We have reported previously that the domestic steel industry has been preparing for possible dumping suits on flat rolled products. The countries named most often are all located in Asia with China, India, Taiwan and South Korea as being those countries named most often and likely to be affected by any new dumping suits.
A number of trading companies have suspended quoting foreign imports out of China for fear they will become entangled in any new trade cases.
This morning a large service center told us on a conference call that traders are warning potential buyers of foreign steel that they may be liable for any duties should trade cases be filed and critical circumstances come into play. In normal circumstances duties are paid by the importer of record (normally the trading company or original producing mill).
We have seen new documents which suggest that the trading companies have enlisted the help of their attorneys in order to be proactive and to anticipate what may happen should a dumping suit be filed. In one scenario seen by Steel Market Update the attorneys have prepared a timeline should new suits be filed on August 1st (hypothetical date) and what would transpire after that date.
One of the key concerns for trading companies is if the US Department of Commerce instructs the CBP to collect any estimated anti-dumping (AD) or countervailing (CVD) duties on imports made during the 90-day period covered by critical circumstances. Coming up with the funds to cover such cash deposits can be a tremendous burden on importers even though the deposits are likely to be eventually refunded should the ITC ultimately rule in favor of the foreign imports.
One trader told us today that there are some Chinese offers available for September shipment. However, any shipments after that point in time would fall within the “danger zone.”
The following table is a mock-up of what one group believes the timeline could be if there were dumping suits filed on August 1, 2014. This is an example and not reality as there have been no suits filed on cold rolled or coated steels at this point in time.
John PackardRead more from John Packard
Latest in Steel Markets
Register for Oct. 4 Community Chat With AGC chief economist Ken Simonson
Ken Simonson, chief economist for The Associated General Contractors of America (AGC), will be the featured speaker on the next SMU Community Chat webinar on Wednesday, Oct. 4, at 11 a.m. ET. The live webinar is free. A recording will be available free to SMU members. You can register here. We’ll talk about the outlook […]
UAW Workers Strike Parts Supplier ZF’s Plant in Alabama
United Auto Workers (UAW) union members in Alabama at a parts supplier to Mercedes-Benz have gone on strike.
BREAKING NEWS: Ford, Unifor Reach Tentative Labor Deal in Canada
Ford's Canadian subsidiary and auto workers represented by Unifor - roughly the Canadian equivalent of the UAW - have reached a new, tentative labor agreement.
UAW Set to Expand Strike on Friday if New Deal Not Reached
United Auto Workers (UAW) union president Shawn Fain has announced a new deadline of Friday, Sept. 22, at noon, at which point the union could expand its strike.
UAW Begins ‘Stand Up’ Strike at Ford, GM, and Stellantis
The United Auto Workers (UAW) launched its “stand up” strike just after midnight on Friday, according to posts on the union’s Facebook page. “We are the union! The mighty, mighty union,” UAW members with “On Strike” signs chanted in a video posted to the site. The move came after union president Shawn Fain suggested that […]