The Anti-Dumping Commission (ADC) will impose duties of up to 28.8 per cent on imported Chinese train wheels as part of a strategy to protect Hunter manufacturing jobs.
It followed a warning from Waratah-based company Molycop last year that Chinese dumping was placing the jobs of 150 workers under threat.
In its final determination delivered on Friday, the commission found that Molycop had suffered "material injury" over several years from the importation of cheap Chinese train wheels.
The company shed 250 jobs in September 2023 when Chinese-imported steel forced it to close its Newcastle steel-making operations.
The commission directed that a 10 per cent duty be imposed on one Chinese exporter, 28.8 per cent for the remainder.
The decision makes permanent preliminary measures that have been in place since last December.
The ADC began investigating the matter last year after Molycop, which produces train wheels, axles and fasteners, alleged it was being commercially crippled by the volume of Chinese-made freight wheels hitting the Australian market.
Local manufacturers previously supplied all railway wheels for the state's trains, however, this has fallen to less than 30 per cent.
In a preliminary finding delivered in May, the ADC said there was no question that imported goods competed directly with domestically-produced products.
"Customers typically procure freight railway wheels through long-term supply contracts or tender agreements, which set pricing and supply quantities for a defined period. In negotiating these contracts, price is the material factor in the purchasing decisions of customers."
Its analysis found imported train wheels were generally priced below Comsteel's prices during the investigation period (between July 1, 2024 and June 30, 2025).
"The commissioner preliminarily considers that dumping and subsidisation by Chinese exporters resulted in them providing goods to customers in Australia at prices that were lower than if they were not dumped or subsidised," the report said.
"If the prices of imported goods are adjusted to compensate for the applicable dumping and subsidy margins, i.e. to a 'remedied price', they closely match Australian industry prices.
"The commissioner considers that in this situation, Australian industry prices would be competing on 'a level playing field', in which the Australian industry would be unlikely to be experiencing price injury."
Australian Manufacturing Workers Union NSW secretary Brad Pidgeon said the commission's report validated concerns about the impact of Chinese steel dumping on local manufacturers.
"We welcome that there has been some measures put in place to ensure that that Australian manufacturing has a role to play moving forward in in relation to railways," he said.
"We want to continue work with the Anti-Dumping Commission to ensure that Australian manufacturing is front and center of not just railroads but also structural steel. We look forward to to seeing more outcomes like this that that benefit you know our members in Australian industry."
The federal government has provided additional funding to the commission to improve its effectiveness.
"The ADC undertakes rigorous, evidence-based investigations based on applications from industry," Minister for Industry and Innovation Tim Ayres previously said.
"The Anti-Dumping Commission prioritised Molycop's case and has moved swiftly and properly through a complex, legislated evidence process.
"The ADC's preliminary determination in December on this matter provided immediate measures against unfairly dumped freight railway wheels."
