Articles in Category: Imports

The Department of Commerce announced Wednesday, Dec. 13, that it had issued a preliminary affirmative determination in the countervailing duty (CVD) investigation of cast iron soil pipe fittings from China.

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The department announced the determination in a release, ruling that exporters from China received countervailable subsidies in a fairly broad range of 8.66-102.31%.

“The Trump Administration will not sit back and watch as American companies and workers are harmed by unfair government subsidies,” Commerce Secretary Wilbur Ross said in a prepared statement. “The United States is committed to free, fair and reciprocal trade, and will continue to validate the information provided to us that brought us to this decision.”

The petitioner in the case was the Illinois-based Cast Iron Soil Pipe Institute, which boasts three members: AB&I Foundry (California), Charlotte Pipe & Foundry (North Carolina), and Tyler Pipe (Texas).

According to the department, the 79 antidumping or countervailing duty investigation it initiated from Jan. 20 to Dec. 11 of this year marks a 52 percent increase from investigations started during the same period last year.

As for the respondents, according to a fact sheet provided by the Commerce Department, the following preliminary subsidies were calculated for the respondents:

  • 8.66% for mandatory respondent Shanxi Xuanshi Industrial Group Co., Ltd.
  • preliminary subsidy rate of 12.72% for mandatory respondent Wor-Biz International Trading Co., Ltd. (Anhui).
  • Commerce applied an adverse facts available rate of 102.31% for mandatory respondent Shijiazhuang Chengmei Import & Export Co., Ltd. because of its failure to respond to the Department of Commerce’s request for information.
  • 10.37% for all other Chinese producers and exporters

According to the Department of Commerce, imports of cast iron soil pipe fittings from China during 2016 were valued at an estimated $8.6 million.

A final decision in the CVD case is scheduled for April 24, 2018.

U.S. ITC Rules in 5-Year Sunset Review of Stainless Steel Pipe Fittings

The U.S. International Trade Commission (USITC) issued its own ruling Dec. 14 on stainless steel butt-weld pipe fittings from Italy, Malaysia and the Philippines.

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The USITC ruled that removing existing antidumping duty orders on the product from the trio of countries “would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.”

Grain-oriented electrical steel (GOES) import levels appear to have peaked in March of this year at 3580 metric tons. Despite a rise in June, import levels appear lower now than during the summer months, but are clearly higher than 2016 levels.

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With a Section 232 investigation still underway, we might expect to see declining import levels until the Department of Commerce submits a report to the Trump administration next month — at which point it remains unclear what will happen with steel imports.

The story behind GOES imports, however, looks quite different from the story behind other steel imports, particularly carbon steel – hot rolled coil, cold rolled coil and coated products.

The GOES trade story has become more complicated, particularly when one considers what types of GOES materials have entered the U.S. market.

Most of the imports did not come from China or Korea (often the targets of trade complaints) — rather, the lion’s share of the volume comes from Japan. See chart below:

Source: US ITC

Yet, Japan produces several products for which no domestic source exists – namely, “heat-proof” products, including those using domain-refined processes used “…in specialty transformers where small size, high efficiency and low noise are at a premium.” Indeed, that description appeared in the U.S. International Trade Commission’s examination of “Grain Oriented Electrical Steel from Germany, Japan and Poland” (see link above).

The domestic producers did not win that trade case. ATI subsequently shut down its GOES operations.

Japan’s JFE and Nippon Steel remain the dominant GOES players for these more technically difficult higher end grades. The Kobe Steel scandal will have little to no impact on GOES markets, since Kobe does not supply the U.S. market with GOES.

Meanwhile, the market will await for additional grain-oriented electrical steel announcements (and potentially supply of H1-B) from Big River Steel, as well as some clarity around GOES with the Section 232 investigation.

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Exact GOES Coil Price This Month

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This morning in metals, some big news on the international trade and steel imports front.

The U.S. Department of Commerce yesterday announced preliminary affirmative rulings that corrosion-resistant steel (CORE) and certain cold-rolled steel flat products (cold-rolled steel) imported from Vietnam “produced from substrate originating in…China are circumventing existing antidumping and countervailing duty (AD/CVD) orders on CORE and cold-rolled steel imported from China,” according to their news release.

The Details on Duties

“The Commerce department has directed the United States’ customs and border protection agency (CBP) to collect anti-dumping (AD) and Countervailing Duty (CVD) cash deposits from importers of CORE produced in Vietnam using Chinese-origin substrate at rates of 199.43 percent and 39.05 percent, respectively,” according to this article, writing from the release. “CBP has also been directed to collect AD and CVD cash deposits on imports of cold-rolled steel produced in Vietnam using Chinese-origin substrate at rates of 265.79 percent and 256.44 percent, respectively.”

What This Means for Metal Buyers

Many in the steel manufacturing are hailing the decision as a victory as far as solidifying the case against China when it comes to proving that country’s circumvention and “substantial transformation” tactics.

The decision on CORE and cold-rolled products may open the door for the steel pipe and tube industry to file or follow up on similar cases.

Learn more on Trade Circumvention here, including a free white paper download on the topic.

Listen to our MetalMiner Podcast series, “Manufacturing Trade Policy Confidential,” for more discussion around circumvention and other trade topics that matter to metal buyers.

Imports have slowed down compared to levels earlier this year, but are still up by nearly one-fifth through the first 10 months of the year.

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According to an American Iron and Steel Institute (AISI) report earlier this week, quoting preliminary U.S. Census Bureau data, steel imports through October are up 19.4% compared with the same time frame last year.

The U.S. imported a total of 3,119,000 net tons (NT) of steel in October 2017, relatively unchanged from the previous month. In addition, about 2,493,000 (NT) of finished steel came in, down about 0.4% from final September data.

In the year-to-date (YTD), however, through 10 months of 2017, total and finished steel imports were 32,850,000 NT and 25,449,000 NT — up 19.4% and 15.4% respectively, compared with the first 10 months of 2016.

Market Share Holds Steady

The steel import market share for October held at around 27%, relatively unchanged from the previous month.

Source: AISI

Import market share for the YTD is 28%, according to the report.

The import market share for the year peaked in June when it crested the 30% mark before dipping down to 26% in August.

Imports by Product

Several products posted significant import increases in October.

In October, products posting percentage increases from the previous month included: wire rods (up 32%), cut lengths plates (up 27%), plates in coils (up 23%) and standard pipe (up 10%).

In the YTD, oil country goods (up 231%), line pipe (up 68%), standard pipe (up 44%), mechanical tubing (up 34%), cold rolled (up 26%), sheets and strip all other metallic coatings (up 25%), hot rolled bars (up 21%) and sheets and strip hot dipped galvanized (up 17%) have all posted sizable increases.

South Korea Leads the Way

By country, South Korea once again led the way in terms of steel exports to the U.S.

South Korea sent 372,000 NT to the U.S. in October, up 14% from its September total. Behind South Korea in export volume were: Germany (156,000 NT, up 2%), Taiwan (122,000 NT, up 2%), Turkey (112,000 NT, down 7%) and Brazil (89,000 NT, down 19%).

As for the YTD, Taiwan has posted the largest percentage increase, with its 1,148,000 NT representing a 35% surge from last year’s total through 10 months.

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Other YTD totals include: South Korea (3,328,000 NT, up 2% versus the same period in 2016), Turkey (2,065,000 NT, down 1%), Japan (1,307,000 NT, down 17%) and Germany (1,160,000 NT, up 14%). 

Zerophoto/Adobe Stock

Indian industry is in the midst of a mini-crisis — more specifically, a power crisis.

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In fact, both industrial and retail consumers in many parts of the country are reeling from electricity cuts, due to a shortage in supply of coal to thermal plants.

Incidentally, Piyush Goyal, India’s coal minister, was also appointed railway minister recently. The railways transport a bulk of the coal to power plants around the country.

Yet, not much is coming out of the minister’s office regarding the coal shortage. In fact, in his role as coal minister, Goyal earlier declared India’s “independence” from imported coal.

Some time in June this year, the coal secretary announced India did not need to import coal from anywhere in the world, as it had sufficient capacity.

Now, all that seems so far away.

Read more

Before we head into the weekend, let’s take a look back at the week that was:

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Free Download: The November 2017 MMI Report

President Donald Trump may not have said much, if anything, about China’s steel exports during his recent tour. Both European and U.S. legislators, however, are carrying out investigations into not just simple dumping but more complex and illegal activities, such as shipping via third parties to hide the origin and avoid pre-existing dumping tariffs.

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A Reuters article this week explains how the European Union’s anti-fraud office (OLAF) said it has found Chinese steel was shipped through Vietnam to evade the bloc’s tariffs.

In part, the current case may be a matter of timing.

Read more

Pavel Ignatov/Adobe Stock

This morning in metals news, U.S. imports of steel are up 19.4% through the first 10 months of the year, the European Union’s antitrust watchdog is eyeing ArcelorMittal’s bid to buy Ilva and London copper posted little movement Thursday.

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Steel Import Market Share Hits 26% in October

According to data released by the American Iron and Steel Institute (AISI), for the first 10 months of 2017, total and finished steel imports were 32,841,000 net tons (NT) and 25,375,000 NT, up 19.4% and 15.1%, respectively, from the same period in 2016.

In addition, the estimated finished steel import market share in October was 26% and is 27% for the year to date. 

EU to Look at ArcelorMittal’s Ilva Takeover Bid

The EU’s antitrust watchdog is taking a look at ArcelorMittal’s bid to buy Ilva, amid concerns that the purchase could stifle competition and lead to rising prices, the Associated Press reported.

According to the report, the EU Commission said Wednesday that it fears “the merger may reduce competition for a number of flat carbon steel products.”

London Copper Doesn’t Budge

It was a quiet Thursday for LME copper, as the metal traded just above the previous one-month low, Reuters reported.

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With light volumes, LME copper held at $6,856 a ton by 1:27 GMT, marking a 0.4% gain from the previous session, per the report.

gui yong nian/Adobe Stock

This morning in metals news, Tata Steel announces a big investment, Chinese steel shipments have continued to drop and the U.S. International Trade Commission (ITC) will expedite a five-year sunset clause review of carbon and alloy steel standard, line, and pressure (CASSLP) pipe from Germany.

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Tata Steel Makes Big Port Talbot Steel Investment

Tata Steel announced it is investing £30 million in its Port Talbot steelworks, the BBC reported.

According to the report, the Indian firm will install a 500-ton steelmaking vessel at the plant, in addition to other upgrades.

Dropping Chinese Steel Shipments

President Donald Trump kicked off his tour of Asia this week; while North Korea draws much of the headlines, China’s steel industry is also among the list of items in the spotlight.

Bloomberg notes that dropping steel shipments from China, the world’s top steel producer, undercut the Trump administration’s rhetoric calling out China’s excess steel capacity.

“Exports from the country that accounts for half of global production dropped to 4.98 million tons last month, down from September’s 5.14 million, and the lowest since 2014, according to customs figures,” Bloomberg’s report reads. “That’s a far cry from the monthly peak in late 2015, when they exceeded 11 million tons.”

U.S. ITC Expedites Review of CASSLP Pipe From Germany

The U.S. ITC announced Monday that it voted to expedite its five-year sunset review concerning the antidumping duty order on seamless CASSLP pipe from Germany.

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“As a result of the vote, the Commission will conduct an expedited review to determine whether revocation of the order would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time,” the ITC release about the vote reads.

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The European Steel Association (Eurofer) had good news about the EU steel sector last week, albeit with a caveat.

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According to a report from Eurofer last week, EU investment in steel and its exports have trended positively.

“Strengthening investment and robust exports are boosting the performance of steel-using sectors in the EU,” the report states. “Steel demand is expected to continue its gradual recovery in 2018.”

The report continues with a caveat.

“However, increasing import pressure in in the second quarter of 2017 signals that foreign supply remains a critical issue for the EU steel sector.”

Steel consumption in the EU dipped slightly in the second quarter compared to the first quarter, according to the report. As a result, EU domestic suppliers suffered. Deliveries by EU domestic suppliers in the second quarter fell 3.5% year-over-year. In addition, third country imports rose by 10% year-over-year.

“The relative balance between growth in domestic and foreign supply seen in the first quarter of 2017 was reversed at the expense of EU steel mills,” said Axel Eggert, director general of Eurofer, in a prepared statement. “Despite a reduction in imports from China and several other countries owing to corrective anti-dumping duties put in place third country import volumes have risen again in the second quarter.”

Overall, however, EU steel consumption for 2017 is forecast to rise 2.3%. The report also notes that steel demand is expected to continue its “gradual recovery” into next year (a recovery dating back to 2014). The report cites the “expected rise in real steel consumption in the EU market and very modest support from the stock cycle” as factors underpinning the ongoing bounceback.

As for steel-using sectors, the report states production activity grew by 3.1% year-on-year. Moreover, first-quarter growth was revised up to 6.3% (compared to the same period in 2016).

“We welcome the healthy performance of relatively steel-intensive sectors,” Eggert said in the release. “These include the automotive and engineering industries, as well as tube manufacturers, over the first half of 2017. Growth in the construction industry was the strongest it has been for many years and clearly reflects improving fundamentals in this important steel-using segment.”

Eurofer expects total output to continue to trend positively throughout the remainder of the year, building on the momentum of the first half. Total output is forecast to rise by 4.2% for the year, according to Eurofer.

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Despite import pressures, the total economic picture for the EU bloc leaves room for optimism. Eurofer’s October outlook forecasts GDP growth of 2.1% this year and 1.9% for 2018.

“The business climate looks set to remain supportive to continued healthy investment growth, whereas private consumption growth is foreseen to slow down somewhat,” the report states. “In combination with stable growth of government consumption, domestic demand will be the major driver of economic growth in the EU.”