POSCO Hardest Hit in Final Hot-Rolled Steel Anti-Dumping Duties

by on

The Department of Commerce announced its final determinations in the anti-dumping duty investigations of imports of hot-rolled steel flat products from Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and the U.K., and the countervailing duty investigations of imports of hot-rolled steel from Brazil, Korea, and Turkey.

Two-Month Trial: Metal Buying Outlook

The big loser in this latest round of tariffs was South Korean steel giant POSCO (formerly the Pohang Iron & Steel Company) which received a total of 60.93% anti-dumping (57.04%) and countervailing duty (3.89%) tariffs on its hot-rolled imports.

Dumping occurs when a foreign company sells a product in the United States at less than its fair value. A countervailable subsidy is financial assistance from a foreign government that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods.

Australia

In the Australia investigation, Commerce found that dumping has occurred by mandatory respondent BlueScope Steel Ltd. at a dumping margin of 29.37%. Commerce calculated a final dumping margin of 29.37% for all other producers/exporters in Australia.

Brazil

In the Brazil anti-dumping investigation, Commerce found that dumping occurred by mandatory respondents, Companhia Siderurgica Nacional (CSN) and Usinas Siderurgicas de Minas Gerais (Usiminas) at dumping margins of 33.14% and 34.28%, respectively. The rate for Usiminas was calculated using total adverse facts available because the company did not respond to Commerce’s questionnaire. Commerce calculated a final dumping margin of 33.14% for all other producers/exporters in Brazil.

Brazilian steelmakers also received countervailing duties. Commerce calculated subsidy rates of 11.30% and 11.09%, respectively, for CSN and Usiminas. Commerce calculated a final subsidy rate of 11.20% for all other producers/exporters in Brazil. CSN got a total AD/CVD hit of 44.44% and Usiminas 45.37%, some of the higher total tariffs on any of the importer countries.

Japan

In the Japan anti-dumping investigation, Commerce found that dumping occurred by mandatory respondents JFE Steel Corporation and Nippon Steel & Sumitomo Metal Corporation at dumping margins of 7.51% and 4.99%, respectively. Commerce calculated a final dumping margin of 5.58% for all other producers/exporters in Japan. There were no additional countervailing duties for Japanese steelmakers.

Republic of Korea

In the Korea anti-dumping investigation, Commerce found that dumping has occurred by mandatory respondents Hyundai Steel Company and the aforementioned POSCO at dumping margins of 9.49% and 3.89%, respectively. Commerce calculated a final dumping margin of 5.55% for all other producers/exporters in Korea.

The countervailing duties investigation for the Republic of Korea got interesting. Commerce calculated a final subsidy rate of 3.89% for Hyundai Steel but for POSCO, Commerce calculated a subsidy rate of 57.04% based on adverse facts available because the department was unable to verify the accuracy of certain key elements of POSCO’s questionnaire response. Commerce calculated a final subsidy rate of 3.89% for all other producers/exporters in Korea.

The Netherlands

In the Netherlands anti-dumping investigation, Commerce found that dumping occurred by mandatory respondent Tata Steel IJmuiden B.V. at a dumping margin of 3.73%. Commerce calculated a final dumping margin of 3.73% for all other producers/exporters in the Netherlands.

Turkey

In the Turkey anti-dumping investigation, Commerce found that dumping occurred by mandatory respondents Colakoglu Metalurji A.S./Colakoglu Dis Ticaret A.S. and Ereğli Demir ve Çelik Fabrikaları T.A.Ş./Iskendrun Demir ve Çelik T.A.Ş. at dumping margins of 7.15% and 3.66%, respectively. Commerce calculated a final dumping margin of 6.67% for all other producers/exporters in Turkey. In the Turkey countervailing duties investigation, Commerce calculated subsidy rates of 0.34 percent (de minimis) and 6.01% for Colakoglu Dis Ticaret A.S. and Eregli Demir ve Celik Fabrikalari T.A.S., respectively. All other producers/exporters in Turkey were assigned a final subsidy rate of 6.01%.

United Kingdom

In the U.K. anti-dumping investigation, Commerce found that dumping has occurred by mandatory respondent Tata Steel UK Ltd. at a dumping margin of 33.06%. Commerce calculated a final dumping margin of 33.06% for all other producers/exporters in the U.K.

As with all anti-dumping and countervailing duty determinations, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits equal to the applicable weighted-average dumping/countervailing duty margins.

 

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.