NEW YORK The
battle lines have been drawn as U.S. rebar producers and
Turkish and Mexican exporters prepare to argue their cases
before the International Trade Commission (ITC).
"Turkish and Mexican
rebar producers are flooding the U.S. with dumped and
subsidized product and it is critical that our laws against
such illegal trade practices be enforced to prevent further
harm to the U.S. industry and its workers," John Ferriola,
president and chief executive officer of Charlotte, N.C.-based
Nucor Corp., told AMM.
Nucor was one of five
U.S. rebar producers that filed the dumping and subsidy
complaint Sept. 4 (
amm.com, Sept. 4).
Both sides will
present their case at a Sept. 25 conference before the ITC. "We
will take all necessary steps," Veysel Yayan, secretary-general
of the Turkish Steel Producers Association, told AMM.
"We will actively defend our producers on this matter."
U.S. rebar producers
claim that low import prices and high volumes of rebar from
Turkey and Mexico clearly show it is being dumped in the United
States. Several domestic mill sources pointed specifically to
Turkish rebar, much of which is produced using scrap imported
from the United States.
"For somebody in
Turkey to be buying scrap (from the United States) at whatever
it is, converting it into rebar and sending it over with those
numbers and freight and have a trader still make a profit? It
just doesnt make sense," a mill source said.
Turkey imported 6.4
million tonnes of ferrous scrap from the United States in 2012,
according to U.S. Commerce Department data, and exported
622,903 tonnes of rebar to the United States in the same year,
according to the domestic producers petition.
of the cost of rebar is raw material, and scrap is cheapest in
the U.S. because of the freight component," a U.S. industry
source said. "Scrap consumed here and scrap at the port is
approximately the same price. And thats 75 percent of the
cost. Scrap drives the bus."
rebar import prices from Turkey were as low as $525 per ton
earlier this year, although prices have since risen, while
AMMs domestic Midwest mill price for No. 5 Grade
60 rebar has hovered between $645 and $690 per ton.
"Someone explain to me
how you make a commodity productunless you have fairy
dustand produce it in another country and ship it all the
way back over here and sell it at such unbelievably low
prices," a second mill source said.
Turkish and Mexican
producers deny dumping rebar.
"I can accept that our
margins are under very big pressure due to global overcapacity.
But if there is no positive margin, Turkish steel producers
would not continue to produce," Yayan said. "Turkish steel
producers dont export if its not favorable."
One trader said that
Mexican and Turkish producers arent dumping in the United
States, although with import volumes in 2012 at 841,294
tonnesdouble 2010 levelshe said foreign exporters
have a difficult case to prove. "I dont think
theyre dumping. I honestly dont think the domestics
have much of a case," he said. "(But) I go by history. (The
domestics) win most of the cases. Its the volume
thats at issue."