Sep 27, 2011 (Bangkok Post - McClatchy-Tribune Information Services via COMTEX) -- Hot-rolled steel manufacturers have praised the government's probe into special-grade steel dumped from China, saying their net losses in the second quarter was a result of cheap Chinese imports.

The Commerce Ministry has since the middle of this month launched an investigation into the alleged dumping and considered the possibility of imposing anti-dumping (AD) tariffs on boron steel from China. Earlier in the month, the Department of Foreign Trade started collecting AD duties on hot-rolled coil and plates from China (30%) and from Malaysia (22%).

According to Sahaviriya Steel Industries Plc (SSI), Thailand's leading hot-rolled steelmaker, steel imports totalled 166,750 tonnes in the first half of this year, triple the amount in the same period of 2010.

"We have seen a market share decrease as a result of unfair competition from Chinese steel," said the source.

SSI reported net loss of 391 million baht in the three months to June, compared to a net profit in the first quarter.

Wikrom Vajragupta, president of Iron and Steel Institute of Thailand, said the dumping case from Malaysia is obvious as the only Malaysian hot-rolled maker sold its products in Thailand more cheaply than the price at home. Kuala Lumpur has given the manufacturer a tax rebate, enabling it to sell the steel at a very low price overseas as domestic supply exceeds the demand, he noted.