The Chilean government’s decision to impose anti-dumping tariffs on two steel products from China provided a significant boost to the local steelmaker CAP on Monday. The tariffs, implemented over the weekend, resulted in a rise in CAP’s shares by up to 3.1% on the Santiago Stock Exchange.
In March, CAP had decided to temporarily suspend operations at its Huachipato plant due to concerns over Chinese imports and perceived insufficient action by the local regulator. However, the imposition of tariffs prompted CAP’s board to reverse its decision, ensuring the continuation of steel operations at the Huachipato plant.
The anti-dumping tariffs, which range from 24.9% to 33.5%, have been welcomed by CAP as they will allow the company to operate in a more competitive environment and preserve jobs for its employees, suppliers, and contractors. CAP is currently evaluating the financial implications of the suspension process, which had been expected to last for about three months.
The government’s decree imposing the tariffs specifies that they will remain in effect for a maximum of six months, starting from the end of March. This medida is expected to provide temporary relief to the Chilean steel industry, which has been facing challenges from low-priced imports from China.
