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Deacero mulls wire rod ruling appeal

Keywords: Tags  Mexico, Deacero, wire rod, steel, trade, anti-dumping, duties, long products International Trade Commission

NEW YORK — Mexican steelmaker Deacero SAPI de CV and subsidiary Deacero USA Inc. could appeal the U.S. International Trade Commission (ITC) decision to continue anti-dumping duties on imports of wire rod from Mexico, according to a legal filing.

"Deacero and Deacero USA plan to seek judicial review in the U.S. Court of International Trade to contest the notice of continuation of the anti-dumping order covering steel wire rod from Mexico," attorneys at New York-based law firm White & Case LLP, who are representing the companies, said in a July 23 filing addressed to North American Free Trade Agreement (Nafta) officials.

The ITC upheld anti-dumping duties on wire rod from Mexico, Brazil, Indonesia, Moldova, and Trinidad and Tobago in a recent five-year sunset review, but ended duties on Ukrainian wire rod (, May 30). U.S. steelmakers have decided to challenge the ITC’s decision to allow duties on wire rod imports from Ukraine to expire (, July 25).

While the filing does not mean Deacero will appeal the ITC decision, it allows Deacero to do so if it wishes, a company spokeswoman told AMM. "We are evaluating all our possible options going forward. This notice of intent preserves our right to appeal the decision by (the U.S. Commerce Department) to continue the anti-dumping order as it relates to 4.75-millimeter wire rod. We are studying the case," she said via e-mail.

Deacero, a major Mexican producer of long products, has yet to specify the grounds for its challenge to the ITC’s decision. It has until Sept. 2 to file a substantive complaint.

Some U.S. producers intend to side with the ITC against Deacero’s appeal if the appeal goes forward, one attorney told AMM.

"We will be intervening in that appeal to support the commission," said Kathleen Cannon, a partner at Kelley Drye & Warren LLP’s Washington office, who represents Pueblo, Colo.-based Evraz Rocky Mountain Steel, Tampa, Fla.-based Gerdau Ameristeel Corp. and Dallas-based Keystone Consolidated Industries Inc. "We thought the commission’s decision was well-founded. That’s why we’re defending it."

Mexico exported 266,925 tons of wire rod to the United States in 2001, the year before initial anti-dumping duties were imposed, the ITC said in July.

Total wire rod capacity in Mexico last year was 2.76 million tons, according to the ITC.

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