Initiation of Antidumping Duty Investigations: Steel Wire Rod From Belgium and Germany

DEPARTMENT OF COMMERCE

[A-423-807, A-428-818]

Initiation of Antidumping Duty Investigations: Steel Wire Rod

From Belgium and Germany

AGENCY: Import Administration, International Trade Administration,

Department of Commerce.

EFFECTIVE DATE: March 14, 1994.

FOR FURTHER INFORMATION CONTACT: Ellen Grebasch or Erik Warga, Office

of Antidumping Investigations, Import Administration, International

Trade Administration, U.S. Department of Commerce, 14th Street and

Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-

3773 or (202) 482-0922, respectively.

Initiation of Investigations:

The Petitions

On February 14, 1994, we received petitions filed in proper form by

the Connecticut Steel Corp., Georgetown Steel Corp., Keystone Steel &

Wire Co., North Star Steel Texas, Inc., Co-Raritan River Steel Co., and

Northwestern Steel & Wire Co. (petitioners). At the request of the

Department of Commerce (the Department), petitioners filed a supplement

to the petitions to correct methodological errors and support the data

presented. In accordance with 19 CFR 353.12, petitioners allege that

imports of steel wire rod (SWR) from Belgium and Germany are being, or

are likely to be, sold in the United States at less than fair value

within the meaning of section 731 of the Tariff Act of 1930, as amended

(the Act), and that these imports are materially injuring, or threaten

material injury to, a U.S. industry.

Petitioners have stated that they have standing to file the

petitions because they are interested parties, as defined under section

771(9)(C) of the Act, and because the petitions are filed on behalf of

the U.S. industry producing the product subject to these

investigations. If any interested party, as described under paragraphs

(C), (D), (E), or (F) of section 771(9) of the Act, wishes to register

support for, or opposition to, these petitions, it should file a

written notification with the Acting Assistant Secretary for Import

Administration.

Under the Department's regulations, any producer or reseller

seeking exclusion from a potential antidumping duty order must submit

its request for exclusion within 30 days of the date of the publication

of this notice. The procedures and requirements are contained in 19 CFR

353.14.

Scope of Investigations

The products covered by these investigations are hot-rolled carbon

steel and alloy steel wire rod, in coils, of approximately round cross

section, between 0.20 and 0.75 inches in solid cross-sectional

diameter. The following products are excluded from the scope of this

investigation:

Steel wire rod 5.5 mm or less in diameter, with tensile

strength greater than or equal to 1040 MPa, and the following chemical

content, by weight: carbon greater than or equal to 0.79%, aluminum

less than or equal to 0.005%, phosphorous plus sulfur less than or

equal to 0.040%, and nitrogen less than or equal to 0.006%;

Free-machining steel containing, by weight, 0.03% or more

of lead, 0.05% or more of bismuth, 0.08% or more of sulfur, more than

0.4% of phosphorus, more than 0.05% of selenium, and/or more than 0.01%

of tellurium;

Stainless steel rods, tool steel rods, ball bearing steel

rods, and deformed concrete reinforcing bars; and

Wire rod 7.9 to 18 mm in diameter, containing 0.48 to

0.73% carbon by weight, and having partial decarburization and seams no

more than 0.075 mm in depth.

The products under investigation are currently classifiable under

subheadings 7213.31.3000, 7213.31.6000, 7213.39.0030, 7213.39.0090,

7213.41.3000, 7213.41.6000, 7213.49.0030, 7213.49.0090, 7213.50.0020,

7213.50.0040, 7213.50.0080, 7227.20.0000, and 7227.90.6050 of the

Harmonized Tariff Schedule of the United States (HTSUS). Although the

HTSUS subheadings are provided for convenience and customs purposes,

our written description of the scope of this investigation is

dispositive.

United States Price and Foreign Market Value

Belgium

Petitioners based United States Price (USP) on competitive pricing

information obtained through their own business activity and supported

with affidavits. This information included delivered prices of SWR to

unrelated U.S. customers. Petitioners calculated USP by subtracting

movement charges (including U.S. customs duties), and adjusting for

Belgian taxes.

FMV was based on home market price quotes for identical

merchandise, exclusive of value-added tax (VAT). Petitioners calculated

FMV by subtracting movement charges, and converted the prices to U.S.

dollars using contemporaneous exchange rates found in the U.S. Customs

Bulletin. Petitioners made a circumstance of sale adjustment for

differences in credit expenses. Petitioners also calculated the amount

of VAT in accordance with the Department's methodology as discussed in

Stainless Steel Wire Rod from France (58 FR 68865, December 29, 1993)

(Final Determination) and added the resulting amount to both USP and

FMV.

Germany

Petitioners based USP on competitive pricing information obtained

through their own business activity and supported with affidavits. This

information included delivered prices of SWR to unrelated U.S.

customers. Petitioners calculated USP by subtracting movement charges

(including U.S. customs duties), and adjusting for German taxes.

FMV was based on home market price quotes for identical merchandise

or, if non-identical, merchandise which would presumably have a lower

cost of production (COP) than the U.S. merchandise, exclusive of value-

added tax (VAT). Petitioners calculated FMV by subtracting movement

charges, and converted the prices to U.S. dollars using contemporaneous

exchange rates found in the U.S. Customs Bulletin. Petitioners made a

circumstance of sale adjustment for differences in credit expenses.

Petitioners also calculated the amount of VAT in accordance with the

Department's methodology as discussed in Stainless Steel Wire Rod from

France (58 FR 68865, December 29, 1993)(Final Determination) and added

the resulting amount to both USP and FMV.

Allegations of Sales Below Cost of Production

Petitioners allege that Forges de Thy-Marcinelle, a potential

respondent in the Belgium investigation, is selling the subject

merchandise in the home market at prices below its COP. This allegation

is based on a comparison of company-specific home market prices with

the COP. COP was based on the costs of a comparable U.S. producer

adjusted for known differences in the country of production.

Based on the information presented, we have reasonable grounds to

believe or suspect that the home market sales of Forges de Thy-

Marcinelle are being made at less than COP. See Memorandum to Marie E.

Parker from C.M. Miller dated March 4, 1994, which is on file in the

Import Administration Central Records Unit. Accordingly, pursuant to

section 773(b) of the Act and 19 CFR 353.51, we will initiate a COP

investigation with respect to this company if it is named as a

respondent in the investigation.

Petitioners also allege that specific potential respondents in the

German investigation are selling the subject merchandise in the home

market at prices below their COP. These allegations are based on a

comparison of company-specific home market prices with the COP. COP was

based on the costs of a comparable U.S. producer adjusted for known

differences in the country of production, and/or company-specific

information, and on the company's financial statements, when

applicable.

Based on the information presented, we have reasonable grounds to

believe or suspect that the home market sales of the following German

producers are being made at less than COP: Stahl-und Walzwerk

Brandenburg GmbH, Saarstahl AG, and Thyssen Stahl AG. See Memorandum to

Marie E. Parker from C.M. Miller dated March 4, 1994, which is on file

in the Import Administration Central Records Unit. Accordingly,

pursuant to Section 773(b) of the Act and 19 CFR 353.51, we will

initiate COP investigations with respect to each of these companies if

they are named as a respondent in the investigation.

Alleged Dumping Margins

The range of positive dumping margins of SWR from Belgium based on

price-to-price and price-to-CV comparisons of USP to FMV alleged by

petitioners, corrected for minor errors, is 5.69% to 52.34%.

The range of positive dumping margins of SWR from Germany based on

price-to-price and price-to-CV comparisons of USP to FMV alleged by

petitioners, corrected for minor errors, is 2.77% to 72.09%.

Initiation of Investigations

We have examined the petitions for SWR from Belgium and Germany, as

amended, and have found that the petitions meet the requirements of

section 732(b) of the Act. Therefore, we are initiating antidumping

duty investigations to determine whether imports of SWR from Belgium

and Germany are being, or are likely to be, sold in the United States

at less than fair value. If these investigations proceed normally, we

will make our preliminary determinations by July 25, 1994.

ITC Notification

Section 732(d) of the Act requires us to notify the International

Trade Commission (ITC) of these actions and we have done so.

Preliminary Determinations by the ITC

The ITC will determine by March 31, 1994, whether there is a

reasonable indication that imports of SWR from Belgium and Germany are

materially injuring, or threaten material injury to, a U.S. industry. A

negative ITC determination in any of these investigations will result

in its termination; otherwise, the investigations will proceed

according to statutory and regulatory time limits.

This notice is published pursuant to section 732(c)(2) of the Act

and 19 CFR 353.13(b).

Dated: March 7, 1994.

Joseph A. Spetrini,

Acting Assistant Secretary for Import Administration.

[FR Doc. 94-5881 Filed 3-11-94; 8:45 am]

BILLING CODE 3510-DS-P