Steel Wire Rod from Ten Countries Subject of New AD/CV Petition
A petition filed March 28 alleges that carbon and alloy steel wire rod from Belarus, Italy, Korea, Russia, South Africa, Spain, Turkey, Ukraine, the United Arab Emirates, and the United Kingdom is being sold at less than fair value in the U.S. market and that CASWR from Italy and Turkey is benefitting from countervailable subsidies. The petition alleges dumping margins of 179.07 percent to 304.94 percent for Belarus, 26.36 percent for Italy, 41.72 percent to 53.09 percent for Korea, 216.50 percent to 821.40 percent for Russia, 159.35 percent to 164.08 percent for South Africa, 32.64 percent for Spain, 45.1 percent for Turkey, 21.64 percent to 61.64 percent for Ukraine, 69.57 percent for the UAE, and 88.25 percent for the UK.
There are already AD duty orders in place against CASWR from Brazil, China, Indonesia, Mexico, Moldova, and Trinidad & Tobago and CV duty orders against Brazil and China. The new petition targets the bulk of the remaining global production.
AD and/or CV duty orders on such goods could have an immediate downstream impact due to all the uses of industrial quality wire, which include the production of nails, reinforcing wire mesh, and chain link fence. Wire rod can also be drawn into wire for upholstery and mechanical springs, rope, screens, and pre-stressed concrete wire. More demanding applications include automotive wheel bolds and tire reinforcing wire, cold-heading applications, certain welding applications (e.g., gas welding, electric arc welding), and music spring wire.
The goods covered by this petition are certain hot-rolled products of carbon steel and alloy steel, in coils, of approximately round cross-section, less than 19.00 mm in actual solid cross-sectional diameter. The subject goods are currently classifiable under HTSUS 7213.91.3011, 7213.91.3015, 7213.91.3020, 7213.91.3093, 7213.91.4500, 7213.91.6000, 7213.99.0030, 7227.20.0030, 7227.20.0080, 7227.90.6010, 7227.90.6020, 7227.90.6030, and 7227.90.6035. Products entered under HTSUS 7213.99.0090 and 7227.90.6090 also may be included if they meet the physical description above.
Specifically excluded are steel products possessing the above-noted physical characteristics and meeting the HTSUS definitions for stainless steel, tool steel, high nickel steel, ball bearing steel, or concrete reinforcing bars and rods. Also excluded are free cutting steel (also known as free machining steel) products (i.e., products that contain by weight one or more of the following elements: 0.1 percent or more of lead, 0.05 percent or more of bismuth, 0.08 percent or more of sulfur, more than 0.04 percent of phosphorous, more than 0.05 percent of selenium, or more than 0.01 percent of tellurium).
The Department of Commerce and the International Trade Commission will next determine whether to launch AD and/or CV duty and injury investigations, respectively, on this product. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact trade counsel as soon as possible.
For more information contact Kristen Smith at (202) 730-4965, Mark Ludwikowski at (202) 730-4967 or David Craven at (312) 279-2844.