FORT WAYNE, INDIANA — February 15, 1999 — Steel Dynamics, Inc.
(NASDAQ: STLD) The Department of Commerce (“Commerce”) announced last
Friday in Washington that significant preliminary antidumping duties
would be levied against imports of hot rolled sheet from Brazil and
Japan. Commerce also found that producers in Brazil benefited from
government subsidies. These duties will be collected 90 days
retroactively against imports from Japan and Brazil because of the surge
in the volume of dumped imports from these countries. A preliminary
determination in connection with unfairly traded Russian imports has
been delayed one week due to ongoing suspension agreement discussions
which are opposed by affected U.S. steel producers.
Steel Dynamics, Inc., eleven other U.S. producers, and two unions
filed the cases on September 30, 1998. Keith Busse, President and CEO of
SDI stated, “This ruling today by Commerce vindicates the industry’s
position that the huge surge in the steel imports in 1998 occurred
because of unfair trade practices with a devastating impact on our
industry. The imposition of these duties will benefit our company and
the industry in the future and will help safeguard jobs. Our company, in
conjunction with the industry, will not hesitate to file additional
cases in the future to combat unfair trade from other countries and/or
with regard to other products.”
The Department announced margins of 25.14% for Nippon Steel, 30.63%
for NKK, 67.59% for Kawasaki and 35.06% for all other Japanese
exporters. The margins were 50.66% for CSN, 71.02% for Cosipa/Usiminas
and 58.76% for all other Brazilian exporters. Subsidies found were 6.62%
for CSN, 9.45% for Cosipa/Usiminas and 7.85% for all other Brazilian
steel exporters.
Imports from Russia, Japan and Brazil of hot rolled sheet were 6.9
million short tons in 1998. This represented a five-fold increase from
1996 levels. Imports from these three countries represented 63% of 1998
imports of hot rolled sheet, and they took 23% of the U.S. market.
The Department of Commerce has scheduled its final determinations for
April 28, 1999. The case will then go to the International Trade
Commission for a final injury determination. The ITC made a unanimous
affirmative preliminary determination last November. |