U.S. Producers Of Carbon And Certain Alloy Steel Wire Rod File Antidumping And Countervailing Duty Petitions Against China, Says

U.S. Producers Of Carbon And Certain Alloy Steel Wire Rod File Antidumping And
  Countervailing Duty Petitions Against China, Says Kelley Drye & Warren LLP

PR Newswire

WASHINGTON, Jan. 31, 2014

WASHINGTON, Jan. 31, 2014 /PRNewswire-USNewswire/ --A five-company coalition
of U.S. producers of carbon and certain alloy steel wire rod ("wire rod")
comprised of ArcelorMittal USA LLC, Charter Steel, Evraz Rocky Mountain Steel
(aka EVRAZ Pueblo), Gerdau Ameristeel US Inc., and Keystone Consolidated
Industries, Inc. ("the Coalition"), today was joined by Nucor Corporation in
filing an antidumping duty petition charging that unfairly traded imports of
wire rod from China are causing material injury to the domestic wire rod
industry. The dumping margins alleged by the domestic industry range from 100
to 110 percent. The domestic industry also filed a countervailing duty
petition alleging that the Chinese Government provided significant subsidies
to Chinese wire rod producers. The petitions were filed concurrently with the
United States Department of Commerce ("Commerce Department") and the United
States International Trade Commission ("USITC").

The petitions were filed in response to large and increasing volumes of
low-priced imports of wire rod over the past three years that have injured
U.S. wire rod producers. In 2012 and 2013, imports of wire rod from China
surged into the U.S. market, rising from 144 tons in 2011 to over 614,000 tons
in 2013. China is now the largest source of wire rod imports in the United
States. The petitions allege that producers in China have injured the
domestic industry by selling their products at unfairly low prices that
significantly undercut U.S. producer prices. As a result of this unfair
competition, the domestic industry has suffered declines in production, sales,
and employment, and has seen its profitability diminish. The petition states
that Chinese producers covered by the petitions have massive capacity to
produce wire rod and pose a continuing threat to the health of the U.S.
industry. If the cases are successful, import duties will be imposed,
offsetting the unfair trade practices that have allowed the imports from China
to injure the domestic industry.

"Imports of unfairly low-priced and subsidized wire rod from China have
devastated pricing in the U.S. market and caused injury to the domestic
industry," commented Paul Rosenthal, of Kelley Drye & Warren LLP, the lead
trade counsel to the Coalition petitioners."The domestic industry looks
forward to the opportunity to present its case to the Commerce Department and
U.S. International Trade Commission to obtain relief from unfairly traded
imports of wire rod."

Antidumping duties are intended to offset the amount by which a product is
sold at less than fair value, or "dumped," in the United States. The margin
of dumping is calculated by the Commerce Department. Estimated duties in the
amount of the dumping are collected from importers at the time of
importation. Countervailing duties are intended to offset unfair subsidies
that are provided by foreign governments and benefit the production of a
particular good. The USITC, an independent agency, will determine whether
such imports are a cause of, or threaten, material injury to the domestic
industry.

As a result of the filing of the petitions, the Commerce Department will
determine whether to initiate the antidumping and countervailing duty
investigations within 20 days, and the USITC will reach a preliminary
determination of material injury or threat of material injury within 45 days.
The entire investigative process will take approximately one year, with final
determinations of dumping, subsidization, and injury likely occurring in early
2015.

Carbon and certain alloy steel wire rod is a hot-rolled intermediate steel
product of approximately round solid cross section, in irregularly wound
coils, in diameters less than 19 millimeters. Wire rod is primarily used for
subsequent drawing and finishing by wire drawers, and is ultimately used to
manufacture a variety of products, including electric welded chain, cold-drawn
bars, springs, nails, reinforcing wire mesh, chain link fence and many
different types of wires.

ArcelorMittal USA LLC, Charter Steel, Evraz Rocky Mountain Steel, Gerdau
Ameristeel US Inc., Keystone Consolidated Industries, Inc., are represented in
these actions by Paul Rosenthal, Kathleen Cannon and Alan Luberda of the law
firm Kelley Drye & Warren LLP. Nucor Corporation is represented by Alan
Price and Daniel Pickard of Wiley Rein LLP.

SOURCE Kelley Drye & Warren LLP
 
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