Global Fastener News

U.S. Commerce Dept. Initiates Antidumping Investigation on Chinese Threaded Rod

Jason Sandefur

The U.S. Department of Commerce is initiating an antidumping investigation for imports of steel threaded rod from China. \
In conjunction, the U.S. International Trade Commission will issue a preliminarily determination, no later than April 21, 2008, on whether the imports threaten the U.S. threaded rod industry.
The Commerce investigation, signed by David M. Spooner, Assistant Secretary for Import Administration, was undertaken after Pelham, AL-based Vulcan Threaded Products Inc. filed an antidumping petition against steel threaded rod from China in March. Estimated dumping margins for Chinese rod range from 36.17% to 659%, according to the Commerce Department.
The products under scrutiny includes steel threaded rod, bar, or studs that are non-headed and threaded along greater than 25% of their total length. A variety of finishes or coatings may be applied.
Excluded from the investigation are threaded rod, bar, or studs made to American Society for Testing and Materials (ASTM) A193 Grade B7, ASTM A193 Grade B7M, ASTM A193 Grade B16, or ASTM A320 Grade L7; and any threaded rod, bar, or studs that are threaded only on one or both ends and the threading covers 25% or less of the total length.
Filed on March 5, 2008, the petition claims that from 2005 to 2007, imports of steel threaded rod from China increased 9.8% by volume and were valued at an estimated $72.3 million in 2007. This allowed Chinese producers to seize as much as two-thirds of the U.S. market, according to the Vulcan petition.
“Imports of steel threaded rod from China were virtually nonexistent several years ago, but now they’re taking the majority of the U.S. market,” Vulcan president Bill Upton has stated. “We have seen an extraordinary increase in the volume from China at prices which are often less than the cost of our raw materials.”
China has more than 400 threaded rod producers, according to the petition. “Allied” with these Chinese producers are almost 300 U.S. importers of threaded rod, the petition states.
Vulcan said that despite investing “heavily” in equipment and technology to be a low cost producer, it cannot compete against “unfairly priced imports from China.”
Vulcan used 24 price quotes on three steel threaded rod products from China offered for sale to U.S. customers between July 1, 2007, and December 31, 2007.
It’s unclear how importers will respond, but the petition may prompt some to offer threaded rod at prices that cover the minimum duty that may be imposed. For further information, contact Juanita H. Chen, AD/CVD Operations, China/NME Group, SEC Office, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th St. and Constitution Ave. NW, Washington, DC 20230. Tel: 202 482-1904 �2008 FastenerNews.com