US DOC finds subsidies on Chinese steel products

Thursday, 29 October 2009 07:34:41 (GMT+3)   |  
       

On October 27, the US Department of Commerce (DOC) announced its affirmative preliminary determinations in the CVD investigations on imports of prestressed concrete steel wire strand and on imports of steel grating, both from China.

Accordingly, the DOC has preliminarily determined that Chinese producers/exporters of prestressed concrete steel wire strand have received net countervailable subsidies ranging from 7.53 to 12.06 percent. Mandatory respondents, Fasten Group Import & Export Co., Ltd. and Xinhua Metal Products Co., have received preliminary subsidy rates of 7.53 and 12.06 percent, respectively, while all other producers/exporters have received a subsidy rate of 9.80 percent.

Meanwhile, the DOC preliminarily determined that Chinese producers/exporters of steel grating have received net countervailable subsidies of 7.44 percent. Mandatory respondent, Ningbo Jiulong Machinery Manufacturing Company, has received a net subsidy rate of 7.44 percent, and all other Chinese exporters have received a net subsidy rate of 7.44 percent.

As a result of the preliminary determinations in question, the DOC will instruct US Customs and Border Protection to collect a cash deposit or bond on imports of prestressed concrete steel wire strand and on imports of steel grating from China.

The merchandise covered by the certain prestressed concrete steel wire strand investigation is a collection of wire rod bars, typically covered with an epoxy material and is primarily used in concrete construction applications. The prestressed concrete steel wire strands are currently classifiable under the subheadings 7312.10.3010 and 7312.10.3012 of the Harmonized Tariff Schedule of the United States (HTSUS).

On the other hand, the products covered by the steel grating investigation, consist of steel grating, two or more pieces of steel, including load-bearing pieces and cross pieces, joined by any assembly process, regardless of: (1) size or shape; (2) method of manufacture; (3) metallurgy (carbon, alloy, or stainless); (4) the profile of the bars; and (5) whether or not they are galvanized, painted, coated, clad or plated. The merchandise is currently classified in the HTSUS under item number: 7308.90.7000.

According to the US International Trade Commission (ITC) data, in 2008 the imports of prestressed concrete steel wire strand from China to the US were valued at an estimated $178 million, while from 2006 to 2008 imports of steel grating from China increased 538.44 percent by volume and were valued at an estimated $90.7 million in 2008.

PC strand

2006

2007

2008

Volume (kg)

391,368

353,936

381,656

Value (US$)

112,237,000 

102,110,000

178,008,000

Steel grating

2006

2007

2008

Volume (kg)

9,337,923

14,449,650

59,616,861

Value (US$)

8,819,496

13,699,418

90,671,110

The DOC is currently scheduled to issue its final determination for the prestressed concrete steel wire strand investigation on January 11, 2010 and for the steel grating investigation on March 13, 2010. If the DOC makes affirmative final determinations, and the ITC makes affirmative final determinations that imports of the subject products from China materially injure, or threaten material injury to, the domestic industry, the DOC will issue countervailing duty orders.


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