the importance of trade agreements and international diplomacy in resolving disputes related to anti-dumping measures. Countries affected by such duties often engage in discussions and negotiations to revise or remove these tariffs, particularly when they believe the measures are unjust.
Industry Reactions and the Way Forward
While Thailand’s decision has been welcomed by local steel manufacturers, it is likely to be met with disappointment in the affected countries. South Korean, Chinese, and Taiwanese exporters may seek alternative markets or negotiate with Thai authorities to reduce the imposed duties. Additionally, these countries may look into improving the competitiveness of their products through innovation and cost reductions to better withstand the impact of these measures.
For Thailand, the continued AD measures ensure that domestic manufacturers can maintain their market share and remain competitive in an increasingly globalized industry. The Thai government will likely continue to monitor the effectiveness of the anti-dumping duties over the coming years, assessing whether they need to adjust or extend the measures based on the evolving global trade environment.
