The national Anti-Dumping Commission (ADC) has upheld a preliminary finding that Hunter manufacturer Molycop had suffered "material injury" from the importation of cheap Chinese train wheels.
The ADC released its statement of essential facts about the case as part of its investigation on Friday.
It followed a preliminary determination made in December, where the commission proposed placing a 36.9 per cent duty on imported Chinese wheels.
The ADC began investigating the matter last year after Molycop 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 addition to millions in lost earnings, Molycop cut 250 jobs in September 2023 due to the impact of dumping.
It is now consulting with its workforce about the potential loss of another 11 jobs.
In its most recent update, 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 (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."
The commission is due to hand down its final report by August 14.
The federal government recently 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 said.
"The Anti-Dumping Commission prioritised Molycop's case and has moved swiftly and properly through a complex, legislated evidence process. The investigation is progressing according to the ADC's published schedule.
"The ADC's preliminary determination in December on this matter provided immediate measures against unfairly dumped freight railway wheels."
Australian Manufacturing Workers Union NSW secretary Brad Pidgeon said the commission's latest report validated concerns about the impact of Chinese steel dumping on local manufacturers.
"What we want to see is some protections and guardrails put in place to ensure that local manufacturers like Molycop can continue to participate in the production of local goods like railway wheels," he said.
"We look forward to continuing to work with the Anti-Dumping Commission to ensure that local industries are looked after."
