FORT WAYNE, Ind., Nov. 4, 2015 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) commented that the company is very pleased with yesterday's announcement by the Department of Commerce (DOC) concerning preliminary countervailing duties against imports of corrosion-resistant steel from China and also accepting of the findings related to India and Italy. The company had anticipated minimal results for Taiwan and Korea.
The company produces corrosion-resistant steel including hot-dipped galvanized, Galvalume®, and painted steel at two facilities located in Indiana, one facility located in Mississippi and three facilities located in Pennsylvania. Steel Dynamics is the largest non-automotive producer of galvanized flat roll steel in the United States. The product is used in many construction applications, automotive parts and numerous consumer products.
The DOC found subsidy rates ranging from 26% to 236% against imports from China, the biggest source of corrosion-resistant steel imports into the United States in 2014. The Chinese companies with 236% duties will also have these duties applied retroactively by 90 days because of a preliminary affirmative critical circumstances finding by the DOC as the result of recent import surges from China.
Imports from India, the third largest source of U.S. corrosion-resistant steel imports in 2014, were subjected to subsidy findings of 2.85% to 7.7%. One of the largest Italian producers was given a subsidy rate of 38.4% and was also subject to retroactive duty assessment under critical circumstances. Not unexpected, Korea, the fourth largest source of corrosion-resistant steel imports in 2014, was given negligible subsidy findings and Taiwan, the second largest, received no subsidy findings.
The DOC 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. The DOC will issue preliminary antidumping determinations against these same five countries on December 22, 2015. On Friday, October 30, the Department 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 were $2.2 billion, representing more than 50% of total 2014 corrosion-resistant steel imports. 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.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with annual sales of $8.8 billion in 2014, approximately 7,600 employees, and manufacturing facilities primarily located throughout the United States (including six steel mills, eight steel coating facilities, an iron production facility, approximately 80 metals recycling locations and eight steel fabrication plants).
This press release contains some predictive statements about future events, including statements related to conditions in the steel and metallic scrap markets, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new or existing facilities. These statements are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of uncertain economic conditions; (2) cyclical and changing industrial demand; (3) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for our products, including the strength of the non-residential and residential construction, automotive, appliance, pipe and tube, and other steel-consuming industries; (4) fluctuations in the cost of key raw materials (including steel scrap, iron units, and energy costs) and our ability to pass-on any cost increases; (5) the impact of domestic and foreign import price competition; (6) unanticipated difficulties in integrating or starting up new or acquired businesses; (7) risks and uncertainties involving product and/or technology development; and (8) occurrences of unexpected plant outages or equipment failures.
More specifically, we refer you to SDI's more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K, in our quarterly reports on Form 10-Q or in other reports which we from time to time file with the Securities and Exchange Commission. These are available publicly on the SEC website, www.sec.gov, and on the Steel Dynamics website, www.steeldynamics.com.
SOURCE Steel Dynamics, Inc.