NEWS RELEASES - 1999

Back to 1999 News Releases

FOR IMMEDIATE RELEASE:

Contact:

Meg Mullery

202.342.8439

SPECIALTY STEEL INDUSTRY PROTESTS WORLD BANK LOAN;
CONTRADICTS CLINTON ADMINISTRATION 'STEEL ACTION PLAN'

Industry Asks President to Review

(Washington, D.C.) (October 13, 1999) - The Specialty Steel Industry of North America (SSINA) today asked the President to review recent reports that the World Bank's International Finance Corporation has agreed to loan nearly $100 million to a joint venture between Germany's Krupp Thyssen - the world's largest stainless steel producer - and Shanghai Pudong Steel to build the initial stage of what ultimately will be a $1.4 billion fully integrated stainless steel plan in Shanghai.

A letter delivered to the White House signed by SSINA Chairman James F. Will stated, "Even worse, the German Government's development agency KfW is co-financing this venture with an additional $78.8 million loan. This announcement directly contradicts your recently-announced "Steel Action Plan."

The Steel Action Plan directs Commerce Secretary Daly to conduct an in-depth study of "subsidies and other market-distorting barriers which have been a major cause of excess steel capacity overseas and, in consultation with USTR, make recommendations for dealing with them." In the letter to the President, Will states, "Now we see the World Bank and the German government loaning nearly $200 million to finance a new stainless steel facility in China . . . I submit that one need look no further than this World Bank loan as a prime example."

SSINA represents 15 companies manufacturing high technology, high-value stainless steel and other alloys, employing over 25,000 workers. Since 1997, SSINA has filed and successfully litigated more than 30 dumping and countervailing duty cases against 45 stainless producers in 14 countries (see attached table).

Stainless Steel Producers and Unions
Status of Unfair Trade Cases by Major Product Line Filed in 1997 and 1998

Product	Stainless Steel Rod
Date Filed	July 30, 1997
Named Countries	Italy, Germany, Japan, Korea, Spain, Sweden, Taiwan
Status	The case concluded with the issuance of final antidumping and countervailing duty (CVD) orders by the Commerce Department on 9/15/98. The duties range up to 34%, with penalties extending back to 3/5/98. The International Trade Commission (ITC) voted on final injury determination on 9/1/98. Excluding Germany, ITC concluded that imports from six of the seven named countries caused injury to producers.
Next Step	On 10/15/98, appeals were filed with Court of International Trade. Successful appeals would result in a significant increase in the antidumping duties levied on imports from Korea and the assessment of antidumping duties on imports from Germany. The industry will vigorously pursue the appeals process with the hope of a decision by yearend 1999.

Product	Stainless Steel Round Wire
Date Filed	March 27, 1998
Named Countries	Canada, India, Japan, Korea, Spain, Taiwan
Status	On 6/4/98, the ITC preliminarily determined that imports from the named countries are injuring the domestic industry. On 11/13/98, Commerce set preliminary antidumping duties ranging up to 36% on imports from the subject countries. On April 5, final antidumping duties ranging up to 36% were announced by Commerce.
Case Concludes	On 5/10/99, The ITC voted against injury. To date, no decision has been made on appealing the ITC determination.

Product	Stainless Steel Plate in Coils
Date Filed	March 31, 1998
Named Countries	Belgium, Canada, Italy, South Korea, South Africa, Taiwan
Status	On 5/15/98, the ITC voted preliminarily that imports from the named countries are injuring the domestic industry. On 9/1/98, Commerce issued preliminary CVD determinations against Korea, Italy, Belgium, and South Africa ranging up to 15%. On 10/27/98, Commerce announced preliminary antidumping duties ranging up to 68% on imports from the six named countries. Subsequently, on 12/3/98, Commerce published a revised preliminary determination on imports from Taiwan and took the extremely unusual step of finding that Taiwanese producer Ta Chen Stainless Pipe and its U.S. subsidiary, Ta Chen International, engaged in "middleman dumping" of coiled stainless steel plate produced by Yieh United Steel Corp. On March 22, 1999, Commerce issued final antidumping duties ranging between 7% and 45% and countervailing duties ranging between 2% and 15%.
Case Concludes	On 4/22/99, the ITC voted unanimously in favor of injury. Antidumping and CVD orders have been issued.

Product	Stainless Steel Sheet and Strip in Coils
Date Filed	June 10, 1998
Named Countries	France, Germany, Italy, Japan, Mexico, South Korea, Taiwan, United Kingdom
Status	On 7/24/98, the ITC voted preliminarily that imports from the named countries are injuring the domestic industry. On 10/30/98, U.S. producers requested that Commerce apply the "critical circumstances" provision of U.S. trade laws to combat recent import surges. An affirmative finding would impose antidumping duties retroactively to 9/18/98. On 11/10/98, Commerce announced preliminary CVD rates ranging up to 29% against France, Italy and South Korea. On 12/18/98, Commerce announced preliminary antidumping duty margins ranging up to 59%; and decided favorably on "critical circumstances" as to Germany, Japan (Nippon Metals, Nippon Yakin, and Nisshin only) and Korea (Taihan Electric Wire Co. only). "Critical circumstances" were not found for Italy and Taiwan.
Case Concludes	On 5/20/99, Commerce announced final antidumping and CVD duties ranging up to 60%. On 7/7/99, the ITC voted affirmatively in favor of injury. Antidumping and CVD orders have been issued.