The Chilean price distortion commission, CNDP, has accepted a request from local producer CAP Acero and will apply provisional safeguarding duties on imports of wire rod.
According to CNDP, which published its decision in the nation’s official gazette, Diario Oficial, Chile will apply a 37.8 percent “ad valorem” tariff on the imports of the product, which will last for no more than six months.
CNDP said the measure is now effective and will be valid until a definite tariff is applied or until it decides is time to annul the decision.
Following the announcement of CNDP, CAP Acero welcomed the decision, which is expected to “minimize” the damages the steel imports, especially from China, have caused to the local industry.
“The nation’s steel industry is facing a complex scenario, which is expressed mainly by a strong deterioration of its margins, which is a result of the price distortions seen in the global markets,” said CAP Acero’s general manager, Ernesto Escobar.
The executive also mentioned that the distortions seen in the global steel market as well as the increase of imports forced CAP Acero to halt its flat steel production lines, and to idle a blast furnace in 2013.