ITC Rules in Favor of America’s Steel Industry: AAM Statement

Tags Trade

U.S. International Trade Commission (ITC) Issues Ruling on Hot-Rolled Steel.

Today, the U.S. International Trade Commission (ITC) reached affirmative determinations in five-year reviews on countervailing duty (CVD) and antidumping (AD) orders on hot-rolled carbon steel from a numbers of countries, including China.

The ITC found that revoking the orders would likely be harmful to U.S. companies and workers who produce steel products used in a variety of applications, including: automobiles, rail cars, building construction, appliances, machinery, and oil country tubular goods pipe.

Commented Scott Paul, President of the Alliance for American Manufacturing:

“These orders are the last line of defense for America’s steel companies and their workers in the face of illegal trade practices. Hot-rolled steel is vital to the long-term health of our steel industry.

“This outcome was the result of strong bipartisan congressional support, coupled with overwhelming evidence of the threats posed to American steel manufacturers.

“We commend Senators Joe Donnelly and Jeff Sessions, along with the House steel caucus, led by Reps. Tim Murphy and Pete Visclosky, for recognizing that America’s steel industry can compete with any nation in the world, given a level playing field. This ruling helps create one.”

Some key facts on America’s hot-rolled steel industry:

•    Domestic producers of hot-rolled steel are still trying to recover from the economic crisis that began in late 2008. From 2007 to 2009, U.S. consumption of hot-rolled steel fell by 43.2 percent – and last year consumption still had not returned to 2007 levels.

•    At the same time, illegal trade practices by these countries have resulted in massive volumes of capacity that cannot be justified in market terms. Last year it was estimated that the six countries in question had almost 105 net tons of unused hot-rolling capacity. Even a small percentage of this unused capacity could be used to ship a devastating volume of hot-rolled steel to the United States.

Leading into the ITC hearing, letters were sent to the ITC representing both Republicans and Democrats in both houses of Congress:

•    October 30, 2013 – 19 Senators: Joe Donnelly (IN); Jeff Sessions (AL); John Boozman (AR); Sherrod Brown (OH); Richard Burr (NC); Robert Casey Jr. (PA); Dan Coats (IN); Richard Durbin (IL); Al Franken (MN); Lindsey Graham (SC); Kay Hagan (NC); Tom Harkin (IA); Amy Klobuchar (MN); Carl Levin (MI); Rob Portman (OH); Mark Pryor (AR); John D. Rockefeller IV (WV); Richard Shelby (AL); and Debbie Stabenow (MI).

•    September 30, 2013 – 6 GOP House Members: Tom Reed (NY); Mike Kelly (PA); James Renacci (OH); Aaron Schock (IL); Todd Young (IN); and Tim Griffin (AR).

•    November 1, 2013 –Tim Murphy (PA), Pete Visclosky (IN), and the 48 other members of the House Congressional Steel Congress.

Read more about enforcement of America’s trade laws.