Newcastle-based steel maker Molycop has warned it may stop steel production if Australia's Anti-Dumping Commission does not increase tariffs on Chinese steel imports.
The company recently told the national Anti-Dumping Commission that without an increase in tariffs on imports of Chinese-made steel grinding balls, which are used in gold, copper and lithium mining, production using local steel would become unviable.
The move could result in the loss of 300 jobs, or more than half of the company's Australian workforce.
The national Anti-Dumping Commission is currently investigating the case put to it by Molycop, which calls for tariffs on its Chinese competitors to be raised and extended for another five years.
"Molycop submits that it is adversely impacted by the Anti-Dumping Commission's decision to select the Latin America export billet price as an appropriate steel input benchmark to include in the Chinese exporter's constructed normal value on grinding balls," Molycop's general manager, operations Keith Ritchie wrote in its submission to the Anti-Dumping Commission.
"The use of a steel billet price significantly disadvantages Molycop as the steel billet input price is considered a marginal selling price.
"The appropriate steel benchmark is a domestic traded grinding bar price."
The Molycop Group has been producing steel at the Waratah site since 1917.
A decision in the case would require approval from Australia's new Industry, Innovation and Science Minister Christian Porter.
The Anti-Dumping Commission will provide its recommendation to the minister in a final report, which is due by July 2.
The Anti-Dumping Commission is investigating 13 cases involving metal products used in construction, energy production and mining.
The countries under investigation for dumping include China Brazil, Finland, Korea, Spain, Greece, Malaysia, Estonia, Russia, Sweden, Thailand, Slovakia, India and Vietnam.
China has imposed tariffs of 80 per cent on Australian barley and more than 200 per cent on wine in recent months due to increased diplomatic tensions between the countries.
It has also banned Australian timber and unofficially banned Australian coal, copper and lobster.
China has accused the Morrison government of weaponising the Anti-Dumping Commission to target Chinese companies.
