Pakistan extends anti-dumping duty on Chinese galvalume steel imports till 2027

Pakistan’s National Tariff Commission (NTC) has extended the existing anti-dumping duty (ADD) of up to 40.47% on imports of galvalume steel coils and sheets from China until Feb 8, 2027, according to a notification issued by the commission. The extension came into effect immediately upon issuance of the notice.

The decision follows an application submitted to the NTC on Aug 24, 2024, by domestic producers of galvanized coils. They alleged that importers were circumventing the original ADD imposed on galvanized steel by switching to galvalume steel coils and sheets, a similar product category.

The renewed duty is expected to provide significant support to Pakistan’s listed flat steel manufacturers, particularly International Steels Ltd. (ISL) and Aisha Steel Mills Ltd. (ASL). Nearly three years ago, local producers met 60% of domestic demand, with imports accounting for 40%. However, the trend has since reversed, with imports now fulfilling 60% of demand, largely due to what industry experts describe as dumping and duty evasion.

According to a report by Topline Securities, the annualized size of galvalume imports is projected at 250,000 tons for fiscal year 2025, based on data from the first 10 to 11 months. Flat steel industry insiders estimate actual domestic demand to be between 50,000 and 70,000 tons, suggesting that 180,000 to 200,000 tons of imports are linked to dumping and circumvention practices.

Galvalume, used in roofing, wall panels, and building components, as well as in home appliances and automotive parts like exhaust pipes and fuel tanks, is considered a direct substitute for domestically produced galvanized coils.

Topline Securities noted that the imposition of the duty will help local producers regain market share. The development adds to other recent tailwinds for the flat steel sector, including the imposition of a 10% sales tax on products from Ex-FATA/PATA regions and the removal of a 5% regulatory duty on hot-rolled coils (HRC), a key raw material for flat steel manufacturing.