On November 19, 2024, the Colombian Ministry of Commerce, Industry, and Tourism announced the initiation of a second sunset review regarding anti-dumping duties imposed on steel cables, galvanized strands, and prestressed concrete strands imported from China. The review was triggered by a formal request from Empresa Colombiana de Cables S.A.S., a domestic producer of similar steel products. This review is crucial in assessing whether the removal of the current anti-dumping measures would lead to the continuation or recurrence of dumping, and whether it would cause further injury to Colombia’s local steel industry.
The products under scrutiny, which fall under the HS code 7312.10.90.00, are widely used in construction, infrastructure projects, and various other industrial applications. Galvanized strands and steel cables are essential components in sectors such as telecommunications, energy, and transportation. Prestressed concrete strands are primarily utilized in the construction of bridges, buildings, and other large-scale concrete structures. Given the importance of these materials, the outcome of the review will significantly impact both the domestic manufacturing landscape and the broader construction industry in Colombia.
The first anti-dumping order on these products was implemented in 2018 after Colombia’s steel industry raised concerns about Chinese exports being sold at unfairly low prices in the domestic market. At that time, it was determined that the dumping of these steel products had caused significant harm to local producers by distorting market prices and driving domestic manufacturers out of business. In response, Colombia imposed AD duties on the Chinese imports to restore a level playing field and protect the viability of its local steel producers.
Now, as the existing anti-dumping duties near their expiration, the Colombian government is conducting this second sunset review to determine whether the duties should be extended. The review will involve a thorough investigation into whether Chinese producers are still dumping steel strands at unfair prices and whether this practice would continue to harm Colombia's domestic steel industry. If the investigation finds that the end of the AD order would lead to dumping and injury, the duties could be renewed for another period.
Throughout the sunset review process, the Colombian government will also assess input from various stakeholders, including domestic manufacturers, trade associations, and importers. The results of the review will be based on whether the removal of the anti-dumping duties would significantly disrupt the domestic market, lead to price undercutting, or result in harm to local production. If the government finds that the conditions for renewing the duties are met, the AD measures could be extended to safeguard Colombian manufacturers from unfair competition.
During the sunset review investigation, the current anti-dumping duties will remain in place. This ensures that there is no immediate risk of a surge in Chinese imports while the review process is underway. The Colombian steel industry has expressed strong support for the continuation of the duties, citing concerns about potential price undercutting by Chinese producers and the risk of job losses in the local manufacturing sector if the protections were lifted.
