The US Department of Commerce confirmed that rebar imports from Mexico circumvented existing an antidumping order. The June 1 verdict upholds Commerce’s preliminary March finding.

 

The final ruling confirmed rebar imports, particularly rebar with bent ends manufactured by Mexican producer Deacero, circumvented existing AD orders that cover straight or coiled rebar from Mexico. No additional Mexican producers were observed to have evades existing the order. 

 

A petition from US domestic rebar producers Byer Steel, Nucor, Cascade Steel rolling mills, Commercial Metals, Gerdau Ameristeel and Steel Dynamics—members of the rebar trade action coalition—initiated the matter in Oct 2019. 

 

Commerce will apply its duty to hooked or bent rebar produced by Deacero. Succeeding the determination, Deacero’s current use of effective AD cash deposits, presently at 0pc, which were effective in the March preliminary determination, will continue. Pending review, this outcome may protect Mexico’s standing as a viable substitute for sourcing US rebar.

 

Current rebar imports from Mexico have, year-to-date, totaled around 267,000mt, increasing by about 90pc from 140,000mt during the same period in 2019. Imports from Mexico have comprised about 21pc of all US rebar imports year-to-date, and about 3pc of total rebar consumption in the US. Rebar imports from Mexico were valued at around $51mn in 2018, making the country the fourth-largest import supplier of rebar to the US.

 

The AD duty currently in place for Deacero and other Mexican exporters could be reviewed and increased. In a preliminary January 2020 ruling, Commerce suggested increasing AD duties on Deacero from 0pc to 7.25pc and increasing duties on other rebar exporters from Mexican from 0pc to 6.75pc and from 3.65pc to 7.11pc. If these recommended rates are supported in the Commerce’s final determination, expected in about 30 days, the rates will become effective and could alter the course of Mexican rebar imports. 

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