The Steel and Engineering Industries Federation of Southern Africa (Seifsa) says it is extremely concerned that the challenges facing the local steel industry will only get worse if the US Department of Commerce and parallel investigations by the United States International Trade Commissions (ITC) seek to determine whether United States producers have been harmed by imports of carbon and alloy steel wire rod from Italy, Republic of Korea, South Africa, Spain, Turkey, Ukraine and/or the United Kingdom, test positive.
Chief Economist of Seifsa Michel Ade said in a statement Monday that affirmative determinations, coupled with the ITC’s final injury determinations, would lead the Commerce Department to issue anti-dumping orders and impose relevant duties, thereby increasing producers’ export costs local steel companies, which will ultimately reduce their profit margins.
The Commerce Department’s preliminary rulings indicate that producers and exporters in all seven countries sold carbon and alloy wire rod in the United States at less than fair value.
Ade said foreign companies that sell their products in the US market below the cost of production or below prices in their home markets are subject to anti-dumping duties.
“The South Africa investigation revealed that exporters were dumping wire rod into the United States at margins of 142.26% based on adverse available facts. All other African producers and exporters from the South were assigned a rate of 135.46%,” Ade said.
He added that Seifsa believes the US investigation is retaliatory ‘for a give-and-take’ to the South African steel industry which has been successful in winning import tariffs and safeguard duties on imports. cheap international.
Ade noted that the U.S. investigation appears to be just the tip of the iceberg and could be a precursor to expanding to other steel products, which could cause many foreign trading partners to start fighting back and protecting. their steel industries.
“This is a serious concern for Seifsa, given the strategic importance of the local steel industry. The need for unity, including support for sector-related government policy from all stakeholders in the local steel industry value chain, is imperative,” he said.
The U.S. Department of Commerce is currently scheduled to announce its final anti-dumping determinations on January 9, 2018.
