US Commerce Department releases preliminary determinations on imports of corrosion-resistant steel

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On Nov. 3, 2015, the U.S. Department of Commerce announced its preliminary affirmative determinations in the countervailing duty (CVD) investigations of imports of corrosion-resistant steel products from China, India, Italy, Korea and its preliminary negative determination in the CVD investigation of imports of corrosion-resistant steel products from Taiwan.

In the China investigation, the agency preliminarily determined that mandatory respondent Yieh Phui (China) Technomaterial Co. Ltd. received a subsidy rate of 26.26 percent. Mandatory respondents Angang Group Hong Kong Co. Ltd., Baoshan Iron & Steel Co. Ltd., Duferco S.A. (and its cross-owned companies Hebei Iron & Steel Group and Tangshan Iron and Steel Group Co. Ltd.), Changshu Everbright Material Technology and Handan Iron & Steel Group either notified Commerce that they would not participate in this investigation or did not participate in the investigation. As a result, these companies received a subsidy rate of 235.66 percent based on adverse facts available following Commerce’s preliminary determination that the companies had not cooperated in the investigation. All other producers/exporters in China have been assigned a preliminary subsidy rate of 26.26 percent, Commerce states.

In the India investigation, Commerce preliminarily determined that mandatory respondents JSW Steel Ltd. received a subsidy rate of 2.85. Respondent Uttam Galva Steels Ltd. preliminarily received a subsidy rate of 7.71 percent. The agency says all other producers/exporters in India have been assigned a preliminary subsidy rate of 5.28 percent.

In the Italy investigation, Commerce says it preliminarily determined that mandatory respondents Acciaieria Arvedi S.p.A. and Marcegaglia S.p.A. received subsidy rates of 0.38 percent and 0.04 percent, respectively, which are de minimis. Respondent Ilva S.p.A., which did not participate in this investigation, according to the agency, received a subsidy rate of 38.41 percent based on adverse facts available following Commerce’s preliminary determination that the company had not cooperated in the investigation. All other producers/exporters in Italy have been assigned a preliminary subsidy rate of 13.06 percent, the agency says. 

In the Korea investigation, Commerce preliminarily determined that mandatory respondents Dongbu Steel Co. Ltd./Dongbu Incheon Steel Co. Ltd. received a subsidy rate of 1.37 percent and Union Steel Manufacturing Co. Ltd./Dongkuk Steel Mill Co. Ltd. received a subsidy rate 0.69 percent, which is de minimis. All other producers/exporters in Korea have been assigned a preliminary subsidy rate of 1.37 percent, the agency reports.

In the Taiwan investigation, Commerce says it preliminarily determined that mandatory respondents Prosperity Tieh Enterprise Co. Ltd., Hong-Ye Steel Co. Ltd., Prosperity Did Enterprise Co. Ltd. and Chan Lin Enterprise Co. Ltd. (collectively Prosperity Cos.) and Yieh Phui Enterprise Co. Ltd., Yieh Corp. Ltd., Shin Yang Steel Co. Ltd. and Synn Industrial Co. Ltd. (collectively Yieh Phui Cos.) received subsidy rates of 0 percent. Because the preliminary determination is negative, no “all others” rate has been applied to any other producers/exporters in Taiwan.

As a result of the preliminary affirmative determinations, Commerce says it will instruct U.S. Customs and Border Protection to require cash deposits based on these preliminary subsidy rates.

Commerce states that it found that critical circumstances exist with respect to certain exporters from China, Italy, Korea and Taiwan. Where critical circumstances were found with respect to China, Italy and Korea, CBP will be instructed to impose provisional measures retroactively on entries of corrosion-resistant steel from those exporters, up to 90 days prior to publication of the respective preliminary determination Federal Register notice.

No critical circumstances were found with respect to exports of corrosion-resistant steel from India.

Because of Commerce’s preliminary negative determination with respect to Taiwan, retroactive provisional measures will not be applied.

The products covered by these investigations are certain flat-rolled steel products, either clad, plated or coated with corrosion-resistant metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-based alloys, whether or not corrugated or painted, varnished, laminated or coated with plastics or other non-metallic substances in addition to the metallic coating.

The products covered include coils that have a width of 12.7 millimeters or greater, regardless of form of coil, and those not in coils with a thickness of less than 4.75 millimeters and a width that is 12.7 millimeters or greater and that measure at least 10 times the thickness. The products covered also include straight products of a thickness of 4.75 millimeters or more and a width exceeding 150 millimeters and measuring at least twice the thickness.

The petitioners for these investigations are United States Steel Corp., Nucor Corp., ArcelorMittal USA, AK Steel Corp., Steel Dynamics Inc. and California Steel Industries Inc.

Steel Dynamics Inc., Fort Wayne, Indiana, has commented that it is pleased with the agency’s preliminary findings.  

The company produces corrosion-resistant steel, including hot-dipped galvanized, Galvalume® and painted steel at two facilities in Indiana, one facility in Mississippi and three facilities in Pennsylvania.

Steel Dynamics is the largest nonautomotive producer of galvanized flat-roll steel in the United States. The product is used in many construction applications, automotive parts and numerous consumer products. 

Commerce will finalize its subsidy findings by the end of January 2016, unless the petitioners request an alignment of the subsidy final determinations with final antidumping duty determinations. That decision has not yet been made. Commerce will issue preliminary antidumping determinations against these same five countries Dec. 22, 2015. Friday, Oct. 30, Commerce made preliminary critical circumstances findings based upon import surges from China, Korea and Taiwan. 

Total 2014 corrosion-resistant flat-roll steel imports from these five countries equaled $2.2 billion, representing more than 50 percent of total 2014 corrosion-resistant steel imports, SDI says. For these duties to eventually go into effect, the International Trade Commission will need to make affirmative determinations of injury or threat of injury in 2016.