STEEL TARIFFS Salzgitter Confirms US Dumping Penalties

Germany’s second-largest steelmaker, Salzgitter, has confirmed some of its export products have been hit with American penalty tariffs for price dumping.
Picture source: Reuters

Salzgitter, the second-largest German steelmaker, has confirmed it will be forced to pay penalty tariffs as a result of anti-dumping proceedings taken by the US Department of Commerce against it and a number of other foreign companies, according to news agency DPA.

“That went into effect on March 30, and since then our heavy plates have had punitive tariffs of 22.9 percent imposed on it,” said a spokesman Monday. The charges would not be retroactive, he emphasized. The company confirmed its emphatic rejection of the accusations. Last year, US sales contributed 6 percent to Salzgitter’s overall revenues.

A commission established by US authorities will report separately on May 15 on any damage caused by the alleged dumping practices. Salzgitter is alleged to have sold goods—in particular cut-to-length steel—for less than the manufacturing price.

Salzgitter confirmed its emphatic rejection of dumping accusations.

On March 30, the Department of Commerce passed its judgment on Salzgitter and a number of other foreign companies, including German producer Dillinger Hütte, and manufacturers from Austria, Belgium, France, Italy, Japan, South Korea, and Taiwan. The punitive tariffs—known as “countervailing duties”—were imposed for selling below fair value, and ranged from 3.62 percent to 148 percent.

The investigation was prompted by complaints from American steel producer Nucor Corp and the US subsidiaries of Indian manufacturer ArcelorMittal and Swedish producer SSAB.

The specific Salzgitter product to be penalized are its heavy plates, which the company supplies to one of its own American steel mills. Small amounts are also sold independently on the American market. The focus of the investigation was on shipments of around 200,000 tons of steel.