FORT WAYNE, Ind., June 3, 2015 /PRNewswire/ -- Steel Dynamics, Inc.
(NASDAQ/GS: STLD) today in Washington,
D.C., joined by AK Steel Corporation, ArcelorMittal
USA, California Steel Industries,
Nucor Corporation, and United States Steel Corporation, petitioned
the Department of Commerce (DOC) and the U.S. International Trade
Commission (ITC) to apply antidumping (AD) and countervailing
duties (CVD) against imports of corrosion resistant steel from
China, India, Italy,
South Korea, and Taiwan.
Imports of corrosion resistant sheet steel between 2012 and 2014
from the five subject countries increased 85%, from 1.5 million to
2.75 million tons. Further, imports increased by one third in the
first quarter of 2015, from 600,000 to 800,000 tons, and based on
licensing data have additionally increased in the second quarter.
Over 15% of the U.S. market was lost to these subject imports, more
than doubling their share between 2012 and the first quarter
2015.
Mark Millett, President and CEO
of Steel Dynamics said, "The surge of unfairly traded imports of
corrosion-resistant steel has materially impacted our shipments,
pricing and profitability. Corrosion-resistant flat rolled steel is
one of our more important products, and the restoration of fair
trade will benefit our customers, our employees and our
communities."
The company produces corrosion-resistant steel including hot
dipped galvanized, Galvalume®, and painted steel at its
facilities in Butler and
Jeffersonville, Indiana;
Columbus, Mississippi and three
facilities (The Techs) in the Pittsburgh,
Pennsylvania metropolitan area. The product is used in many
construction applications, as well as in automotive parts and
numerous consumer products.
Dick Teets, Executive Vice
President of Steel Dynamics and President and Chief Operating
Officer of Steel Operations said, "The volume of unfairly traded
imports of galvanized steel sheet products has increased so
substantially that our Techs division is operating at well below
capacity. Furthermore, to diversify our underutilized coating
capacities at our newly acquired Columbus, Mississippi mill, we have just
announced a $100 million capital
investment to add painting and Galvalume capabilities. We expect
that our coated products capacity utilization and financial
performance will significantly improve when the U.S. government
enforces the existing trade laws."
The petitions allege dumping margins as follows:
China
|
120.20%
|
India
|
71.09%
|
Italy
|
123.76%
|
South
Korea
|
80.06%
|
Taiwan
|
84.40%
|
The countervailing duty petitions allege numerous government
subsidy programs in each of the five countries to be investigated
by the DOC.
Under the unfair trade statutes, the ITC must make a preliminary
injury ruling within 45 days and the DOC will issue preliminary
duty rulings by the end of 2015 with final rulings by both agencies
completed by mid-2016.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel
producers and metals recyclers in the
United States based on estimated annual steelmaking and
metals recycling capability, with annual sales of $8.8 billion in 2014, over 7,700 employees, and
manufacturing facilities primarily located throughout the United States (including six steel mills,
eight steel coating facilities, two iron production facilities,
over 90 metals recycling locations and six steel fabrication
plants).
Forward-Looking Statement
This press release contains some predictive statements about
future events, including statements related to conditions in the
steel and metallic scrap markets, Steel Dynamics' revenues, costs
of purchased materials, future profitability and earnings, and the
operation of new or existing facilities. These statements are
intended to be made as "forward-looking," subject to many risks and
uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. These statements speak
only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
the effects of uncertain economic conditions; (2) cyclical and
changing industrial demand; (3) changes in conditions in any of the
steel or scrap-consuming sectors of the economy which affect demand
for our products, including the strength of the nonresidential and
residential construction, automotive, appliance, pipe and tube, and
other steel-consuming industries; (4) fluctuations in the cost of
key raw materials (including steel scrap, iron units, and energy
costs) and our ability to pass-on any cost increases; (5) the
impact of domestic and foreign import price competition; (6)
unanticipated difficulties in integrating or starting up new or
acquired businesses; (7) risks and uncertainties involving product
and/or technology development; and (8) occurrences of unexpected
plant outages or equipment failures.
More specifically, we refer you to SDI's more detailed
explanation of these and other factors and risks that may cause
such predictive statements to turn out differently, as set forth in
our most recent Annual Report on Form 10-K, in our quarterly
reports on Form 10-Q or in other reports which we from time to
time file with the Securities and Exchange Commission. These are
available publicly on the SEC website, www.sec.gov, and on the
Steel Dynamics website, www.steeldynamics.com.
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SOURCE Steel Dynamics, Inc.