MoF imposes anti-dumping customs duty on China imports
As of 30 May, Taiwan’s Ministry of Finance has imposed interim anti-dumping customs tariff of 95.29% on cement imports from China for four months, with the rate much higher than 50% expected by industry insiders. The move is seen to help alleviate price-competition situation among domestic cement manufacturers.
The imposition of the anti-dumping customs tariff is expected to benefit domestic makers of cement and related products such as ready-mixed concrete, glass and ceramics, including Taiwan Cement Corp, Asia Cement Corp and Goldsun Construction & Development Corp.
At present, Taiwan Cement and Asia Cement quote domestic prices at between NT$2000 and NT$2100/t (US$70 and US$73). Their gross profit margin was around 7.3% in the first quarter of this year. As the anti-dumping customs duty is higher than expected, domestic cement firms will be able to upward adjust their product price by between 10% and 15% in the foreseeable future.
It is anticipated domestic cement price will rise to more than NT$2,500/t in the second half of this year. Institutional investors believed if domestic cement price rises by over 15%, Taiwan Cement and Asia Cement, Taiwan’s two leading cement producers, will be able to raise gross profit margin by two to three percentage points in the second half of this year. Published under Cement News
