North America Metals &Mining:Cold-Rolled Trade Case Final Anti-dumping Duties for China
The final determination in the cold-rolled sheet trade case for China and Japan affirmed the preliminary anti-dumping duties for both countries andincreased the preliminary countervailing duty for China. These tariffs, acombined 522% for Chinese cold-rolled sheet and 71% for Japaneseproduct are prohibitively high, especially in the case of China, and shouldlock the Chinese out of the U.S. market. We view today’s announcementby the Department of Commerce as a positive read-through for the coatedsheet trade case (final determination scheduled for next Wednesday, May25) and have no reason to think that the final determination will differmaterially from the high preliminary duties. We continue to believe thatthe sheet trade cases, which have helped to greatly reduce domestic steelsupply, will continue to support sheet prices and reiterate our Overweightratings on X, AKS, STLD, and NUE.
Cold-rolled final anti-dumping duties affirmed. The Department ofCommerce released its final determination in the cold-rolled sheet trade case forChina and Japan, affirming the preliminary anti-dumping duties of 265.79% forChina and 71.35% for Japan and increasing the countervailing duty for China to256.44% from 227.29%. Note that the final duties for the other countries namedin this case (Brazil, South Korea, the U.K., India, and Russia) will be announcedlater in July. The prohibitively high tariff for Chinese cold-rolled sheeteffectively locks the Chinese product out of the U.S. market. The tariff forJapanese cold-rolled steel is also very high. The ITC will make its final decisionon material injury on June 30. If material injury is found, these duties will be putin place on July 7.
Cold-rolled final determination positive read-through for coated finalduties. We view today's announcement as a positive read-through for the coatedsheet case, particularly in the case of China, and have no reason to think that thefinal determination will differ materially from the high preliminary duties. Thefinal duties in the coated case are scheduled to be released next Wednesday,May 25. As a reminder, China has already been locked out of the U.S. hot-rolledsheet market since 2001 with a 90% duty.