US sets preliminary anti-dumping duties on steel rebar from Turkey, Mexico
WASHINGTON / ISTANBUL
Nucor Chief Executive John Ferriola told U.S lawmakers in March that imports from Mexico and Turkey had doubled since 2010 and were having a “devastating” impact on the industry. AFP PhotoThe U.S. Commerce Department on April 21 set preliminary duties on millions of dollars worth of imports of steel rebar from Turkey and Mexico following complaints by U.S. producers that foreign competitors were undercutting prices.
The department set dumping duties of up to 66.7 percent on imports from Mexico and duties of up to 2.6 percent on Turkish imports after American producers alleged that companies from the two countries were selling steel rebar, which is used to reinforce concrete, at unfairly low prices, Reuters reported. A final decision is due on July 2.
The U.S. International Trade Commission and the Commerce Department launched investigations after a petition was filed last year by Nucor Corp, Commercial Metals Co and other manufacturers. The trade commission found there was reasonable indication the imports were harming local firms.
Nucor Chief Executive John Ferriola told U.S. lawmakers in March that imports from Mexico and Turkey had doubled since 2010 and were having a “devastating” impact on the industry.
In 2013, imports of steel concrete reinforcing bar from Mexico were valued at an estimated $182.1 million and from Turkey at $381.3 million, the department said.
Turkish Steel Exporters Association Chair Namık Ekinci said last week that the investigation in the U.S. was unfair.
“Local producers in some countries use the World Trade Organization (WTO) rules to maximize their profits in an easy way and pressure for unfair investigations,” Ekinci was quoted as saying by daily Hürriyet. “The producers also know that Turks are not subsidized and undercut prices, but they want to make use of the fact that the confusion of the importers and exporters negatively affect the bilateral trade.”
According to official figures, Turkey exported 1.2 million tons of steel to the U.S. in 2012 worth $935 million. The U.S. International Trade Commission said in its report that the while the sales of Turkey and Mexico grew by 68 percent in 2012, the sales of local producers only grew by 10.5 percent. In the first six months of 2013, the total exports of Turkey and Mexico increased by 4.4 percent while the orders from local producers grew just 1 percent.
The manufacturers accuse Mexican and Turkish competitors of unfairly undercutting U.S. prices to grab sales and market share, a trade strategy known as “dumping,” according to Reuters.
U.S. manufacturers also said rebar imports from Turkey were subsidized by the Turkish government, but the department ruled in February that this was not the case.
April 21’s preliminary ruling set a duty of 2.64 percent on Turkish goods, except for those from Habaş Sinai ve Tıbbi Gazlar İstihsal Endüstrisi A.Ş., which was excused.
Duties will apply on goods from Grupo Simec and Turkey’s İçdaş Çelik Enerji Tersane ve Ulaşım Sanayi A.Ş from next week. Duties on other imports will be backdated 90 days, to start in late January.