US stainless bar producers are expressing concerns regarding the high level of level of imports and import penetration in the US market. At the recent event, Dennis M. Oates, Chairman, President and Chief Executive Officer of Universal Stainless & Alloy Products, Inc. and Chairman of the Specialty Steel Industry of North America (SSINA) addressed these concerns as part of a presentation on the current state of the stainless steel market.
Oates noted that “the significant growth in US imports of stainless bar over the past three years, and the fact that those imports comprise more than half of the total US market, reaching a peak of more than 55 percent in 2015.” Those trends are continuing in 2016, Oates said, with import penetration still in excess of 50 percent. Italy, Taiwan, Germany and India have accounted for the majority of US imports of stainless steel bar during this period.
India, in particular, has become an issue of concern, according to the SSINA. Despite a recent prohibition on imports from the major Indian stainless steel bar manufacturer, Viraj Profiles Ltd., imports from India remain at very high levels. Imports surged just before the prohibition went into effect, rising from 543 tons in April to 951 tons in May to 1,912 tons in June to 2,109 tons in July – a 350 percent increase in only 3 months.
Oates noted that “the significant growth in US imports of stainless bar over the past three years, and the fact that those imports comprise more than half of the total US market, reaching a peak of more than 55 percent in 2015.” Those trends are continuing in 2016, Oates said, with import penetration still in excess of 50 percent. Italy, Taiwan, Germany and India have accounted for the majority of US imports of stainless steel bar during this period.
India, in particular, has become an issue of concern, according to the SSINA. Despite a recent prohibition on imports from the major Indian stainless steel bar manufacturer, Viraj Profiles Ltd., imports from India remain at very high levels. Imports surged just before the prohibition went into effect, rising from 543 tons in April to 951 tons in May to 1,912 tons in June to 2,109 tons in July – a 350 percent increase in only 3 months.
US stainless bar producers recently filed a request to reinstate the long standing antidumping duty order on stainless bar from India, as to two producers: Viraj Profiles Ltd. and Venus Wire Industries Pvt. Ltd. The request to reinstate is now pending with the Department of Commerce. Both Viraj and Venus Wire were conditionally revoked from the antidumping duty order after receiving zero or de minimis dumping margins for three consecutive administrative review periods in 2004 and 2011, respectively.
The Commerce Department granted revocation to Viraj Profiles and Venus Wire contingent on their agreement to immediate reinstatement of the order if they were later found to have resumed dumping stainless steel bar into the US market. The domestic producers allege in their petition that both Viraj Profiles and Venus Wire have resumed dumping and should be brought back under the order.
In past years, US stainless bar producers successfully filed numerous antidumping cases against foreign producers from countries engaged in unfair trade practices, such as dumping and subsidization. “We will not hesitate to use these laws again if the circumstances warrant,” said Oates.