AK Steel Asks for AD/CV Duties on Non-Oriented Electrical Steel from Six Countries
Domestic producer AK Steel filed requests on Sept. 30 for new antidumping duties on non-oriented electrical steel (NOES) from China, Germany, Japan, South Korea, Sweden, and Taiwan, and new countervailing duties on NOES from China, South Korea, and Taiwan. According to AK Steel, underselling by exporters in those six countries are causing U.S. companies a loss of domestic market share and falling sales and revenue. NOES is a steel product used in the production of large and small motors, generators, lighting ballasts, and ignition coils, the petition said.
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Although the petition was filed Sept. 30, work on the case had been halted by the federal government shutdown.
Proposed Scope
The petition proposed that Commerce Department and the ITC define the scope of their investigations as follows:
“The merchandise subject to these investigations consists of NOES, which includes cold-rolled, flat-rolled, alloy steel products, whether or not in coils, regardless of width, having a thickness of 0.20 mm or more, in which the core loss is substantially equal in any direction of magnetization in the plane of the material. The term 'substantially equal' in the prior sentence means that the cross grain direction of core loss is no more than 1.5 times the straight grain direction (i.e., the rolling direction) of core loss. NOES contains by weight at least 1.25 percent of silicon and less than 3.5 percent of silicon, not more than 0.08 percent of carbon, not more than 1.5 percent of aluminum, and no other element in an amount that would give the steel the characteristics of another alloy steel.
“NOES is subject to these investigations whether it is fully processed (fully annealed to develop final magnetic properties) or semi-processed (finished to final thickness and physical form but not fully annealed to develop final magnetic properties); whether or not it is coated (e.g., with enamel, varnish, natural oxide surface, chemically treated or phosphate surface, or other non-metallic materials). Fully processed NOES is typically made to the requirements of ASTM specification A 677, JIS specification C 2552, and/or IEC specification 60404-8-4. Semi-processed NOES is typically made to the requirements of ASTM specification A 683. The scope of these investigations is not limited to merchandise meeting the specifications noted above.
“The term 'non-oriented' is used to differentiate NOES from grain-oriented electrical steel ('GOES'), in which the core loss is strongly oriented in the direction of the rolling. The term 'strongly oriented' in the prior sentence means that the cross grain direction of the core loss is more than 3.0 times the straight grain direction (i.e., the rolling direction) of the core loss. NOES and GOES can be clearly differentiated by measuring the magnetic permeability (B) at a field of 800 Aim (equivalent to 10 Oesteds) along (i.e., parallel to) the rolling direction of the sheet. This measurement is referred to as the 'B800', 'Bs', or 'H-10' magnetic permeability, magnetic induction, or polarization. GOES has a B800 value greater than 1.80 Tesla when tested parallel to the rolling direction, and NOES has a B800 value not exceeding 1.65 Tesla when tested parallel to the rolling direction. The specifics of the GOES property specification and the method of testing are described in ASTM standard specifications A 876 and A 343, respectively.
“NOES is sometimes referred to as cold-rolled non-oriented electrical steel ('CRNO'), non-grain oriented ('NGO'), or cold-rolled non-grain oriented ('CRNGO'). These terms are interchangeable.
“The subject merchandise is provided for in subheadings 7225.19.0000, 7226.19.1000, and 7226.19.9000 of the Harmonized Tariff Schedule of the United States ('HTSUS'). Subject merchandise may also be entered under subheadings 7225.50.8085, 7225.99.0090, 7226.92.5000, 7226.92.7050, 7226.92.8050, 7226.99.0180 of the HTSUS. Although HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope is dispositive.”
Commerce Accepting Comments on Petition Support
The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping duty investigations on NOES from China, Germany, Japan, South Korea, Sweden, ad Taiwan, and countervailing duty investigations on GOES from China, South Korea, and Taiwan. The AK Steel said it meets the petition support requirement because it is the only domestic producer of NOES. Commerce will decide whether or not to initiate an investigation within 20 days.
Email ITTNews@warren-news.com for a copy of the petition.