THE Department of Trade and Industry (DTI) announced it would begin an anti-dumping investigation on gypsum board imported from Thailand after having found a basis for doing so. The DTI said the domestic industry suffered injury due to dumped imports and continued price undercutting of domestic prices.
The “Notice of Initiation of an Investigation on the Application for an Anti-Dumping Duty on Gypsum Board from Thailand” alleges that the building material are being imported at “dumped” prices.
Acting under Section 3 of Republic Act (RA) 8752 (Philippine Anti-Dumping Act of 1999), the DTI said it reviewed evidence cited in the petition by Knauf Gypsum Philippines Inc. Upon the review, the Trade department said it found “sufficient evidence” to justify the initiation of an investigation.
The period of investigation (POI) for dumping is from January 2022 to May 2023 while the POI for injury is from 2019 to 2022, the DTI said.
According to the report of the DTI on the anti-dumping case of gypsum board industry, the alleged dumped imports from Thailand reached 58.43 percent or 30,422 metric tons of the 52,066 MT total Philippine imports in 2022.
The allegedly dumped imports from Thailand increased to 66.15 percent of the total Philippine imports in the January to May 2023 period.
The anti-dumping case noted that imports from Thailand relative to production increased in 2020 but began to decline in 2021 and during the three quarters of 2022.
After acquiring in April 2021 the import requirement of Boral Plasterboard Philippines Inc., the Knauf Group locally produced gypsum boards beginning the fourth quarter of that year.
The market share of domestic products increased during the POI from 29 percent in 2019 to 40 percent in 2021 and further to 63 percent in 2022.
“While sales volume and value almost doubled in the three quarters of 2022 compared to 2021 level, 63 percent of the demand was supplied by the domestic industry while 24 percent was captured by dumped imports from Thailand,” read the DTI’s report.
The report noted that the domestic industry suffered “material injury” in terms of declining domestic sales, production, utilization rate and increased inventory in 2021.
“Based on the aforementioned, there is a prima facie evidence that the domestic industry suffered material injury before the acquisition efforts as evidenced by the low market share of the domestic industry ranging from 23 percent to 40 percent, operating losses and price suppression from 2019 to 2021, and price undercutting in 2021,” the report said.
Further, it noted that the industry continued to suffer material injury due to the dumped imports even after the improvement of the operations which resulted from the acquisition as evidenced by the substantial market share captured by dumped imports from Thailand at 24 percent in the three quarters of 2022, and the continued price undercutting of the domestic prices which in effect, inhibits the industry from raising its current prices to be more viable in its operation.
“In light of the foregoing, the Department finds basis to initiate a preliminary anti-dumping investigation on gypsum board imported from Thailand,” the report read.