The Philippines initiates safeguards probe on coated imported steel products including aluminum zinc (GL) sheets, coils and strips. Philippines’ Department of Trade and Industry (DTI) has started the preliminary investigation following a surge of imports.
The trade department found that in the period of investigation (POI) 2014-2018, the imports GL sheets and coated coils and strips increased causing material injuries to the domestic industry by hurting margin and reducing market share through undercutting prices offered by exporters.
Between 2014 to 2015, imports of GL sheets increased 3,090pc, in 2016 they rose 300pc and in 2017 the increase was 7pc and in 2018 imports increased 20pc, according to the preliminary investigation conducted by DTI. During the period, domestic steel producers market share for GL sheets dropped 99pc in 2014 to 25pc in 2018, as imports displaced local products. The apparent market size for the GL sheets grew from 66,000mt in 2014 to 219,000mt in 2018.
The probe also found evidence of price undercutting as the weighted average landed cost of imports in 2018 were approximately 9pc
lower than the average selling price of the local products. Domestic manufacturers impacted by the imports include Sonic Steel, Solid Steel, Ultra Dynamic Steel, Philippine Cold Rolled Steel, and Philippine Coil Coating.