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(R), 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.
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