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Petition Filed for New AD/CV Duties on Hot-Rolled Steel Flat Products

A group of U.S. manufacturers filed a petition on Aug. 10 with the Commerce Department and International Trade Commission requesting new antidumping duties on hot-rolled steel flat products from Australia (A-602-809), Brazil (A-351-845), Japan (A-588-874), South Korea (A-580-883), the Netherlands (A-421-813), Turkey, (A-489-826) and the United Kingdom (A-412-825), and countervailing duties on hot-rolled steel flat products from Brazil (C-351-846), South Korea (C-580-884), and Turkey (C-489-827). Commerce will now decide whether to begin AD/CVD investigations on these products that could result in the imposition of duties.

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The petition was filed by AK Steel Corporation, ArcelorMittal USA LLC, Nucor Corporation, SSAB Enterprises, LLC, Steel Dynamics, Inc., and United States Steel Corporation. Any new antidumping and countervailing duties imposed as a result of this investigation would come on top of AD duties currently in place on hot-rolled carbon steel fiat products from China, India, Indonesia, Russia, Taiwan, Thailand, and Ukraine, as well as existing CV duties on hot-rolled carbon steel flat products from India, Indonesia, and Thailand.

Proposed Scope

The petition proposes the following scope for the investigations:

"The products covered by these investigations are certain hot-rolled, steel flat products, with or without patterns in relief, and that are neither clad, plated, nor coated with metal but whether or not annealed, painted, varnished, or coated with plastics or other nonmetallic substances. The products covered include coils that have a width of 12.7 mm or greater, regardless of thickness, and regardless of the form of the coil (e.g., in successively superimposed layers, spirally oscillating, etc.). The products covered also include products not in coils (e.g., in straight lengths) of a thickness of less than 4.75 mm and a width that is 12.7 mm or greater that measures at least 10 times the thickness. The covered products described above may be rectangular, square, circular, or other shapes and include products of either rectangular or nonrectangular cross-section where such cross-section is achieved subsequent to the rolling process, i.e., products which have been “worked after rolling” (e.g., products which have been beveled or rounded at the edges).

"For purposes of the width and thickness requirements referenced above:

"(1) where the nominal and actual measurements vary, a product is within the scope if application of either the nominal or actual measurement would place it within the scope based on the definitions set forth above, and

"(2) where the width and thickness vary for a specific product (e.g., the thickness of certain products with non-rectangular cross section, the width of certain products with non-rectangular shape, etc.), the measurement at its greatest width or thickness applies.

"Steel products included in the scope of these investigations are products in which: (1) iron predominates, by weight, over each of the other contained elements; (2) the carbon content is 2 percent or less, by weight; and (3) none of the elements listed below exceeds the quantity, by weight, respectively indicated:

  • 2.50 percent of manganese, or
  • 3.30 percent of silicon, or
  • 1.50 percent of copper, or
  • 1.50 percent of aluminum, or
  • 1.25 percent of chromium, or
  • 0.30 percent of cobalt, or
  • 0.40 percent oflead, or
  • 2.00 percent of nickel, or
  • 0.30 percent oftungsten, or
  • 0.80 percent of molybdenum, or
  • 0.10 percent of niobium, or
  • 0.30 percent of vanadium, or
  • 0.30 percent of zirconium.

"Unless otherwise specifically excluded, products are included in this scope regardless of levels of boron and titanium.

"For example, specifically included within the scope of these investigations are vacuum degassed, fully stabilized (commonly referred to as interstitial-free (IF)) steels, high strength low alloy (HSLA) steels, and the substrate for motor lamination steels. IF steels are recognized as low carbon steels with micro-alloying levels of elements such as titanium and/or niobium added to stabilize carbon and nitrogen elements. HSLA steels are recognized as steels with micro-alloying levels of elements such as chromium, copper, niobium, titanium, vanadium, and molybdenum. The substrate for motor lamination steels contains micro-alloying levels of elements such as silicon and aluminum.

"All products that meet the written physical description, and in which the chemistry quantities do not exceed any one of the noted element levels listed above, are within the scope of these investigations unless specifically excluded. The following products are outside of and/or specifically excluded from the scope of these investigations:

  • Universal mill plates (i.e., hot-rolled, fiat-rolled products not in coils that have been rolled on four faces or in a closed box pass, of a width exceeding 150 mm but not exceeding 1250 mm, of a thickness not less than 4.0 mm, and without patterns in relief);
  • Products that have been cold-rolled (cold-reduced) after hot-rolling;
  • Ball bearing steels, as defined in the HTSUS.
  • Tool steels, as defined in the HTSUS.
  • Silico-manganese (as defined in the HTSUS) or silicon electrical steel with a silicon level exceeding 3.30 percent. USS abrasion-resistant steels (USS AR 400, USS AR 500).
  • Non-rectangular shapes, not in coils, which are the result of having been processed by cutting or stamping and which have assumed the character of articles or products classified outside chapter 72 of the HTSUS.

"The merchandise subject to these investigations is classified in the HTSUS at subheadings: 7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 7208.27.00.30, 7208.27.00. 60, 7208.36.00.30, 7208.36.00.60, 7208.37.00.30, 7208.37.00. 60, 7208.38.00.15, 7208.38.00.30, 7208.38.00.90, 7208.39.00. 15, 7208.39.00.30, 7208.39.00.90, 7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 7208.90.00.00, 7210.70.30.00, 7211.14.00.30, 7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 7211.19.30.00, 7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 7211.19.75.60, 7211.19.75.90, and 7211.90.00.00. Certain hot-rolled steel flat products covered by these investigations also enter under the following tariff numbers: 7225.11.00. 00, 7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 7226.91.70.00, and 7226.91.80.00. Subject merchandise may also enter under 7210.90.90.00, 7212.40.10.00, 7212.40.50.00, 7212.50.00. 00, and 7226.99.01.80. Although the HTSUS subheadings are provided for convenience and U.S. customs purposes, the written description of the merchandise under investigation is dispositive."

Commerce Accepting Comments on Petition Support

The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due by Aug. 31.

Email ITTNews@warren-news.com for a copy of the petition.