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Chinese steel case: Chilean Molycop seeks to reopen dumping investigation
Monday, September 23, 2024 - 15:30
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The company is asking that the decision to end the investigation into the market for balls be revoked, stating that it is an error in circumstances where dumping has been proven, and suggests the imposition of a tariff of 49.1% or whatever the commission considers appropriate.

Warning that nearly a thousand workers who are related to the national production of balls could suffer the same fate as the Huachipato employees, the company Molycop presented a motion for reconsideration to the Commission Against Price Distortions.

The company is asking for the investigation into dumping to be reopened, arguing that a 49% surcharge should be applied to products imported from China.

The Carey law firm filed a motion for reconsideration with the Anti-Distortion Commission on behalf of Molycop, which manufactures conventional steel balls for large-scale copper mining, and did so just days after the Huachipato Steel Company, which sold 70% of its production to it, began to stop its processes in Talcahuano.

In its letter, Molycop requests that the decision to end the investigation into the market for balls be revoked, stating that it is an error in circumstances in which dumping has been proven, and suggests the imposition of a tariff of 49.1% or whatever the commission deems appropriate.

He also said that around a thousand workers have a direct and indirect relationship with the National Ball Production branch, and that he hopes they will not have to suffer the same fate as the rest of the steelworkers in the country, as a result of the serious damage caused by dumping from China.

When asked by La Radio, the company declined to comment on this presentation and the risk they say they face. However, Socialist Senator Gastón Saavedra, member of the Economic Commission and former mayor of Talcahuano, said that it is a realistic position, and that it responds to what the same commission established in its investigation into the existence of dumping in this market.

In its written submission to the Commission, Moly Cop stated that based on information available to Customs, the import of steel balls increased by 61% in the first six months of the year, after having grown by 50% between August 2023 and January 2024, which caused serious damage to national production due to dumping conditions.

The presidential delegate in the Bio Bio region, Daniela Dresdner, said that the government has been in contact with the company, which has not yet expressed any intention to end its operations in Talcahuano.

Molycop also argued that the national industry is left in a situation of absolute defenselessness, stating that the commission decided contrary to its own precedents and decisions, violating the trust placed in the State of Chile by Chilean and foreign investors.

The appeal reopens the case for possible dumping that had been closed, at a time when the government is promoting a reactivation plan for the industrial sector of Bío Bío, which arose precisely due to the crisis caused by the closure of Huachipato.

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