The Rebar Trade Action Coalition (RTAC), a coalition of steel concrete reinforcing bar (rebar) producers in the United States, filed petitions asking the US Department of Commerce and the International Trade Commission (ITC) to conduct anti-dumping (AD) investigations into imports of rebar from Japan, Taiwan, and Turkey, and a countervailing duty (CVD) investigation into Turkish rebar arriving in the USA. The petitions demonstrate that Japanese, Taiwanese, and Turkish rebar producers are dumping their product into the United States at margins ranging from 86.12% to 206.17%, according to US-based lawyers Wiley Rein.
As a result of increasing volumes of dumped and subsidised imports from these countries, the US rebar industry is suffering significant harm, including a decline in pricing and profits. Japanese, Taiwanese, and Turkish rebar exports of rebar to the USA increased 160% between 2013 and 2015, and have remained significant in 2016, causing US producers to lose substantial sales to the unfairly priced rebar and forcing them to lower prices to prevent additional lost volume. US rebar producers are struggling to maintain operating levels in the face of these imports, which have also severely depressed the US industry’s capacity utilisation rates.
“The US industry and its workers have been injured by the growing volume of dumped and subsidised rebar imports. The Japanese, Taiwanese, and Turkish industries are using unfair pricing practices to steal market share from domestic producers,” said Alan H. Price, chair of the International Trade Practice group at Wiley Rein LLP and counsel for the RTAC. “The Turkish government also subsidises its steel producers and encourages massive export volumes. As a result of these unfair trade practices, the domestic rebar industry has been forced to lower prices and has experienced significant declines in profitability.”
The ITC’s preliminary injury determination is expected in November while the Department of Commerce should make its preliminary AD and CVD determinations within approximately six months. At that point, importers of Japanese, Taiwanese, and Turkish merchandise will be required to make cash deposits in the amount of the preliminary AD and CVD duties. A final determination is expected in 9 to 13 months.
Source: Wiley Rein LLC, USA