AWPA member company representatives, staff and counsel were again before the International Trade Commission (ITC) opposing new antidumping and countervailing duty investigations against the imports of carbon and alloy wire rod from 12 countries which together supply over 80% of imports to the US wire market. Four domestic rod producers, Co-Steel Raritan, GS Industries, Keystone Consolidated, and North Star Steel, filed the cases against Brazil, Canada, Egypt, Germany, Indonesia, Mexico, Moldova, South Africa, Trinidad and Tobago, Ukraine, and Venezuela.
Testifying for AWPA was Peter Cronin - Industrial Wire Products Corporation, H Woltz - Insteel Industries, Joe Downes - Leggett & Platt, Al Lindholm ? CHC Industries, and Bob Moffitt - Davis Wire Corporation. These witnesses highlighted the fact that the domestic rod industry cannot meet demand in either quantity and types and grades of product needed by the US wire industry. The fact remains that wire manufacturers must import rod to meet their customer demands.
The members also stressed the closure of over one million tons of rod capacity in the US in a very short period of time. Once demand returns to normal levels, this decrease in US capacity will lead to an even larger shortfall than exists today.
Finally, the AWPA witnesses argued that duties on wire rod imports will lead to US price increases above the worldwide market price at which foreign competitors are using to manufacture wire and wire products. Imports of wire and wire products will increase and will hurt the US rod producers, as US wire producers lose market share to more competitive foreign imports.
In conclusion, AWPA acknowledged that the rod industry is indeed in trouble, but it is not by reason of imports. Rather, their problems stem from higher energy costs, poor productivity, and outdated equipment.
Petitioners requested that antidumping duties ranging as high as 304% be imposed on imports from some of these countries. They argued that the industry is worse off today than in 1999 when the Commission found serious injury in the 201 investigation.
Included in these petitions are rod products previously excluded, such as rod for tire cord, valve springs and pipe wrap wire because, they explained, the domestic industry can make large quantities of these products if demand warrants it. They firmly asserted that there is plenty of domestic rod available in the US.
Petitioners concluded that this case is the last hope for the domestic industry. The situation cannot get any worse. They claim the industry requires meaningful relief from imports for its survival.
The vote of preliminary injury determinations by the ITC is expected on October 15th.
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American Wire Producers Association
801 North Fairfax Street, Suite 211
Alexandria, VA 22314-1757
Tel (703) 299-4434 | Fax (703) 299-9233 | E-mail info@awpa.org | Web: www.awpa.org
