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NEWS RELEASE 98-062; SEPTEMBER 1, 1998 September 1, 1998
News Release 98-062
Invs. Nos. 701-TA-373(F) and 731-TA-769-775(F)

STAINLESS STEEL WIRE ROD FROM ITALY, JAPAN, KOREA, SPAIN, SWEDEN, AND TAIWAN, BUT NOT GERMANY, INJURES U.S. INDUSTRY, SAYS ITC

The United States International Trade Commission (ITC) today made its final phase countervailing duty and antidumping determinations regarding imports of stainless steel wire rod from Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan.

With regard to imports from Italy, the ITC made an affirmative determination that an industry in the United States is materially injured or threatened with material injury by reason of imports of stainless steel wire rod that the U.S. Department of Commerce has determined are subsidized. The affirmative determination resulted from a 3-2 vote. Chairman Lynn M. Bragg, Vice Chairman Marcia E. Miller, and Commissioner Stephen Koplan voted in the affirmative. Commissioners Carol T. Crawford and Thelma J. Askey voted in the negative. Commissioner Jennifer A. Hillman did not participate in this investigation.

With regard to imports from Italy, Japan, Korea, Spain, Sweden, and Taiwan, the ITC made affirmative determinations that an industry in the United States is materially injured or threatened with material injury by reason of imports of stainless steel wire rod that the U.S. Department of Commerce has determined are sold in the United States at less than fair value. The affirmative determinations regarding imports resulted from 3-2 votes. Chairman Bragg, Vice Chairman Miller, and Commissioner Koplan voted in the affirmative. Commissioners Crawford and Askey voted in the negative. Commissioner Hillman did not participate in these investigations.

With respect to imports of these products from Germany, the ITC determined that an industry in the United States is neither injured nor threatened with material injury by reason of the imports that the U.S. Department of Commerce has determined are sold in the United States at less than fair value. The negative determination resulted from a 4-1 vote. Chairman Bragg voted in the affirmative. Vice Chairman Miller and Commissioners Crawford, Koplan, and Askey voted in the negative. Commissioner Hillman did not participate in this investigation.

The ITC's votes in these final phase countervailing duty and antidumping investigations were held on September 1, 1998. As a result of the affirmative determinations, the U.S. Department of Commerce will direct the U.S. Customs Service to impose countervailing duties on imports of stainless steel wire rod from Italy and antidumping duties on imports of these products from Italy, Japan, Korea, Spain, Sweden, and Taiwan. As a result of the negative determination regarding imports of these products from Germany, that investigation is ended.

The Commission's public report Stainless Steel Wire Rod from Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan (Investigations Nos. 701-TA-373 (Final) and 731-TA-769-775 (Final), USITC Publication 3126, September 1998) will contain the views of the Commission and information developed during the investigations.

Copies may be obtained without charge after September 22, 1998, by calling 202-205-1809 or from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.


FACTUAL HIGHLIGHTS

Stainless Steel Wire Rod from Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan
Investigations Nos. 701-TA-373 (Final) and 731-TA-769-775 (Final)

Product Description: Stainless steel wire rod is defined as stainless steel products of solid cross section that are hot-rolled or hot-rolled, annealed and/or pickled rounds, squares, octagons, hexagons, or other shapes, in coils, that may also be coated with a lubricant containing copper, lime, or oxalate. Stainless steel wire rod is made of alloy steel containing, by weight, 1.2 percent or less of carbon and 10.5 percent or more of chromium, with or without other elements. Most stainless steel wire rod sold in the United States is round in cross-sectional shape, annealed and pickled, and later cold-finished into stainless steel wire or small-diameter bar. The most common size for stainless steel wire rod is 5.5 millimeters (0.217 inch) in diameter, which represents the smallest size that normally is produced on a rolling mill and is the size that most wire-drawing machines are set up to draw. The range of stainless steel wire rod sizes normally sold in the United States is between 0.20 inch and 1.312 inches in diameter. Stainless steel wire rod grades SF20T and K-M35FL are excluded from the scope of these investigations; in addition, grades Kanthal A-1, Kanthal AF, Kanthal A, Kanthal D, Kanthal DT, Alkrothal 14, Alkrothal 720, and Nikrothal 40 are excluded from the investigation concerning Sweden.

Status of Proceedings:
1.  Types of investigations: Final antidumping and countervailing duty.
2.  Petitioners: AL Tech Specialty Steel Corp., Carpenter Technology Corp., Republic Engineered Steels,
       Inc., Talley Metals Technology, Inc. 1/, and the United Steelworkers of America, AFL-CIO/CLC.
3.  Investigations instituted by USITC: July 30, 1997.
4.  Hearing: July 22, 1998.
5.  USITC vote: Sept. 1, 1998.
6.  USITC notification of Department of Commerce: Sept. 8, 1998.

U.S. Industry:
1.  Number of domestic producers in 1997: Five.
2.  Location of producers' plants: Ohio, New York, Pennsylvania, and South Carolina.
3.  Employment of production and related workers in 1997: 2/
4.  U.S. producers' shipments in 1997: 2/
5.  U.S. consumption in 1997: 2/
6.  Ratio of quantity of subject imports to U.S. consumption in 1997: 2/

U.S. Imports:
1.  Quantity of subject imports of stainless steel wire rod in 1997: 2/
2.  Value of subject imports of stainless steel wire rod in 1997: 2/
3.  Leading sources of imports in 1997 (by quantity): Korea, Japan, and Taiwan.
_______________________________
1/ Carpenter acquired Talley in February 1998, but for the investigations, the two were treated as separate companies.
2/ withheld to avoid disclosure of confidential business information.
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