Trade Cases

SDI Targets Japan with Circumvention Case Against Vietnamese Coated Sheet

Written by Michael Cowden

November 23, 2021

Steel Dynamics Inc. (SDI) has filed a duty circumvention case against coated flat-rolled steel from Vietnam made from Japanese substrate.

The Fort Wayne, Ind.-based steelmaker thinks that “minor alterations” such as coating represent an attempt to circumvent existing antidumping and countervailing duty orders on hot-rolled and cold-rolled coil from Japan.

SDI

The U.S. Commerce Department has already ruled in favor of domestic steelmakers in similar cases targeting coated product made in Vietnam from substrate melted in China, Taiwan and South Korea.

Japanese hot-rolled and cold-rolled coil have been “following the same path” that substrate from China, Taiwan and South Korea did previously, SDI said in a filing earlier this month written by Washington, D.C.-based law firm Schagrin Associates and addressed to Commerce Secretary Gina Raimondo.

“In each case, the circuitous production path has allowed the continuation of low-priced imports that remain injurious to the domestic steel industry,” the filing alleged.

SDI also noted that successful circumvention cases had been filed against coated product from the United Arab Emirates, Malaysia and Costa Rica originating from Chinese substrate and against coated product from Malaysia originating from Taiwanese substrate.

The text of the filing in addition raised the prospect of duty circumvention cases being extended to other countries already subject to antidumping and/or countervailing duty orders on hot-rolled, cold-rolled rolled or coated product resulting from a raft of trade petitions filed in 2015-16.

That list includes not only Japan but also Australia, Brazil, China, India, Italy, the Netherlands, South Korea, Taiwan, Turkey, and the United Kingdom.

Domestic mills will have a hard time claiming they need relief after posting record quarterly profits thanks to U.S. steel prices that are the highest in the world, some market observers said. But others said the case – should it serve as a template for future cases – has the potential to alter the domestic supply landscape.

The petition also comes as some North American mills have expressed concern about lower priced coated products – such as galvanized and Galvalume – potentially making substantial inroads against domestic steel in the first half of 2022.

By Michael Cowden, Michael@SteelMarketUpdate.com

Michael Cowden

Michael Cowden is managing editor for Steel Market Update. Cowden has covered the steel industry since 2007. He has since 2014 specialized in flat-rolled steel but has previously reported on steel long products, steel pipe and tube as well as aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago - where he was involved in launching AMM's daily hot-rolled coil index, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.

Read more from Michael Cowden

Latest in Trade Cases

Leibowitz: The consequences of a new barrage of trade cases on coated steel

Domestic steel producers and the United Steelworkers (USW) union filed a barrage of trade cases last week. This is hardly news. Ever since the Commerce Department ruled that Vietnam is still treated as a nonmarket economy (NME) for antidumping purposes, many in the business expected new cases on the product that Vietnam excels at—“corrosion-resistant steel.” Nor is it a surprise that these cases roped in nine countries in addition to Vietnam: Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan, Turkey, and the United Arab Emirates. All these countries rank in the top ten exporters of corrosion-resistant steel to the United States. These petitions are a broadside against coated flat-rolled steel imports.

US mills file sprawling trade case against coated imports from 10 nations

US mills have filed or soon will file a sprawling trade petition against imports of coated flat-rolled steel from 10 countries. The petition seeks anti-dumping margins against Canada, Mexico, Brazil, the Netherlands, Turkey, the United Arab Emirates, Vietnam, Taiwan, Australia, and South Africa. It also seeks countervailing duty margins against Canada, Mexico, Brazil, and Vietnam. That’s according documents dated Sept. 5 and addressed to Commerce Secretary Gina Raimondo and International Trade Commission (ITC) Secretary Lisa Barton.

Steel Summit 2024: Trade issues abound ahead of election

Trade is always front and center in an election year. And 2024 is no different. There is no shortage of issues, with questions like the sale of U.S. Steel to Japan’s Nippon Steel, potential cracks in the USMCA, and Chinese overcapacity dominating the headlines. But how do you distinguish between issues that might just last until November, and what are the crucial questions that could affect your business for years to come?