U.S. Steel Producers File Antidumping and Countervailing Duty Petitions: The Potential Impact
U.S. steel producers Nucor, U.S. Steel, Steel Dynamics, California Steel, AK Steel and Acelor Mittal filed, on June 3, antidumping and countervailing duty petitions against some forms of corrosion resistant steel from China, India, Italy, Korea and Taiwan.
What’s the Potential Impact?
These petitions could result in the imposition of antidumping and countervailing duties on imports of these products from those countries soon if the investigating entities the U.S. Department of Commerce and the U.S. International Trade Commission determine that “critical circumstances” exist. The domestic steel mills are seeking these additional duties alleging that imported steel’s substantial share of the U.S. market and their pricing into this market are the cause of their injury. These filings were the next step in the industries efforts to see price increase and declining imported steel U.S. market share. These petitions may be the forerunner of additional petitions against other forms of carbon steel products and other countries. Previously, the industry commenced efforts to have Congressional action on changes in the U.S. antidumping and countervailing duty laws. Those changes are in the so-called customs bill (actually the Trade Facilitation and Trade Enforcement Act) currently before the House.
Overall, these efforts, if successful, could have implications for not only the U.S. steel industry, but also the resellers of imported steel and the customers for domestic and imported steel. Suppliers and manufacturers of those industries should follow developments in the proceedings, and look to means to avoid or offset adverse consequences in availability and pricing.