NEW YORK Commercial Metals Co.s (CMCs) domestic reinforcing bar prices came under pressure in its fiscal second quarter, due in part to an influx of Turkish imports, its top executive said.
Domestic rebar pricing is under constant pressure as a result of large imports from Turkey, which has increased their market share to double digits compared to single digits in previous quarters, chairman, president and chief executive officer Joseph Alvarado said during an earnings conference call March 27, noting that Turkey shipped more than 400,000 tonnes of rebar to the United States in 2013.
But even with a preliminary anti-dumping duty deadline of April 18, Turkish producers have remained relentless about booking cargo, he said. We believe they are dumping rebar products to North America. We are vigilant on the anti-dumping case, as we believe it to be disruptive to the domestic market.
U.S. steelmakers filed a trade complaint against imports of Turkish and Mexican rebar last fall (amm.com, Sept. 4). While the market awaits the preliminary determination, the Commerce Departments International Trade Administration announced last month that Turkish producers and exporters would receive a margin of zero, a move that Alvarado said CMC would pursue.
We expect duties based on anti-dumping and we were surprised and disappointed about the countervailing duties, he said. We will appeal that decision in our petition following the preliminary anti-dumping ruling. ... We have the opportunity to appeal, and we believe that countervailing duties shouldve been applied.
Despite the import pressure, the Irving, Texas-based steelmaker saw its earnings for the three months ended Feb. 28 more than double year on year even as net sales slid 2.3 percent to $1.65 billion, the company said in its earnings results.
The results marked the tenth consecutive quarter of profitability for CMC, Alvarado told analysts during the call.
As expected, results for the second quarter declined due to the impact of normal seasonality, inclement weather conditionsparticularly in North Americaand holiday slowdowns, he said in a statement March 27.