DTI starts probe on imported GI sheets

MANILA, Philippines — The Department of Trade and Industry (DTI) has started a preliminary probe on the possible imposition of safeguard measures on imports of galvanized iron (GI)  sheets, pre-painted GI (PPGI) and pre-painted aluminum zinc (PPGL) and aluminum zinc (GL) sheets, coils and strips amid claims from petitioners increased imports of these products have caused serious injury to the local industry.

In three notices dated June 15, Trade Secretary Ramon Lopez said the DTI has found a prima facie case to justify a preliminary safeguard measures investigation on imports of GI sheets, PPGI, PPGL and GL based on the evaluation of the petitions submitted to the agency.

The petition to impose safeguard measures on imports of GI sheets, coils and strips was filed by Puyat Steel Corp. which accounts for 82 percent of the total local production of GI in the country.

GI sheets, which have  95 percent zinc and five percent aluminum coat, are ideal for roofing and sidings, flashings, wall cladding, gutters, curtain walls, floor decks and purlins.

Puyat Steel claimed increased imports of GI sheets, coils and strips have hurt the local industry.

DTI said in a report on the initiation of a preliminary investigation on application of safeguard measures on GI sheets, coils and strips imports, the country’s total imports of these products reached 18,500 metric tons (MT) in 2014, jumped to 115,910 in 2015, increased further to 284,346 MT in 2016 and then declined to 237,633 MT in 2017 and rose to 299,142 MT in 2018.

For the period of January to November last year, imports of these products reached a record high at 355,143 MT.

Major suppliers of GI sheets, coils and strips to the Philippines during the period of investigation are China and South Korea.

DTI said “there are indications that increased imports of GI sheet, coils and strips are the substantial cause of serious injury to the domestic industry in terms of declining market share, sales, profitability, price depression and price undercutting and increasing inventory.”

Meanwhile, the petition to impose safeguard measures on PPGI and PPGL was filed by Puyat Steel and Sonic Steel Industries Inc., citing the increased importation of PPGI and PPGL have caused harm to the domestic industry.

The petitioners hold a combined 70 percent share of the total domestic production of PPGI and PPGL.

PPGI and PPGL are like GI and aluminum zinc coated steel, but pre-painted. As they come in a variety of colors, they are used for all kinds of roofing and sidings, flashings, wall cladding, gutters, curtain walls, floor decks, purlins and hip caps.

DTI said volume of imports of PPGI and PPGL which reached 153,528 MT in 2014 declined to 143,735 MT in 2015, rose to 209,600 MT in 2016, fell to 178,749 MT in 2017 and then went up to 191,039 MT in 2018.

As of end-November last year, PPGI and PPGL imports reached 174,256 MT.

Top sources of the country’s PPGI or PPGL imports during the period of investigation are China and Vietnam.

Based on the DTI’s evaluation of the petition, the agency said there are indications the domestic industry’s impairment in terms of declining market share, sales, profitability, employment, price depression, price undercutting and increasing inventory are due to the increased imports of PPGI and PPGL.

As for the possible imposition of safeguard measures on imports of GL sheets, coils and strips, the petition was filed by Sonic Steel as it alleged increased imports injured the local industry.

Sonic Steel is the sole manufacturer of GL in the country

Imports of GL which reached 770 MT in 2014 surged to 24,571 MT in 2015, increased to 98,386 MT in 2016, went up to 105,224 MT in 2017, and climbed further to 125,933 MT in 2018.

For the January to November period last year, imports of GL were at 122,232 MT.

China was the country’s biggest source of imported GL  from 2015 to 2019.

As imports rose, the local industry suffered declines in sales, production, utilization rate, profitability and employment, and inventory also increased from 2014 to 2018.

DTI said there are indications the higher imports of GL sheets, coils and strips brought about the serious injury to the domestic industry in terms of declining market share, production, sales, capacity utilization, profitability, employment, price depression, suppression and price undercutting.