Kelley Drye Represents U.S. PC Strand Industry in Antidumping and Countervailing Duty Case Against China

Kelley Drye represented three domestic producers of prestressed concrete steel wire strand (PC strand) in filing antidumping and countervailing duty petitions against China on May, 27, 2009. The petition outlined charges that dumped and subsidized imports of PC strand from the People’s Republic of China cause material injury to the domestic industry. The petitioners allege dumping margins ranging from 140.31 to 314.99 percent, with an average margin of 223.47 percent, and also allege that significant subsidies have been provided to Chinese PC strand producers by the Chinese Government. Kelley Drye represents petitioners American Spring Wire Corp. of Bedford Heights, Ohio; Insteel Wire Products Co. of Mt. Airy, North Carolina; and Sumiden Wire Products Corp. of Dickson, Tennessee.

Last week’s trade case was filed in the face of a massive volume of imports of PC strand from China over the past three years that has injured competing U.S. PC strand producers. Imports from China accounted for over 90 percent of all imports of PC strand in the U.S. market in 2008, at levels in excess of 175,000 tons each year since 2006. The petition alleges that China has expanded its share of the U.S. market over that period at the expense of U.S. producers by selling PC strand at prices that significantly undercut domestic market prices. As a result, the domestic industry has suffered declines in production, sales and employment, as well as has watched its profitability evaporate. The petition further alleges that China has massive, unused capacity and is likely to increase exports of PC strand to the U.S. market to the detriment of competing U.S. producers if duties are not imposed.

The petitions further allege that Chinese government have given producers and exporters of PC strand preferential treatment to further strategic plans of China’s industrial policy, including promoting exports of value-added steel products. The United States International Trade Commission, an independent agency, will determine whether such imports are a cause of material injury to the domestic industry.

Partners Kathleen W. Cannon, Paul C. Rosenthal and Alan Luberda represented the petitioners in this filing, along with John M. Herrmann; and economists (Georgetown Economic Services) Gina Beck, Michael T. Kerwin and Barbara Covell.