eBearing news - USITC Finds 11 Countries Likely Dumping Hot-Rolled Steel

The U.S. International Trade Commission today ruled there is "reasonable indication" U.S. manufacturers of hot-rolled steel products are being materially injured by imports from eleven countries. The complaint said hot-rolled steel products from those eleven countries are being sold in the United States below the true cost of production (dumping).

Countries accused of dumping hot-rolled steel products in the U.S. are Argentina, China, India, Indonesia, Kazkhastan, The Neterlands, Romania, South Africa, Taiwan, Thailand and Ukrane.

The Commission's determination means only that it will continue to conduct investigations into the dumping allegations. If material injury is proven and duties are deemed the appropriate solution, preliminary determinations of countervailing duties will be due February 6, 2001 and preliminary antidumping duty determinations on April 23, 2001. If duties are levied, it could take as long as a year to construct the tariff schedules and start imposing the duties.

A consortium of steel unions and manufacturers filed the original complaint in mid-November. The companies are Bethlehem Steel Corp., Gallatin Steel Co., IPSCO, Inc., LTV Steel Co., Nucor Corp., Steel Dynamics, Inc., U.S. Steel Group of USX Corp., Weirton Steel.

The complainants alleged that the dumping was to such a degree that imported steel producers had gone from a per-ton profit of $30 in 1997 to a loss of at least $7 in 1999.

Copies of today's full USITC report are expected to be available after January 26, 2001.

About the USITC

The United States International Trade Commission is an independent, quasi-judicial federal agency that provides objective trade expertise to the U.S. government, determines the impact of imports on U.S. industries and directs actions against certain unfair trade practices.

Specifics of the hot-rolled steel products under consideration:
(from the USITC complaint)

Hot-rolled flat-rolled carbon steel products of a rectangular shape, of a width of 0.5 inch or greater, neither clad, plated, nor coated with metal and whether or not painted, varnished or coated with plastics or other nonmetallic substances, in coils (whether or not in successively superimposed layers) regardless of thickness, or in straight lengths, of a thickness less than 4.75mm and of a width measuring at least 10 times the thickness. This excludes universal mill plate. Specifically included are vacuum degassed, full stabilized and interstitial-free steels (IF), high strength low alloy steels (HSLA), and the substrate for motor lamination steels. Steels that are regarded as alloy steels are excluded from these investigations. These products are primarily classified in HTS headings 7208, 7210, 7211, and 7212. IF, HSLA and motor lamination substrate steels, may be classified in HTS headings of 7225 and 7226.

Specifics of the U.S. Industry Segment under Consideration:

Number of U.S. firms reporting production of hot-rolled steel products: 20

Plant locations: Alabama, Arkansas, California, Illinois, Indiana, Michigan, Ohio, Pennsylvania, South Carolina, Texas, West Virginia.

1999 manufacturing employment in those facilities: 29,687

1999 U.S. producer's U.S. shipments: 59,689,992 short tons (USD $17 billion)

1999 Open market shipments: 21,561,335 short tons (USD $6.2 billion)

1999 U.S. apparent consumption: 66,001,452 short tons (USD $18.6 billion)

1999 Open market consumption: 27,872,795 short tons (USD $7.9 billion)

1999 imports from the eleven subject countries:

3,087,677 short tons ($743.7 million)

4.7% by quantity

4.0% by value

1999 imports from other sources:

3,223,783 short tons ($915.8 million)