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US slaps duties on Vietnamese steel originating from China

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WASHINGTON: The US Commerce Department on Tuesday slapped steep import duties on steel products from Vietnam that originated in China after finding they evaded US anti-dumping and anti-subsidy orders.


The decision marked a victory for US steelmakers, who won anti-dumping and anti-subsidy duties against Chinese steel in 2015 and 2016 only to see shipments flood in from elsewhere.


The industry has argued that Chinese products are being diverted to third countries to circumvent the duties.


The Commerce Department said it would apply the same Chinese anti-dumping and anti-subsidy rates on corrosion-resistant and cold-rolled steel from Vietnam that starts out as Chinese-made hot-rolled steel.


Although the product was processed in Vietnam to be made corrosion resistant or cold-rolled for use in autos or appliances, the Commerce Department agreed with the claims of American producers that as much as 90 per cent of the product’s value originated from China.


The global steel industry is struggling with a glut of excess production capacity, much of it located in China, that has pushed down prices.


A G20 forum last week failed to make significant progress towards a solution amid divisions between Beijing and Washington.


The Vietnamese-shipped cold-rolled steel will face combined preliminary US anti-subsidy and anti-dumping duties of 531 per cent, while the corrosion-resistant steel will face combined duties of 238 per cent — more than high enough to shut both products out of the US market.


Final duties are expected to be announced on February 16.


The decision followed a European Union finding in November that steel shipments from Vietnam into the EU also circumvented tariffs. — AFP


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