US ITC ratifies duties on imports of Chinese steel wire rod products

SEATTLE (Scrap Monster): The United States International Trade Commission (US ITC) on Monday decided to impose Antidumping and Countervailing Duties on steel wire rod imports from China. According to the Commission, Chinese rod imports have injured the domestic steelmakers in the country. Subsequently, the commissioners voted unanimously to enact dumping margins and subsidy rates exceeding 100%.

The US Department of Commerce found dumping margins of 106.19-110.25% for all Chinese producers and exporters with applicable cash deposit rates of 93.18-97.24%. Commerce also found subsidy rates of 178.46% for Hebei Iron & Steel, 193.31% for Benxi Steel and 185.89% for all other Chinese rod producers and exporters.

Contrary to Commerce ruling that critical circumstances existed for all Chinese rod exporters in the countervailing case, the US ITC voted unanimously that critical circumstances did not exist. Incidentally, ITC have not made an affirmative ruling on critical circumstances in past several years.

According to Department of Commerce data, Chinese wire rod exports to the United States surged to 561,400 mt in 2013, 156% higher when compared with the exports of 219,500 mt in 2012. The country had imported only 130 mt of Chinese wire rod in 2011.

The punitive duties are being imposed based on complaints filed early January this year by Arcelor Mittal, Charter Steel, Evraz Pueblo, Gerdau Ameristeel, Keystone Consolidated Industries and Nucor Corporation. These companies had lodged complaints saying that the wire rod products are being sold below the fair price in the US market and that the Chinese exporters along with the producers are being granted unjust government subsidies.