Initiation of Dumping Investigation Concerning Steel Heavy Plate

Date: May 28, 2020

Classification: Unclassified
Fully releasable (ATIP)? Yes
Branch / Agency: CTB/CBSA

Issue: On May 27, 2020, the CBSA initiated an investigation into the alleged injurious dumping of certain hot-rolled carbon steel heavy plate and high-strength low-alloy steel heavy plate originating in or exported from the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), Germany, South Korea, Malaysia, and Turkey.

Proposed Response:

Background:

On April 6, 2020, Algoma Steel Inc. (Sault Ste. Marie, Ontario) filed a complaint with the Canada Border Services Agency (CBSA) concerning certain hot-rolled carbon steel heavy plate and high-strength low-alloy steel heavy plate. On April 27, 2020, the CBSA determined that the complaint was properly documented and as a result advised the Governments of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei), Germany, South Korea, Malaysia, and Turkey.

The subject goods are defined as:

Hot-rolled carbon steel plate and high-strength low-alloy steel plate not further manufactured than hot-rolled, heat-treated or not, in cut lengths, in widths greater than 72 inches (+/- 1828 mm) to 152 inches (+/- 3,860 mm) inclusive, and thicknesses from 0.375 inches (+/- 9.525 mm) up to and including 4.5 inches (+/- 114.3 mm) (with all dimensions being plus or minus allowable tolerances contained in the applicable standards), but excluding:

For greater certainty, the subject goods include steel plate which contains alloys greater than required by recognized industry standards, provided the steel does not meet recognized industry standards for an alloy-grade steel plate.

The Canadian market for heavy plate is estimated at approximately $600 million annually.

Dumping occurs when goods are sold to importers in Canada at prices that are less than the selling prices in the exporter’s domestic market or at unprofitable prices.

Analysis of the complaint and other available information indicates that there is sufficient evidence of dumping and resulting injury to the producers in Canada, to warrant the investigation. Accordingly, the investigation was initiated on May 27, 2020.

While the CBSA investigates the dumping of the goods, the Canadian International Trade Tribunal (CITT) will consider whether dumping has caused injury to Canadian production. The CITT must make a preliminary decision on injury within 60 days, that is, by July 24, 2020. If the CITT concludes that the evidence does not disclose a reasonable indication that the dumping has caused injury, the investigation will be terminated.

If the CITT makes a positive preliminary decision on injury, the CBSA will make a preliminary decision on whether there is dumping within 90 days of initiation, that is, by August 25, 2020, at which time provisional duties will be levied, if warranted.

Contacts:

Prepared by: Hugh Marcil, Manager, CTB, 613-954-7265 
Approved by: Peter Hill, Vice-President, CTB, 613-952-2531

Date modified: