The company reported this decision after the Anti-Distortion Commission decided to establish provisional measures of 24.9% for steel bars and 33.5% for ore grinding balls.
Following the decision of the Chilean Anti-Distortion Commission to establish provisional measures required for imports of bars and balls by Compañía Siderúrgica Huachipato (CSH), the company announced that it will reverse the plan to suspend its steel operations, while surcharge levels remain in force that allow CSH to operate in a competitive environment and counteract the price distortions corroborated by the Commission.
After the presentation of two appeals for reconsideration against the resolutions of the Anti-Distortion Commission, the entity established a provisional antidumping duty of 24.9% for steel bars and 33.5% for steel balls for grinding, in accordance with the measures proposed by Siderúrgica Huachipato, after an exhaustive technical analysis of the price distortions identified in Chinese steel, in line with the rates that have been established in the world.
With this decision of the commission - which is provisional in nature, for a few months, since the definitive measures have yet to be known - the company decided to continue with its steel operations. “It is good news for a national industry strategic for the sustainable development of Chile. We value the decision of the Anti-Distortion Commission, since it allows us to eliminate distortions, balance the market and allow national actors to demonstrate their capabilities in providing the best steel for Chile. However, we hope that this provisional measure is confirmed with definitive measures that allow us to compete on an even playing field. Only in this way is Siderúrgica Huachipato's contribution to the development of the mining and industrial sector of the Biobío Region and the entire country possible,” said Julio Bertrand, president of the board of directors of Siderúrgica Huachipato.
“I want to recognize the unconditional support of the Huachipato workers and the entire Biobío community. I also want to recognize the serious work carried out by the authorities in the review of the resources presented,” Bertrand emphasized.
Likewise, the Huachipato Steel Company indicated that to give greater stability to the market it considers it essential to move towards a modernization of the institutions, which involves measures for longer periods so that this type of antidumping duties are established for a period of 5 years , and deliver greater powers to the Commission , as occurs in other countries such as the United States, Australia, Mexico, India and Europe. Additionally, the institutions should develop a system of continuous and proactive monitoring of the market, in such a way as to promptly correct possible distortions, prevent and sanction conduct that evades these measures, which ends up generating an economic and social cost for Chile.
With more than 73 years of history, Siderúrgica Huachipato, a CAP Group company, plays a fundamental role in the sustainable growth of national mining, through a significant contribution to meeting the decarbonization goals of that industry in Chile. Along with this, it is a development pole of Biobío, where it generates more than 20,000 jobs and opportunities for more than 1,000 SMEs thanks to a virtuous productive chain.
