Galvanised Wire from China and Malaysia: Initiation Summary
[ Last Updated 24 January 2006 ]
31 October 2003
Contents
Type of Investigation
Dumping Investigation.
Description of Goods
Galvanised steel wire of high, medium and low tensile strength between (and including) 2mm and 4.5mm in diameter.
Country of Origin
People's Republic of China and Malaysia.
Investigation "Milestones"
| Date of Initiation: | 31 October 2003 |
| Earliest date on which Provisional Measures may be imposed: | 31 December 2003 |
| Latest date for release of Essential Facts and Conclusions: | 29 March 2004 |
| Latest date for final decision by the Minister of Commerce: | 28 April 2004 |
Summary of Factors Leading to Initiation
Background
On 17 September 2003, the Ministry of Economic Development ("the Ministry") accepted a properly documented application for a dumping investigation from the New Zealand industry that comprises one manufacturer, Pacific Wire (PW), a wholly owned division of Fletcher Steel Limited. The industry alleges that imports of galvanised wire from China and Malaysia are dumped and threaten to cause material injury to the New Zealand galvanised wire industry.
Dumping
The information and evidence provided by the industry in its application, shows indicative dumping margins ranging from 67 to 146 percent and 35 to 87 percent (as a percentage of the export price) from Malaysia and China respectively. The Ministry considers that there is sufficient evidence of dumping to require initiation of an investigation.
Material Injury
The industry's application contains information, which shows the likelihood of material injury in the form of:
- An increased volume of the allegedly dumped imports; and;
- Price undercutting, price depression and suppression.
Which will result in a:
- Decline in output, sales volume and revenue, market share, profits, return on assets and shareholder's funds, utilisation of production capacity, and an adverse impact on inventory.
The Ministry considers that there is sufficient evidence of a threat of material injury to require the initiation of an investigation.
Purpose of Investigation
The purpose of the investigation is to establish whether the subject goods are dumped, and if so, whether they threaten to cause material injury to the New Zealand industry.
Further details on the reasons for initiation of this investigation are contained in the Initiation Report.
Investigation Process
Submissions are being sought from parties known to have an interest in this investigation, including known producers in China and Malaysia, exporters, importers and the New Zealand industry. These submissions will be examined and analysed by the investigation team. The outcome of this examination and analysis will then be reported, with recommendations, to the Minister of Commerce.
Further Information
Any queries or requests for further information should be directed to the investigation team at the Trade Remedies Group on telephone +64-4-470 2274 (Sanjay Bhawan) or +64-4-470 2272 (Kelvin Davidson), or facsimile +64-4-499 8508. Enquiries by e-mail should be directed to traderem@med.govt.nz.
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