U.S. Department of Commerce Ruling Adds Duties to Steel Imports from 11 Nations

Charolotte, NC - The U.S. Department of Commerce has issued preliminary affirmative antidumping duty margins covering imports of hot-rolled sheet steel from 11 countries.

The 11 antidumping cases were filed by Nucor, Steel Dynamics, IPSCO, Gallatin, and five integrated producers in November. The Commerce Department's International Trade Commission found that steel companies from 11 nations were dumping hot-rolled sheet in the U.S. market. The department also found that companies from five of these countries benefited from significant government subsidies. The department imposed preliminary countervailing duties for subsidy in the range of 7% - 40%. The preliminary antidumping duties ranged from 2.38% to 239%.

"Imports from these 11 countries increased from 600,000 tons of hot-rolled carbon steel in 1998 to 4.2 million tons in 2000 through illegal dumping of their products," said Daniel R. DiMicco, president and chief executive officer of Nucor. "We welcome continued expeditious actions by the Bush administration to stop unfairly traded imports."

"The continued systematic violation of the trade laws of this country is an issue of vital importance to Nucor's investors, employees and customers," DiMicco said. "We will pursue all avenues available to us to rectify this pattern of illegal behavior."

Nucor is actively working with other producers and the Bush administration to develop a more comprehensive approach to the trade issue. Short term there is a clear need to curb the illegal activity via an appropriate mechanism that could include a "201" petition. Nucor has proposed and supports certain WTO compatible legislative actions that strengthen our current trade laws and streamline the antidumping suit process.

Nucor also supports multilateral negotiations that address the global over-capacity issue. Nucor's views on longer-term solutions include elimination of subsidies and bailouts, deterrents to constructing facilities that are not market-justified and faster remedies when dumping occurs. The international trade commission is expected to issue a final injury determination by the end of August 2001. Final antidumping duties are expected to be issued in 75 days.