US: Mid Continent Nail Corporation Files AD Case Against Imports of Steel Nails from the United Arab Emirates

Washington, DC - One of the largest U.S. producers of steel nails today requested that the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC) impose antidumping duties on imports of steel nails from the United Arab Emirates (UAE).  Mid Continent Nail Corporation (Mid Continent) of Poplar Bluff, Missouri, filed an antidumping duty petition alleging that unfairly traded imports of steel nails from the UAE are materially injuring the U.S. industry.  Mid Continent’s petition indicates antidumping margins ranging from 64% to 87%.

The petition demonstrates that unfairly priced imports of steel nails are injuring the U.S. industry by undercutting prices and taking their sales by using unfair trading practices.  Antidumping duties are intended to offset the amount by which a product is sold at less than fair value in the United States (i.e., the amount by which the product is sold below production costs or at a price that is below the price charged in a comparable market).

Dumped imports of steel nails from the UAE constitute a large and increasing share of the U.S. market.  Imports of nails from the UAE surged nearly 150% from 2008 to 2010, growing from 48,256 short tons in 2008 to nearly 120,000 short tons in 2010.  UAE shipments accounted for 28% of all nail imports in 2010, compared to 8% in 2008.  This enormous increase was all the more remarkable in light of the depressed U.S. construction and housing markets and the global recession.

"The enormous growth in imports from the UAE over the past three years has been made possible by dumping these products in the U.S. market, hurting U.S. producers and their workers," said David W. Libla, founder and President of Mid Continent.  "Even as demand for steel nails has fallen sharply over the past three years, UAE imports have flooded our market.  Our industry has lost four producers in just the past three years.  U.S. producers need relief from dumped imports to prevent further plant closures and to allow our industry to return to healthy profit levels."

The filing of the petition starts the process by which Commerce will determine whether imports are being dumped, and the ITC will determine if the U.S. nails industry has been materially injured by reason of the imports.  The ITC must reach its preliminary determination of material injury or threat of material injury within 45 days, or no later than May 16, 2011.  Commerce is required to announce preliminary antidumping duties in 160 days.

Once Commerce makes its preliminary determination, U.S. Customs and Border Protection will require importers to pay a cash deposit or post a bond equal to the estimated dumping margin.  The entire investigative process takes approximately one year.  Final determinations of injury and dumping should occur in mid-2012.

The petition covers certain steel nails up to 12 inches long that are produced from any type of steel.  The steel nails covered by the petition can have a variety of finishes, heads, shanks, points and sizes, and may be sold in bulk or collated into strips or coils using materials such as plastic, paper or wire.

Mid Continent Nail Corporation is a family-owned business founded in 1987, with over 270 employees in several locations throughout the United States.  Mid Continent is one of the largest producers of steel nails in the United States, with customers throughout the country.  Mid Continent offers a full range of steel nails for construction and industrial applications.

Tuesday, April 5, 2011

Source: constructiondistribution.com