Acting on a petition by two domestic wire makers, the United States Commerce Department yesterday announced the affirmative preliminary determination in the antidumping duty (AD) investigation on imported aluminium and wire from producers in the People’s Republic of China, noting that Chinese importers dumped such products on American markets at margins of between 58.51 to 63.47 percent.
The Commerce Department assigned a preliminary dumping rate of 63.47 percent to mandatory respondents Shanghai Silin Special Equipment Company, Ltd. and Hebei Huatong Wires and Cables Group Company, Ltd. All other Chinese importers were assigned a dumping rate of 63.47 percent, while certain companies who were granted a separate rate were assigned a percentage of 58.51 percent.
Products under investigation include aluminium wire and cable made from 8xxx-series aluminium alloy, 1350 aluminium alloy, and 6201 aluminium alloy. Structurally, the aluminium wire under investigation must contain at least one insulated electrical conductor with a voltage rating between 80 and 1,000 volts. The conductor must be stranded and be between 16.5 and 1,000 kcmil thick and at least 6’ in length.
The petition, which was filed by Encore Wire Corporation of McKinney, Texas and Southwire Company, LLC of Carrollton, Georgia, began the investigation. With the preliminary determination now in place, the U.S. Customs and Border Protection will commence with collecting cash deposits from Chinese firms based upon the preliminarily-determined dumping rates announced by the Commerce Department yesterday.
Meanwhile, the Commerce Department will continue its investigation, anticipating a final determination in early October. Should Commerce affirm its initial findings, the U.S. International Trade Commission (ITC) is expected to make a final injury determination just before Thanksgiving, paving the way for an AD order by the Commerce Department should the ITC render an affirmative final injury determination.
The Commerce Department says imports of aluminium wire and cable from Chinese producers in 2017 were valued at around US$157.2 million. The Department also notes that the investigation is but one of the Trump Administration’s 168 new antidumping and countervailing duty investigations, which is a 223-percent jump over the Obama Administration’s first three years.