5/25/2011 5:02:00 PM
HEADLINES
U.S. ITC Unanimously Finds China & Mexico Selling Steel Wire Below Fair Value
The U.S. International Trade Commission voted 6-0 that there is reasonable indication that galvanized steel wire imports from China and Mexico are sold at less than fair value.
The U.S. Department of Commerce will continue its countervailing duty investigation on the China products and an antidumping duty investigation on the wire from China and Mexico.
The DoC preliminary duty determination is due by June 24, 2011, and the preliminary antidumping duty determination by September 7.
Five U.S. steel wire producers petitioned for antidumping duties against Mexico and China.
Petitioners are: Johnstown Wire Technologies, Johnstown, PA; National Standard, Niles, MI; Davis Wire, Irwindale, CA; Oklahoma Steel & Wire, Madill, OK; and Mid-South Wire, Nashville, TN.
The companies petitioned the U.S. International Trade Commission for antidumping and countervailing duties of 70% to 170% for the years 2008 to 2010. According to their complaint Mexico undercut prices and China gave illegal subsidies to galvanized steel wire manufacturers.
The complaint involves zinc-coated steel wire, which accounts for 20% of Johnstown Wire’s business, president Walt Robertson told the Pittsburgh Business Times. Annual galvanized steel wire production has dropped from 2,000 tons from 3,000 tons and prices have declined.
“They are driving the market price down fairly dramatically and our margins are slim to nonexistent,” Robertson told the Times reporter Malia Spencer.
Conversely, Johnstown Wire’s raw material for engineered fatteners is “good to very good.”
The petition puts imported prices at 41 cents per pound from Mexico and 42 cents from China – or 4 cents to 13 cents less than domestic prices. Imports for 2010 jumped 23.9% from 2009.
Founded in 1911 as part of Cambria Steel, Johnstown Wire was acquired by Bethelem Steel Corporation in 1923. In 1992, Johnstown was acquired by investors to become a private company. Johnstown shipped 120,000 tons of wire totaling $115 million in s ales during 2007. Johnstown employs 260 people at a 638,000 sq ft plant. ©2011 GlobalFastenerNews.com
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