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Domestic Coalition Requests New AD/CV Duties on Titanium Sponge From Kazakhstan and Japan

Titanium Metals Corporation (TIMET) filed a petition on Aug. 24 with the Commerce Department and the International Trade Commission requesting new antidumping and countervailing duties on titanium sponge from Kazakhstan, and new antidumping duties on titanium sponge from Japan. Commerce will now decide whether to begin AD/CVD investigations on titanium sponge that could eventually result in the assessment of AD/CV duties.

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Titanium sponge is the primary form of titanium, obtained when chemical processes are used to reduce titanium-bearing ores. TIMET says dumped titanium sponge recently caused the only other producer of titanium sponge in the U.S. to shutter its facility, and that TIMET is subject to the "same extraordinary financial pressure from unfairly priced imports that led to the idling" of its competitor's plant.

AD duty orders on titanium sponge were imposed on the Union of Soviet Socialist Republics in 1968, and subsequently carried on to its successors Kazakhstan, Russia and Ukraine. An AD duty order on titanium sponge from Japan was imposed in 1984. All of these AD duty orders were revoked in 1998.

Proposed Scope

The petition proposes the following scope for the investigations:

The product covered by these investigations is all forms and grades of titanium sponge, except as specified below. Titanium sponge is unwrought titanium metal that has not been melted.

Expressly excluded from the scope of this investigation are titanium powders, titanium sponge fines, titanium briquettes consisting of compacted titanium sponge fines and ultra-high purity titanium sponge. In ultra-high purity titanium sponge, metallic impurities do not exceed any of these amounts:

  • Aluminum 0.0005%
  • Chromium 0.0001%
  • Cobalt 0.0001%
  • Copper 0.0002%
  • Iron 0.0300%
  • Manganese 0.0010%
  • Nickel 0.0002%
  • Vanadium 0.0002%
  • Zirconium 0.0005%
  • Carbon 0.0150%
  • Hydrogen 0.0100%
  • Nitrogen 0.0020%
  • Oxygen 0.1000%

Titanium sponge is currently classified under subheading 8108.20.0010 of the Harmonized Tariff Schedule of the United States (HTSUS). While the HTS subheading is provided for convenience and customs purposes, the written description of the scope of this proceeding 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 Sept. 13.

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