Dec. 17, 2014
ITC Finds China Dumped Wire Rod
The U.S. International Trade Commission has made a final determination that imports of carbon and certain alloy steel wire rod from China were dumped and subsidized, causing injury to U.S. producers. As a result, antidumping duties and countervailing duty orders will be issued in the coming months by the U.S. Commerce Department.
This was the final step in the antidumping and countervailing duty investigation and follows the November ruling by Commerce that Chinese producers were dumping wire rod at margins ranging from 106.19 to 110.25 percent. Commerce also determined that producers/exporters of wire rod from China received countervailable subsidies ranging from 178.46 percent to 193.31 percent.
ArcelorMittal USA LLC, Charter Steel, Evraz Pueblo, Gerdau Ameristeel U.S. Inc., Keystone Consolidated Industries Inc. and Nucor Corp. filed the petition in January charging that unfairly traded imports of wire rod from China were causing material injury to the domestic industry. Imports from China surged from 144,000 tons in 2011 to over 600,000 tons in 2013. By 2013, China was the largest source of wire rod imports to the U.S., valued at more than $335 million.
“We have maintained throughout this case that the skyrocketing volume of wire rod imports from China has injured the domestic industry with aggressive, dumped and subsidized prices. The domestic industry is extremely pleased that the commission agreed and that the Chinese producers will now be subject to the discipline of trade orders to offset these practices,” says Paul Rosenthal of Kelley Drye, the lead counsel to the petitioners.
Following the imposition of duties, importers of wire rod will be required to deposit estimated antidumping and countervailing duties at the time of entry into the U.S.. The orders will remain in place for a minimum period of five years and may be renewed in five-year increments.