The Department of Commerce has released affirmative preliminary determinations in the countervailing duties investigations of imports of corrosion-resistant steel products from China, India, Italy, and South Korea, and a negative preliminary determination in the countervailing duties investigation of imports of corrosion-resistant steel from Taiwan.
The investigations cover corrosion-resistant steel including flat-rolled products that have been clad, coated or plated with corrosion- or heat-resistant metals (usually zinc or aluminum) to prevent corrosion and thereby extend the service life of products made from the steel. Corrosion-resistant steel products are typically used in the manufacture of trucks and automobiles, appliances, agricultural equipment, and industrial equipment.
Imports Found to Be Subsidized
Commerce preliminarily determined that producers/exporters in China, India, Italy, and Korea received local and national government subsidies ranging from 26.26% to 235.66%, 2.85% to 7.71%, de minimis (less than 2%) to 38.41%, and de minimis to 1.37%, respectively.
Chinese Firms Do Not Comply
The China investigation is particularly interesting as mandatory Chinese respondents Angang Group Hong Kong Company Ltd., Baoshan Iron & Steel Co., Ltd., Duferco SA (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 whopping subsidy rate of 235.66% 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%.
US Companies Get Relief
The petitioners for these investigations are U.S. Steel Corporation (PA), Nucor Corporation (NC), ArcelorMittal USA (IL), AK Steel Corporation (OH), Steel Dynamics, Inc. (IN), and California Steel Industries, Inc. (CA). They have to be happy with the initial determinations, although these import duties might go down or be removed entirely before the process is finalized.
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