In 2018, imports of reinforcing bars from Mexico were valued at an estimated $51 million. The inquiry was initiated in response to requests from US domestic producers of rebar: Nucor Corporation, Gerdau Ameristeel US Inc., Commercial Metals Company, Cascade Steel Rolling Mills, Inc., Byer Steel Group, Inc., and Steel Dynamics, Inc.

If the DOC preliminarily determines that circumvention is occurring, it will instruct Customs and Border Protection to begin collecting cash deposits on rebar from Mexico that is subject to the inquiry. These duties will be imposed on future imports, and on any unliquidated entries since the date on which Commerce initiated this circumvention inquiry.

The preliminary antidumping duty rates per country and company are as follows:

Japan

• Jonan Steel Corporation : 209.46%
• Kyoei Steel Ltd. : 209.46%
• All Others : 209.46%

Taiwan

• Power Steel Co. : 3.48%
• Lo-Toun Steel and Iron Works : 29.47%
• All Others : 5.49%

Turkey

• Habas : 5.29%
• Icdas : 7.07%
• All Others : 6.20%

The petitioners in the investigation are the Rebar Trade Action Coalition and its individual members: Byer Steel Group, Inc., Commercial Metals Company, Gerdau Long Steel North America, Nucor, and Steel Dynamics, Inc.

The DOC is scheduled to announce its final determinations on or about May 16, 2017, for Japan and Turkey, and July 6, 2017, for Taiwan. The ITC is scheduled to make its final injury determinations in June 2017 for Japan and Turkey, and in August 2017 for Taiwan.

The subject merchandise is classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) primarily under item numbers 7213.10.0000, 7214.20.0000, and 7228.30.8010.  The subject merchandise may also enter under other HTSUS numbers including 7215.90.1000, 7215.90.5000, 7221.00.0017, 7221.00.0018, 7221.00.0030, 7221.00.0045, 7222.11.0001, 7222.11.0057, 7222.11.0059, 7222.30.0001, 7227.20.0080, 7227.90.6030, 7227.90.6035, 7227.90.6040, 7228.20.1000, and 7228.60.6000.

The DOC calculated a preliminary subsidy rate of 3.47 percent for the mandatory respondent Habas and “all others,” although there are currently no Turkish rebar producers or exporters subject to it because the ongoing investigation only covers companies that were excluded from the 2014 CVD order against Turkish rebar. At the time of that order, which established a 1.25 percent CVD duty, Habas was the only excluded producer. As a result of the preliminary affirmative determination, the DOC will instruct US Customs and Border Protection to require cash deposits based on this preliminary rate.

The DOC is scheduled to announce its final CVD determination on or about May 16, 2017, unless the statutory deadline is extended.  The preliminary results in the AD investigation against rebar imports from Turkey, Taiwan and Japan are due February 27.

The petitioners in the case are the Rebar Trade Action Coalition and its individual members: Byer Steel Group, Inc., Commercial Metals Company, Gerdau Long Steel North America, Nucor, and Steel Dynamics, Inc.

The subject merchandise is classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) primarily under item numbers 7213.10.0000, 7214.20.0000, and 7228.30.8010.  The subject merchandise may also enter under other HTSUS numbers including 7215.90.1000, 7215.90.5000, 7221.00.0017, 7221.00.0018, 7221.00.0030, 7221.00.0045, 7222.11.0001, 7222.11.0057, 7222.11.0059, 7222.30.0001, 7227.20.0080, 7227.90.6030, 7227.90.6035, 7227.90.6040, 7228.20.1000, and 7228.60.6000.

The petitions demonstrate that Japanese, Taiwanese, and Turkish rebar producers are dumping their product into the United States at margins ranging from 86.12 percent to 206.17 percent.

The RTAC said “As a result of increasing volumes of dumped and subsidized imports, the US rebar industry is suffering significant harm, including a decline in pricing and profits. Japanese, Taiwanese, and Turkish rebar imports increased 160 percent between 2013 and 2015, and have remained significant in 2016, causing US producers to lose substantial sales to the unfairly priced imports and forcing them to lower prices to prevent additional lost volume. US rebar producers are struggling to maintain operating levels in the face of these imports. These unfairly traded imports have also severely depressed the US industry’s capacity utilization rates.”

The petitioning companies are as follows:

• Bayou Steel Group
• Byer Steel Group, Inc.
• Commercial Metals Company
• Gerdau
• Nucor Corporation
• Steel Dynamics, Inc.

The DOC and ITC should initiate antidumping and countervailing investigations within three weeks of the filing date of the petitions. The ITC’s preliminary injury determination is expected in November 2016; the Department of Commerce should make its preliminary AD and CVD determinations within approximately six months. At that point, importers of Japanese, Taiwanese, and Turkish merchandise will be required to make cash deposits in the amount of the preliminary AD and CVD duties. A final determination is expected in 9 to 13 months.

Speaking on behalf of the producers and exporters of long steel products; IREPAS Chairman Murat Cebecioglu said the dumping margins alleged by the US coalition of rebar producers are ungrounded. Mr. Cebecioglu added  “Free trade is one of the few unambiguously good things and it is based on the idea of comparative advantage. Free trade has allowed more wealth creation than any other economic order. It has benefited America and Europe enormously throughout the history, and still does. Most commodities freely trade around the world and this allows resources to flow to their best use. Countries and companies that have embraced this message have thrived and prospered. Those that tried to close themselves off from this trend have not. Competition increases efficiency and serves customers and the public. Today, as always, there is much support for tariffs labeled as protection. Many countries try to protect themselves from unfairly priced imports. One voice that is hardly ever raised is the consumer’s. Protection means exploiting the consumer unless it is justified that imports have an unfair competitive advantage. IREPAS always supports free and fair trade in steel.”