After India began to impose more taxes on China stainless steel imports, other countries like Thailand are working hard to have something similar in their country. TATA Steel, which is over 100 years old having started operations in 1907 is an Indian company. Thus it should not come as a surprise that it’s Thailand operations is putting pressure on the Thai government on China steel imports.
According to Bangkok Post, it is only China that is being targeted by TATA Steel. To be more specific, they are requesting the Thai government to impose higher import taxes on steel wire rods from China. Currently, local Thai companies or Thai-based steel companies are having a hard time competing with the imports which are partially subsidized by the Chinese government. These China stainless steel products are cheaper than local Thai-produced products by as much as 15%.
In response, the Commerce Ministry has agreed to implement a temporary measure that enforces a new import tax of 33.11% on all hot rolled steel flat products. This is a huge increase from the usual 5% tax rate except for countries that have a signed free trade agreement. Unfortunately, TATA appears not to be content. Peeyush Gupta who is CEO of TATA wants a 15.9% increase on taxes for the steel wire rods since China give their companies a subsidy of 9% on export taxes. In addition to this tax relief, Chinese steel companies are declaring their products to be based on chromium and boron compound which exempts them from import duties. This has led to China dumping steel wire on other countries.
In China news, reports are rife about one of its top steel companies, Shanxi Taigang Stainless Steel Company selling one year securities worth 2.5 billion Yuan. China’s stainless steel market has soared after global prices rose because of the economic monetary policy of the US last year. China was able to sell their products low and aside from Thailand and India, they are also being accused of dumping cheap stainless steel in Taiwan.