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NEWS RELEASE 04-033; April 12, 2004 April 12, 2004
News Release 04-033
Inv. Nos. 731-TA-1071-1072 (P)

ITC VOTES TO CONTINUE CASES ON MAGNESIUM FROM CHINA AND RUSSIA

The United States International Trade Commission (ITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of pure magnesium from Russia and alloy magnesium from China and Russia that are allegedly sold in the United States at less than fair value.

Chairman Deanna Tanner Okun, Vice Chairman Jennifer A. Hillman, and Commissioners Marcia E. Miller, Stephen Koplan, and Daniel R. Pearson found two like products in these investigations. They voted in the affirmative with respect to pure magnesium from Russia and alloy magnesium from China and Russia. Commissioner Charlotte R. Lane found one like product and voted in the affirmative.

As a result of the Commission's affirmative determinations, the U.S. Department of Commerce will continue to conduct its antidumping investigations of imports of magnesium from China and Russia, with its preliminary antidumping determinations due on or about August 5, 2004.

The Commission's public report Magnesium from China and Russia (Investigation Nos. 731-TA-1071-1072 (Preliminary), USITC Publication 3685, April 2004) will contain the views of the Commission and information developed during the investigations.

Copies of the report are expected to be available after May 10, 2004, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.


UNITED STATES INTERNATIONAL TRADE COMMISSION
Office of Industries
Washington, D.C. 20436

FACTUAL HIGHLIGHTS

Magnesium from China and Russia
Investigations Nos. 731-TA-1071-1072 (Preliminary)

Product Description: The subject merchandise from China consists of alloy magnesium metal products made from primary and/or secondary magnesium that contain 50 percent or greater, but less than 99.8 percent, magnesium by weight, that conform to an "American Society of Testing and Materials (ASTM) Specification for Magnesium Alloy." The subject merchandise from China is provided for in subheadings 8104.19.00 and 8104.30.00 of the Harmonized Tariff Schedule of the United States (HTS).(1) Excluded from the subject merchandise is magnesium in liquid or molten form and magnesium-based reagent mixtures. The subject merchandise from Russia consists of pure and alloy magnesium metal products made from primary and/or secondary magnesium that contain 50 percent or greater magnesium by weight, whether or not conforming to an "ASTM Specification for Magnesium Alloy." The subject merchandise from Russia is provided for in subheadings 8104.11.00, 8104.19.00, and 8104.30.00 of the HTS. Excluded from the subject merchandise is magnesium in liquid or molten form and magnesium-based reagent mixtures. Primary magnesium is produced by decomposing raw materials into magnesium metal. Secondary magnesium is produced by recycling magnesium-based scrap into magnesium metal.

Status of Proceedings:
1. Type of investigations:  Preliminary antidumping.
2. Petitioner:  US Magnesium Corp. (Salt Lake City, UT); United Steelworkers of America,
     Local 8319 (Salt Lake City, UT); and Glass, Molders, Pottery, Plastics & Allied Workers 
     International, Local 374 (Long Beach, CA).  
3. Preliminary investigations instituted by USITC:  February 27, 2004. 
4. Commission's conference:  March 19, 2004.    
5. USITC vote:  April 12, 2004.
6. USITC determinations to the U.S. Department of Commerce:  April 12, 2004.

U.S. Industry in 2003:
1. Number of producers:  One producer of pure magnesium and five producers of alloy
     magnesium.  
2. Location of producers' plants:  Utah, California, Indiana, and Ohio.
3. Employment of production and related workers: (2)
4. U.S. shipments: (2)
5. U.S. consumption: (2)

U. S. imports in 2003 (based on value):
1. Pure magnesium:  Subject imports ($34.5 million) and nonsubject imports ($26.8 million).
2. Alloy magnesium:  Subject imports ($31.1 million) and nonsubject imports ($69.8 million). 
3. Total magnesium:  Subject imports ($65.5 million) and nonsubject imports ($96.6 million).
4. Leading sources of pure magnesium:  Russia, Israel, Canada.
5. Leading sources of alloy magnesium:  Canada, China, Russia.
(1) There is currently an antidumping duty order on pure magnesium ingot from China (order No. A-570-832, 60 FR 25691, May 12, 1995) that was continued upon an affirmative expedited sunset review (65 FR 55047, September 12, 2000), and an antidumping duty order on pure magnesium in granular form from China (order No. A-570-864, 66 FR 57936, November 19, 2001).

(2) Withheld to avoid disclosure of business proprietary information.

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