U.S. Producers of Corrosion Resistant Steel File Antidumping and Countervailing Duty Petitions Against Five Countries

WASHINGTON, June 3, 2015 /PRNewswire/ – Six  major U.S. steel producers – United States Steel Corporation, Nucor Corporation, Steel Dynamics, Inc., ArcelorMittal USA, AK Steel Corporation and California Steel Industries – today filed antidumping and countervailing duty petitions charging that unfairly traded imports of corrosion-resistant steel from China, India, Italy, South Korea and Taiwan are causing material injury to the domestic industry and that significant subsidies have been provided to producers by the governments of those countries.  The petitions were filed concurrently with the United States Department of Commerce ("Commerce Department") and the United States International Trade Commission ("USITC").  The five countries covered by the antidumping petitions and the dumping margins alleged by the domestic industry are as follows:

The petitions also allege that the foreign producers benefit from numerous countervailable subsidies.  The petitions identify 48 different subsidy programs in China, 88 subsidy programs in India, 12 subsidy programs in Italy, 43 subsidy programs in Korea and 22 subsidy programs in Taiwan.

The petitions were filed in response to large and increasing volumes of low-priced imports of corrosion-resistant steel from the subject countries over the past three years that have injured U.S. producers.  Imports of corrosion-resistant steel from the five countries targeted by this case increased by 85 percent between 2012 and 2014, from 1.5 million tons to 2.75 million tons.  Subject imports increased further in the first quarter of 2015 from 600,000 to 800,000 tons.   In 2014, the five countries exported more than $2.2 billion of corrosion-resistant steel to the United States.

The petitions allege that producers in the subject countries have injured the domestic industry by selling their products at unfairly low prices that significantly undercut the prices of U.S. producers.  As a result, subject imports have captured an increasing share of the U.S. market at the direct expense of the U.S. industry.  During a period of robust and increasing U.S. demand for corrosion-resistant steel, U.S. producers have suffered significant declines in production, shipments and profits.  Foreign producers in the countries covered by the petitions have massive capacity to produce corrosion-resistant steel and have been exporting large and increasing volumes of unfairly low-priced and subsidized corrosion-resistant steel to the United States.  The price declines that U.S. producers have suffered are likely to continue if duties are not imposed to level the playing field.

"Imports of unfairly-traded corrosion-resistant steel have devastated pricing in the U.S. market, increased their share of the U.S. market by undercutting U.S. producers' prices and caused injury to U.S. producers and their workers," according to counsel for the domestic petitioners.  "The domestic industry looks forward to the opportunity to present its case to the Commerce Department and U.S. International Trade Commission to obtain relief from these unfairly-priced imports."

FACT SHEET

Antidumping and countervailing duties:  Antidumping duties are intended to offset the amount by which a product is sold at less than fair value, or "dumped," in the United States.  The margin of dumping is calculated by the Commerce Department.  Estimated duties in the amount of the dumping are collected from importers at the time of importation.  Countervailing duties are intended to offset unfair subsidies that are provided by foreign governments and benefit the production of a particular good.  The USITC, an independent agency, will determine whether the domestic industry is materially injured or threatened with material injury by reason of the unfairly traded imports.

Next steps:   The Commerce Department will determine whether to initiate the antidumping and countervailing duty investigations within 20 days of today's filing of the petitions and the USITC will reach a preliminary determination of material injury or threat of material injury within 45 days of today's filing.  The entire investigative process will take approximately one year, with final determinations of dumping, subsidization, and injury likely occurring in the summer of 2016.

Product description:  Corrosion-resistant steel is steel sheet that has been coated or plated with a corrosion-or heat-resistant metal to prevent corrosion and thereby extend the service life of the products made from the steel.  Steel coated with zinc, aluminum, or any of several zinc-aluminum alloys comprises most of the product at issue.  Based on these unique product characteristics, corrosion-resistant steel is widely used in construction applications such as roofing, siding, hardware, roof and bridge decks, guard rails, and culverts.   Corrosion-resistant steel is also used in the manufacture of automobiles, trucks, appliances, industrial equipment and agricultural equipment. 

Petitioning companies:  The petitioning companies and their law firms are  United States Steel Corporation (represented by Skadden, Arps, Slate, Meagher & Flom LLP), Nucor Corporation (represented by Wiley Rein LLP), ArcelorMittal USA (represented by Kelley Drye & Warren LLP), Steel Dynamics, Inc. and California Steel Industries (represented by Schagrin Associates), and AK Steel Corporation (represented by King & Spalding LLP).

SOURCE Kelley Drye & Warren LLP