SEIFSA IS WORRIED BY THE ANNOUNCEMENT OF THE U.S DEPARTMENT OF COMMERCE IN ITS ANTIDUMPING DUTY INVESTIGATIONS OF IMPORTS OF CARBON AND ALLOY STEEL WIRE ROD FROM SOUTH AFRICA
JOHANNESBURG, 11 JANUARY 2018 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is very worried by the recent announcement of the U.S. Department of Commerce’s affirmative final determinations in the antidumping duty (AD) investigations of imports of carbon and alloy steel wire rod from South Africa and Ukraine.
This is following an initial parallel investigations launched in October 2017, to determine if American producers have been harmed by carbon and alloy steel wire rod imports from Italy, the Republic of Korea, South Africa, Spain, Turkey, Ukraine and/or the United Kingdom, by both the U.S Department of Commerce and the U.S International Trade Commission (ITC).
The AD law provides U.S businesses and workers with a transparent, quasi-judicial, and internationally accepted mechanism to seek relief from the market distorting effects caused by injurious dumping of imports into the United States, establishing an opportunity to compete on a level playing field. For the purpose of AD investigations, dumping occurs when a foreign company sells an imported product in the United States at less than fair value.
“In the South Africa investigations, the U.S. Department of Commerce assigned a dumping rate of 142.26 percent for the collapsed entity composed of ArcelorMittal South Africa Limited, Scaw South Africa (PTY) Ltd (also known as Scaw Metals Group), and Consolidated Wire Industries, based on adverse facts available due to its failure to respond to Commerce’s request for information. Davsteel Division of Cape Gate (Pty) Ltd., the other mandatory respondent, was found to have no shipments of subject merchandise during the period of investigation. All other producers/exporters in South Africa have been assigned a dumping rate of 135.46 percent,” said SEIFSA’s Chief Economist Michael Ade.
Upon publication of the final affirmative AD determinations, Commerce will instruct U.S Customs and Border Protection (CBP) to collect cash deposits equal to the applicable final weighted-average dumping rates.
SEIFSA is extremely concerned that the latest developments have the potential of further dampening production in the local steel industry, reducing steel exports to the U.S and stifling the steel industry of much needed foreign reserves. “This is especially given that in 2016, imports of carbon and alloy steel wire rod by the U.S from South Africa was valued at an estimated $7.1 million,” Dr Ade said.
The ITC is scheduled to make its final determination on or about of the 22nd of February 2018. If the ITC makes affirmative final determination that imports of carbon and alloy steel wire rod from South Africa and/or Ukraine materially injure, or threaten material injury to, the domestic industry, the U.S Department of Commerce will issue AD orders. If the ITC makes negative determinations of injury, the investigations will be terminated.
SEIFSA will continue to monitor the situation closely, in light of the final determination by the ITC.
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