US close to imposing punitive duties on China's steel wire rod

The U.S. Commerce Department on Thursday set final dumping and subsidy rates on imported steel wire rod from China, paving the way for the U.S. government to impose punitive duties on the products in the months ahead.

The department made its affirmative final determination that carbon and certain alloy steel wire rod from China had been "sold in the United States at dumping margins ranging from 106.19 percent to 110.25 percent," same as its preliminary determination.

The department also made its affirmative final determination that Chinese producers and exporters of such products have received countervailable subsidies ranging from 178.46 percent to 193.31 percent, much higher than the preliminary determination ranging from 10.3 percent to 81.36 percent.

Punitive duties would be imposed after the U.S. International Trade Commission (ITC) made an affirmative final rule, which is scheduled on Dec. 26 this year. If the ITC makes a negative determination, the investigations will be terminated.

The investigations are in response to a petition filed by ArcelorMittal USA based in the state of Illinois and five other U. S. companies, which alleged that these products from China were sold below the fair value of the products in the U.S. market, while Chinese producers and exporters also received improper government subsidies. Imports of these products from China were estimated at 313 million U.S. dollars last year, according to U.S. official data. China's Ministry of Commerce has repeatedly urged the United States to abide by its commitment against protectionism and work with China to maintain a free, open and just trade environment.