FORT WAYNE, Ind., Nov. 4, 2015 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) commented that the company is very pleased
with yesterday's announcement by the Department of Commerce (DOC)
concerning preliminary countervailing duties against imports of
corrosion-resistant steel from China and also accepting of the findings
related to India and Italy.
The company had anticipated minimal results for Taiwan and Korea.
The company produces corrosion-resistant steel including
hot-dipped galvanized, GalvalumeĀ®, and painted steel at two
facilities located in Indiana, one
facility located in Mississippi
and three facilities located in Pennsylvania. Steel Dynamics is the
largest non-automotive producer of galvanized flat roll steel in
the United States. The product is used in many construction
applications, automotive parts and numerous consumer products.
The DOC found subsidy rates ranging from 26% to 236% against
imports from China, the biggest
source of corrosion-resistant steel imports into the United States in 2014. The Chinese
companies with 236% duties will also have these duties applied
retroactively by 90 days because of a preliminary affirmative
critical circumstances finding by the DOC as the result of recent
import surges from China.
Imports from India, the third
largest source of U.S. corrosion-resistant steel imports in 2014,
were subjected to subsidy findings of 2.85% to 7.7%. One of
the largest Italian producers was given a subsidy rate of 38.4% and
was also subject to retroactive duty assessment under critical
circumstances. Not unexpected, Korea, the fourth
largest source of corrosion-resistant steel imports in 2014, was
given negligible subsidy findings and Taiwan, the second largest, received no
subsidy findings.
The DOC will finalize its subsidy findings by the end of
January 2016, unless the petitioners
request an alignment of the subsidy final determinations with final
antidumping duty determinations. That decision has not yet been
made. The DOC will issue preliminary antidumping determinations
against these same five countries on December 22, 2015. On Friday, October 30, the Department made
preliminary critical circumstances findings based upon import
surges from China, Korea and
Taiwan.
Total 2014 corrosion-resistant flat roll steel imports from
these five countries were $2.2
billion, representing more than 50% of total 2014
corrosion-resistant steel imports. For these duties to
eventually go into effect, the International Trade Commission will
need to make affirmative determinations of injury or threat of
injury in 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, approximately 7,600
employees, and manufacturing facilities primarily located
throughout the United States
(including six steel mills, eight steel coating facilities, an iron
production facility, approximately 80 metals recycling locations
and eight 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 non-residential 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.