NEW YORK The
U.S. Commerce Departments International Trade
Administration (ITA) has assessed countervailing margins of
zero against imports of concrete reinforcing bar from
In a preliminary
determination, the ITA calculated a de minimis rate of
0.78 percent for Habas Sinai ve Tibbi Gazlar Istihsal
Endustrisi AS and a de minimis rate of 0.10 percent
for Icdas Celik Enerji ve Ulasim Sanayi AS, the mandatory
respondents in the subsidy case.
preliminary countervailing duty rates are de minimis,
Commerce will not instruct U.S. Customs and Border Protection
to collect cash deposits," the ITA said in a statement Feb.
The five petitioners
in the caseByer Steel Corp., Cincinnati; Cascade Steel
Rolling Mills Inc., McMinnville, Ore.; Commercial Metals Co.,
Irving, Texas; Gerdau Long Steel North America, Tampa, Fla.;
and Nucor Corp., Charlotte, N.C.filed the trade complaint
in September, alleging that Turkish rebar producers received
government subsidies and that imports from Turkey and Mexico
were being dumped in the United States, injuring the domestic
industry and its workers (
amm.com, Sept. 4).
"We are disappointed
with the results," a source close to the U.S. petitioners said.
"We think its clear that energy subsidies are provided to
Turkish rebar producers. When the subsidies are properly
investigated it will be an affirmative decision."
Some U.S. rebar market
sources polled by AMM expect the ruling to put
pressure on domestic rebar prices, forcing mills to lower
"Its less than 1
percent. Its not even a slap on the wrist. It does
nothing," a rebar buyer in the Midwest said. "It will hurt the
domestic producers case. It will have a negative effect
on prices, and prices will probably fallespecially
because scrap prices are softening. Well have to wait and
see what happens."
"I think it will force
domestic producers to lower their prices," a buyer in the South
said. "Theyre under pressure to be more cost
spot transaction price for grade 60, No. 5 rebar has held
steady at $34.50 per hundredweight ($690 per ton) f.o.b. mill
for February and early March production despite lower ferrous
scrap prices in February (
amm.com, Feb. 19).
Other market sources
think mills will keep their domestic prices stable due to
"I doubt it will have
an immediate impact on prices. I dont see mills lowering
prices," a second Midwest buyer said.
"I dont agree
with the rebar trade case. The judge that looked at the case
was right and the domestic mills were wrong," a second rebar
buyer in the South said.
The ITAs final
ruling on the subsidy complaint is due by July 2.
preliminary ruling on the dumping allegation against Turkey and
Mexico had been scheduled for Feb. 27, but it has been pushed
back to April 18 at the request of the Rebar Trade Action
amm.com, Feb. 4).