US DOC Confirms Import Duties for Wire Rod from China

The US Department of Commerce (DOC) has decided to impose high duties on wire rod imported from China. The decision was applauded by the American Iron and Steel Institute (AISI). Low-priced Chinese products have flooded US markets, causing significant damage to domestic wire rod producers in the country, according to DOC.

The decision confirms that anti-dumping (AD) duties are now imposed on large Chinese exporters up to 110.25 percent, and against subsidies from 178.46 to 193.31 percent. The tax rate will apply to imports of large companies such as Benxi Steel, Rizhao Steel Wire Co, Hunan Valin Xiangtan Iron & Steel Co and Jiangsu Shagang Co.

The duties are based on complaints filed by Arcelor Mittal, Evraz Pueblo, Gerdau Ameristeel, Keystone Consolidated Industries and Nucor Corporation. These companies have repeatedly complained that wire rod is being sold at a low unfair price in the US market and that Chinese exporters need to create the right conditions together with manufacturers.

“This decision is a positive step in increasing the competitiveness of our industry on a level playing field with importers. Our steel producers can compete with anyone in the world if international trade rules against dumping and subsidies are applied,” said Thomas Gibson, President of AISI. The decision on this issue will enter into force, as expected by the end of December 2014.