Indonesia launched an anti-dumping probe into Chinese hot-rolled coils on Monday, following a request filed by the steel giant Krakatau Posco.

The Trade Ministry’s anti-dumping committee said that the investigation would focus on the hot-rolled coils produced by the Wuhan Iron & Steel (Group) Co. 

The committee revealed that the review of the initial evidence indicated dumping and losses to local producers of similar goods. Dumping is the practice of selling goods in a foreign market at a lower price compared to what is being charged in the domestic market, thus potentially triggering unfair competition in Indonesia.

“There is a causal relationship between dumping and the losses experienced by the domestic industry based on the review of the initial evidence,” the committee’s head, Frida Adiati, said. 

The probe will go on for the next 12 months, but can last longer if necessary. Indonesian steelmakers have previously raised alarm on the influx of cheap Chinese imports, even warning that they could trigger massive layoffs.

The complainant is a joint venture between Indonesian state-owned company Krakatau Steel and South Korean steel manufacturer Posco. The statistics bureau BPS recently reported that Chinese goods made up 40.35 percent of Indonesia’s non-oil and gas imports between January and July, totaling $47.67 billion in value. Indonesia already has some anti-dumping measures on China, its biggest trading partner. 

Chinese nylon film is already subject to an anti-dumping duty at a rate ranging between Rp 1,254 to Rp 8,045 (up to $0.49) per kilogram. Kunshan Yuncheng Plastic Industry and Hyosung Chemical Fiber (Jiaxing) are some of the targeted Chinese companies, according to a Finance Ministry regulation. The rate can go as high as Rp 11,493 per kilogram for companies not listed in the regulation. These duties will be in place until March 2029.

Source: Jakarta Globe