Press Release

U.S. Manufacturers of Steel Concrete Reinforcing Bar File Dumping and Subsidy Petitions Against Japan, Taiwan, and Turkey

September 20, 2016

Today, the Rebar Trade Action Coalition (RTAC), a coalition of steel concrete reinforcing bar (“rebar”) producers in the United States, filed petitions asking the U.S. Department of Commerce and the International Trade Commission (ITC) to conduct antidumping (AD) investigations into Japanese, Taiwanese, and Turkish imports of rebar, and a countervailing duty (CVD) investigation into Turkish imports of rebar. The petitions demonstrate that Japanese, Taiwanese, and Turkish rebar producers are dumping their product into the United States at margins ranging from 86.12% to 206.17%.

As a result of increasing volumes of dumped and subsidized imports, the U.S. rebar industry is suffering significant harm, including a decline in pricing and profits. Japanese, Taiwanese, and Turkish rebar imports increased 160% between 2013 and 2015, and have remained significant in 2016, causing U.S. producers to lose substantial sales to the unfairly priced imports and forcing them to lower prices to prevent additional lost volume. U.S. rebar producers are struggling to maintain operating levels in the face of these imports. These unfairly traded imports have also severely depressed the U.S. industry’s capacity utilization rates.

“The U.S. industry and its workers have been injured by the growing volume of dumped and subsidized rebar imports. The Japanese, Taiwanese, and Turkish industries are using unfair pricing practices to steal market share from domestic producers,” said Alan H. Price, chair of the International Trade Practice at Wiley Rein LLP and counsel for the RTAC. “The Turkish government also subsidizes its steel producers and encourages massive export volumes. As a result of these unfair trade practices, the domestic rebar industry has been forced to lower prices and has experienced significant declines in profitability.”  

For more information, please contact Alan H. Price at 202.285.2079 or aprice@wiley.law.

BACKGROUND

Who are the members of RTAC?

Bayou Steel Group, Byer Steel Group, Inc., Commercial Metals Company, Gerdau, Nucor Corporation, and Steel Dynamics, Inc.

By how much have rebar imports from Japan, Taiwan, and Turkey increased?

Imports of rebar from Japan, Taiwan, and Turkey nearly tripled between 2013 and 2015.

Year

2013

2014

2015

Percent Increase

Volume    (short tons)

742,313

1,081,702

1,933,096

160.4%

--

In addition, imports have remained strong in 2016.  

Has the market share of Japanese, Taiwanese, and Turkish rebar imports increased?

From 2013 through 2015, the U.S. market share of Japanese, Taiwanese, and Turkish rebar imports increased from approximately 9.5% to 22.4%. This increase has come at the direct expense of U.S. rebar producers’ market share.

What are the next steps?

The Department of Commerce and the ITC should initiate AD and CVD investigations within three weeks of the filing date of these petitions. The ITC’s preliminary injury determination is expected in November 2016; the Department of Commerce should make its preliminary AD and CVD determinations within approximately six months. At that point, importers of Japanese, Taiwanese, and Turkish merchandise will be required to make cash deposits in the amount of the preliminary AD and CVD duties. A final determination is expected in 9 to 13 months.

Read Time: 2 min

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Contact

Maria Woehr Aronson
Director of Communications
202.719.3132
maronson@wiley.law 

Molly Peterson
Senior Communications Manager
202.719.3109
mmpeterson@wiley.law

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