PPC Ltd., South Africa’s largest cement maker, gained the most in six years after the country imposed provisional anti-dumping duties of as much as 77 percent on cement imports from Pakistan.
PPC rose 7.6 percent to 18.50 rand at 11:44 a.m. in Johannesburg. The shares earlier climbed as much as 8.2 percent, the biggest intraday gain since March 2009. About 13.2 million shares changed hands, more than four times the three-month daily average.
The International Trade Administration Commission of South Africa will invite comments on the tariffs, which range from 14 percent to 77 percent, before submitting a recommendation to the Minister of Trade and Industry to impose permanent fees, PPC said in a statement Friday. The provisional duties have been imposed on cement originating or imported from Pakistan through Nov. 13 this year.
PPC and other South African producers submitted an anti-dumping application to the commission, noting a more-than- 80 percent increase in dumped imports from Pakistan between 2010 and 2014, the company said. The practice caused “significant injury” to the local cement manufacturing industry, including job losses and underutilization of production capacity, PPC CEO Darryll Castle said.
The duties will benefit domestic producers as it’s likely that most of the imports from Pakistan will stop as a result, Roy Mutooni, a Johannesburg-based analyst at Renaissance Capital, said by phone.
“If the assumption is that it suddenly becomes too expensive for them to import then in all likelihood that demand would be satisfied by local players,” he said. “The broader industry will benefit, especially the people with plants at the coast.”