Prices of imported steel products soar by 44%

Prices of imported steel products have gone up by at least 44 percent as Russian steel exporters have taken advantage of the captive market left by the closure of the National Steel Corp. (NSC).

Industry sources told reporters yesterday that the price of imported steel billets has gone up to $195 per metric ton in the absence of competing products from NSC, the country’s biggest steel billet manufacturer.

The source said the price of imported steel billets from Russia had gone up from $145 per metric ton to $195 per metric ton in the months that followed the closure of the NSC.

Although the NSC accounted for less than 30 percent of total requirements for steel billets, the source said Russian exporters have been taking advantage of the fact that downstream manufacturers have no choice but to import all their requirements.

When NSC was in operation, the company produced steel billets and sold its produce to downstream users. The company had lobbied for the imposition of an anti-dumping bond, alleging that Russia was selling its steel billets to the Philippines at dumped prices.

According to the source, Russian steel exporters have been increasing their prices steadily, overtaking the proposed imposition of the anti-dumping bond.

The DTI’s Bureau of Import Services said however that the bond might not be necessary since the remaining local billet makers themselves import steel billets because they are unable to supply the demand of local downstream industries that use billets to manufacture steel products.

Aside from NSC, there are five other local producers of steel billets, namely Amalgamated Iron Works, SKK Steel Corp., Milwaukee Industries Corp., Elegant Steel Corp. and Cathay Pacific Steel Corp.

Local billet makers point out that from 12, their number has gone down due to the influx of Russian steel. They added that since Russia is not a member of the World Trade Organization, it is not covered by the provision that anti-dumping bonds could not be extended beyond a period of six months.

Officials said local billet makers want the bond in effect to make sure that downstream users would be forced to buy their produce first before resorting to importation since importers would have to foot the bond to be able to import.

Still pending before the BIS is a request to extend the effectivity of the bond filed by other local billet makers but the officials said they have to validate the need for continued protection.

When NSC was in operation, the company produced steel billets and sold its produce to downstream users. It was the original proponent of the imposition of the bond, arguing that Russia was selling its steel billets to the Philippines at dumped prices.