The International Trade Commission (ITC) has
made a preliminary determination that imports of rebar from
Turkey and Mexico have materially injured or threaten to injure
U.S. rebar producers, it said Nov. 1.
The ruling will allow the Commerce Departments
anti-dumping and countervailing duty margin investigation to
proceed against the two countries.
determination follows rebar producers petition to the ITC
to begin investigations into imports of allegedly dumped rebar
from Turkey and Mexico and subsidized rebar from Turkey, which
producers claim have injured and threaten to further injure the
U.S. industry (
amm.com, Sept. 4).
The ITC voted 5-0 in
favor of domestic producers on imports from Turkey, and 4-1 in
favor of domestic producers on imports from Mexico, with
Commissioner Shara L. Aranoff voting against, and new
commissioner F. Scott Kieff abstaining from both votes, Alan H.
Price, lead counsel for the domestic producers, told
"All the commissioners
found that the U.S. industry was injured or threatened by
imports of Turkey, and 4 out of 5 commissioners found that U.S.
industries were injured or threatened by imports from Mexico,"
The vote leaves an
open path for the Commerce Department to impose duties on
Mexican and Turkish rebar imports, depending on Commerces
preliminary duty determinations scheduled in December and
amm.com, Oct. 30).
One trader called the
vote a "low hurdle," adding the ITC decision was not a
"I didnt wait
with bated breath here. (But) the bar will be higher from now
on," he said. "The Turks will raise a big stink, but most
people had expected it. Its a rubber stamping
Some market players
said in the days leading up to the Nov. 1 vote that the
determination could have a major impact on pricing, with offers
likely to spiral upward if the ITC voted affirmative.
If the market believes
duties will be imposed, the importer of record is likely to
charge a premium to create a price cushion if a duty is
"The dynamic is going
to change significantly after Nov. 1. ... If the ITC votes yes,
this should go forward, youre going to see $630 (per
tonne), $640, $650," a source said.
imported rebar price is currently at a range of $550 to $570
per short ton ($606 to $628 per tonne).
producers, the determination is a recognition that rebar
producers have been damaged by underpriced imports.
"This ruling confirms
the injurious effects that Mexican and Turkish imports of rebar
are having on the U.S. industry," Price said. "Imports from
these countries have surged into the U.S. marketplace, hurting
U.S. producers and workers."
Commerce has found
reason to believe Mexican producers were dumping rebar into the
United States at margins ranging from 48.82 percent to 66.70
percent and that Turkish producers were dumping rebar into the
United States at margins ranging from 35.01 percent to 36.99
percent. Commerce is also investigating subsidy programs
offered by the Turkish government in support of its rebar
industry, the Rebar Trade Action Coalition, the team of
domestic producers filing the case, said in a statement.
The domestic producers
filing the case include Charlotte, N.C.-based Nucor Corp.,
Tampa, Fla.-based Gerdau Long Steel North America, Irving,
Texas-based Commercial Metals Co., McMinnville, Ore.-based
Cascade Steel Rolling Mills Inc. and Cincinnati-based Byer