AK Steel Holding Corporation
) is upbeat following the U.S. International Trade Commission's
(ITC) preliminary ruling in its favor that unfairly traded
imports of non-oriented electrical steel (NOES) produced in
several foreign countries is hampering the company.
AK STEEL HLDG (AKS): Free Stock Analysis
CIA SIDERUR-ADR (SID): Free Stock Analysis
WORTHINGTON IND (WOR): Free Stock Analysis
UTD STATES STL (X): Free Stock Analysis
To read this article on Zacks.com click here.
AK Steel, in Sep 2013, filed petitions with the ITC and the
United States Department of Commerce (Commerce Department)
alleging unfairly traded imports of NOES from six producer
countries including China, Germany, Japan, South Korea, Sweden
and Taiwan that was causing material injury to the domestic
AK Steel also filed antidumping cases against all six countries
along with countervailing duty cases, alleging subsidization in
China, South Korea and Taiwan.
The case is now in the hands of Commerce Department and they are
determining the facts that whether foreign producers are actually
violating U.S. antidumping law by selling their products at less
than fair value in the U.S., and U.S. countervailing duty law
covering government subsidies.
The Commerce Department will be taking measures to calculate
antidumping margins, which are designed to offset the amount by
which the product is sold at less than fair value, and subsidy
rates, which are designed to offset the amount by which the
product benefits from unfair government subsidies.
Following this verification, the Commerce Department will be
collecting the estimated antidumping duties from importers from
the date when the preliminary determinations were filed to the
Commerce Department. The date for the estimated antidumping
duties collection is expected to be Mar 26, 2014.
The Commerce Department has the rights to impose antidumping and
countervailing duties in retrospective for a period of 90 days
prior to the preliminary determinations if the foreign producers
try to make massive shipments into the U.S. market before the
Commerce Department's preliminary determinations.
NOES is an alloy steel formed by a combination of silicon, carbon
and aluminum. It contains more than 1% of silicon and not more
than 0.08% of carbon or 1.5% of aluminum and has a surface oxide
coating, to which an insulation coating may be applied.
Specialized rolling and annealing process are used for
manufacturing NOES. It is broadly used in the production of
motors and generators.
Joe Dorn and Steve Jones of the law firm King and Spalding LLP
are helping AK Steel in these legal actions.
Ohio-based AK Steel is a leading producer of flat-rolled carbon,
stainless, electrical steel and tubular products.
AK Steel currently retains a Zacks Rank #3 (Hold).
Other companies in the steel and related industries with
favorable Zacks Rank are
Companhia Siderurgica Nacional
United States Steel Corp.
Worthington Industries, Inc.
). While Companhia Siderurgica holds a Zacks Rank #1 (Strong
Buy), both United States Steel and Worthington retain a Zacks
Rank #2 (Buy).