Pacific Steel - which is understood to have laid an anti-dumping complaint against China - wants the government to take a stronger stance on the "massive over-supply" of steel from China.
The government has been embroiled in a controversy over its response to threats of trade retaliation from China if the complaint is investigated.
Pacific Steel general manager Robin Davies told RNZ steel dumping was happening in New Zealand, and that could have a drastic impact on the domestic industry.
"If you look at all members of the World Trade Organisation, Australia, Canada, the EU, large parts of Asia, have all brought trade remedies for anti-dumping and countervailing duties on steel to date.
"New Zealand is just about the only country that hasn't.
"There's a massive oversupply from China which has driven that process, and we are very concerned from a New Zealand steel point of view that there is steel dumped and subsidised at this time."
When a complaint is laid with the Ministry of Business, Innovation and Employment (MBIE) there is a period of some months before any decision to launch a formal investigation.
The embassy of the country which is the subject of the complaint is informed during this initial time, but neither government ministers nor officials can publicly discuss the complaint, or even confirm its existence.
If an investigation is confirmed there is a further six months before the minister has to make a final determination.
Mr Davies appeared before a parliamentary select committee considering a bill to allow the Commerce Minister to override anti-dumping rules when it is considered to be in the public interest.
He told MPs the timeframe for dealing with anti-dumping complaints was very disadvantageous.
"The timeliness for that process, from a personal experience, there's significant room for improvement compared with other jurisdictions, particularly Australia that have seen it as a big issue for them and have resourced and have really looked hard at bringing a process to bear."
Mr Davies was asked whether the complaints process would disadvantage his company with the steel dumping complaint it had laid with MBIE.
He said he would prefer not to talk about "any specific matters at hand".
"But I think we're keen for the New Zealand to uphold World Trade Organisation rules, if there have been dumping or countervailing duties at play, and every other jurisdiction in the world has determined there has been, then I believe New Zealand should do the same and work swiftly through a review process and come to its determination."
Iron ore price hovers above $US60 a tonne
The iron ore price has slipped further but continues to hold above the $US60 a tonne threshold, despite a fresh prediction from ratings agency Moody’s that the commodity is set to fall from its current elevated level.
Iron ore lost 0.5 per cent to $US60.80 a tonne overnight, according to The Steel Index, from $US61.10 the previous day.
Moody’s noted the recent volatility in iron ore prices, after the commodity fell to a trough in the high $US30s in late 2015 before bouncing off its lows and remaining stronger during 2016. Other analysts have attributed the gains to speculation in the market and hopes that Chinese government stimulus plans will increase demand into the future.
“Moderation is expected from recent trading levels as new supply comes in,” Moody’s said in a note outlining its increase to the credit rating of diversified mining giant Rio Tinto, from negative to stable.
The recent strength in iron ore has been boosting Rio’s performance, and this is set to continue into the second half of the year, Moody’s said.
“Given that some of the company’s iron ore sales are on a quarter lag basis, we expect the second half 2016 performance to better reflect some of the price run-up seen in recent months,” the agency said.
Source:theaustralian