US launches anti-dumping probe on Chinese steel wire rod on ArcelorMittal's complaint
24 February 2014
The US Commerce Department has launched an anti-dumping duty (AD) and countervailing duty (CVD) probe on imports of carbon and certain alloy steel wire rod from China.
|Secretary Penny Pritzker (third from left) and US Trade Representative Michael Froman (second from left) at the 24th session of the US-China Joint Commission on Commerce and Trade|
The move comes two weeks after the US launched an anti-dumping investigation on crystalline silicon photovoltaic products imported from China and Taiwan. (See: US to launch anti-dumping probe of photovoltaic products from China)
Carbon and certain alloy steel wire rods are mainly used for subsequent drawing and finishing into wire products.
The International Trade Commission (ITC), a unit of Commerce Department, launched the probe at the request of ArcelorMittal USA and five other US steelmakers, and will submit its findings by 17 March 2014.
ArcelorMittal and others allege that these imports from China were sold below the fair value in the US market with dumping margins from 99.32 per cent to 110.25 per cent. They also say that Chinese producers and exporters also received improper government subsidies.
The AD and CVD laws provide US businesses to seek relief from the market-distorting effects caused by dumping and unfair subsidy on imports into the US in order to compete on a level playing field.
In 2013, imports of carbon and certain alloy steel wire rod from China were valued at an around $313 million.
If the ITC determines that there is a reasonable indication that these imports from China threaten the domestic industry, the investigations will continue and it will make its preliminary CVD and AD determination in April 2014 and July 2014 respectively.