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NEWS RELEASE 99-113; AUGUST 13, 1999 August 13, 1999
News Release 99-113
Invs. Nos. 701-TA-384 and 731-TA-806 and 808 (F)

CERTAIN HOT-ROLLED STEEL PRODUCTS FROM BRAZIL AND RUSSIA INJURE U.S. INDUSTRY, SAYS ITC

The United States International Trade Commission (ITC) today made affirmative final determinations that a U.S. industry is materially injured or threatened with material injury by reason of imports of certain hot-rolled steel products from Brazil and Russia that the U.S. Department of Commerce has determined are sold in the United States at less than fair value and those from Brazil that are subsidized.

The U.S. Department of Commerce has negotiated suspension agreements concerning these imports. However, the statute requires the Commission to complete its investigations if a request to do so is filed. The petitioners in these investigations filed such requests in early July. Today's ITC action completes the agency's responsibilities in these investigations. Further questions concerning these imports should be directed to the Department of Commerce.

Chairman Lynn M. Bragg, Vice Chairman Marcia E. Miller, and Commissioners Carol T. Crawford, Jennifer A. Hillman, Stephen Koplan, and Thelma J. Askey made affirmative determinations with respect to imports from Russia, with Commissioner Askey specifying that her affirmative determination was based on a finding of threat. Chairman Bragg, Vice Chairman Miller, and Commissioners Crawford, Hillman, and Koplan made affirmative determinations with respect to imports from Brazil. Commissioner Askey made a negative determination with respect to imports from Brazil.

In completing its final phase antidumping investigation, the Commission made a negative determination with regard to critical circumstances concerning imports of these products from Russia. Vice Chairman Miller and Commissioners Crawford, Hillman, and Koplan made negative determinations with regard to critical circumstances. Chairman Bragg made an affirmative critical circumstances determination with respect to Russia. Commissioner Askey did not make a critical circumstances determination because she made an affirmative threat determination.

The Commission's public report Certain Hot-Rolled Steel Products from Brazil and Russia (Investigations Nos. 701-TA-384 and 731-TA-806 and 808 (Final), USITC Publication 3223, August 1999) will contain the views of the Commission and information developed during the investigations.

Copies may be obtained after September 13, 1999, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.


UNITED STATES INTERNATIONAL TRADE COMMISSION
Office of Industries
Washington, DC 20436

FACTUAL HIGHLIGHTS

Certain Hot-Rolled Steel Products from Brazil and Russia
Investigations Nos. 701-TA-384 (Final) and 731-TA-806, 808 (Final)

Product Description: The product subject to these investigations consists of hot-rolled flat-rolled carbon-quality steel products of a rectangular shape, of a width of 0.5 inch or greater, neither clad, plated, nor coated with metal and whether or not painted, varnished, or coated with plastics or other nonmetallic substances, in coils (whether or not in successively superimposed layers) regardless of thickness, or in straight lengths, of a thickness less than 4.75 mm and of a width measuring at least 10 times the thickness. This excludes universal mill plate. Specifically included are vacuum degassed, fully stabilized steels (interstitial-free), high strength low alloy steels, and the substrate for motor lamination steels. Steels that are regarded as alloy steels are excluded from these investigations. Certain hot-rolled steel products are primarily classified in HTS headings 7208, 7210, 7211, and 7212. Also, certain subject merchandise, including IF, HSLA, and motor lamination substrate steels, may be classified in HTS headings 7225 and 7226.

Status of Proceedings:
1. Types of investigations:  Final countervailing duty and final antidumping.
2. Petitioners:  Bethlehem Steel Corp.; U.S. Steel Group (USX Corp.); Ispat/Inland; LTV Steel
   Co.; National Steel Corp.; California Steel Industries, Inc.; Gallatin Steel Co.; Geneva Steel
   Co.; Gulf States Steel, Inc.; IPSCO, Inc.; Steel Dynamics, Inc.; Weirton Steel Corp.;
   Independent Steelworkers Union; and the United Steelworkers of America. 
3. Investigations instituted by USITC:  September 30, 1998.
4. USITC Hearing:  May 4, 1999.
5. USITC vote:  August 13, 1999.
6. USITC notification of Department of Commerce:  August 23, 1999.

U.S. Industry:
1. Number of U.S. firms reporting production of hot-rolled carbon steel products:  24.
2. Production volume is concentrated in Alabama, Illinois, Indiana, Maryland, Michigan, Ohio,
   Pennsylvania, and West Virginia.
3. Employment of production and related workers in U.S. mills in 1998:  32,885.
4. U.S. producers' U.S. shipments (excluding exports) in 1998:
      Including captive consumption, 63,843,220 short tons (valued at $19.0 billion)
      Open market shipments, 21,780,520 short tons (valued at $7.2 billion).
5. U.S. apparent consumption in 1998:
      Including captive consumption, 75,251,116 short tons (valued at $22.2 billion).
      Open market consumption, 33,188,416 short tons (valued at $10.5 billion).
6. Ratio of quantity of imports from Brazil and Russia to U.S. apparent consumption in 1998:
      Including captive consumption, Brazil -- 0.6 percent; Russia -- 5.1 percent.
      Open market shipments, Brazil -- 1.4 percent; Russia -- 11.6 percent.

U.S.Imports:
1. Quantity of subject imports in 1998:  Brazil -- 451,462 short tons; Russia -- 3,843,641 short tons.
2. Value of subject imports in 1998:  Brazil -- $133,442,000; Russia -- $923,303,000.

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