The Commerce Department announced it is imposing preliminary anti-dumping duties against grain-oriented electrical steel (GOES) from China, the Czech Republic, Germany, Japan, the Republic of Korea, Poland, and the Russian Federation. These were preliminary determinations, a final determination will be made in July and September for all of the nations accused of dumping. Dumping occurs when a foreign company sells a product in the US at less than its fair value.
Several of the companies accused of dumping, including China’s Baoshaan Iron & Steel and Germany’s ThyssenKrupp Electrical Steel GmbH failed to respond to Commerce’s questionnaire and were assigned higher dumping duties because of it. Baoshan Iron & Steel received the China-wide dumping duty of 159.21%. ThyssenKrupp got an even higher initial dumping rate at 241.91%. US Customs will now charge these companies with the initial dumping duties upon import.
Domestic GOES producers AK Steel and Allegheny Ludlum/ATI asked for the investigation.
The US HRC futures contract spot price saw a 3.0 percent increase on Monday, May 5, reaching $684.00 per short ton and making it the biggest mover for the day. The 3-month price of the US HRC futures contract weakened by 1.2 percent, settling at $637.00 per short ton.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($134.20) and a low price of CNY 830.00 ($132.61) per dry metric ton. At CNY 3,360 ($536.82) per metric ton, the price of Chinese HRC was essentially unchanged. The price of Chinese coking coal continues hovering around CNY 1,390 ($222.08) per metric ton for the fifth day in a row.
The cash price of steel billet was unchanged on the LME at $390.00 per metric ton. The 3-month price of steel billet saw little movement on the LME at $400.00 per metric ton.