U.S. Steel Industry Stocks Decline Despite Commerce Decision on $2.9B CORE Imports

The US Department of Commerce has announced final anti-dumping and countervailing duty rates for imported corrosion-resistant steel (CORE) from 10 countries, totaling $2.9 billion. The rates range between 17% and 110%. Despite the decision, major US steel stocks such as Nucor, ArcelorMittal, and Steel Dynamics closed 1% lower, while Reliance Steel and Cleveland-Cliffs saw marginal increases. The International Trade Commission will assess the level of harm to the domestic steel industry.

The US Department of Commerce has announced final anti-dumping and countervailing duty rates on imported corrosion-resistant steel (CORE) from 10 countries, totaling USD 2.9 billion. The rates, which range between 17% and 110%, were announced on Tuesday and will significantly impact the global steel market.

The Commerce Department's statement highlighted that imports of CORE from Australia, Brazil, Canada, Mexico, the Netherlands, South Africa, Taiwan, Turkey, the United Arab Emirates, and Vietnam were being dumped and/or subsidized. These products are widely used in the construction, automotive, and appliance industries.

The International Trade Commission (USITC) will now assess the level of harm to the domestic steel industry. The USITC's pivotal role involves determining whether imports materially injure U.S. domestic producers. Only after an affirmative USITC injury finding combined with the Commerce Department's determination of dumping or subsidization will duties be imposed.

Major US steel stocks such as Nucor, ArcelorMittal, and Steel Dynamics closed 1% lower on the announcement, while Reliance Steel and Cleveland-Cliffs saw marginal increases. This indicates that the market is closely monitoring the potential impacts of these duties on domestic production and pricing.

The final duty rates will be crucial in shaping the future of the U.S. steel market. Domestic steel producers are expected to benefit from the increased protection, potentially bolstering their pricing power and utilization of production capacity. Foreign exporters, however, are preparing legal challenges against the Commerce Department's dumping/subsidy calculations and the USITC's injury determinations, which will critically dictate their access and competitiveness in the U.S. market.

Industries reliant on coated steel, such as automotive, construction, and appliances, face the prospect of increased costs due to duties. This may compel these users to seek alternative sourcing options or adjust product specifications to manage cost pressures.

The final determinations by both Commerce and the USITC are scheduled around late August to early October 2025, crucial in finalizing long-term duties on coated steel imports. This process ensures both fair price enforcement and protection against harm to U.S. manufacturers.

References:
[1] https://www.tradingview.com/news/te_news:480673:0-us-affirms-anti-dumping-duties-against-10-countries/
[2] https://steelindustry.news/usitc-announces-final-cvd-ad-duties-on-coated-steel-products/