Steel ‘Dumping’ and Deacero: The Next Battleground Between Mexico, US?

sparks while workingMetalMiner, 5/1/14

A quiet battle has begun to brew over steel imports and exports between Mexico and the United States.

The Commerce Department issued a preliminary determination that both Turkey and Mexico have “dumped“ rebar into the US.  Mexican producers face duties of between 10-66%, depending on the mill and Turkish importers face a 0-2.64% duty.

In Nucor’s latest quarterly conference call, CEO John Ferriola framed the broader issue this way: “Imported steel share of the US market was 25% in 2009 and has grown to 30% in 2013; and over the first two months of 2014, the share has reached an alarming 36%.” But that’s not because other countries produce steel more cost-effectively than the US (Ferriola would actually argue the exact opposite, that US producers have the lowest cost of production), but because products are dumped.

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