AK Steel Holding Corporation
) declared that is has submitted antidumping duty petitions with
the U. S. Department of Commerce and the U. S. International
Trade Commission (ITC) related to unfairly low-priced imports of
non-oriented electrical steel (NOES) from six countries. The
low-price imports from countries including China, Germany, Japan,
Korea, Sweden and Taiwan are allegedly causing material injury to
AK Steel has also filed countervailing duty petitions against
NOES producers in China, Korea and Taiwan asserting that they are
heavily subsidized by their respective governments.
The petitions assert that AK Steel's NOES operations and its
workforce had been negatively impacted owing to increased imports
of NOES from the six targeted countries that accounted for 92% of
U.S. imports of NOES from all countries in 2012.
AK Steel believes that foreign NOES producers in these countries,
who have massive growing capacity to produce NOES, dump their
surplus capacity in the oversupplied U.S. market. This has led to
lower production and profits of NOES producing companies in the
U.S. as domestic market prices for NOES were adversely impacted.
According to AK Steel, antidumping duties charged will cancel out
the amount by which a product is sold at less than fair value, or
dumped, in the U.S.; whereas countervailing duties charged will
neutralize the unfair subsidies provided by foreign governments
to the targeted countries.
In the process, ITC, an independent agency, will make a
preliminary investigation on whether the U.S. industry producing
NOES is materially injured, or threatened with material injury,
by reason of the dumped and subsidized imports within 45 days.
The Commerce Department will verify within 20 days whether to
initiate the antidumping and countervailing duty investigations.
NOES is alloy steel built up of silicon, carbon and aluminum in
different percentage proportions. The petition holds strong on
all coils regardless of width and thickness. The representatives
from the law firm King & Spalding LLP are assisting AK Steel
in these actions.
AK Steel, which currently carries a Zacks Rank #3 (Hold),
expects to release its third-quarter results on Oct 22 before the
Other companies in the steel industry with favorable Zacks
Companhia Siderurgica Nacional
Shiloh Industries Inc
). While Companhia Siderurgica and Shiloh hold a Zacks Rank
#1 (Strong Buy), Gerdau retains a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
GERDAU SA ADR (GGB): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
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