On November 13, 2014, the Department of Commerce (Commerce) announced its affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of carbon and certain alloy steel wire rod from the People’s Republic of China (China).

Commerce determined that imports of carbon and certain alloy steel wire rod from China have been sold in the United States at dumping margins ranging from 106.19 percent to 110.25 percent.  Furthermore, Commerce also determined that producers/exporters of carbon and certain alloy steel wire rod from China have received countervailable subsidies ranging from 178.46 percent to 193.31 percent.

As a result of the final affirmative AD determinations, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits equal to the applicable weighted-average dumping margins offset by the amount of export subsidies found in the CVD final determination of 13.01 percent, resulting in a cash deposit rate of 93.18-97.24%.

In the AD investigation, mandatory respondents Benxi Iron and Steel Group Imp. and Exp. Corp. Ltd. and Tangshan Iron and Steel Group Co. Ltd. failed to respond to Commerce’s requests for information and were deemed to be part of the China-wide entity. Accordingly, they received a final dumping margin of 110.25 percent. Separate rate applicants Hunan Valin Xiangtan Iron & Steel Co., Ltd. (Hunan Valin), Jiangsu Shagang International Trade Co., Ltd. (Shagang), and Rizhao Steel Wire Co., Ltd. (Rizhao) each received a final dumping margin of 106.19 percent. All other
producers/exporters in China received the China-wide margin of 110.25 percent.

In the CVD investigation, mandatory respondent Benxi Beiying Iron & Steel Group Import & Export Corp., Benxi Beiying Iron & Steel (Group) Co., Ltd., and 13 affiliates (collectively Benxi Steel) received a final subsidy rate of 193.31 percent. Mandatory respondent Hebei Iron & Steel Co. Ltd. Tangshan Branch (Hebei Iron & Steel) received a final subsidy rate of 178.46 percent. All other producers/exporters in China were assigned a final subsidy rate of 185.89 percent.

The petitioners for these investigations are ArcelorMittal USA LLC (IL), Charter Steel (WI), Evraz Pueblo (formerly Evraz Rocky Mountain Steel) (CO), Gerdau Ameristeel US Inc. (FL), Keystone Consolidated Industries, Inc. (TX), and Nucor Corporation (NC).

The merchandise covered by these investigations is certain hot-rolled products of carbon steel and alloy steel, in coils, of approximately circular cross section, less than 19.00 mm in actual solid cross-sectional diameter.  Specifically excluded are steel products possessing the above-noted physical characteristics and meeting the Harmonized Tariff Schedule of the United States (HTSUS) definitions for (a) stainless steel; (b) tool steel; (c) high nickel steel; (d) ball bearing steel; or (e) concrete reinforcing bars and rods.  Also excluded are free cutting steel (also known as free machining steel) products (i.e. products that contain by weight one or more of the following elements: 0.1 percent or more of lead, 0.05 percent or more of bismuth, 0.08 percent or more of sulfur, more than 0.04 percent of phosphorus, more than 0.05 percent of selenium, or more than 0.01 percent of tellurium).

The ITC is scheduled to make its final injury determination on or before December 26, 2014.

If the ITC makes an affirmative final determination that imports of carbon and certain alloy steel wire rod from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD and CVD orders. If the ITC makes a negative determination of injury, the investigations will be terminated and deposits will be refunded.

In 2013, imports of carbon and certain alloy steel wire rod from China were valued at an estimated $313 million.

If you have questions about this AD/CVD duties or the scope of this determination, please contact Frohsin & Barger.