Market reacts to US import HDG trade case preliminary margins

The USITC last week announced they found countervailable subsidization of imports of corrosion-resistant steel products from China, Italy, India and Korea; they did not find countervailable subsidization of imports from Taiwan.  Chinese mills were hit the hardest, as the USITC has determined preliminary subsidy rates between 26.26 percent and 235.66 percent; preliminary rates against Indian steel producers are between 2.85 percent and 7.71 percent; preliminary rates against Italian producers are between 0.04 percent and 38.41 percent; preliminary rates against Korean producers are between 0.69 percent and 1.37 percent.

Market sources, however, say the announcement has come without fanfare.  “Inventories are still pretty high and no one is buying anything of significance right now anyway,” one source said.  And while some buyers have an interest in learning what the final outcome will be against Indian producers, as the preliminary margins are low enough to get some attention,  it is unlikely that people will have an interest in placing orders with mills in that country until after the final determinations are announced on Jan. 19, 2016.

Import Galvalume offers to the US	Cwt.	Metric ton (mt)	Net ton (nt)	Change from last week
0.019x41.5625 Gr80/AZ55
Brazil*	$37-$39	$816-$838	$740-$760	neutral but flexible
Mexico	$37-$39	$816-$838	$740-$760	neutral but flexible
*DDP loaded truck in US Gulf ports