TEMPO.CO, Jakarta - A number of domestic steel factories have urged the Indonesian government to provide them with protection from the wave of cheap steel imports from China.
Representing one of them, PT Gunung Raja Paksi (PT GRP) public relations director, Fedeus, stated that the 2021 Chinese steel production that is predicted to produce 1.15 billion tons - from last year’s 1.05 billion - poses a worrying sight for Indonesia's steel market future.
“Because of the oversupply of steel in China, the Asian market is really worried that 2021 will see a wave of Chinese steel products be sold cheaply,” wrote Fedeus in a statement on Wednesday, January 20.
The surge in these steel products, Fedaus argues, has been responded to by a number of countries by introducing anti-dumping barriers and other taxes for Chinese-made steel. South Korea, for example, has imposed import tariffs ranging from 9.98 - 34.94 percent and Vietnam with 3.06 - 37.14 percent that will be effective until December 2025.
Meanwhile, the Indonesian Trade Security Committee (KPPI) has issued a letter on January 21, 2021, which rejects the extension of the safeguard permit filed by PT GRP arguing that the process has passed its expiration date.