New taxes to regulate China steel supply


Australia has taken a stand against Chinese steel dumping with the introduction of import taxes to prevent the oversupply of China-made steel.
The government has accepted two recommendations from the Anti-Dumping Commission to impose duties on steel reinforcing bars and rod in coils that are made in China and imported into Australia.
“This is serious action about Chinese steel that will protect Australian jobs and steel manufacturers,” Minister for Industry Christopher Pyne told reporters in Adelaide on Saturday.
The duties will make sure imported Chinese steel is not “unfairly cheaper” than locally produced steel, he said.
“The government is stepping in to stop the injury of Australian businesses like Arrium from unfair competition,” Mr Pyne said.
This week the troubled steel and mining group’s administrators, KordaMentha, said it was negotiating with its lenders to secure about $200 million in funding so the company is able to continue its normal business operations.
Arrium entered voluntary administration earlier this month after failing to win the support of its lenders for a $US927 million ($A1.22 billion) lifeline from US private equity fund GSO Capital Partners.
The company owes total debts of around $4 billion, including $2.8 billion due to Australia’s four major banks and several global banks.

The balance includes money owed to nearly 8000 employees, US bond holders, and trade creditors.
Originally published as New taxes to regulate China steel supply

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