The International Trade Administration Commission of South Africa would investigate a claim that Portland cement from Pakistan was being dumped on the Southern African Customs Union (SACU) market, causing material injury to the SACU industry concerned.
This investigation followed an application by cement manufacturers Afrisam, Lafarge, NPC Cimpor and PPC, the commission said in a notice published in the government gazette last week.
The allegation of dumping was based on a comparison between the normal value of Portland cement in Pakistan and the export price from Pakistan, with the dumping margin having been found to be 48%.
The commission pointed out that the applicants indicated a decline in their sales volumes, profit, output, use of production capacity and market share, as well as a negative effect on cash flow, return on investment and employment.
The commission further noted that the cement companies lost market share in a growing market, while the market share of imports increased.
The applicant companies further alleged that a threat of material injury existed and submitted evidence with regard to the freely disposable capacity of the exporters, the significant increase of the alleged dumped imports and the state of the economy in Pakistan.
On this basis, the commission found that there was prima facie proof of material injury, a threat of material injury and causal link.
The commission’s period of investigation to determine the dumping in the country of origin would be from January 1, 2013, to December 31, 2013, while the period of investigation to determine material injury or a threat in this regard would be from January 1, 2010, to December 31, 2013.
The investigation would focus mainly on bagged Portland cement.