Certain Flat-Rolled Carbon Steel Products From Argentina, Australia, Austria, Belgium, Brazil

418 Pages·2010·42.03 MB·English

Certain Flat-Rolled Carbon Steel Products From Argentina,
Australia, Austria, Belgium, Brazil, Canada, Finland,
France, Germany, Italy, Japan, Korea, Mexico,
the Netherlands, New Zealand, Poland,
Romania, Spain, Sweden, and the United Kingdom
Investigations Nos. 701-TA-319-332, 334, 336-342, 344, and 347-353 (Final)
and
Investigations Nos. 731-TA-573-579, 581-592, 594-597, 599-609, and 612-619 (Final)
VOLUME I: Determinations and Views of the Commission
Publication 2664 August 1993
U.S. International Trade Commission
Washington, DC 20436
U.S. International Trade Co1111nission
COMMISSIONERS
Don E. Newquist, Chairman
Peter S. Watson, Vice Chairman
David B. Rohr
Anne E. Brunsdale
Carol T. Crawford
Janet A. Nuzum
Robert A. Rogowsky
Director of Operations·.
Staff assigned:
Jonathan Seiger, Off'ice of Investigations
Peggy MacKnight, Off'ice of lnduslries
Charles Yost, Office of lnduslries
Joseph Baremore, Office of Economics
Marshall Wade, Office of Investigations
Scott Andersen, Off'ice of the General Counsel
Cynthia Johnson, Office of the General Counsel
Kathryn A. Gilchrist, Off'ice of the General Counsel
Vera Libeau, Supervisory Investigator
Additional assistance provided by:
Fred Ruggles, James Stewart, and Douglas Corkran, Office of Investigations
Catherine DeFilippo and Anita Miller, Office of Economics
Kristina Zissis, Brooks Olbrys, and John Smallen, Office of the General Counsel
Addns all communications to
Secretary to the
Commi~ion
United States International Trade Commis,,ion
Washington, DC 20436
•
U.S. International Trade Commission
Washingten, DC 20436
Certain Flat-Rolled Carbon Steel Products From Argentina,
Australia, Austria, Belgium, Brazil, Canada, Finland,
France, Germany, Italy, Japan, Korea, Mexico,
the Netherlands, New Zealand, Poland,
Romania, Spain, Sweden, and the United Kingdom
Publication 2664 August 1993

TABLE OF CONTENTS

C 0 N T E N T S
Volume I:
Determinations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Views of the Commission............................... . . . . . . . . . . . . . . . . . 7
Introduction......................................................... 7
Hot-rolled carbon steel flat-rolled products......................... 9
Table of contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Additional views of Vice Chairman Watson........................... 73
Additional and dissenting views of Commissioner David B. Rohr
concerning hot-rolled products................................... 77
Cold-rolled carbon steel flat-rolled products........................ 83
Table of contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Dissenting views of Vice Chairman Watson........................... 151
Additional and dissenting views of Commissioner David B. Rohr
concerning cold-rolled products.................................. 153
Corrosion-resistant carbon steel flat-rolled products................ 161
Table of contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Separate views of Vice Chairman Watson on corrosion-resistant
products from Mexico............................................. 205
Additional and dissenting views of Commissioner David B. Rohr
concerning corrosion-resistant products.......................... 207
Cut-to-length carbon steel plate..................................... 211
Table of contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Additional and dissenting views of Commissioner David B. Rohr
concerning cut-to-length plate products.......................... 255
Additional and dissenting views of Chairman Newquist................... 259
Additional and dissenting views of Commissioner Anne E. Brunsdale...... 307
Additional and dissenting views of Commissioner Carol T. Crawford...... 335
Additional and dissenting views of Commissioner Janet A. Nuzum......... 351
Volume II:
Information obtained in the investigations ..................... ;....... 1-1
Introduction......................................................... 1-3
Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I -5
Previous and related investigations.................................. 1-6
U.S. tariff treatment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-13
Nature and extent of subsidies and LTFV sales ........................ 1-13
The products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-17
Description......................................................... 1-17
Plate............................................................ 1-18
Separate plate like products ................................... I-18
Hot-rolled products.............................................. 1-20
Separate hot-rolled like products ........................•..... 1-21
Cold-rolled products............................................. 1-22
Separate cold-rolled like products .........................•... 1-23
Corrosion-resistant products ..................................... 1-26
Separate corrosion-resistant like products ..................... 1-27
Manufacturing process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-29
Melt stage....................................................... I-29
Casting stage.................................................... I-30
Rolling stage.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-30
Plate mill rolling............................................. 1-30
Hot-strip mill rolling......................................... I-31
Cold (reduction) rolling....................................... I-32
Slitting, shearing, and levelling .............................. 1-32
Corrosion resistance (coatings) .................................. I-32
ii
Information obtained in the investigations--Continued
The products--Continued
Uses .............................................................. . 1-33
Plate ............................... ·. ........................... . 1-33
Hot-rolled products ............................................. . 1-34
Cold-rolled products ............................................ . 1-34
Corrosion-resistant products .................................... . 1-36
Substitute products ............................................... . 1-36
The U.S. market .................................................. ·. .. . 1-38
Apparent U.S. consumption ......................................... . 1-38
Plate ........................................................... . 1-38
Hot-rolled products ..................... _. ....................... . 1-41
Cold-rolled products ............................................ . 1-41
Corrosion-resistant products .................................... . 1-41
U. S . producers .................................................... . 1-41
U. S . importers .................................................... . 1-45
Channels of distribution .......................................... . 1-47
Consideration of material injury to an industry in the
United States .................................................. . 1-49
U.S., capacity, production, and capacity utilization .............. . 1-50
Plate ........... -................................................ . 1-50
Hot-rolled products ............................................. . 1-51
Cold-rolled products ............................................ . 1-51
Corrosion-resistant products .................................... . 1-52
U.S. producers• domestic shipments, company transfers, and export
shipments .................................................... . 1-53
Plate .......................................................... . 1-53
Hot-rolled products ............................................ . 1-53
Cold-rolled products ........................................... . 1-53
Corrosion-resistant products ................................... . I-53
Trade actions against U.S. exports ............................. . 1-55
Shipments of specialized products .............................. . 1-56
U.S. producers• inventories ...................................... . 1-56
U.S. employment, wages, and productivity ......................... . 1-58
Plate .......................................................... . 1-58
Hot-rolled products ............................................ . I-60
Cold-rolled products .................................... ·. ...... . 1-62
Corrosion-resistant products ................................... . 1-62
Changes in employment and union representation ................. . 1-63
Financial experience of U.S. producers ........................... . 1-63
Production costs ............................................... . 1-65
Operations on plate ............................................ . 1-66
Operations on hot-rolled products .............................. . 1-66
Operations on cold-rolled products ............................. . 1-75
Operations on corrosion-resistant products ..................... . 1-75
Research and development ................•....................... I-84
Investment in productive facilities ............................ . 1-84
Capital expenditures ........................................... . 1-84
Impact of joint ventures or projects ........................... . 1-86
Current and planned investment projects ........................ . 1-87
Environmental expenditures ..................................... . 1-87
Capital and investment ......................................... . 1-87
iii
Information obtained in the investigations--Continued
Consideration of the question of threat of material inJury
to an industry in the United States ............................ . I-88
U.S. importers' inventories ...................................... . I-90
Plate .......................................................... . I-90
Hot-rolled products ............................................ . I-90
Cold-rolled products ........................................... . I-90
Corrosion-resistant products ................................... . I-94
Ability of foreign producers to generate exports and the
availability of export markets other than the United States .. . I-94
The industry in Argentina (cold-rolled products) ............... . I-94
The industry in Australia (corrosion-resistant products) ....... . I-96
The industry in Austria (cold-rolled products) ................. . I-97
The industry in Belgium (plate, hot-rolled products, and
cold-rolled products) ...................................... . I-98
Plate ........................................................ . I-98
Hot-rolled products .......................................... . I-98
Cold-rolled products ......................................... . I-99
The industry in Brazil (plate, hot-rolled products, cold-rolled
products, and corrosion-resistant products) ................. . I-99
Plate ......................................................... . I-100
Hot-rolled products .......................•.................... I-100
Cold-rolled products .......................................... . I-100
Corrosion-resistant products .................................. . I-101
The industry in Canada (plate, hot-rolled products, cold-rolled
products, and corrosion-resistant products) ................. . I-102
Plate ......................................................... . I-102
Hot-rolled products ................................•........... I-102
Cold-rolled products .......................................... . I-103
Corrosion-resistant products .................................. . I-103
The industry in Finland (plate) ................................. . I-104
The industry in France (plate, hot-rolled products, cold-rolled
products, and corrosion-resistant products) ................. . I-105
Plate ......................................................... . I-105
Hot-rolled products ........................................... . I-105
Cold-rolled products .......................................... . I-106
Corrosion-resistant products .................................. . I-106
The industry in Germany (plate, hot-rolled products, cold-rolled
products, and corrosion-resistant products) ................. . I-107
Plate ......................................................... . I-108
Hot-rolled products ........................................... . I-108
Cold-rolled products ........................................... . I-111
Corrosion-resistant products .................................. . I-111
The industry in Italy (plate and cold-rolled products) .......... . I-114
Plate ......................................................... . I-114
Cold-rolled products .......................................... . I-114
The industry in Japan (hot-rolled products, cold-rolled products,
and corrosion-resistant products) ........................... . I-115
Hot-rolled products ........................................... . I-115
Cold-rolled products .......................................... . I-116
Corrosion-resistant products .................................. . I-117
iv
Information obtained in the investigations--Continued
Consideration of the question of threat of material injury
to an industry in the United States--Continued
Ability of foreign producers to generate exports and the
availability of export markets other than the
United States--Continued
The industry in Korea (plate, hot-rolled products, cold-rolled
products, and corrosion-resistant products) ................. . 1-120
Plate ......................................................... . 1-120
Hot-rolled products ........................................... . 1-120
Cold-rolled products .......................................... . 1-121
Corrosion-resistant products ............................•...... 1-121
The industry in Mexico (plate and corrosion-resistant products) .. 1-123
Plate ......................................................... . 1-123
Corrosion-resistant products .................................. . 1-123
The industry in the Netherlands (hot-rolled products and
cold-rolled products) ....................................... . 1-124
Hot-rolled products .....................................•...... 1-124
Cold-rolled products .......................................... . 1-125
The industry in New Zealand (corrosion-resistant products) ...... . 1-125
The industry in Poland (plate) .................................. . 1-126
The industry in Romania (plate) ................................. . 1-128
The industry in Spain (plate and cold-rolled products) .......... . 1-129
Plate ......................................................... . 1-129
Cold-rolled products .......................................... . 1-129
The industry in Sweden (plate and corrosion-resistant products) .. 1-130
Plate ......................................................... . 1-130
Corrosion-resistant products .................................. . 1-130
The industry in the United Kingdom (plate) ...................... . I-131
Consideration of the causal relationship between imports of the
subject merchandise and the alleged material injury ............. . 1-132
U.S. imports ...................................................... . l-}.32
Plate ........................................................... . I-132
Hot-rolled products ............................................. . 1-132
Cold-rolled products ............................................ . 1-136
Corrosion-resistant products .................................... . 1-136
U.S. imports of niche products .................................. . 1-140
U.S. market penetration by imports ................................ . 1-140
Plate ........................................................... . 1-141
Hot-rolled products ............................................. . 1-141
Cold-rolled products ........................................... . 1-145
Corrosion-resistant products ................................... . 1-145
Prices ........................................................... . 1-151
MaTket characteristics ......................................... . 1-151
Changes in list prices ....................................... . 1-153
Lead time between order and delivery ......................... . 1-154
Factors considered when making purchase decisions ............ . 1-155
Overall demand for certain flat-rolled carbon steel products .. 1-161
Quality comparisons ............................•.............. 1-162
Certification and prequalification ........................... . 1-165
Sales of nonprime material ................................... . 1-165
Sales of slab ................................................ . 1-166
Transportation costs ......................................... . I-167
Questionnaire price data ....................................... . 1-168
Exchange rates ................................................... . 1-176
Lost sales and lost revenues ..................................... . 1-176