AWPA Wireline - August 2004

Under the "sunset" law, the US Department of Commerce (DOC) and the US International Trade Commission (ITC) each conduct separate reviews of existing antidumping and countervailing duty orders every five years in order to determine whether the orders should be continued or revoked. If either agency decides that revocation is warranted, then the orders will be revoked.

The DOC and the ITC have now completed their sunset review of the antidumping orders against stainless steel wire rod from Italy, Japan, Korea, Spain, Sweden, and Taiwan and the countervailing duty order against Italy. The DOC found that revocation of these antidumping orders would be likely to lead to a continuation or recurrence of dumping by these countries. But it also found that revocation of the countervailing duty order against Italy would not be likely to lead to the continuation or recurrence of subsidies. Accordingly, the countervailing duty order against stainless steel wire rod from Italy will be revoked as a result of the DOC's negative determination.

The ITC also decided that revocation of these orders would be likely to lead to the continuation or recurrence of injury to the domestic industry. Accordingly, the antidumping orders will continue in place.

Four of the six Commissioners made affirmative injury findings with regard to all six countries. These Commissioners adhered to a "cookie-cutter" analysis by simply listing the statutory factors to be considered, inserting selective information from the record of the investigation, and concluding that revocation of the orders would be likely to lead to the continuation or recurrence of injury. Specifically, these Commissioners concluded that if the orders were revoked, the volume of imports from the subject countries would be significant because, in their view, the foreign producers of stainless steel wire rod are export-oriented, they have maintained a presence in the US market despite the orders, and they have excess productive capacity.

These Commissioners also concluded that imports undersold US products and that the domestic industry is in a weakened and vulnerable condition - despite their recognition that:

(a) The domestic industry has been protected by both antidumping and safeguard actions for several years;

(b) The domestic industry has restructured; and

It is noteworthy that in the previous sunset review of the orders against stainless rod from Brazil, France, India, and Spain in 2000, the ITC specifically found that the domestic industry was not vulnerable.

It was only after the emergence of North American Stainless and Charter as domestic producers, the restructuring of Dunkirk, and the reconfiguration of Outokumpu that the Commissioners concluded that the domestic industry was vulnerable. However, all of these developments, which occurred after the sunset review in 2000, are indicators of the vitality and competitiveness of the domestic rod industry - not signs of vulnerability or weakness.

The two remaining Commissioners found that revocation of the orders against Italy, Korea, Spain, and Sweden would not result in further injury to the domestic industry, but they made affirmative injury determinations with respect to Japan and Taiwan. Following a careful analysis of the data, they found that domestic capacity exceeds domestic demand "by a substantial margin," that imports remained steady before dropping in 2003, and that "the US market has been subject to repeated, and sometimes overlapping, trade remedies."

These Commissioners concluded that imports from Italy, Korea, Spain, and Sweden would not be likely to increase rapidly or lead to price depression or suppression if the orders were revoked. Finally, these Commissioners noted that - "in light of the domestic industry's rapid expansion, its ability to attract capital, and its greater efficiency," as well as its improved profitability - the domestic industry is not in a weakened condition.

Unfortunately, the determination of the majority of the Commissioners means that all of these antidumping orders will remain in force. The next sunset review of these orders is scheduled to begin in 2009.

In the meantime, one of the Italian rod producers - Cogne Acciai Speciali - has appealed the ITC's affirmative determination to the US Court of International Trade in New York. Such appeals normally take at least a year to complete.

(left to right) Lee Bidgood, Maintenance Manager, Ed Shetzler, President of Local 6628, USWA and Senator Tom Carper.

Senator Carper talks with Jack Kempski, Maintenance Department Machinist.

(left to right) Bill Davis, General Manager, Senator Carper, and Tony Shannon, HR Manager discuss the plant's operations.

(left to right) Richard Brewington, Welding Machine Helper, Senator Tom Carper and Bill Davis, General Manager.

The Canadian Border Services Agency announced the final dumping margins in its investigation of stainless steel wire from the United States, Korea, and Switzerland, as follows:

Following the Canadian International Trade Tribunal's (CITT) final affirmative injury determinations in these cases, the Canadian Government issued antidumping and countervailing duty orders against stainless steel wire. These determinations conclude the investigations, and the Canadian Government will issue antidumping and countervailing duty orders in these cases.

The definition of stainless steel wire covered by these orders is: "cold drawn and annealed stainless steel round wire, up to and including 0.300 inches (7.62 mm) in maximum solid cross-sectional dimension."

The CITT has excluded the following stainless steel wire products from the coverage of these orders:

• Nickel-coated stainless steel wire.

• Copper-coated stainless steel wire.

• Stainless steel wire for use in the manufacture of springs, per ASTM A313, matte finish, lubricant coated (all types), in all grades and in all diameters.

• Stainless steel wire in diameters of 0.032 inches (0.813 mm) and smaller.

• Stainless steel lashing wire.

• Type 27-7MO (trade name) stainless steel wire, also identified as UNS S31277, or equivalent.

• Types 302 and 430 stainless steel cold-heading wire for use in the
manufacture of semi-tubular solid rivets.

• Types 308LHS, 309LHS, 387, 409CB and 430LCB stainless steel welding wire packaged in fibre-drum bulk packs, drum packs or barrel packs, known as "Tech Paks" or equivalent, in sizes of 250 lbs. (113.4 kg) or greater, for use in long-run welding applications.

• Type 439 titanium stabilized, solid stainless steel welding wire packaged in 500-lb. (226.8-kg) drums.

• Type A-286 stainless steel cold-heading wire, also identified as AISI No. 660, UNS K66286 DIN-1.4980, with the following composition: 0.08% max. carbon, 2.00% max. manganese, 1.00% max. silicon, 0.025% max. phosphorous, 0.025% max. sulfur,

• 13.50/16.00% chromium, 24.00/27.00% nickel, 1.00/1.50% molybdenum, 0.50% max. copper, 1.00% max. cobalt, 0.35% max. aluminum, 1.90/2.35% max. titanium, 0.10/0.50% vanadium and 0.003/0.010% boron.