Articles in Category: Anti-Dumping

The U.S. Department of Commerce. qingwa/Adobe Stock

This morning in metals news, the U.S. Department of Commerce announced rulings in investigations of stainless steel kegs from China and Germany, copper prices rose on labor tensions in Chile, and the UAW’s strike continues as it mulls ratification of a tentative deal with General Motors reached last week.

Keep up to date on everything going on in the world of trade and tariffs via MetalMiner’s Trade Resource Center.

DOC Makes Final Determinations on Stainless Steel Keg Imports

The U.S. Department of Commerce on Friday announced it had made affirmative final determinations in its anti-dumping and countervailing duty investigations of imports of stainless steel kegs from China and Germany.

The DOC determined the countries sold the kegs at less than fair values, ranging from 0 to 77.13% and 7.47%, respectively.

The DOC also determined that exporters from China received countervailable subsidies at rates ranging from 16.21% to 145.23%.

Copper Rises on Chile Labor Developments

LME copper reached a one-month high amid strikes at Chilean copper mines operated by Antofagasta and Teck Resources, Reuters reported.

LME three-month copper rose as much as 0.5% Monday, Reuters reported, up to $5,837.50 per ton.

GM Awaits UAW Vote on Deal

Last week, General Motors and the United Auto Workers (UAW) union announced they had reached a tentative deal that could potentially end the strike that has lingered for well over a month.

However, the strike continues, for now, as UAW members must vote on the deal.

Looking for metal price forecasting and data analysis in one easy-to-use platform? Inquire about MetalMiner Insights today!

If the deal is approved, talks will then shift to Ford and Fiat Chrysler, the Detroit Free Press reported.

nikitos77/Adobe Stock

This morning in metals news, Rio Tinto released its third-quarter production figures, India has proposed an anti-dumping duty on flat-rolled steel from China and other countries, and copper prices dropped after a strike was averted at Chile’s Antofagasta.

Keep up to date on everything going on in the world of trade and tariffs via MetalMiner’s Trade Resource Center.

Rio Tinto Posts Strong Third Quarter

Miner Rio Tinto posted third-quarter iron ore production of 87.3 million tons, marking a 6% increase on a year-over-year basis and a 10% increase compare with Q2 2019.

Bauxite production increased 9% year over year, while aluminum production fell 3%.

“We have delivered improved production across the majority of our products in the third quarter, with a solid result at our Pilbara mines driving increased sales of iron ore into robust markets,” Rio Tinto CEO J-S Jacques said. “Our strong value over volume approach, coupled with our focus on operational performance and disciplined allocation of capital, will continue to deliver superior returns to shareholders over the short, medium and long term.”

India Proposes Anti-Dumping Duty on Chinese Flat-Rolled Steel

The Indian government Tuesday proposed a new flat-rolled steel anti-dumping duty on imports from China, Vietnam and South Korea, Reuters reported.

The duty, once implemented, will be effective for six months, according to the report.

Copper Drops on Antofagasta News

After Chilean copper miner Antofagasta reached a new 36-month contract with laborers at its Los Pelambres mine, copper prices moved downward, Reuters reported.

Looking for metal price forecasting and data analysis in one easy-to-use platform? Inquire about MetalMiner Insights today!

Three-month LME copper dipped 0.2% Wednesday to $5,764 per ton, according to the report.

gui yong nian/Adobe Stock

This morning in metals news, U.S. import market share for steel reached 17% in September, the European Commission is investigating potential dumping of hot-rolled stainless steel from China and Indonesia, and India is set to become a net importer of iron ore.

Keep up to date on everything going on in the world of trade and tariffs via MetalMiner’s Trade Resource Center.

Steel Import Market Share 17% in September

According to the American Iron and Steel Institute (AISI), U.S. steel import market share hit 17% in September, down from the 20% for the year to date.

Steel import permit applications totaled 1.97 million net tons for the month, down 9.4% from import permit tons recorded in August.

European Commission to Launch Anti-Dumping Probe

The European Commission is set to investigate potential dumping of hot-rolled stainless steel from China and Indonesia, Reuters reported.

In addition, the European Commission has imposed provisional anti-dumping duties of up to 66% on steel road wheels imported from China, according to the report.

India to Become Net Iron Ore Importer

India is set to become a net importer of iron ore in the next financial year, the Hellenic Shipping News reported.

Looking for metal price forecasting and data analysis in one easy-to-use platform? Inquire about MetalMiner Insights today!

The Indian government is auctioning off iron ore blocks ahead of the expiration of a number of mining leases early next year; however, potential hang-ups in the process could leave the country short on available iron ore supply, leading to the necessity to import the steelmaking material.

Ricochet64/Adobe Stock

For once, President Donald Trump should be pleased with the World Trade Organization (WTO), a body he has repeatedly criticized and actively worked to undermine by preventing the appointment of new judges to its appeals panel.

Keep up to date on everything going on in the world of trade and tariffs via MetalMiner’s Trade Resource Center.

On Oct. 2, the WTO ruled in the U.S.’s favor, agreeing to the largest tariff penalty in its history. The case is the long-running dispute between the U.S. and the E.U. over supposed illegal subsidies provided by both governments to its major plane manufacturers.

The standoff started in 2004 when the U.S. brought action against the E.U. for cheap loans afforded to Airbus. The E.U. promptly countered, saying the U.S. gave subsidies and extensive military contracts to Boeing that effectively provided the same (or similar) support.

The reality is aircraft design and development is such a risky long-haul venture that no one would do it without some level of state support.

The U.S. has done it over decades. Various European governments — and the E.U. as a whole — have too, as have the Japanese and, now, the Chinese.

Whether the subsides granted to Boeing and Airbus are more than legally appropriate will continue to be a source of revenue for expensive lawyers for years to come.

The WTO is due to rule in eight months’ time on whether U.S. subsidies to Boeing are lawful; the sense seems to be the WTO will rule they were not and, as such, we will be back to square one.

According to the Financial Times, the WTO authorized the U.S. to levy tariffs of up to 100% on $7.5 billion of the $11 billion the U.S. had originally applied to penalize. To the U.S.’s credit, the decision initially is to levy tariffs of 10% on aircraft and 25% on a diverse range of other products, as the below chart from the Financial Times illustrates — perhaps meant to encourage dialogue.

Source: Financial Times

While a lot of hot air is blowing around, it would seem neither side wants a full-blown trade war over this issue.

Aircraft parts have been exempted from any immediate tariffs, said by the Financial Times to be in a reprieve for Airbus’ manufacturing plant in Alabama. Airbus, on the other hand, has cautioned that 40% of its aircraft-related procurement comes from U.S. suppliers, supporting some 275,000 American jobs in 40 states — any escalation will have a direct hit on the U.S. aircraft supply chain.

U.S. carriers share prices have taken a hit as concerns were raised that Boeing would not be able to meet demand and U.S. carriers would be forced to simply pay more for Airbus aircraft.

As such, one can see what a blunt instrument tariffs are; the ripple of unintended consequences spreads like a rock dropped in a lake, never mind a pebble in a pond.

Unless the U.S. announces a stay of execution, the E.U. can expect the imposition of tariffs on Oct. 18, with the biggest impact falling on the approximately $5.1 billion worth of aircraft imported in 2018; however, according to the Economist, only a portion of this total will be hit.

In the meantime, both sides are awaiting the WTO’s ruling on the case against the U.S. providing subsidies to Boeing.

As such, any resolution before May next year is unlikely. The aviation industry on both sides of the Atlantic can expect disruption and cost increases.

Free Partial Sample Report: 2020 MetalMiner Annual Metals Outlook

Whatever tariff supporters may suggest, there are rarely winners in tariff wars — only varying degrees of losers.

The U.S. Department of Commerce. qingwa/Adobe Stock

This morning in metals news, the U.S. Department of Commerce issued affirmative determinations in its anti-dumping investigation of fabricated structural steel imports, Turkey’s largest industrial group will halt steel production and a U.S. Department of Justice lawsuit poses a roadblock for Novelis‘ bid to buy Aleris.

Need buying strategies for steel? Request your two-month free trial of MetalMiner’s Outlook

U.S. DOC Rules on Fabricated Structural Steel Imports

The Department of Commerce has made affirmative preliminary determinations in its anti-dumping probe of imports of fabricated structural steel from Mexico and China.

The DOC found dumping margins for China and Mexico ranging from 0.00% to 141.38% and 0.00% to 30.58%, respectively.

Meanwhile, the DOC issued a negative determination with respect to imports from Canada.

Turkey’s Largest Industrial Group to Pause Steel Production

According to a report by Ahval, Turkey’s largest industrial group plans to halt steel production due to challenging market conditions.

According to the report, Koç Holding’s Koç Çelik unit will halt production from September until the end of January.

Novelis-Aleris Deal

Novelis‘ planned purchase of Aleris is under scrutiny.

The U.S. Department of Justice filed a lawsuit to prevent the move, citing concerns over potentially higher prices for automotive aluminum sheet.

MetalMiner’s Annual Outlook provides 2019 buying strategies for carbon steel

The $2.6 billion purchase was initially announced in July 2018.

On April 19, 2018, the U.S. Department of Commerce issued anti-dumping and countervailing duty orders on certain types of aluminum foil from China.

Buying Aluminum in 2019? Download MetalMiner’s free annual price outlook

Chinese producers appealed the decision, but the U.S. Court of International Trade this month opted to uphold the Commerce Department’s determination.

The Chinese plaintiffs lodging the appeal were: Jiangsu Zhongji Lamination Materials Co., (HK) Ltd., Jiangsu Zhongji Lamination Materials Co., Jiangsu Zhongji Lamination Materials Stock Co. Ltd., and Jiangsu Huafeng Aluminium Industry Co., Ltd.

Zhongji’s appeal focused on five aspects of the Commerce Department’s decision, including: the use of South Africa as the primary surrogate country in the case; using Descartes instead of Xeneta data to value international freight; valuing Zhongji’s aluminum scrap using the incorrect HTS classification; calculating Zhongji’s VAT adjustment “based on the wrong transaction”; and the deferment of the Commerce Department’s decision past the statutory deadline.

Zhongji argued the selection of South Africa as a surrogate country for comparison was not appropriate, claiming South African aluminum foil exports were distorted by subsidies and that Bulgaria’s aluminum foil values were more closely aligned with those of Zhongji.

The court, however, said Zhongji’s arguments did not meet the necessary legal standard.

“The subsidies alleged by Zhongji do not meet the ‘reason to believe or suspect’ standard,” the court stated in its case summary. “When there is evidence of a potential subsidy but Commerce has not previously found the specific program to be countervailable, Commerce does not per se reject the data in question and requires evidence of distortion before it will reject it.”

The court acknowledged that the Commerce Department did in fact submit its determination after both the 140- and 190-day statutory deadlines (the latter used for “extraordinarily complicated” cases).

“All parties agree that Commerce violated even the later deadline, which fell on October 4, 2017, by publishing its preliminary determination in the Federal Register on November 2, 2017,” the court summary states. “However, Commerce’s late filing of a preliminary determination does not preclude it from issuing an affirmative preliminary determination, as precedent dictates that statutory deadlines are not mandatory in the absence of an express statement of consequences from Congress.

“In light of this precedent, the court affirms Commerce’s affirmative preliminary determination and collection of duty deposits notwithstanding the missed deadline.”

Ultimately, Judge Gary S. Katzmann ruled in favor of the Commerce Department.

“The court affirms Commerce’s selection of primary surrogate country and data to value Zhongji’s aluminum foil inputs, as Commerce was within its discretion under 19 U.S.C. § 1677b and Policy Bulletin 04.1 in making those selections based on the evidence in the record,” Katzmann wrote. “Additionally, the court grants Commerce’s request for a remand to recalculate its VAT adjustment using the correct sale price. Finally, the court affirms Commerce’s preliminary determination and collection of duty deposits notwithstanding its violation of the statutory deadline.”

The Commerce Department now must file with the court and provide to the parties a revised determination of its VAT calculation within 90 days.

After the requisite determination is filed and provided to the relevant parties, “the parties shall have 30 days to submit briefs addressing the revised final determination to the court and the parties shall have 15 days thereafter to file reply briefs with the court.”

The Aluminum Association expressed its support for the court’s ruling.

Want to see an Aluminum Price forecast? Take a free trial!

“The Aluminum Association was pleased that the U.S. Court of International Trade affirmed the bulk of the Department of Commerce’s final antidumping determination on certain aluminum foil from China,” said Lauren Wilk, the Aluminum Association’s vice president for policy and international trade. “The court’s decision reinforces the critical role rules play in a functioning global trading system. Targeted trade enforcement – as we’ve seen successfully deployed in the U.S. markets for aluminum foil and common alloy sheet– can have a meaningful and positive impact on U.S. manufacturers.

“The association and its member companies are determined to vigorously defend these orders and are committed to trade enforcement as a tool to address the symptoms of persistent Chinese overcapacity in the aluminum industry, which is impacting the entire value chain.”

Source: The Coca-Cola Company

This morning in metals news, beverage maker Coca-Cola has announced it will shift to aluminum cans for its Dasani water brand, the U.S. Department of Commerce announced it found evidence of dumping of refillable stainless steel kegs from Mexico and China still plans to send trade officials to Washington next month for talks.

Need buying strategies for steel? Request your two-month free trial of MetalMiner’s Outlook

Coca-Cola Announces New Dasani Packaging

In an effort to reduce plastic use and increase the use of recyclable materials, Coca-Cola announced plans to shift its Dasani water brand’s packaging from plastic bottles to aluminum.

“Updates to DASANI’s packaging line-up are designed to reduce plastic waste and increase the use of recycled and renewable materials in the United States, while ensuring that all DASANI bottles continue to be fully recyclable,” the company said.

Under the beverage maker’s proposed “World Without Waste” program, it aims to produce make its bottles and cans with an average of 50% recycled material by 2030. The company will roll out the water brand in aluminum cans in the northeastern U.S. in the fall (and 2020 everywhere else), and aluminum bottles in mid-2020.

U.S. Rules on Stainless Steel Keg Dumping Case

The U.S. Department of Commerce announced it had found evidence of dumping with respect to imports of stainless steel kegs from Mexico.

According to the department, the kegs were sold at less than fair value in the U.S. at a rate of 18.48%.

Last year, imports of the kegs from Mexico were valued at $13.4 million, according to the Department of Commerce.

China to Continue with Planned September Meetings

Despite the recent U.S. announcement of tariffs on an additional $300 billion in Chinese goods, Chinese trade officials still plan to visit Washington in September as planned, Bloomberg reported.

MetalMiner’s Annual Outlook provides 2019 buying strategies for carbon steel

However, according to a source cited by Bloomberg, China is unlikely to make concessions next month.

Zerophoto/Adobe Stock

This morning in metals news, China is poised to to impose anti-dumping duties on a number of countries, Nucor says it is happy with the results of the Trump administration’s tariffs and Brazilian miner Vale’s second-quarter output plunged.

Need buying strategies for steel? Request your two-month free trial of MetalMiner’s Outlook

China to Hit Imports of Stainless Steel with Anti-Dumping Duty

China is set to impose an anti-dumping duty on imports of stainless steel from the E.U., Japan, South Korea and Indonesia, Reuters reported.

According to the report, the duties — covering billets and hot-rolled steel plates — will go into effect July 23.

Nucor ‘Pleased’ with Tariffs

Nucor CEO John Ferriola told CNBC the Trump administration’s tariffs on imported steel have worked.

“The anticipated response was domestic capacity coming on line to replace the lower imported steel,” Ferriola said during a CNBC interview last week. “That’s exactly what happened.”

Vale Output Down in Q2

Brazilian miner Vale reported its second-quarter iron ore output fell 33.8% year over year. Production was down 12.1% compared with Q1 2019, according to the miner.

MetalMiner’s Annual Outlook provides 2019 buying strategies for carbon steel

A January tailings dam collapse at Vale’s Corrego do Feijao mine in Brumadinho sent shock waves through the iron ore market and led to more than 200 deaths.

In addition, heavy rains in March, April and May also impacted operations.

The U.S. Department of Commerce. qingwa/Adobe Stock

The U.S. Department of Commerce announced late last week that it found evidence of dumping and countervailable subsidization of steel racks from China.

Need buying strategies for steel? Request your two-month free trial of MetalMiner’s Outlook

According to the DOC, imports of the steel racks from China were dumped into the U.S. at less than fair value at rates ranging from 18.06% to 144.50%.

The DOC also determined the steel racks benefited from countervailable subsidies ranging from 1.50% to 102.23%.

According to the Department of Commerce, imports of steel racks from China were valued at $200 million in 2017.

The case is spurred by a petition from the Coalition for Fair Rack Imports filed in June 2018. The coalition’s members are: Bulldog Rack Company (Weirton, West Virginia), Hannibal Industries, Inc. (Los Angeles, California), Husky Rack and Wire (Denver, North Carolina), Ridg-U-Rak, Inc. (North East, Pennsylvania), SpaceRak (Marysville, Michigan), Speedrack Products Group, Ltd. (Sparta, Michigan), Steel King Industries, Inc. (Stevens Point, Wisconsin), Tri-Boro Shelving & Partition Corp. (Farmville, Virginia), and UNARCO Material Handling, Inc. (Springfield, Tennessee).

The U.S. International Trade Commission will make its final determinations in the case by Sept. 3. If the USITC rules in the affirmative, the Department of Commerce will issue anti-dumping and countervailing duty orders.

The DOC applied the 18.06% dumping rate for Nanjing Dongsheng Shelf Manufacturing Co., Ltd., while the China-wide entity was assessed at a 144.50% dumping rate.

MetalMiner’s Annual Outlook provides 2019 buying strategies for carbon steel

As for countervailing subsidies, the DOC said Nanjing Dongsheng Shelf Manufacturing Co., Ltd. benefited from countervailable subsidies at a rate of 1.50%, while adverse facts available led to a rate of 102.23% for other companies.

From 2016 to 2017, imports of steel racks by tonnage increased 15.7%, up to 371,082 tons in 2017.

The U.S. Department of Commerce. qingwa/Adobe Stock

This morning in metals news, the U.S. Department of Commerce made affirmative determinations in two of three countervailing duty investigations regarding fabricated structural steel, Chinese copper smelters inked deals with Chile’s Antofagasta and India is investigating dumping claims vis-a-vis flat-rolled steel imports from 15 countries.

Need buying strategies for steel? Request your two-month free trial of MetalMiner’s Outlook

DOC Rules on Possible CVD

The Department of Commerce issued affirmative determinations in its countervailing duty probes of fabricated structural steel imports from China and Mexico.

The DOC found imports of the products from China and Mexico benefited from countervailable subsidies at rates ranging from 30.30-177.43% and 0.01 (de minimis)-74.01%, respectively.

Meanwhile, the DOC made a negative determination vis-a-vis Canada, finding that exporters received countervailable subsidies at de minimis levels ranging from 0.12-0.45%.

Chinese Smelters Sign Antofagasta Deals

China’s top two copper smelters have inked concentrate supply deals with Chilean miner Antofagasta, Reuters reported.

According to the report, Jiangxi Copper Co and Tongling Nonferrous Metals Group inked the contracts earlier than usual on account of tightness in the copper concentrate market.

India to Investigate Anti-Dumping Claims

India will investigate dumping claims with respect to imports of flat-rolled steel from 15 countries, including China, the U.S. and Japan, the Economic Times reported.

Want to a see Cold Rolled price forecast? Get two monthly reports for free!

Domestic entities Indian Stainless Steel Development Association, Jindal Stainless, Jindal Stainless (Hisar) and Jindal Stainless Steelway filed petitions with India’s Directorate General of Trade Remedies (DGTR) alleging dumping of flat-rolled steel from the 15 countries.