Send in the Reinforced-ments: Commissioners Maintain AD Order for Steel Concrete Reinforcing Bar
The USITC voted affirmative in maintaining the anti-dumping orders on rebar from Belarus, China, Indonesia, Latvia, Poland and the Ukraine. Agreeing with petitioners, Chairman Williamson, Commissioners Pickert, Aranoff and Johansen voted affirmative on all countries, while Commissioner Broadbent went negative on Poland, Latvia and Indonesia. Commissioner Pearson voted affirmative on China, and negative on the other countries in this second sunset review.
This investigation began in 2001 when the ITC determined the domestic industry was materially injured, and continued in 2007 in the first sunset review. The DOC voted the following duty rates for the subject countries:
Belarus (115%)
Indonesia – PT (71%)
Indonesia – All Others (60%)
Latvia (17%)
Moldova (233%)
Poland – Stalexport (52%)
Poland – All Others (47%)
China (133%)
Ukraine (42%)
Representatives from American steelmakers Nucor, Gerdau Long Steel North America, Commercial Metals Co., and Cascade Steel Rolling Mills were present for the hearing, while the industry group the Rebar Trade Action Coalition petitioned the ITC. In a letter sent to the ITC on behalf of the U.S. steel industry, Senators Sherrod Brown, D-Ohio, Rob Portman, R-Ohio, Ron Wyden, D-Ore., Kirsten Gillibrand, D-N.Y., Jeff Sessions, R-Ala., Richard Shelby, R-Ala., Richard Burr, R-N.C., Lindsey Graham, R-S.C., Thad Cochran, R-Miss., Charles Schumer, D-N.Y., John Boozman, R-Ark., Roger Wicker, R-Miss., Mark Pryor, D-Ark., and John Cornyn, R-Texas urged the Commissioners to maintain the order against unfairly traded rebar imports.
CTI prepared a number of studies for the petitioners, the Rebar Trade Action Coalition. The studies included a “Financial Assessment of the Domestic Rebar Industry in the Context of the Business Cycle” which discussed the effect of imports on the domestic industry’s profitability during a recovery period, as well as a general discussion on the business cycle for rebar.
The “Effects of Order Revocation on Credit Ratings in the Domestic Rebar Industry” study explored how the financial credit ratings of a single hypothetical U.S. rebar producer would improve in a “but-for” order scenario. Additionally, the “Assessment of the Likelihood that Injurious Volumes of Subject Rebar Imports Will Return to the U.S. Market Upon Revocation of the AD Orders” addressed the conditions of competition in the rebar market, including decreasing demand in alternative markets, especially Europe, and the significant excess and divertible capacity of the subject countries. CTI argued that Europe had been a major market for rebar until the precipitous market crash and with growth projected to be negative in 2013, the U.S. would be an increasingly attractive market due to its higher prices. Subject countries’ domestic markets were also affected by the decrease in rebar demand, allowing for greater excess and divertible capacity to be sent to the U.S. with revocation of the order.