Dumping levy on cheap wire

By ELLEN READ

New Zealand has imposed provisional anti-dumping duties of up to 33 per cent on galvanised wire from South Africa.

The move follows an investigation into claims the wire was being sold to New Zealand up to 25 per cent cheaper than in South Africa.

Dumping is not illegal, but countries can impose anti-dumping duties if their domestic industry is being harmed.

"Initial findings confirm material injury to the New Zealand industry, represented by Pacific Wire," Commerce Minister Lianne Dalziel said.

"It is clear to me that provisional anti-dumping duties are required to prevent further injury in this case."

The duties - which range from 10 per cent to 33 per cent - would prevent further "material injury" to the New Zealand industry until the inquiry was completed in late December, Dalziel said.

The dumping investigation began in June after New Zealand's sole galvanised wire producer, Pacific Wire, complained its prices and market share were being pushed down by the cheap imported product.

Galvanised wire is steel wire coated with zinc.

It is used in the agricultural and horticultural industries, mainly for fencing.

In the year to June 30, about 9600 tonnes of galvanised wire was imported into New Zealand.

Of this, 1250 tonnes was from South Africa - a 79 per cent increase on the previous year.

Pacific Wire, a wholly owned division of Fletcher Steel, produces galvanised wire and bright wire (wire that is not galvanised) at its Auckland mill.

Its customers are steel merchants, rural merchants, wire processors and building product merchants.

The chief executive of Fletcher Building's building products and steel group, Andrew Reding, said the provisional duties were an extremely positive move.

Pacific Wire's prices and market share had been affected by the South African imports.

Pacific Wire sold 20,000 tonnes of galvanised wire a year, giving it a market share of roughly 55 per cent, he said.

About 90 per cent of production is sold domestically, and the rest is exported.