Trade Cases
Coated trade case alleges hefty dumping margins
Written by Laura Miller
September 6, 2024
Domestic mills have alleged substantial dumping margins in the trade case targeting imports of corrosion-resistant flat-rolled steel.
The case’s petitioners, Steel Dynamics Inc. (SDI), Nucor, U.S. Steel, Wheeling-Nippon Steel, and the United Steelworkers (USW) union, filed the case on Sept. 5.
The case asserts that Canada, Mexico, Brazil, the Netherlands, Turkey, the United Arab Emirates, Vietnam, Taiwan, Australia, and South Africa have been dumping coated flat-rolled steel in the US at prices below market value.
The table below shows the dumping margins alleged in the petition reviewed by SMU.
| Country | Min. | Max. | Average |
|---|---|---|---|
| Australia | 45.5% | 51.35% | 48.42% |
| Brazil | 47.0% | 99.5% | 75.7% |
| Canada | 19.1% | 51.3% | 35.0% |
| Mexico | 26.67% | 41.08% | 34.16% |
| Netherlands | 12.8% | 20.6% | 15.6% |
| South Africa | 51.96% | 52.02% | 51.99% |
| Taiwan | – | – | 67.9% |
| Turkey | 9.4% | 24.47% | 16.39% |
| UAE | 76.96% | 78.41% | 77.68% |
| Vietnam | – | – | 158.83% |
The trade case petition also argues that producers in Canada, Mexico, Brazil, and Vietnam have benefited from government subsidies.
Veteran trade attorney Roger Schagrin of Schagrin Associates and lead counsel for SDI and the USW told SMU, “While dumping cases require margin allegations, subsidy cases don’t.”
Subsidy cases “must contain evidence of the programs and use of the programs by foreign producers,” he said.
Petitioners believe they have laid out the evidence of those programs in their 9,000+ page case filing.
The Department of Commerce is tasked with determining the exact amounts of subsidies received during the period of investigation and then establishing the countervailable duty (CVD) rates.
The International Trade Commission (ITC) has scheduled a case hearing for Sept. 26 and its preliminary injury determination vote for Oct. 18.
Editor’s note: This story has been updated to reflect Mr. Schagrin’s position as lead counsel for two of the domestic petitioners, but not all.
Laura Miller
Read more from Laura MillerLatest in Trade Cases
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Commerce increases import duties on Korean galv, plate
The Commerce Department is raising the import duties on imports of corrosion-resistant sheet and cut-to-length plate from Korea.
Leibowitz on trade: Why is protectionism so popular?
The world has had a few shocks recently. The CEO of a major health insurance company was gunned down in Manhattan. The 50-year Assad dynasty in Syria was pushed out less than two weeks after rebels started an offensive. And President-elect Trump is promising tariffs on everything a month before he takes office. But one shock has been taking place for a lot longer than the last few weeks. The 70-year consensus on trade hasn’t just been challenged. It’s been repudiated.
Ternium chief say Mexico tariffs ‘irrational’
Vedoya said the proposed tariffs are "an irrational measure that would harm both their own industry and ours."
Price on Trade: Trump tariffs are no negotiating tool – and could come at lightning speed
We focused on trade actions the second Trump administration might take in a prior column. Since then, we have learned more about the individuals who will be leading these efforts. Recent nominations reinforce the president-elect’s statements that tariffs will feature prominently in the second administration and that trade actions will be unveiled at lightning speed.