On March 3, 2017, the U.S. International Trade Commission (“ITC”) issued two affirmative determinations in favor of clients represented by Kelley Drye & Warren. The ITC unanimously determined that U.S. producers of stainless sheet and strip and carbon and alloy steel cut-to-length plate are being materially injured by dumped and subsidized imports from China. As a result, antidumping duty and countervailing duty orders will soon be issued by the U.S. Department of Commerce for both products.
Stainless Steel Sheet and Strip from China
The antidumping and countervailing duty petitions regarding stainless steel sheet and strip from China were filed in February 2016 on behalf of AK Steel Corporation, Allegheny Ludlum, LLC d/b/a ATI Flat Rolled Products, North American Stainless, and Outokumpu Stainless USA LLC. Between 2013 and 2015, imports of stainless sheet and strip from China increased by 133 percent and receded from the U.S. market only after the trade case was filed. In 2015, China was the largest foreign supplier of stainless sheet and strip to the U.S. market, accounting for nearly half of total U.S. imports of that product.
As a result of the affirmative ITC and Commerce Department decisions, importers must post estimated dumping duties ranging from 63.86 to 76.64 percent and countervailable subsidy duties of 75.60 to 190.71 percent for all Chinese producers and exporters.
Carbon and Certain Alloy Cut-To-Length (“CTL”) Plate from China
Antidumping and countervailing duty petitions against CTL plate from China were filed on April 8, 2016, along with petitions against CTL plate from Austria, Belgium, Brazil, France, Germany, Italy, Japan, Korea, South Africa, Taiwan, and Turkey. The petition was filed on behalf of U.S. producers ArcelorMittal USA LLC, Nucor Corporation, and SSAB Enterprises, LLC.
In January 2017, the Commerce Department issued its final determinations that Chinese producers sold CTL plate in the U.S. market at less than fair value and benefited from countervailable subsidies during the period of investigation. The final dumping margin assigned to all Chinese producers and exporters is 68.27 percent and the final subsidy margin is 251 percent. U.S. producers previously obtained relief from unfair imports of CTL plate from Brazil, South Africa, and Turkey in January 2017 and antidumping duty orders were published on February 1, 2017. The Commerce Department will issue its final determinations later this month and the ITC will issue its final injury determination in mid-April.
The imposition of these significant antidumping and countervailing duties will help to provide much needed relief to the domestic stainless steel sheet and strip and CTL plate industries.