[author: Alex McLamb]

In June, the U.S. International Trade Commission (Commission) determined that unfairly priced and subsidized imports of cold-rolled and corrosion-resistant steel products have materially injured U.S. producers. The Commission voted unanimously in favor of final affirmative determinations of present material injury for both products. The corrosion-resistant steel investigations involve imports from China, India, Italy, Korea, and Taiwan. Although the cold-rolled steel investigations involve imports from Brazil, China, India, Japan, Korea, Russia, and the United Kingdom, the Commission’s June vote applies only to imports from China and Japan. The Commission will make final injury determinations for the remaining countries on August 24, 2016.

The determinations follow the Department of Commerce’s (Commerce) calculation of final dumping and subsidy margins for both products earlier this year. As a result of the final determinations, antidumping duties will be imposed on imports of corrosion-resistant steel products from all subject countries, while countervailing duties will be imposed on imports from China, India, Italy, and Korea. In May, Commerce calculated dumping margins ranging from 3.05 to 209.97 percent for imports of corrosion-resistant steel, as well as non-de minimis subsidy rates ranging from 1.19 to 241.07 percent. The Commission is scheduled to release the public report containing its views on the corrosion-resistant steel investigations by July 26.

In the cold-rolled steel investigations, Commerce calculated final dumping margins of 265.79 percent for Chinese producers and 71.35 percent for Japanese producers. In addition, Commerce calculated final subsidy rates of 256.44 percent for Chinese producers. The Commission will release its public report for the China and Japan investigations by July 28. Commerce is scheduled to release its final dumping and subsidy determinations for subject imports from Brazil, India, Korea, Russia, and the United Kingdom on July 22.

The imposition of duties will help level the playing field for domestic producers grappling with an ongoing global steel crisis caused largely by Chinese overcapacity. U.S. officials made Chinese steel overcapacity a top priority during the recent U.S.-China Strategic and Economic Dialogue held in Beijing. In Beijing, Chinese officials pledged to adopt measures to eliminate outdated steel capacity and reduce net capacity. China also committed to support efforts to address the steel crisis at the OECD and to engage with other leading producers at a global steel forum. These commitments have been met with understandable skepticism, as Chinese steel exports have continued to climb after past pledges to reduce capacity. In fact, Chinese steel exports increased by 6.4 percent over the first five months of 2016 despite similar commitments to address overcapacity during previous binational dialogues. Underscoring the global nature of the crisis, the European Union (EU) raised similar concerns regarding steel overcapacity in a recent report on its engagement with China. The EU report suggests that further trade remedy measures may become necessary should China fail to address its overcapacity.