Chinese CORE Steel Imports Drop 80 Percent as US Tariffs Soar
The US Department of Commerce just released its final decision in its investigations into charges of dumping and illegal government subsidization of corrosion-resistant (CORE) steel from China, India, Italy, South Korea and Taiwan. But preliminary (and slightly higher) tariffs imposed last year are already putting the brakes on this trade.
On May 25, Commerce finalized the anti-dumping duty rate to be imposed on CORE steel imports from China at 209.97%. Rates imposed on these imports originating in India, Taiwan, South Korea, and Italy range from 3.05% to 92.12%.
Also finalized are duties aimed at countering any unfair market advantage producers enjoy from their governments’ subsidies. Countervailing duty rates in the band of 39.05% to 241.07% will be applied to Chinese imports. No CVD will be imposed on imports from Taiwan.
The new AD/CVD rates are summarized in the tables below.
Commerce’s preliminary determinations of countervailing duties (issued in November 2015) and anti-dumping duties (December 2015) seem to have had an impact already – especially on the volume of Chinese CORE steel imports, which plummeted 80% in first-quarter 2016 compared to the same period a year earlier. US imports of this product from all sources were down 18% in the first quarter.
The final AD/CVD determinations just about wrap up the investigations launched last June at the request of six US steel makers. [The relevant Case Nos. are A-570-026, A-580-878, A-533-863, A-475-832, A-583 856, C-570-027, C-580-879, C-533-864, C-475-833 and C-583-857 on the Commerce Dept. International Trade Administration Access site.]
But the case on CORE steel imports is not quite closed. The Commerce Department next has to determine whether the US domestic industry has been materially injured, or faces a threat of material injury, from these imports … and whether additional duties should be slapped on top of the 451% tariff already imposed on Chinese CORE steel imports. That decision is expected on July 8.
Date posted: June 6, 2016