Economy

China slaps duties on US, Russian silicon steel

(Agencies)
Updated: 2010-04-13 14:03

BEIJING: China has imposed countervailing duties on grain-oriented electrical steel produced in the United States, as well as anti-dumping duties against Russian and US steel, its customs administration said.

US producers will be assessed for anti-dumping duties of up to 64.8 percent, and anti-subsidy duties of up to 44.6 percent, it said on its website on Monday.

The state-backed China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters hailed the Ministry of Commerce's April 10 ruling, which the Ministry has not yet publicly announced, state news agency Xinhua said.

"During the investigation the Ministry found that US producers had received subsidies by the US government, and their unfair competition hurt Chinese producers," Xinhua said, quoting an unnamed person at the chamber of commerce.

On Friday, the US announced a final decision to impose stiff duties on Chinese-made oil country tubular goods, which are steel pipe used in the oil industry.

China has not yet formally responded to that decision, which was announced days before a trip by Chinese president Hu Jintao to Washington. Deputy US Trade Representative Demetrios Marantis is also in Beijing this week, to hold meetings on trade with Chinese counterparts.

China is encouraging its steel industry to move up the value chain and produce more high-tech steel. The steel used for petroleum pipes, for instance, must be particularly resistant to corrosive oil and gas.

Grain-oriented electrical steel, also known as grain-oriented silicon steel, is used for the cores of high-efficiency transformers, electric motors and generators.

Anti-dumping duties

China will impose anti-dumping duties of 7.8 percent on AK Steel Corp and 19.9 percent on Allegheny Ludlum Corp, the two American producers that responded to its request for information. AK Steel faces anti-subsidy duties of 11.7 percent and Ludlum faces 12 percent.

It said Russian silicon steel producers OJSC Novolipetsk Steel and VIZ-Stal Ltd face anti-dumping duties of 6.3 percent, while others face duties of 25 percent.

The investigation was prompted by China's two largest silicon steel producers: Baosteel Group, the state-owned parent of Baoshan Iron and Steel, and Wuhan Iron and Steel Group, parent of Wuhan Steel.

Probes into imports of US grain-oriented electrical steel focused on six issues, including subsidised electricity, gas and coal, and incentives for steel sales and funding in the state of Pennsylvania, the ministry said last summer.