NZ Steel filed a similar complaint with MBIE last year claiming imports of Chinese steel coil were subsidised by the government of China and caused material injury to the New Zealand industry. MBIE's final report into that complaint found Chinese imports were undercutting NZ Steel prices, but that it couldn't be blamed on government support for Chinese manufacturers, which was minimal at most. Last July, Minister Dean accepted the that they're too small to have injured the domestic industry.
At the time, E tū industry coordinator Joe Gallagher said there were serious questions about the rigour of the research underpinning the report, while NZ Steel "strongly disagreed" with the findings and said the ministry wrongly overlooked compelling evidence, placed too much weight on irrelevant evidence, and focused too much on finding incontrovertible evidence of the subsidies.
BlueScope also cited anti-dumping and trade relations as a "key public policy matter" at its latest annual general meeting.
In the latest case, MBIE said it was satisfied the complainant had provided enough evidence to open the two latest investigations.
"Sufficient evidence has been provided that rebar from China and Malaysia is being dumped, and sufficient evidence has been provided to show that material injury to the New Zealand industry is being caused by dumped goods imported from China and Malaysia," MBIE said. The same was true for the subsidisation claim.
The investigations must be completed within 180 days and should be wrapped up around March 3. After its investigation, MBIE will make a recommendation to the Minister of Commerce and Consumer Affairs who then makes a final determination on the investigation, including whether to impose duties.
In order to impose anti-dumping duties, "the investigation will need to establish to a higher standard of proof that dumped imports are causing material injury," MBIE said in the two latest reports.
Among other things, Pacific Steel argues its prices are being undercut which causes price suppression and price depression and the "evidence shows clearly that dumped goods are having injurious effects on the local market" and it is experiencing an adverse impact on sales, profits, return on investment and cash flow.