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.
Forward-Looking Statements
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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SOURCE Steel Dynamics, Inc.