Steel Dynamics Comments on Preliminary Determination of Circumvention of Chinese Flat Roll Steel Processed in Vietnam
FORT WAYNE, Ind., Dec. 7, 2017 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today commented that it is pleased with this week's announcement by the Department of Commerce (DOC) concerning the preliminary affirmative circumvention determination against flat roll steel from China processed into cold roll and corrosion resistant flat roll steel in Vietnam. The circumvention investigation was made pursuant to a petition filed by Steel Dynamics on September 22, 2016.
"We are very pleased that Secretary Ross is taking steps to aggressively enforce U.S. trade laws," commented Mark D. Millett, President and Chief Executive Officer. "Stopping the circumvention of enacted trade laws will ensure a level playing field for the domestic steel industry. As the largest non-automotive flat roll steel coater in the U.S., it could be a meaningful positive tailwind for Steel Dynamics."
Among other products, Steel Dynamics produces corrosion-resistant steel, including galvanized, Galvalume®, and painted flat roll steel at facilities located in Indiana, Mississippi and Pennsylvania. The products are used in the construction, automotive, and other industrial sectors.
The DOC found that corrosion-resistant steel (CORE) and certain cold roll steel products imported from the Socialist Republic of Vietnam (Vietnam) produced from substrate originating in the People's Republic of China (China) are circumventing existing antidumping and countervailing duty (AD/CVD) orders on CORE and cold roll steel imported from China. Imports of corrosion-resistant steel from Vietnam increased from $2 million to $80 million after preliminary duties were imposed on Chinese products in 2015. Likewise, shipments of cold roll steel from Vietnam to the United States increased from $9 million to $215 million after preliminary duties were imposed on Chinese products in 2015.
The DOC has instructed U.S. customs to collect AD and CVD cash deposits on imports of CORE produced in Vietnam using Chinese-origin substrate at rates of 199.43 percent and 39.05 percent, respectively. Customs will also collect AD and CVD cash deposits on imports of cold roll steel produced in Vietnam using Chinese-origin substrate at rates of 265.79 percent and 256.44 percent, respectively. These cash deposit rates were previously established in the investigations on cold roll steel and CORE from China. Duties will apply to all shipments entering the United States on or after November 4, 2016, the date the circumvention inquiries were initiated, that remain unliquidated. Commerce will finalize its circumvention determination by February 16, 2018.
This press release contains some predictive statements about future events, including statements related to conditions in the steel and metallic scrap markets, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new or existing facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project" or "expect," or by the words "may," "will," or "should," are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of uncertain economic conditions; (2) cyclical and changing industrial demand; (3) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for our products, including the strength of the non-residential and residential construction, automotive, appliance, pipe and tube, and other steel-consuming industries; (4) fluctuations in the cost of key raw materials (including steel scrap, iron units, and energy costs) and our ability to pass-on any cost increases; (5) the impact of domestic and foreign import price competition; (6) unanticipated difficulties in integrating or starting up new or acquired businesses; (7) risks and uncertainties involving product and/or technology development; and (8) occurrences of unexpected plant outages or equipment failures.
More specifically, we refer you to Steel Dynamics' more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our quarterly reports on Form 10-Q or in other reports which we from time to time file with the Securities and Exchange Commission. These are available publicly on the SEC website, www.sec.gov, and on the Steel Dynamics website, www.steeldynamics.com: Investors: SEC Filings.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.
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