In response to the imposition of provisional duties by China's Ministry of Commerce (MOC) on imported grain-oriented electrical steel products, US flat rolled steelmaker AK Steel Corp. has released a statement expressing its disappointment regarding the duties in question.
James L. Wainscott, chairman, president and CEO of AK Steel, commented, "AK Steel is very disappointed by the MOC's preliminary findings, which we believe lack any factual or legal basis. We will continue to participate in the ongoing antidumping and antisubsidy investigations and will urge the MOC to reach negative final determinations. We would expect to vigorously appeal any adverse final decisions."
Mr. Wainscott added, "Notwithstanding the imposition of Chinese tariffs, AK Steel's electrical steel business serves customers in every part of the globe who appreciate the energy efficiency, quality, delivery and service we provide. A substantial portion of our 2009 electrical steel shipments were outside of NAFTA, with sales to China representing a relatively small percentage of our total sales of electrical steel. Going forward, we will continue to assess growing global market opportunities for electrical steel sales, including China."
Finally, with respect to the outlook for electrical steel, Mr. Wainscott stated, "In light of the recovering economies around the world, AK Steel continues to expect a significantly higher electrical steel shipment level for the year 2010 as compared to 2009."
As SteelOrbis reported on Thursday, the MOC has determined that there was dumping of imports of grain-oriented electrical steel originating from the US and Russia and that the US producers/exporters of grain-oriented electrical steel received subsidies, thus causing material injury to China's domestic grain-oriented flat rolled electrical steel industry.