The US Department of Commerce (Commerce) announced Wednesday its preliminary affirmative determinations in the countervailing duty (CVD) investigations of imports of corrosion-resistant steel products from China, India, Italy, Korea, and its preliminary negative determination in the CVD investigation of imports of corrosion-resistant steel products from Taiwan.
In the China investigation, Commerce preliminarily determined that mandatory respondent Yieh Phui (China) Technomaterial Co., Ltd. received a subsidy rate of 26.26 percent. Mandatory respondents Angang Group Hong Kong Company Ltd., Baoshan Iron & Steel Co., Ltd., Duferco S.A. (and its cross-owned companies Hebei Iron & Steel Group, and Tangshan Iron and Steel Group Co., Ltd.), Changshu Everbright Material Technology, and Handan Iron & Steel Group either notified Commerce that they would not participate in this investigation or did not participate in the investigation. As a result, these companies received a subsidy rate of 235.66 percent based on adverse facts available following Commerce’s preliminary determination that the companies had not cooperated in the investigation. All other producers/exporters in China have been assigned a preliminary subsidy rate of 26.26 percent.
In the India investigation, Commerce preliminarily determined that mandatory respondents JSW Steel Limited received a subsidy rate of 2.85. Respondent Uttam Galva Steels Limited preliminarily received a subsidy rate of 7.71 percent. All other producers/exporters in India have been assigned a preliminary subsidy rate of 5.28 percent.
In the Italy investigation, Commerce preliminarily determined that mandatory respondents Acciaieria Arvedi S.p.A. and Marcegaglia S.p.A. received subsidy rates of 0.38 percent and 0.04 percent, respectively, which are de minimis. Respondent Ilva S.p.A., which did not participate in this investigation, received a subsidy rate of 38.41 percent based on adverse facts available following Commerce’s preliminary determination that the company had not cooperated in the investigation. All other producers/exporters in Italy have been assigned a preliminary subsidy rate of 13.06 percent.
In the Korea investigation, Commerce preliminarily determined that mandatory respondents Dongbu Steel Co., Ltd./Dongbu Incheon Steel Co., Ltd. (Dongbu) received a subsidy rate of 1.37 percent and Union Steel Manufacturing Co. Ltd./Dongkuk Steel Mill Co., Ltd. (Union/Dongkuk) received a subsidy rate 0.69 percent, which is de minimis. All other producers/exporters in Korea have been assigned a preliminary subsidy rate of 1.37 percent.
In the Taiwan investigation, Commerce preliminarily determined that mandatory respondents Prosperity Tieh Enterprise Co., Ltd. (PT); Hong-Ye Steel Co., Ltd. (HY); Prosperity Did Enterprise Co., Ltd. (PD); and Chan Lin Enterprise Co., Ltd. (CL) (collectively Prosperity Companies) and Yieh Phui Enterprise Co., Ltd. (Yieh Phui); Yieh Corporation Limited (YCL); Shin Yang Steel Co., Ltd. (Shin Yang); and Synn Industrial Co., Ltd (Synn) (collectively Yieh Phui Companies) received subsidy rates of 0.00 percent, which is de minimis. Because the preliminary determination is negative, no “all others” rate has been applied to any other producers/exporters in Taiwan.
Commerce preliminary found that critical circumstances exist with respect to certain exporters from China, Italy, Korea, and Taiwan. Where critical circumstances were found with respect to China, Italy, and Korea, CBP will be instructed to impose provisional measures retroactively on entries of corrosion-resistant steel from those exporters, up to 90 days prior to publication of the respective preliminary determination Federal Register notice. No critical circumstances were found with respect to exports of corrosion-resistant steel from India. Because of Commerce’s preliminary negative determination with respect to Taiwan, retroactive provisional measures will not be applied.
The petitioners for these investigations are United States Steel Corporation (PA), Nucor Corporation(NC), ArcelorMittal USA (IL), AK Steel Corporation (OH), Steel Dynamics, Inc. (IN), and California Steel Industries, Inc. (CA).
In 2014, imports of corrosion-resistant steel products from China, India, Italy, Korea, and Taiwan were valued at an estimated $685 million, $379.5 million, $99.1 million, $416.7 million, and $577.5 million, respectively, for a total of $2.2 billion.
Commerce is scheduled to announce its final determination on or about January 19, 2016; unless the statutory deadline is extended. If Commerce makes affirmative final determinations, and the US International Trade Commission (ITC) makes affirmative final determinations that imports of China, India, Italy, Korea, and/or Taiwan materially injure, or threaten material injury to, the domestic industry, Commerce will issue CVD orders. If either Commerce’s or the ITC’s final determinations are negative, no CVD orders will be issued. The ITC is scheduled to make its final injury determinations in March 2016.