Itac Agrees to Review Antidumping Duties

The International Trade Administration Commission (Itac) has accepted an application to review the exemption on the hefty anti-dumping duties imposed on importers from Germany and several other countries of ropes and cables made from iron or steel.

German manufacturer Casar Drahtseilwerk Saar has brought the application saying imports from Germany have almost dried up and that the dumping margin has decreased significantly "and is in fact significantly negative".

Scaw SA is the largest manufacturer of the product in the Southern African Customs Union and has indicated that it will be opposing the application. The firm was the initial applicant when the antidumping duties were introduced. Scaw SA represented 89% of the market in terms of production volumes during the previous investigation.

Dudu Ndlovu, head of investor relations and communications at Scaw, said should Casar be successful in application for a review of the antidumping measures, this would have an adverse effect on the mining market serviced by Scaw.

"The threat of dumped imports from China, the Republic of Korea, the UK and Germany remains significant, particularly for the local mining business that we service.

"We intend to oppose the application," Mr Ndlovu said.

The commission issued a notice saying there was sufficient evidence to warrant an investigation for a review on the basis of changed circumstances with regard to dumping and the level of antidumping duty applicable to Casar.

The antidumping duty imposed on ropes and cables thicker than 8mm and made of iron or steel imported from Germany or originating in Germany is 93%.

The antidumping duty on the same product applicable to China amounts to 133.65%, to the Republic of Korea 79.76% and the UK 76.17%. The duties have been in place since February 2009.

Itac communication manager Thembinkosi Gamlashe said during the previous investigation period that imports of ropes, cables and stranded wire for the year ending 2006, amounted to 11,853 tons.

Casar said in its application in August 2007 it was acquired by WireCo WorldGroup, a major world player in manufacturing, engineering and the distribution of wire rope, synthetic rope, specialised assemblies, wire products and electromechanical cable.

According to Casar this change in ownership had brought a change in the pricing policy of the company that is "strictly enforced".

In this interim review, the German manufacturer brought the application on the basis that it was not dumping the ropes and cables, and therefore an analysis of the market was not part of the application.

Itac said that the period of the current review investigation to determine the dumping margin in Germany will be from January 1 to August 31 last year.