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Nov. 27, 2013

Electrical Steel Antidumping Case Moves Forward
 
The U.S. International Trade Commission has issued a unanimous ruling in a preliminary determination that foreign producers of grain-oriented electrical steel are causing injury to the two U.S. producers and their workers. The preliminary injury determination means that the case against producers in seven countries will proceed.

AK Steel Corp. and ATI Allegheny Ludlum, along with the United Steel Workers, filed petitions charging that unfairly traded imports of grain-oriented electrical steel from China, the Czech Republic, Germany, Japan, Poland, Russia and South Korea were causing material injury to the domestic injury. Antidumping cases were filed against all seven countries, in addition to a countervailing duty case against China alleging government subsidization of Chinese producers.

“The ITC’s determination confirms our belief that dumping and foreign government subsidization are violating U.S. laws and WTO rules. We look forward to the next step in this important case and to restoration of fair competition in the U.S. market for grain-oriented electrical steel,” says Richard J. Harshman, chairman, president and CEO of Allegheny Technologies Inc., parent company of ATI Allegheny Ludlum.

The case now moves to the U.S. Department of Commerce to determine whether the foreign producers are violating antidumping law by selling their products at less than fair value in the United States, and countervailing duty law covering government subsidies. The Commerce Department will calculate antidumping margins, which are designed to offset the amount by which the product is sold at less than fair value.

“Imports of unfairly low priced steel from the seven countries have caused injury to the domestic industry and its workers, and devastated pricing in the U.S. market,” says David A. Hartquist of Kelley Drye & Warren, LLP, attorney for petitioners. “We appreciate the fact that the ITC has recognized this in its preliminary injury decision. The focus now turns to the Commerce Department, where we will be working aggressively to prove the substantial antidumping and countervailing duty margins demonstrated in our petition.”

The domestic industry claims the dumping margins range from 38.54 percent to 257.61 percent, reflecting the amount of additional import duties that would be imposed on grain-oriented electrical steel imports from the various countries.

Estimated antidumping duties will be collected from importers on the date of the Commerce Department’s preliminary determination on March 13, 2014. If foreign producers attempt to “beat the clock” by making massive shipments into the U.S. market before the Commerce Department’s preliminary determination, antidumping duties can be imposed retroactively beginning 90 days prior to the preliminary determination. The preliminary determination in the Chinese subsidy case will be made by Commerce on Dec. 30.

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