LONDON, June 28, 2018 /PRNewswire/ --
On May 21, the US Department of Commerce sided with US steel mills that imports of Vietnamese cold-rolled coil and corrosion-resistant steel sheet (CORE) made with Chinese substrate were circumventing anti-dumping and countervailing duties on China that were finalized in 2016.
After an initial adjustment period after the inquiries were filed in November 2016, imports from Vietnam started to flow again, as attorneys counselled traders that duties did not need to be paid on Vietnamese exports if the substrate came from a non-Chinese country. This is a stance that Commerce validated by only applying Chinese duties on Vietnamese exports made from Chinese substrate.
After Commerce ruled that cold-rolling and coating sheet were relatively minor manufacturing processes relative to steelmaking, US mills wasted limited time - 22 days - to file new cases for Vietnamese exports made with South Korean and Taiwanese substrate.
On June 12, US mills petitioned to include Vietnamese exports of CR coil and CORE made with Korean substrate under Korean duties. In a separate filing, mills also pushed to impose duties on Taiwan to Vietnamese CORE exports.
These moves were an expeditious way to put duties on more Vietnamese CR coil and CORE than just what was made with Chinese substrate. After an anti-circumvention inquiry petition filing, Commerce has 45 days to launch an investigation, and it will have another 300 days after the start of the investigation to make a final determination. There are two key points in Commerce's rules that work in favour of petitioners: Commerce may make its determination any time between its initiation and the 300-day deadline and duties will be imposed retroactively to the launch of the investigation.
Considering the ruling on China's anti-circumvention inquiry, there is no reason to believe that duties on Korea and Taiwan won't be in effect on subject Vietnamese exports. This is very significant as two of the largest exporters of substrate for CR coil and CORE to Vietnam are Korea and Taiwan. During the litigation of China's anti-circumvention inquiry, China Steel Sumikin Vietnam asserted that it only produced CORE with Japanese and Taiwanese steel, not Chinese. It's a wonder why there hasn't been an anti-circumvention petition launched against Japan - for now.
When the US imposed 10.34% anti-dumping duties on Taiwanese CORE in 2016, it was viewed as a disappointment for the US mills. US imports of CORE from Taiwan have continued, even with the 10.34% duty and the 25% Section 232 tariff. Perhaps a 10.34% duty on CORE made from Taiwanese substrate in addition to the Section 232 tariffs will be enough to stem the flow of CORE from Vietnam, even after Section 232 tariffs end, but it's unlikely to be enough consider the US is still importing CORE from Taiwan.
Read the full story: https://www.crugroup.com/knowledge-and-insights/insights/2018/us-steel-mills-fortify-trade-defences-with-new-anti-circumvention-actions/
Read more about CRU: http://bit.ly/About_CRU
About CRU
CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.
Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.
CRU employs over 260 experts and has more than 10 offices around the world, in Europe, the Americas, China, Asia and Australia - our office in Beijing opened in 2004.
When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.
CRU - big enough to deliver a high-quality service, small enough to care about all of our customers.
