Stemcor denies circumvention and assures cooperation with the DOC

Stemcor, the world’s largest independent steel trader, confirms that it has been named in a circumvention petition filed by the U.S. plate industry, but it denies that it has been importing alloy plate from China in an attempt to circumvent the antidumping (“AD”) order against certain cut-to-length carbon steel plate from China. Contrary to the allegations contained in the U.S. industry's recent filing, Stemcor is not involved in any scheme to avoid the payment of applicable dumping duties on Chinese plate through the addition of minimal amounts of boron to the steel.

In the petition, the U.S. industry relies on the results of an earlier circumvention proceeding involving plate from China where the U. S. Department of Commerce (“DOC”) determined that the addition of boron to the steel merely to allow its classification as an "alloy" product does not remove “boron-added” plate from coverage under the AD order on carbon steel plate from China. In that earlier proceeding involving Chinese producer Tianjin Iron and Steel Co., Ltd. (“Tianjin”) and importer Toyota Tsusho America Inc., the DOC found that Tianjin was adding boron to its ASTM A36 plate for the purpose of circumventing the AD order. ASTM A36 plate is the most common grade of commodity plate, and it is used in structural applications throughout the United States. The DOC concluded in the case of Tianjin that the addition of minimal amounts of boron to the steel did not change the ultimate uses of the A36 plate. Further, the DOC also found that there were no significant differences in the uses and the channels of marketing for the “boron-added” A36 plate produced by Tianjin and the plate covered by the AD order.

In contrast to the earlier case, the Wuyang product imported by Stemcor is not an A36 plate; rather, it is a vacuum degassed, ladle refined, chemistry-only plate with a minimum 3 to 1 reduction ratio derived from 300 mm slabs or ingots to accommodate plate over 4 inches through 20 inches in thickness. The plate supplied by Wuyang is not specified, certified or sold to meet steel plate specifications with guaranteed tensile requirements like the A36 plate in the Tianjin case. It is purchased by a select group of customers for processing and ultimate consumption, primarily in the mold making industry where extended mold life and wear resistance are essential characteristics of the product. The Wuyang plate also contains the elements cited by the U.S. industry in the Tianjin case as necessary for the addition of boron to remain capable of improving the performance of the steel.

Stemcor intends to fully cooperate with the DOC in order to demonstrate the clear differences between the facts in the earlier circumvention proceeding and the current complaint.  Under the DOC's regulations, an initial decision should be made within 45 days, and Stemcor plans to submit information to the DOC confirming that its plate imports are not covered by the antidumping order and that it has not attempted to circumvent the order.