Food processors call for tariff waiver on metals
Tin and steel prices up more than 80%
Renewed anti-dumping duties affect canned food prices. Pornprom Satrabhaya
Thai food processors and the Thai Chamber of Commerce have requested an extension of at least six months of anti-dumping (AD) duty exemptions on tinplate and tin-free steel, widely used in canned foods, to help offset the impact of rising steel prices and production costs.
Visit Limlurcha, honorary president of the Thai Food Processors Association and vice president of the chamber, said the two organizations planned to send a letter to Commerce Minister Jurin Laksanawisit this week asking him to consider extending the waivers on AD duties for tin-free tinplate and steel from June to November 2022. The waivers are due to expire on May 12 of this year.
Last October, the anti-dumping and countervailing committee, chaired by Mr. Jurin, declared that it would waive the anti-dumping duty for six months in order to mitigate the impact of rising production costs on the food industries and to maintain the competitiveness of canned foods in the global market.
After the waivers expired, the committee agreed to impose an anti-dumping duty on tin-free steel imported from China at a rate of 4.53 to 24.73% of cost, insurance and freight (CIF) prices. The rate is 3.94 to 17.06% of CIF prices from South Korea and 18.52% from Europe.
Tinplate imported from China is subject to a duty of 2.45 to 17.46% of CIF prices, tinplate from South Korea being charged 8.71 to 22.67%, Taiwan 4.28 to 20.45% and Europe at 5.82%.
The charges last for five years or until November 2026, after which the committee reconsiders the AD rates.
Mr Visit said the extension, if approved, would help reduce the costs of tinplate and tin-free steel in the food industry, which has seen prices rise significantly due to the Russian war -Ukrainian and the drop in steel production in China.
Tin plate prices jumped 88% to 51,015 baht per ton in December 2021 from 27,058 baht per ton in January 2020. The price of tin-free steel rose 85% to 48,790 baht per ton, compared to 26,415 baht per ton in the same endpoint.
He warned that the world could face a shortage of steel as the main Russian producer halted shipments, prompting importing countries to rush to buy steel from other suppliers such as Japan, Korea South, Taiwan and China.
Given this outlook, food processors would like the government to help them find ways to reduce their production costs, Mr Visit said.
There are only two domestic producers of tin plate and tin-free steel in Thailand. The two producers have a combined production capacity that serves only 50-60% of the country’s total demand, which amounts to 600,000 tons per year.