Source: Shanghai Metals Market
The Department of Commerce announced placed preliminary anti-dumping duties on imports of steel concrete reinforcing bar (rebar) from Japan, Taiwan, and Turkey yesterday.
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“Dumping” is determined to occur when a foreign company sells a product in the U.S. at less than its fair value.
Japan Hit Hardest
In the Japan investigation, mandatory respondents Jonan Steel Corporation and Kyoei Steel Ltd. both received preliminary dumping margins of 209.46%. Commerce assigned the preliminary margin of 209.46% to all other producers/exporters of steel concrete rebar from Japan.
In the Taiwan investigation, mandatory respondents Power Steel Co., Ltd. and Lo-Toun Steel and Iron Works Co., Ltd. received preliminary dumping margins of 3.48% and 29.47%, respectively. Commerce assigned the preliminary margin of 5.49% to all other producers/exporters of steel concrete reinforcing bar from Taiwan. As a country, Taiwan got off relatively easy in this dumping case, considering the margins we just saw for Japan.
With rebar a coveted product for large construction projects, it was only a matter of time until dumping was investigated. Source: Jeff Yoders/MetalMiner.
In the Turkey investigation, mandatory respondents Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S. and Icdas Celik Enerji Tersane ve Ulasim Sanayi A.S. received preliminary dumping margins of 5.29% and 7.07%, respectively. Commerce assigned the preliminary margin of 6.20% to all other producers/exporters of steel concrete reinforcing bar from Turkey.
Tariffs for Turkey and Taiwan
This dumping investigation is a separate one from the Turkish rebar countervailing duties investigation we wrote about last week. Countervailing duties are for government-subsidized products, “injurious dumping” is importing and “dumping” products regardless of cost of production. Got that? Good.
Rebar is now a traded steel product on several international exchanges so it was only a matter of time before dumping of it became a hot-button issue for governments with strong infrastructure markets. In 2015, imports of steel concrete rebar from Japan, Taiwan, and Turkey, were valued at an estimated $108.69 million, $17.57 million, and $674.40 million, respectively.
Commerce will instruct U.S. Customs and Border Protection to collect cash deposits based on these preliminary rates. The petitioners for this investigation are the Rebar Trade Action Coalition and its individual members: Byer Steel Group, Inc. of Ohio, Commercial Metals Company in Texas, Gerdau Ameristeel U.S. Inc. down in Florida, Nucor Corporation in Charlotte, N.C., and Steel Dynamics, Inc. of Indiana.
As mentioned above, the merchandise subject to these investigations is steel concrete rebar imported in either straight length or coil form regardless of metallurgy, length, diameter, or grade or lack thereof. Subject merchandise includes deformed steel wire with bar markings (e.g., mill mark, size, or grade) and which has been subjected to an elongation test.
The subject merchandise includes rebar that has been further processed in the subject country or a third country, including but not limited to cutting, grinding, galvanizing, painting, coating, or any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the country of manufacture of the rebar.
Commerce is scheduled to announce its final determinations on or about May 16, 2017, for Japan and Turkey, and July 6, 2017, for Taiwan.