Sound familiar? The ITC formally accepted a petition from ArcelorMittal USA, Nucor, AK Steel, and USX that would launch an investigation into whether Chinese steel suppliers were circumventing the by shipping through Vietnam. The Chinese suppliers maintain they are not circumventing the duty by galvanizing it thus enhancing the value and changing the product. The galvanized steel is then labeled as produced in Vietnam.
A letter written to Commerce by lawyers for some US-based steelmakers says that coating the steel involves “relatively small investment, adds relatively little value, and adds no components or mass whatever.” The Chinese disagree.
In the first six months of 2016, shipments of steel from Vietnam to the US increased to 312,329 mt, from 25,756 mt in the year earlier period. Over the same period, Chinese exports of steel to Vietnam rose 46% to 6.3-million mt from 4.3-million mt.