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Petition Filed for AD/CV Duties on Cut-to-Length Steel Plate From 12 Countries

A group of three U.S. manufacturers on April 8 filed a complaint with the Commerce Department and International Trade Commission requesting new antidumping duties on carbon and alloy steel cut-to-length plate from Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, South Korea, South Africa, Taiwan, and Turkey, and countervailing duties on cut-to-length plate from Brazil, China and South Korea.

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Any AD/CV duties imposed as a result of these investigations, which were requested by ArcelorMittal, Nucor and SSAB, would come on top of existing AD and CV duties on carbon steel cut-to-length plate from China, South Korea, India and Indonesia, and suspended AD/CV duties on carbon steel cut-to-length plate on Ukraine and Russia. The scopes of these existing orders "fall within the scope of the carbon and alloy steel CTL plate covered by these petitions," said the petition.

Proposed Scope

The petition proposes the following scope for the investigations:

The products covered by these investigations are certain carbon and alloy steel hot-rolled or forged flat plate products not in coils, whether or not painted, varnished, or coated with plastics or other non-metallic substances (cut-to-length plate). Subject merchandise includes plate that is produced by being cut-to-length from coils and plate that is rolled or forged into a discrete length. The products covered include (1) Universal mill plates (i.e., flat-rolled products rolled on four faces or in a closed box pass, of a width exceeding 150 mm but not exceeding 1250 mm, and of a thickness of not less than 4 mm, which are not in coils and without patterns in relief), and (2) hot-rolled or forged flat steel products of a thickness of 4.75 mm or more and of a width which exceeds 150 mm and measures at least twice the thickness, and which are not in coils, whether or not with patterns in relief. The covered products described above may be rectangular, square, circular or other shapes and include products of either rectangular or nonrectangular cross-section where such non-rectangular cross-section is achieved subsequent to the rolling process, i.e., products which have been “worked after rolling", (e.g., products which have been beveled or rounded at the edges).

For purposes of the width and thickness requirements referenced above, the following rules apply:

(1) where the nominal and actual measurements vary, a product is within the scope if application of either the nominal or actual measurement would place it within the scope based on the definitions set forth above unless the product is already covered by an existing order (e.g., orders on hot-rolled flat-rolled steel); and

(2) where the width and thickness vary for a specific product (e.g., the thickness of certain products with non-rectangular cross-section, the width of certain products with non-rectangular shape, etc.), the measurement at its greatest width or thickness applies.

Steel products included in the scope of these investigations are products in which: (1) iron predominates, by weight, over each of the other contained elements; and (2) the carbon content is 2 percent or less by weight.

Subject merchandise includes cut-to-length plate that has been further processed in a third country, including but not limited to pickling, oiling, leveling, annealing, tempering, temper rolling, skin passing, painting, varnishing, trimming, cutting, punching, beveling, and/or slitting, or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the cut-to-length plate.

All products that meet the written physical description, are within the scope of these investigations unless specifically excluded or covered by the scope of an existing order. The following products are outside of and/or specifically excluded from, the scope of these investigations:

(1) products clad, plated, or coated with metal, whether or not painted, varnished or coated with plastic or other non-metallic substances;

(2) military grade armor plate made to a domestic (e.g., MIL-DTL, MIL-S, NAV-SEA) or foreign (e.g., IDF, CMS, Def-Stan 95) armor plate specification;

(3) stainless steel plate, containing 10.5 percent or more of chromium by weight;

(4) CTL plate meeting the requirements of ASTM A-829, Grade E 4340 that are over 12 inches (305 mm) thick;

(5) Alloy CTL plate greater than or equal to 6 inches (152.4 mm) thick meeting each of the following requirements:

(a) Electric Furnace melted, Ladle Refined & Vacuum degassed and having a chemical composition (expressed in weight percentages):

  • Carbon 0.23-0.28,
  • Silicon 0.05-0.20,
  • Manganese 1.20-1.60,
  • Nickel not greater than 1.0,
  • Sulfur not greater than 0.007,
  • Phosphorus not greater than 0.020,
  • Chromium 1.0-2.5,
  • Molybdenum 0.35-0.8,
  • Boron 0.002-0.004,
  • Oxygen not greater than 20 ppm,
  • Hydrogen not greater than 2 ppm, and
  • Nitrogen not greater than 60 ppm;

(b) With a Brinell hardness measured in all parts of the product including mid-thickness in the range of:

  • 270-300 HBW,
  • (i)290-320 HBW, or
  • (ii) 320-350 HBW;

(c) Having cleanliness in accordance with ASTM E45 method A (Thin and Heavy): A not exceeding 1.5, B not exceeding 1.0, C not exceeding 0.5, D not exceeding 1.5; and

(d) Conforming to ASTM 4578-59 ultrasonic testing requirements with acceptance criteria 2 mm flat bottom hole;

(6) Alloy mold steel CTL plate over 16 inches (407 mm) in thickness and meeting the following requirements:

(a) Made from Electric Arc Furnace melted, Ladle refined & vacuum degassed, alloy steel with the following chemical composition (expressed in weight percentages):

  • Carbon 0.23-0.28,
  • Silicon 0.05-0.15,
  • Manganese 1.2-1.50,
  • Nickel not greater than 0.4,
  • Sulfur not greater than 0.010,
  • Phosphorus not greater than 0.020,
  • Chromium 1.2-1.5,
  • Molybdenum 0.35-0.55,
  • Boron 0.002-0.004,
  • Oxygen not greater than 20 ppm,
  • Hydrogen not greater than 2 ppm, and
  • Nitrogen not greater than 60 ppm;

(b) Having cleanliness in accordance with ASTM E45 method A (Thin and Heavy): A not exceeding 1.5, B not exceeding 1.5, C not exceeding 1.0, D not exceeding 1.5;

(c) Having the following mechanical properties:

  • With a Brinell hardness not more than 237 HBW measured in all parts of the product including mid-thickness; and having a Yield Strength of 75 ksi min and UTS 95 ksi or more, Elongation of 18% or more and Reduction of area 35% or more; having charpy V at -75 degrees F in the longitudinal direction equal or greater than 15 ft. lbs (single value) and equal or greater than 20 ft. lbs (average of 3 specimens) and conforming to the requirements of NACE MR01-75; or
  • With a Brinell hardness not less than 240 HBW measured in all parts of the product including mid-thickness; and having a Yield Strength of 90 ksi min and UTS 110 ksi or more, Elongation of 15% or more and Reduction of area 30% or more; having charpy V at -40 degrees F in the longitudinal direction equal or greater than 21 ft. lbs (single value) and equal or greater than 31 ft. lbs (average of 3 specimens);

(d) Conforming to ASTM A578-S9 ultrasonic testing requirements with acceptance criteria 3.2 mm flat bottom hole; and

(e) Conforming to magnetic particle inspection in accordance with AMS 2301;

(7) Alloy mold steel CTL plate over 16 inches (407 mm) in thickness and meeting the following requirements:

(a) Made from Electric Arc Furnace melted, Ladle refined & vacuum degassed, alloy steel with the following chemical composition (expressed in weight percentages):

  • Carbon 0.25-0.30,
  • Silicon not greater than0.25,
  • Manganese not greater than 0.50,
  • Nickel 3.0-3.5,
  • Sulfur not greater than 0.010,
  • Phosphorus not greater than 0.020,
  • Chromium 1.0-1.5,
  • Molybdenum 0.6-0.9,
  • Vanadium 0.08 to 0.12
  • Boron 0.002-0.004,
  • Oxygen not greater than 20 ppm,
  • Hydrogen not greater than 2 ppm, and
  • Nitrogen not greater than 60 ppm.

(b) Having cleanliness in accordance with ASTM E45 method A (Thin and Heavy): A not exceeding 1.0(t) and 0.5(h), B not exceeding 1.5O and 1.0(h), C not exceeding 1.0(t) and 0.5(h), and D not exceeding 1.5(t) and 1.0(h);

(c) Having the following mechanical properties: A Brinell hardness not less than 350 HBW measured in all parts of the product including mid-thickness; and having a Yield Strength of 145ksi or more and UTS 160ksi or more, Elongation of 15% or more and Reduction of area 35% ot more; having charpy V at -40 degrees F in the transverse direction equal or greater than 20 ft. lbs (single value) and equal or greater than 25 ft. lbs (average of 3 specimens);

(d) Conforming to ASTM 4578-59 ultrasonic testing requirements with acceptance criteria 3.2 mm flat bottom hole; and

(e) Conforming to magnetic particle inspection in accordance with AMS 2301.

At the time of the filing of the petition, there was an existing antidumping duty order on certain cut-to-length carbon-quality steel plate products from Korea. See Notice of Final Determination of Sales Less Than Fair Value: Cut-To-Length Carbon-Quality Steel Plate Products from Korea, 64 Fed. Reg, 73,196 (Dep't Commerce Dec. 29, 1999), as amended, 65 Fed. Reg. 6,585 (Dep't Commerce Feb 10, 2000) ("1999 Korea AD Order"). The scope of the antidumping duty investigation with regard to cut-to-length plate from Korea covers only (i) subject cut-to-length plate not within the physical description of cut-to-length carbon quality steel plate in the 1999 Korea AD Order, regardless of producer or exporter; and (2) cut-to-length plate produced and/or exported by those companies that were excluded or revoked from the 1999 Korea AD Order as of April 8, 2016. Those revoked or excluded companies are POSCO and any POSCO affiliates.

At the time of the filing of the petition, there was an existing countervailing duty order on certain cut-to-length carbon-quality steel plate from Korea. See Final Affirmative Countervailing Duty Determination: Certain Cut-to-Length Carbon Quality Steel Plate From the Republic of Korea. 64 Fed. Reg. 73.176 (Dep’t Commerce Dec. 29. 1999)" as amended" 65 Fed. Reg. 6.587 (Dep't Commerce Feb. 10. 2000) ("1999 Korea CVD Order"). The scope of the countervailing duty investigation with regard to cut-to-length plate from Korea covers only (i) subject cut-to-length plate not within the physical description of cut-to-length carbon quality steel plate in the 1999 Korea CVD Order regardless of producer or exporter, and (2) cut-to-length plate produced and/or exported by those companies that were excluded or revoked from the 1999 Korea CVD Order as of April 8, 2016. Those revoked or excluded companies are POSCO and any POSCO affiliates.

Excluded from the scope of the antidumping duty investigation on cut-to-length plate from China are any products covered by the existing antidumping duty order on certain cut-to-length carbon steel plate from the People's Republic of China. See Suspension Agreement on Certain Cut-to-Length Carbon Steel Plate From the People's Republic of China: Termination of Suspension Agreement and Notice of Antidumping Duty Order, 68 Fed. Reg. 60,081 (Dep't Commerce Oct.21, 2003), as amended, Affirmative Final Determination of Circumvention of the Antidumping Duty Order on Certain Cut-to-Length Carbon Steel Plate From the People's Republic of China, 76 Fed. Reg. 50,996, 50,996-97 (Dep't of Commerce Aug. 17,2011).

The products subject to the investigation are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under item numbers: 7208.40.3030, 7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 7211.13.0000, 7211.14.0030, 7211.14.0045, 7225.40.1110, 7225.40.1180, 7225.40.3005, 7225.40.3050, 7226.20.0000, and 7226.91.5000.

The products subject to the investigation may also enter under the following HTSUS item numbers: 7208.40.6060, 7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.19.1500, 7211.19.2000, 7211.19.4500, 7211.19.6000, 7211.19.7590, 7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7214.91.0015, 7214.91.0060, 7214.91.0090, 7225.40.5110, 7225.40.5130, 7225.40.5160, 7225.40.7000, 7225.99,0010, 7225.99.0090, 7226.9r.0500, 7226.91.1530, 7226.91.1560, 7226.91.2530, 7226.91.2560, 7226.91.7000, 7226.91.8000, and 7226.99.0180.

The HTSUS subheadings above are provided for convenience and customs purposes only. The written description of the scope of the investigation 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 and countervailing duty investigations. Comments are due by April 28.

Email ITTNews@warren-news.com for a copy of the petition.