Articles in Category: Anti-Dumping
antidumping duty

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The United States International Trade Commission (USITC) last week voted to maintain antidumping duties on non-oriented electrical steel.

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

USITC rules in five-year sunset review on antidumping duties

The USITC conducted a five-year sunset review of antidumping duties on non-oriented electrical steel (NOES). The review covered imports from China, Germany, Japan, Korea, Sweden and Taiwan.

Manufacturers use NOES in such applications as electric generators and motors.

Last week, the USITC said revoking the duties would likely result in “continuation or recurrence of material injury.”

Furthermore, the UISTC opted to maintain existing countervailing duties on imports from China and Taiwan.

Per the Uruguay Round Agreements Act, the Department of Commerce must revoke an antidumping duty or countervailing duty order after five years unless doing so would lead to “continuation or recurrence of dumping or subsidies” and “of material injury … within a reasonably foreseeable time.”

The USITC initiated the review process Nov. 1, 2019.

However, the initial investigation began in 2013 after AK Steel filed petitions with the Department of Commerce and USITC.

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aluminum ingot stacked for export

Olegs/Adobe Stock

This morning in metals news: the Senate Committee on Appropriations allocated funding for a new Aluminum Import Monitoring system; the United States International Trade Commission voted to continue an aluminum foil investigation; and natural gas inventories are at a record high.

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

Senate includes funding for Aluminum Import Monitoring system

The domestic aluminum industry has long advocated for the creation of an aluminum import monitoring system. The Aluminum Association has often referred to the existing Steel Import Monitoring and Analysis system as a potential model.

Recently, the Senate Committee on Appropriations included $1.3 million in funding for a new aluminum import monitoring system during the fiscal year 2021.

“We are grateful for the committee’s leadership on this high priority issue for the U.S. aluminum industry, and we look forward to Congress taking action soon to enact this important provision in FY21 appropriations,” said Tom Dobbins, president and CEO of the Aluminum Association, in a release.

“Within Enforcement and Compliance, the Committee provides up to $1,300,000 for staffing and other necessary expenses to support development and implementation of the AIM system,” the Senate Committee on Appropriations said. “The Committee also encourages ITA to regularly consult with the aluminum industry on market dynamics to ensure the remedy is meeting its stated goal of supporting U.S. aluminum producers.”

USITC continues aluminum foil probe

The USITC voted to continue anti-dumping and countervailing duty investigation of aluminum foil from several countries.

The countries in question are Armenia, Brazil, Oman, Russia and Turkey.

In addition, the Department of Commerce will make preliminary countervailing duty determinations by Dec. 23, 2020. However, for its anti-dumping investigation, it will make preliminary determinations by March 8, 2021.

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The Department of Commerce made a preliminary determination in its anti-dumping investigation covering non-refillable steel cylinders imported from China.

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

DOC rules steel cylinders dumped from China

The DOC determined China dumped the steel products into the U.S. at margins between 57.83% and 114.58%.

The domestic petitioner in the case is Worthington Industries of Columbus, Ohio.

“As a result of today’s decisions, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of non-refillable steel cylinders from China based on the preliminary rates noted above,” the DOC said in a release last week.

Imports of non-refillable steel cylinders reached a value of $21.5 million in 2019, per the DOC.

The U.S. International Trade Commission will make its final determination in the case by Feb. 22, 2021.

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Aluminum production

Alexander Chudaev/Adobe Stock

This morning in metals news: the International Aluminum Institute released global aluminum production totals for September; the U.S. International Trade Commission (USITC) made duty determinations in the investigations related to imports of prestressed concrete steel wire strand; and September unemployment rates fell in 30 states.

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

Global aluminum production hits 5.42M tons in September

Global aluminum production reached 5.42 million tons in September, the International Aluminum Institute reported.

The total marked a decline from 5.52 million tons in August.

Chinese production totaled an estimated 3.15 million tons last month, down from 3.18 million tons the previous month.

USITC opts to maintain steel wire strand duties

In a five-year sunset review, the USITC voted to maintain existing duties covering imports of prestressed concrete steel wire strand.

The duties cover imports of the products from Brazil, India, Japan, Korea, Mexico and Thailand.

“The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping and countervailing duty orders on imports of prestressed concrete steel wire strand from Brazil, India, Japan, Korea, Mexico, and Thailand would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time,” the USITC said in a prepared statement.

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Airbus and Boeing — or, more reasonably, Brussels and Washington — are still at it, haggling over subsidies both sides have received over the decades.

The action and counteractions, originally started by the U.S. to stem what it saw as a rising European rival to Boeing’s dominance, has been rumbling on for 16 years. Both sides are at fault, the WTO has ruled.

The latest development, as Reuters recently reported, is the WTO has ruled that European government loans to Airbus were unfairly subsidized through low-interest rates while Boeing received unfair support from tax breaks.

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Airbus and Boeing again take center stage

Both sides say they have remedied past flaws and are now in line with WTO rules.

However, the U.S. side feels loans still on Airbus’s books continue to provide unfair support. Furthermore, Washington thinks the European planemaker should repay interest on historic loans set at below-market rates.

Brussels says if that’s the case then Boeing should repay previous subsidies in the form of tax breaks.

The impasse has led to Washington applying $7.5 billion of, tariffs, that most favored tool, on E.U. goods. Meanwhile, the E.U. is asking the WTO later this month to apply $4 billion of tariffs on U.S. goods.

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nickel

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Before we head into the weekend, let’s take a look back at the week that was and the metals storylines here on MetalMiner, including: the nickel market; aluminum prices on the SHFE and LME; China’s metals rebound; and much more.

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Week in Review, Oct. 12-16 (nickel market, China’s metals rebound and more)

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

India

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Some Indian experts are of the view that the U.S.’s newly imposed import tariff on aluminum sheet products, including on Indian aluminum sheet, will not affect Indian aluminum producers in a major way.

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U.S. slaps anti-dumping duty on Indian aluminum sheet, sheet from 17 other countries

Last Friday, the U.S. imposed fresh tariffs on U.S. $1.96 billion worth of aluminum sheet products from 18 countries, including India.

The U.S. imposed the duty after determining the goods were being dumped, according to U.S. Commerce Secretary Wilbur Ross.

“The Department’s aluminum sheet investigations constitute the broadest U.S. trade enforcement action in two decades,” Secretary of Commerce Wilbur Ross. “We look forward to receiving parties’ comments on the preliminary determinations that aluminum sheet imports from 18 countries have been dumped, and in some cases unfairly subsidized, into the U.S. market.”

Ross added tariffs were being immediately imposed even though the department’s reading was the dumping was preliminary.

“As a result of these decisions, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of common alloy aluminum sheet from the above-named countries based on the preliminary rates noted above,” the Department of Commerce said in a release announcing the preliminary determination.

In addition to India, the other countries on the list are: Brazil, Croatia, Egypt, Greece, Indonesia, Italy, Oman, Romania, Serbia, Slovenia, South Africa, South Korea, Spain, Taiwan and Turkey.

The U.S. petitioners in the investigation are the Aluminum Association Common Alloy Aluminum Sheet Trade Enforcement Working Group and its individual members.

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India

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India’s Commerce Ministry has launched an inquiry, based on a complaint by Indian steel players, to review the need to reimpose anti-dumping duties on certain steel products imported from at least seven countries, the New Indian Express reported.

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Reimposition of anti-dumping duties

A few months ago, India imposed duties on steel products imported from the U.S., China, Korea, European Union, South Africa, Taiwan and Thailand. With the duties, India aimed to safeguard Indian steel manufacturers from cheap imports.

However, the Commerce Ministry’s Directorate General of Trade Remedies (DGTR) launched a an anti-dumping probe. The investigation follows an application filed by Jindal Stainless Ltd, Jindal Stainless (Hisar) Ltd and Jindal Stainless Steelway Ltd. The “sunset” review covers imports of cold-rolled flat products of stainless steel, of width ranging from 600-1,250 mm from the seven countries.

Countries can impose tariffs on such dumped products to provide a level playing field for domestic manufacturers.

Dumping happens when a company or country exports an item at a price lower than the price of the one made in its domestic market. As such, dumping impacts the product price in the importing nation.

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aluminum ingot stacked for export

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Just the rumor that producers in the United Arab Emirates and Bahrain could win a Section 232 aluminum tariff exemption was enough to ease prices for U.S. consumers.

The Trump administration imposed the 10% tariff under Section 232 back in March 2018. Now, however, the removal ostensibly comes as a reward for the two Arab states establishing formal ties with Israel.

The benchmark U.S. Midwest physical delivery premium collapsed from $335 per ton in mid-September to $263 per metric ton on the back of the rumor, according to Reuters.

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

Section 232 tariff exemption for major producers

Both countries are significant aluminum producers and suppliers to the U.S. market.

Bahrain’s Alba mill produced more than 1.36 million tons of aluminum last year. The mill supplied 11%, or 150,000 metric tons of its output (mainly billets) to the U.S. market.

Of its sales last year, 44% were value-added products (or VAPs, as they are termed in the trade). Those products include rolling slab, billet, primary foundry alloy and wire rod.

Primary mills try to boost their output of VAPs over standard ingot because they earn higher returns, over and above the cost of manufacture. For their customers, VAPs avoid the need to remelt ingot and cast into those forms before they can consume the primary mill’s products, saving energy and, hence, costs.

Emirates Global Aluminium (EGA) sold a total of 2.60 million tons of cast metal in 2019, of which 87.4% was VAPs, according to Reuters. Although they declined to be specific, their U.S. value-add exports have been estimated at about 550,000 tons last year.

U.A.E., Bahrain producers could gain market share

The fall in the MW premium is good news for consumers. However, U.S. producers will not view it as positively, as they are already facing a significant resumption of Canadian imports.

Usually, when government grants an exemption — as Canadian producers enjoy — it will impose a quota to prevent a flood of metal from the newly tariff-exempted supplier.

That will likely be the case for EGA and Alba. As such, the sharp drop in the MW premium is reflecting an expectation that the two substantial producers will be in a position to use their newfound competitiveness to take market share.

If, for example, EGA has a quota set at last year’s 550,000 tons, it could export 750,000 tons and pay the 10% duty on the excess amount. As a result, it would effectively incur only a 2.7% duty overall.

If the mill felt long-term positioning would be helped by greater market share, the tradeoff may be considered acceptable.

What’s next for domestic mills?

Domestic mills, whether aluminum or steel, generally position themselves at or around the import price when the government imposes tariffs.

Generally, however, they do not seem to add more capacity to take long-term advantage of the extra margin the tariff provides. Why? Possibly because they do not expect the tariffs to exceed more than one or, at most, two cycles of administration.

They only lasted a little over a year and a half under the Bush administration from 2002 to 2003. While they have lasted two and half years under Trump, their efficacy at stimulating a resurgence of domestic production has been limited.

Last year Canada remained the U.S.’s largest external aluminum supplier in all forms, with China coming in second.

Chinese supply, however, has been falling rapidly with tariffs and duty action over recent years. As a result, the actions of third-placed U.A.E. and sixth-placed Bahrain have become progressively more important in influencing market prices. It is a role in which it looks like they just got helped to have even more impact.

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aluminum foil

Alex/Adobe Stock

This morning in metals news: an aluminum trade group filed anti-dumping and countervailing subsidy petitions relating to imports of aluminum foil from five countries; the consultation period for Alcoa’s San Ciprián aluminum plant ended without an agreement on a social plan for workers; and the U.S. Census Bureau released August import and export data.

The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.

Trade group files anti-dumping, countervailing duty petitions

The Aluminum Association’s Foil Trade Enforcement Working Group has filed anti-dumping and countervailing duty petitions relating to imports of aluminum foil from five countries.

The countries are Armenia, Brazil, Oman, Russia and Turkey.

“We continue to see how persistent aluminum overcapacity driven by structural subsidies in China harms the entire sector,” said Tom Dobbins, president and CEO of the Aluminum Association. “While domestic aluminum foil producers were able to invest and expand following the initial targeted trade enforcement action against imports from China in 2018, those gains were short lived. As Chinese imports receded from the U.S. market, they were replaced by a surge of unfairly-traded aluminum foil imports that are injuring the U.S. industry.”

The anti-dumping petition includes all five of the countries. Meanwhile, the countervailing duty petition alleges imports from Turkey and Oman benefited from illegal government subsidies.

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