10 Countries hit with dumping suit on Wire Rod
Today it was announced that several domestic wire rod producers have filed a dumping suit against 10 countries. Based on all the “Buy American” talk coming from the Trump administration, this is not a surprise. It may just be the first of many dumping suits on steel we see this year. Here is the notification. We’ll have editorial comments on this in a separate posting later today.
From today Steel Business Briefing
“Four US steel mills on Tuesday said they plan to file for antidumping duties on carbon and alloy wire rod imports from ten countries – Belarus, Italy, South Korea, Russia, South Africa, Spain, Turkey, Ukraine, United Arab Emirates, and the United Kingdom.
Gerdau Long Steel North America, Nucor, Keystone Consolidated Industries and Charter Steel are also filing for countervailing duty investigations for Italy and Turkey. The petitioners alleged the Italian and Turkish governments offered countervailable subsidies, including export loans, credit, preferential tax treatment and grants.
The mills alleged dumping margins of 179.07%-304.94% for Belarus; 26.36% for Italy; 41.72%-53.09% for South Korea, 216.50%-821.40% for Russia; 159.35%-164.08% for South Africa; 32.64% for Spain; 45.10% for Turkey; 21.64%-61.64% for Ukraine; 69.57% for the UAE; and 88.25% for the UK, according to the statement.
“The substantial increase in low-priced and unfairly-traded carbon and alloy steel wire rod from the ten subject countries since 2014 has injured American manufacturers and their workers,” Paul Rosenthal of Kelley Drye & Warren LLP, counsel for Gerdau, Keystone and Charter Steel, said in a statement.
In 2014, the US mills won antidumping duties of 106.19%-110.25% and countervailing duties of 178.46-193.31% on imports of Chinese wire rod.
“We brought the China case just a couple of years ago. They were a major supplier. Once you address a major supplier it’s not all that unusual for others to take advantage of an opportunity in the marketplace,” Kathleen Cannon, attorney at Kelley Drye, told S&P Global Platts, adding that the US wire rod mills are “experienced in this arena” of fighting for unfair trade relief.
In addition to China, the US also has duties on wire rod imports from Brazil, Indonesia, Mexico, Moldova and Trinidad & Tobago.
The US imported 1.59 million short tons of wire rod in 2016, which was flat compared to 2015, according to US Department of Commerce data.
With the petition filing, Commerce will determine within 20 days whether it will initiate the antidumping and countervailing duty investigations. The US International Trade Commission will make its preliminary determination of whether the domestic industry has been materially injured or threatened with material injury within 45 days of the petition filing. The petitioners expect the investigation will take about one year with final determinations in the spring of 2018.”