Continued investigations into corrosion-resistant steel exports expected

The United States International Trade Commission (USITC) determined July 16, 2015, in a unanimous vote that there is a reasonable indication that the U.S. steel industry is threatened with material injury by reason of imports of certain corrosion-resistant steel products from China, India, Italy, Korea and Taiwan that are allegedly subsidized and sold in the U.S. at less-than-fair value.

As a result of the USITC’s affirmative determinations, the U.S. Department of Commerce will continue to investigate imports of these products from China, India, Italy, Korea and Taiwan, with its preliminary countervailing duty determinations due on or about Aug. 27, 2015, and its preliminary antidumping duty determinations due on or about Nov. 10, 2015.

The USITC’s public report, “Certain Corrosion-Resistant Steel Products from China, India, Italy, Korea and Taiwan” (Investigation Nos. 701-TA-534-538 and 731-TA-1274-1278 (Preliminary), USITC Publication 4547, July 2015) will contain the views of the c and information developed during the investigations. The report will be available after Aug. 17, 2015.  After that date, it may be accessed on the USITC website at  http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

Fort Wayne, Indiana-based Steel Dynamics Inc., which, along with AK Steel Corp., ArcelorMittal USA, California Steel Industries, Nucor Corp. and United States Steel Corp., petitioned the commission, has applauded this decision.

Citing evidence of the import surge in the U.S. steel producers' petition, corrosion-resistant sheet steel increased 85 percent, from 1.5 million to 2.75 million tons from 2012 to 2014 from the five subject countries. Additionally, these countries have increased their tonnage of these imports by more than 30 percent to 800,000 tons from 600,000 tons in the first quarter of 2015, more than doubling their share between 2012 and the end of March 2015.

Mark D. Millett, CEO of Steel Dynamics, says, “We are pleased the ITC has confirmed that the flood of unfairly traded imports of corrosion-resistant sheet steel has materially impacted our shipments, pricing and profitability. SDI believes in fair trade, but the U.S. has become a dumping ground for world excess steel capacity."

Steel Dynamics produces corrosion-resistant steel, including hot-dipped galvanized, Galvalume® and painted steel at its facilities in Butler and Jeffersonville, Indiana; Columbus, Mississippi; and three facilities (The Techs) in the Pittsburgh metropolitan area. The product is used in many construction applications as well as in automotive parts and numerous consumer products.    

Dick Teets, president and chief operating officer of steel operations at Steel Dynamics, says, “Our company will not hesitate to continue to act with other U.S. producers to address unfair trade that harms the livelihood of over 7,600 SDI employees and usurps our shareholders’ value.”