Indonesia has decided to impose safeguard measures in the form of import duties on hot rolled steel bar and rod in coil, it has told the World Trade Organization (WTO). The decision follows a request by domestic steelmakers PT Krakatau Steel and PT Ispat Indo in January 2014, according to the official China Trade Remedy Information service.

The measures would include both carbon and alloy steel wire rod, meaning boron-added rod imports from China will be hit by the double blow of duties and the removal of VAT rebates, Kallanish observes. The investigation was conducted into 5.5-20mm diameter wire rod. 

The Indonesian Trade Safeguard Committee says that the country saw imports of wire rod surge from 222,876 tonnes in 2010 to 678,000t in 2013, when imports took a 74% market share. Import prices of around 14% below domestic prices had caused a reduction in capacity utilisation of 6.6%, it adds. China is by far the largest supplier of wire rod to Indonesia, Kallanish notes.

Neither the implementation date nor the level of duties have yet been announced.