In the first half of 2024, the utilization rate of national ceramic products was only 62%, a decline from 69% in 2023 and 78% in 2022. The Chairman of Asaki stated that the decline in utilization rate was due to dumping of ceramic tiles imported from China. In the first half of 2024, Chinese imports increased by 11.6% to 34.9 million square meters, resulting in obvious negative impacts and losses. Furthermore, during the 2018-2023 period, a trade deficit of $1.24 billion was recorded in ceramic import and export transactions. He believes this situation should not occur because the national ceramic industry has an annual production capacity of 625 million square meters, which should be sufficient to meet all domestic ceramic demand. Due to this situation, more than six companies have been forced to cease all operations in the past few years, leading to layoffs. Nevertheless, he remains optimistic about the improvement of national ceramic production capacity this year. Based on the regulation of the Minister of Finance (PMK) regarding the Anti-Dumping Import Duty (BMAD) on ceramic tiles, he is optimistic that the utilization rate can reach 65-67%. If the BMAD standard for Chinese ceramic tiles is set between 70% and 80%, Asaki targets a national production utilization rate of 80% by 2025 and over 90% by 2026. On Friday, February 6, 2024, Asaki wrote to the Minister of Finance urging her to immediately issue the Minister of Finance Regulation (PMK) concerning the imposition of anti-dumping duties (BMAD) on ceramic tiles imported from China.
They requested attention and serious action, urging the Minister of Finance to act swiftly. He believes that imposing anti-dumping import duties on ceramic tiles is crucial because the performance of the national ceramic industry has been declining year by year. This trend is caused by the immense impact of imported ceramic tile products from China, which have been proven to engage in unfair trade practices in the form of dumping. The national industry is currently declining, as evident from the contraction of PMI data in July and August. The slow issuance of the Minister of Finance's regulation on anti-dumping import duties on ceramic tiles provides opportunities for importers to continue importing in large quantities, exceeding the average import volume before the widespread news regarding the BMAD scale, when the average BMAD for ceramic tiles was 40-50%. This large-scale import is an attempt by importers to avoid anti-dumping import duties when the ministerial regulation is issued, so he estimates that the effect of the anti-dumping import duty policy will weaken in the coming months. The Minister of Trade sent a letter to the Minister of Finance on Tuesday, August 6, 2024, regarding the decision to impose BMAD on Chinese ceramic tiles. The then Director General of Trade Policy claimed that he could not disclose the amount of BMAD decided by the Minister of Trade to the public, as it violates regulations. Once the decree is issued and takes effect, the PMK will be accessible to the public, including the media.
In the first half of 2024, the utilization rate of national ceramic products was only 62%, a decline from 69% in 2023 and 78% in 2022. The Chairman of Asaki stated that the decline in utilization rate was due to dumping of ceramic tiles imported from China. In the first half of 2024, Chinese imports increased by 11.6% to 34.9 million square meters, resulting in obvious negative impacts and losses. Furthermore, during the 2018-2023 period, a trade deficit of $1.24 billion was recorded in ceramic import and export transactions. He believes this situation should not occur because the national ceramic industry has an annual production capacity of 625 million square meters, which should be sufficient to meet all domestic ceramic demand. Due to this situation, more than six companies have been forced to cease all operations in the past few years, leading to layoffs. Nevertheless, he remains optimistic about the improvement of national ceramic production capacity this year. Based on the regulation of the Minister of Finance (PMK) regarding the Anti-Dumping Import Duty (BMAD) on ceramic tiles, he is optimistic that the utilization rate can reach 65-67%. If the BMAD standard for Chinese ceramic tiles is set between 70% and 80%, Asaki targets a national production utilization rate of 80% by 2025 and over 90% by 2026. On Friday, February 6, 2024, Asaki wrote to the Minister of Finance urging her to immediately issue the Minister of Finance Regulation (PMK) concerning the imposition of anti-dumping duties (BMAD) on ceramic tiles imported from China.
They requested attention and serious action, urging the Minister of Finance to act swiftly. He believes that imposing anti-dumping import duties on ceramic tiles is crucial because the performance of the national ceramic industry has been declining year by year. This trend is caused by the immense impact of imported ceramic tile products from China, which have been proven to engage in unfair trade practices in the form of dumping. The national industry is currently declining, as evident from the contraction of PMI data in July and August. The slow issuance of the Minister of Finance's regulation on anti-dumping import duties on ceramic tiles provides opportunities for importers to continue importing in large quantities, exceeding the average import volume before the widespread news regarding the BMAD scale, when the average BMAD for ceramic tiles was 40-50%. This large-scale import is an attempt by importers to avoid anti-dumping import duties when the ministerial regulation is issued, so he estimates that the effect of the anti-dumping import duty policy will weaken in the coming months. The Minister of Trade sent a letter to the Minister of Finance on Tuesday, August 6, 2024, regarding the decision to impose BMAD on Chinese ceramic tiles. The then Director General of Trade Policy claimed that he could not disclose the amount of BMAD decided by the Minister of Trade to the public, as it violates regulations. Once the decree is issued and takes effect, the PMK will be accessible to the public, including the media.