ARCHIVED - Final Determination - Hot-rolled steel sheet

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OTTAWA, June 1, 1999

4258-13
AD/1210

STATEMENT OF REASONS

Concerning the making of a final determination of dumping with respect to

CERTAIN FLAT HOT-ROLLED CARBON AND ALLOY STEEL SHEET PRODUCTS ORIGINATING IN OR EXPORTED FROM FRANCE, ROMANIA, THE RUSSIAN FEDERATION AND THE SLOVAK REPUBLIC

DECISION

Pursuant to paragraph 41(1)(a) of the Special Import Measures Act, the Deputy Minister of National Revenue has, on this date, made a final determination of dumping respecting certain flat hot-rolled carbon and alloy steel sheet products originating in or exported from France, Romania, the Russian Federation and the Slovak Republic.

This Statement of Reasons is also available in French.
Cet énoncé des motifs est également disponible en français.

STATEMENT OF REASONS

SUMMARY

On December 3, 1998, the Deputy Minister of National Revenue initiated an investigation respecting the alleged injurious dumping into Canada of certain flat hot-rolled carbon and alloy steel sheet products originating in or exported from France, Romania, the Russian Federation and the Slovak Republic.

The investigation was initiated in response to a complaint filed by Stelco Inc. of Hamilton, Ontario.

On March 3, 1999, the Deputy Minister made a preliminary determination of dumping with respect to the subject goods from the four countries.

The investigation continued after the preliminary determination and the Deputy Minister is now satisfied that the subject goods have been dumped, that the margins of dumping are not insignificant, and that the actual volumes of dumped goods are not negligible. Accordingly, the Deputy Minister has made a final determination of dumping in accordance with paragraph 41(1)(a) of the Special Import Measures Act (SIMA).

INTERESTED PARTIES

Complainant

The complainant is Stelco Inc. of Hamilton, Ontario, (Stelco). Stelco is one of five producers of flat hot-rolled steel sheet products in Canada.

Exporters

The Department has identified 15 exporters of subject goods. The names and addresses of these exporters are listed in Appendix 1. The names and addresses of other parties (vendors/agents) to the transactions are listed in Appendix 2.

Importers

The Department has identified 23 importers of subject goods. The names and addresses of these importers are listed in Appendix 3.

BACKGROUND

On November 3, 1998, Stelco filed a complaint concerning the alleged injurious dumping of certain flat hot-rolled carbon and alloy steel sheet products originating in or exported from France, Romania, the Russian Federation (Russia) and the Slovak Republic (Slovakia). The other Canadian producers of subject goods filed letters with the Department supporting the complaint filed by Stelco. Dofasco Inc. also provided additional evidence of injury to the industry in Canada.

The Department informed Stelco on November 20, 1998, that the complaint was properly documented and notified the governments of the subject countries that a complaint had been filed.

The Department initiated the dumping investigation on December 3, 1998.

On December 18, 1998, counsel for a Canadian importer, Aciers Francosteel Canada Inc. (Francosteel), and an exporter from France, Sollac, Aciers d’Usinor (Sollac), referred to the Canadian International Trade Tribunal the question of whether the evidence before the Deputy Minister of National Revenue disclosed a reasonable indication that the dumping of the subject goods originating in or exported from France had caused material injury or retardation or was threatening to cause material injury to the domestic industry. On December 30, 1998, counsel for Thyssen Canada Limited (Thyssen), an importer of the subject goods from two of the named countries, referred to the Tribunal the question of whether the evidence disclosed a reasonable indication that the dumping of goods commonly known as skelp, used in the manufacture of pipes and tubes, had caused material injury or retardation or was threatening to cause material injury to the domestic industry.

On January 18, 1999, the Tribunal ruled that there was a reasonable indication that the dumping of subject goods from all the named countries had caused or was threatening to cause material injury to the domestic industry.

On March 3, 1999, the Deputy Minister made a preliminary determination of dumping with respect to the subject goods from the four countries pursuant to subsection 38(1) of SIMA.

On April 9, 1999, three Russian exporters, Novolipetsk Iron & Steel Corporation, Magnitogorsk Iron and Steel Works Open Joint Stock Company, and Joint Stock Company “Severstal” presented offers for price undertakings which were unacceptable to the Deputy Minister. Undertakings can be accepted only if they are given by exporters representing all or substantially all of the dumped imports. The undertaking offers provided substantially less coverage than the minimum acceptable threshold and the offered price levels were not sufficient to eliminate either the estimated margin of dumping or the injury caused by the dumping.

On May 11, 1999, the Russian exporters were informed that no further consideration could be given to their undertaking proposals.

PRODUCT INFORMATION

Definition

For the purpose of this investigation, subject goods are:

Flat hot-rolled carbon and alloy steel sheet and strip, including secondary or non-prime material, originating in or exported from France, Romania, the Russian Federation and the Slovak Republic, in various widths from ¾” (19 mm) and wider, and

a)for product in coil form, in thicknesses from 0.054” to 0.625” (1.37 mm to 15.88 mm) inclusive,

b)for product that is cut-to-length, in thicknesses from 0.054” up to but not including 0.187” (1.37 mm up to but not including 4.75 mm),

excluding flat-rolled stainless steel sheet and strip.

Product Information

For the purpose of this investigation, hot-rolled carbon and alloy steel sheet products include strip and sheet, but do not include floor plate. Strip is usually produced in widths up to 12" (305 mm), inclusive. Sheet and floor plate are usually produced in widths over 12” (305 mm). Floor plate is hot finished in a final pass or passes to form a pattern on the surface of the sheet.

Alloy steel sheet products that are subject to this investigation are alloy steels, other than stainless steel, that contain by weight one or more of certain specified elements in minimum specified proportions. The notes to Chapter 72 of the Customs Tariff Schedule specify the elements and the minimum proportions.

Flat hot-rolled stainless steel sheet and strip, excluded from the product definition, is commercially and metallurgically distinct from carbon steel, being produced to a lower carbon and higher alloy content than the subject goods. Stainless steel contains, by weight, 1.2 per cent or less of carbon and 10.5 per cent or more of chromium, with or without other elements.

Appendix 4 contains additional product information.

CLASSIFICATION OF IMPORTS

The subject flat hot-rolled steel sheet products may be classified under the Harmonized System classification numbers listed in Appendix 5.

THE CANADIAN INDUSTRY

The complainant, Stelco, has the support of the other Canadian producers of the subject goods, namely, Dofasco Inc. of Hamilton, Ontario, Algoma Steel Inc. of Sault Ste. Marie, Ontario, Ipsco Inc. of Regina, Saskatchewan, and Ispat Sidbec Inc. of Montréal, Quebec. There have been no significant changes in the structure of the Canadian industry since the Department initiated its investigation.

THE CANADIAN MARKET

The Department’s estimate of the Canadian market, contained in Appendix 6, covers the years 1996, 1997 and the first nine months of 1998. The apparent Canadian market for flat hot-rolled carbon and alloy steel sheet products was estimated on the basis of confidential information provided by the complainant and other domestic producers, import data provided by Statistics Canada, the Department’s internal information systems, actual customs entries, and information obtained from importers and exporters.

During the period reviewed by the Department, approximately 45 per cent of the total imports of the described goods came from the named countries. Appendix 7 provides details of the importations during the review period.

RESULTS OF THE INVESTIGATION

In conducting its investigation, the Department requested identified exporters and importers to provide sales and cost information necessary to determine the normal values and export prices of the subject goods. The dumping investigation covered all subject goods released into Canada during the Period of Investigation (POI) of January 1, 1998 to September 30, 1998.

Normal values and export prices for the exporters are discussed below. Where export price is less than the normal value, the difference is the margin of dumping. In this section, the margins of dumping are expressed as a percentage of normal value.

1. France

Sollac, Aciers d’Usinor

Sollac, Aciers d’Usinor (Sollac) provided the Department with a complete submission. Verification meetings were conducted at the company’s premises in Paris and Fos prior to the preliminary determination of dumping. Almost all products exported to Canada were produced at Sollac’s Fos plant, and all were sold to an associated importer in Canada.

Subsequent to the preliminary determination, Sollac made representations on several issues pertaining to the establishment of normal value and export price.

(a) Normal Value

At the preliminary determination, the Department had estimated normal values for certain models pursuant to paragraph 19(b) of SIMA on the basis of the full cost of the product plus a reasonable amount for profit. Subsequent to the preliminary determination, Sollac presented additional information that resulted in the Department determining normal values for a number of these models based on acceptable domestic sales of like goods pursuant to section 15 of SIMA. Additional clarification was provided with respect to whether one domestic market customer for whom sales information had been provided was a purchaser associated to Sollac. Based on the information provided, the Department concluded an association existed, and excluded sales to this customer in the determination of normal values.

Where there were profitable domestic market sales of like goods to unrelated customers, normal values were determined on the basis of the weighted average selling prices of these sales pursuant to section 15 of SIMA. Adjustments to domestic selling prices were made for qualitative differences pursuant to section 5 of the Special Import Measures Regulations (SIMR), delivery costs pursuant to section 7 of the SIMR, and differences in trade level pursuant to section 9.

Where there were insufficient domestic sales of like goods in the domestic market, normal values were determined pursuant to paragraph 19(b) of SIMA, on the basis of the cost of production of the goods, selling, administrative and all other costs, and a reasonable amount for profit.

(b) Export Price

All subject goods exported to Canada by Sollac were sold to an associated importer. As such, the Department tested the reliability of the export prices between the exporter and the importer pursuant to paragraph 25(1)(b) of SIMA. At the preliminary determination, the Department’s analysis revealed that the export prices as calculated under paragraph 24(a) were not reliable for SIMA purposes and, therefore, the export prices were estimated according to paragraph 25(1)(c) of SIMA.

Subsequent to the preliminary determination, additional clarification regarding insurance charges was furnished which resulted in only marginal changes. Counsel for Sollac also presented arguments that the amount for profit used in estimating export prices for the preliminary determination was inappropriate because it was based on sales by vendors at a different trade level than the importer. For the final determination, the Department re-examined this issue.

For the final determination, export prices were also determined according to paragraph 25(1)(c) of SIMA. Export prices under paragraph 25(1)(c) were based on the associated importer’s resale prices of the goods to unassociated customers in Canada less all costs incurred in importing and selling the goods as well as an amount for profit. The amount for profit used was based on the profit made on sales by other vendors at the same trade level in the Canadian market, pursuant to paragraph 22(c) of the SIMR.

(c) Margin of Dumping

All the goods exported to Canada by Sollac and imported during the period of investigation were reviewed and for the final determination 99 per cent were found to have been dumped. The weighted average margin of dumping was 12 per cent. The margins ranged from 0.03 per cent to 43 per cent.

2. Romania

Sidex Galati S.A.

(a) Normal Value

Sidex Galati S.A. (Sidex) provided the Department with an incomplete submission prior to the preliminary determination. The company subsequently submitted additional information as a result of follow-up requests by the Department. The information provided established that the company was procuring raw materials through barter, precluding reliance on submitted production costs and profitability analysis of the domestic sales of like goods. As such, normal values could not be determined in accordance with section 15 or 19 of SIMA.

Neither SIMA nor the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 contemplate valuation of barter transactions for purposes of establishing the profitability of domestic selling prices or for purposes of establishing constructed normal values in a country of export.

Therefore, normal values were determined in accordance with subsection 29(1) of SIMA, based on a ministerial specification. Normal values were based on the average normal value of like goods in four surrogate countries. The Department relied on information submitted by exporters in France and the Slovak Republic in the current investigation, as well as information available to the Department with respect to the normal values of comparable hot-rolled steel sheet products in South Korea and the United States during the same period.

(b) Export Price

Under section 24 of SIMA, export price is the lesser of the exporter’s sale price and the importer’s purchase price of the goods. In the case of subject goods produced by Sidex, and exported to Canada under countertrade arrangements, there is no exporter’s sale price because Sidex received goods for the subject goods shipped to Canada. SIMA does not provide for establishing export prices on the basis of valuation of countertraded goods.

Paragraph 25(1)(a) of SIMA requires that where there is no exporter’s sale price or importer’s purchase price, export price is to be established under paragraphs 25(1)(c)

or (d) by a deductive basis from the resale prices in Canada. The importers of goods produced by Sidex were requested to provide the information necessary to apply section 25. The requested information was not provided. Therefore, export prices have been determined under subsection 29(1) of SIMA, based on the declared invoice price for customs purposes less a fixed percentage. The percentage was based on the difference between importer’s purchase prices and exporter’s selling prices found in a third country.

(c) Margin of Dumping

All of the goods exported to Canada by Sidex and imported during the period of investigation were found to have been dumped. The weighted average margin of dumping was 42 per cent. The margins ranged from 19 per cent to 46 per cent.

3. The Russian Federation (Russia)

(a) Normal Value

Requests for Information were sent to the government of Russia and Russian exporters to elicit the information necessary to determine whether section 20 of SIMA applies to the steel sector in Russia.

The information provided by the government of Russia was not submitted in sufficient time to be analyzed completely prior to the final determination. In addition, responses furnished by the three Russian exporters after the preliminary determination of dumping were not complete. In these circumstances, the Deputy Minister cannot form an opinion as to whether the steel industry in Russia operates under the conditions described in section 20 of SIMA.

Therefore, normal values were determined in accordance with subsection 29(1) of SIMA, based on a ministerial specification. Normal values were based on the average normal value of like goods in four surrogate countries. The Department relied on information submitted by exporters in France and the Slovak Republic in the current investigation, as well as information available to the Department with respect to the normal values of comparable hot-rolled steel sheet products in South Korea and the United States during the same period.

(b) Export Price

Under section 24 of SIMA, export price is the lesser of the exporter’s sale price and the importer’s purchase price of the goods. Three exporters from Russia, JSC « Severstal », Magnitogorsk Iron and Steel Works, and Novolipetsk Iron & Steel Corporation, provided submissions which permitted the determination of their selling prices on exports to Canada. However, as these exports to Canada were typically made through a series of trading companies and/or steel brokers who did not respond to the Department’s Requests for Information, direct linkages could not always be made between the exporter’s selling price and the importer’s purchase price of the goods. There were also instances where goods were shipped directly to Canada from Russia but the identity of the actual exporter in Russia could not be identified from customs documentation and neither the importer nor intermediary vendor responded to the Department’s Requests for Information. Where no direct linkage could be made, export prices were determined pursuant to section 29(1) of SIMA, based on the importer’s declared purchase price less a fixed percentage. This percentage was typical of that found where a direct linkage could be made between the exporter’s selling price and the corresponding importer’s purchase price.

(c) Margin of Dumping

All of the goods of Russian origin imported into Canada during the period of investigation were found to have been dumped. The weighted average margin of dumping was 42 per cent. The margins ranged from 22 per cent to 49 per cent.

4. The Slovak Republic

VSZ Holding, a.s. (VSZ), which exported subject goods to Canada during the POI, provided the Department with a complete submission subsequent to the preliminary determination. Verification meetings were held in late March 1999 at the company’s premises in Kosice.

(a) Normal Value

Except as noted below, normal values were determined pursuant to section 15 of SIMA based on profitable domestic sales of like goods to unrelated customers. Adjustments to domestic selling prices were made for qualitative differences pursuant to section 5 of the SIMR.

For goods exported by VSZ and imported by parties that did not provide a response to the Department’s Request for Information (i.e. parties other than Slovcan Steel Limited), the Department could not determine normal values on the basis of domestic sales of like goods. The description of the goods provided on Customs documentation was insufficient to allow the Department to identify the like goods. Therefore, normal values for these goods were determined pursuant to subsection 29(1) of SIMA, on the basis of the export price advanced by 77 per cent. This advance was based on the highest margin of dumping, for a co-operating exporter, determined by application of sections 15 through 28 of SIMA.

(b) Export Price

Where possible, export prices were determined under section 24 of SIMA. In certain instances, the exporter’s selling price could not be determined because settlement between an intermediary party and the exporter had not been made. In these circumstances, the export price was determined pursuant to subsection 29(1) of SIMA on the basis of the normal value less a deduction equivalent to the margin of dumping found on other sales for which export prices could be determined under section 24 of SIMA.

(c) Margin of Dumping

All of the goods exported to Canada by VSZ and imported during the period of investigation were found to have been dumped. The weighted average margin of dumping was 35 per cent. The margins ranged from seven per cent to 43 per cent.

5. All Other Exporters

All other exporters to Canada either did not provide a response to the Department’s Request for Information or their submissions were incomplete. In such cases, normal value was determined by the application of a 77 per cent advance to the export price. This advance was based on the highest margin of dumping, for a co-operating exporter, determined by application of sections 15 through 28 of SIMA.

6. Summary of Results

A summary of the margins of dumping for the exporters in the named countries is contained in Appendix 8.

VOLUME OF DUMPED IMPORTS

Before making a final determination of dumping, the Deputy Minister must be satisfied that the actual or potential volumes of the dumped goods are not negligible. If the volume of dumped goods of a country is less than three per cent of the total volume of the goods of the same description that are imported into Canada from all countries, the volume is considered to be negligible. However, if there are three or more countries each of whose dumped goods represent less than three per cent of total imports, but which collectively represent more than seven per cent of the total imports into Canada, the imports of these countries are not considered to be negligible.

Appendix 7 summarizes the volume of dumped imports of subject goods during

the period January 1, 1998 to September 30, 1998. Imports of dumped goods from each of the named countries are above the three per cent threshold and, therefore, are not negligible.

Representations with respect to the issue of volumes of dumped imports from Slovakia were made to the Department by counsel on behalf of VSZ Holding, a.s. (Slovakia) and SlovCan Steel Limited (Canada). Prior to the preliminary determination, the Department was requested to terminate the proceedings with respect to such goods in view of the small volumes involved. However, based on the Department's findings, the volume of dumped goods from Slovakia was 3.13 per cent of the total volume of goods released into Canada from all countries that are of the same description as the dumped goods. Therefore, there were no grounds for termination on the basis that the volume of dumped imports from Slovakia was negligible. A complete response to the Department’s Request for Information was received from one importer of subject goods from Slovakia. The information provided in that submission was reconciled to the information compiled by the Department from customs information and to information provided by the exporter. Where importers did not provide a complete response to the Department’s Request for Information, the information compiled by the Department was relied upon. For purposes of the final determination, there continues to be no grounds for termination on the basis that the volume of dumped imports from Slovakia was negligible.

DECISION

The investigation revealed that the margins of dumping on the subject goods are not insignificant and that the actual volume of dumped goods is not negligible. Accordingly, on this date, pursuant to paragraph 41(1)(a) of SIMA, a final determination of dumping was made with respect to certain flat hot-rolled carbon and alloy steel sheet products originating in or exported from France, Romania, the Russian Federation and the Slovak Republic.

FUTURE ACTION

The Canadian International Trade Tribunal's inquiry concerning the question of injury to production in Canada is continuing and the Tribunal will issue its finding by July 2, 1999.

Subject goods imported during the provisional period will continue to be assessed provisional duty as determined at the time of the preliminary determination. This provisional period began on the date of the preliminary determination, March 3, 1999, and will end on the date the Tribunal issues its finding.

If the Tribunal finds that the dumped goods have not caused injury and do not threaten to cause injury, all proceedings relating to this investigation will be terminated. In such a case, all provisional duty paid or security posted by importers will be returned and future importations will not be subject to anti-dumping duty.

If the Tribunal finds that the dumped goods have caused injury, the Department will finalize the anti-dumping duty payable on subject goods released from customs' possession during the provisional period pursuant to section 55 of SIMA. If the provisional duty paid is in excess of the final amount of anti-dumping duty payable, the excess duty paid will be refunded. Importations released from customs' possession after the date of the Tribunal's finding will be subject to anti-dumping duty equal to the margin of dumping, which is the amount by which the normal value exceeds the export price. If anti-dumping duty is payable, such duty is hereby demanded pursuant to section 11 of SIMA.

If the Tribunal finds that the dumped goods threaten to cause injury, all provisional duty paid or security posted by importers will be returned. However, importations released from customs' possession after the date of the Tribunal's finding will be subject to anti-dumping duty equal to the margin of dumping. If anti-dumping duty is payable, such duty is hereby demanded pursuant to section 11 of SIMA.

Specific normal values for the subject goods have been provided to the cooperating exporters for the final determination. These values will come into effect the day after the Tribunal’s injury finding. Where specific normal values have not been issued, anti-dumping duty at a rate of 77 per cent of the export price will be payable on importations of the subject goods. To avoid the application of such an advance on export prices on their future shipments of subject goods, exporters can submit to the Department information required to permit the establishment of specific normal values for these products.

PUBLICATION

Notice of this final determination is being published in the Canada Gazette pursuant to paragraph 41(3)(a) of SIMA.

INFORMATION

This Statement of Reasons has been provided to persons directly interested in these proceedings. It is also available on the Department’s web site at /sima-lmsi/. For further information, please contact the following Revenue Canada officers at the numbers listed below:

Darryl Larson (613) 954-6412
Barbara Chouinard (613) 954-7399
Patrick Mulligan (613) 952-6720
Fax (613) 954-3750

R. Tait
Director General
Anti-dumping and Countervailing Directorate

APPENDIX 1 - EXPORTERS

FRANCE

Sollac, Aciers d’Usinor
Immeuble <<La Pacific>>
La Défense 7, 11-13 Cours Valmy
92800 Puteaux
France

Ascometal Aciers Speciaux US
Tour Pacific
Paris 92070
France

CLI Creusot-Loire Industrie
Groupe Usinor
Immeuble Pacific
TSA 40004
92070 Paris La Defense Cedex
France

ROMANIA

Sidex Galati S.A.
Galati
Smardan Street No. 1
Romania

RUSSIAN FEDERATION

JSC “Severstal”
Cherepovets, Mira str., 30
Vologda Region
162600, Russia

Magnitogorsk Iron and Steel Works
93 Kirov Street
Chelyabinsk Region
Magnitogorsk, 455002
Russia

Novolipetsk Iron & Steel Corporation
Pl Metallurgov 2
398040 Lipetsk
Russia

SLOVAK REPUBLIC

VSZ Holding, a.s.
044 54 Kocise
Slovak Republic

UNITED STATES OF AMERICA

Bull Moose Tube Co.
1819 Clarkson Road
Suite 100
Chesterfield, Missouri
63017
USA

Kerry Steel Inc.
P.O. Box 330
Southfield, Michigan
48037-0330
USA

Metal Resources
P.O. Box 2666
Farmington Hills, Michigan
48333 -2666
USA

Rudolph Robinson
International, Ltd.
301 Callowhill Street
Philadelphia, Pennsylvania
19123
USA

Slovcan Steel Inc.
26211 Central Park Blvd.
Suite 304
Southfield, Michigan
48076
USA

Stemcor USA Trade Inc.
350 Fifth Avenue, Suite 7815
Empire State Building
New York, New York
10118
USA

Voss Steel
7925 Beech Daly Road
Taylor, Michigan
48180
USA

APPENDIX 2 - OTHER PARTIES (VENDORS/AGENTS)

Metalexportimport S.A.
21-25 Mendeleev str.
Bucharest, Romania

Safin Finanzierungsberatung Und
Handels GMBH
Wohllebengasse 4/5A
1040 Wien
Austria

Balli Steel PLC
5 Stanhope Gate
London
W1Y 5LA
England

Bel & Steel Limited
35 Beaufort Court
Admirals Way
South Quay, London,
E14 9XL
England

Industrial Steels (UK) Ltd.
10 Albert Embarkment, London
SE1 7SP
England

Ronly Holdings Limited Co
(Providence Trading Co.).
7 Spring Villa Park
Spring Villa Road
Edgware, Middlesex
H8A 7EB
England

Trans-World (Steel) Ltd.
Trans-World House
100 City Road
London
EC1Y 2BP
England

Ferrostaal Aktiengesellschaft
Ferrostaal AG
Hohenzollernstrasse 24
D-45128, Essen
Germany

Klockner Steel Trade GmbH Stahl
Neudorfer StraBe 3-5
D-47057 Duisburg
Germany

Salzgitter Handel GMBH
(Preussag Handel GmbH)
Postfach 30 09 43
D-40476 Dusseldorf
Germany

Daewoo Intl (America) Corp
14848 E. Northam St.
La Mirada, CA
90638
USA

Liberty Metals Group S.A.
Riga
Latvia

Montgomery Metals Corp.
Geneva, Switzerland
c/o G & G Company Secretaries
3422 Old Capital Trail, Suite 525
Wilmington, DE
19808 - 6192
USA

Trans Commodities AG
Gewerbestrasse 11,
6330 Cham
Switzerland

Balli North America Inc.
16945 Northchase, Suite 340
Houston, Texas
77060
USA

Fedmet Corp
3050 Post Oak Blvd., Suite 1350
Houston, Texas
77056
USA

Tradearbed Inc.
825 Third Avenue
New York, NewYork
10022
USA

APPENDIX 3 - IMPORTERS

Aciers Francosteel Canada Inc.
5890, Monkland, Bureau 300
Montréal (Québec)
H4A 1G2

Atlas Tube Inc.
P.O. Box 970
200 Clark Street
Harrow, Ontario,
N0R 1G0

Bolton Steel Tube Co. Ltd.
455 A Piercy Road
Bolton, Ontario
L7E 5B8

Bull Moose Tube Ltd.
2170 Queen’s Drive
Burlington, Ontario
L7R 3Y2

Canadian Klockner, A Div. of Klockner Namasco Corp.
l0 Milner Business Crt., Suite 512
Scarborough, Ontario
M1B 3C6

Clayson Steel 1988 Inc.
133 East Drive
Brampton, Ontario
L6T 1B5

Dollard Steel Company
6600, boul. Decarie
Bur. 310
Montréal (Québec)
h3X 2K4

Don Mar Steel Inc.
80 Lancing Dr.
Hamilton, Ontario
L8W 3A1

Ferrostaal Metals Ltd.
One King Street West
Suite 1202
Hamilton, Ontario
L8P 1A4

Ipsco Saskatchewan Inc.
Box 1670
Regina, Saskatchewan
S4P 3C7

J.B. Multinational Trade Inc.
4783, rue Sherbrooke O.
Bureau 1
Westmount (Québec)
h3Z 1G5

Nova Steel
2175, boul. Hymus
Dorval (Québec)
M9P 1J8

Preussag Handel Canada Corp.
1333 W. Broadway, Suite 1444
Vancouver, British Columbia
V6H 4C1

Russel Metals Inc.
l900 Minnesota Crt., Suite 210
Misissauga, Ontario
L5N 3C9

Salzgitter Trade Inc.
1333 W. Broadway, Suite 1444
Vancouver, B.C.
V6H 4C1

Slovcan Steel Limited
1200 Shepherd Ave E.
Suite LL02
Toronto, Ontario
M2K 2S5

Steel Coils Inc.
C.P. 130
Saint-Gédéon
Beauce (Québec)
G0M 1T0

Thyssen Canada Limited
2560 Matheson Blvd., Suite 425
Mississauga, Ontario
L4W 4Y9

Titus Steel Company Ltd.
6l67 Invader Crescent
Mississauga, Ontario
L5T 2B7

Tradearbed Canada Inc.
390 Brant Street
Suite 300
Burlington, Ontario
L7R 4J4

Venture Steel Inc.
60 Disco Rd.
Etobicoke, Ontario
M9W 1L8

Welded Tube of Canada Ltd.
111 Rayette Rd.
Concord, Ontario
L4K 2E9

Wirth Limited
1, Westmount Square, Bureau 200
Montréal (Québec)
h3Z 2P9

APPENDIX 4

ADDITIONAL PRODUCT INFORMATION

The subject goods are normally produced to a specification of the ASTM standard, some other international standard, or to a proprietary specification. ASTM specifications for flat hot-rolled carbon and alloy steel strip and sheet include, but are not limited to A505, A506, A507, A568, A569, A570, A606, A607, A621, A622, A635, A659, A715, A749, A907, A935, and A936.

Flat hot-rolled carbon steel sheet products are usually classified as either carbon-manganese or high-strength low-alloy (HSLA) steels and are available in several qualities and grades which are usually reflected in ASTM or equivalent specifications or standards.

Some steel products that are considered carbon steel products by the steel industry may be considered alloy steels in the Customs Tariff Schedule.

Production Process

While details may vary from mill to mill, the process by which flat hot-rolled carbon and alloy steel sheet products are produced is generally the same for all Canadian producers. The

hot-rolled steel sheet is rolled on a continuous strip mill at temperatures above 1600·F (870·C) from an incoming hot slab up to nine inches (229 mm) thick. This slab is progressively reduced to a sheet of the required thickness; 0.625 inch (15.88 mm) or less. During hot rolling, surface oxide (scale) forms which is not acceptable for some applications. This scale may be removed by acid pickling. After pickling, rinsing and drying, an oil can be applied as a temporary protection against rust. Edges are usually slit to remove minor edge imperfections and to provide closer width tolerances.

Use of the Subject Goods

Flat hot-rolled steel sheet products are used in the automotive industry in the manufacture of frames, bumpers, wheels and some power train components. In the construction industry, flat hot-rolled steel sheet products are used in the manufacturing of sheet piling and guard rails. In the pipe and tube producing industry, flat hot-rolled steel sheet products, known as “skelp”, are used in the manufacturing of pipe and tubes. Significant quantities of hot-rolled steel sheet products are also consumed by non-automotive stampers, steel fabricators and producers of agricultural and other machinery.

APPENDIX 5

LIST OF HARMONIZED SYSTEM CLASSIFICATION NUMBERS

• 7208.25.10.10, 7208.25.10.20, 7208.25.10.30, 7208.25.10.40
• 7208.25.90.10, 7208.25.90.20, 7208.25.90.30, 7208.25.90.40
• 7208.26.10.10, 7208.26.10.20, 7208.26.10.30, 7208.26.10.40
• 7208.26.90.10, 7208.26.90.20, 7208.26.90.30, 7208.26.90.40
• 7208.27.10.10, 7208.27.10.20, 7208.27.10.30, 7208.27.10.40
• 7208.27.90.10, 7208.27.90.20, 7208.27.90.30, 7208.27.90.40
• 7208.36.00.10, 7208.36.00.20, 7208.36.00.30, 7208.36.00.40
• 7208.37.10.10, 7208.37.10.20, 7208.37.10.30, 7208.37.10.40
• 7208.37.90.10, 7208.37.90.20, 7208.37.90.30, 7208.37.90.40
• 7208.38.10.10, 7208.38.10.20, 7208.38.10.30, 7208.38.10.40
• 7208.38.90.10, 7208.38.90.20, 7208.38.90.30, 7208.38.90.40
• 7208.39.00.10, 7208.39.00.20, 7208.39.00.30, 7208.39.00.40
• 7208.53.00.10, 7208.53.00.20, 7208.53.00.30, 7208.53.00.40
• 7208.54.00.10, 7208.54.00.20, 7208.54.00.30, 7208.54.00.40
• 7208.90.00.00
• 7211.13.00.00
• 7211.14.00.90
• 7211.19.10.00, 7211.19.90.10, 7211.19.90.90
• 7211.90.10.00, 7211.90.90.90
• 7225.20.00.91, 7225.20.00.92
• 7225.30.10.00, 7225.30.90.00
• 7225.40.10.10, 7225.40.10.20, 7225.40.10.30, 7225.40.10.40
• 7225.40.20.10, 7225.40.20.20, 7225.40.20.30, 7225.40.20.40
• 7225.40.90.11, 7225.40.90.19, 7225.40.90.21, 7225.40.90.91, 7225.40.90.92, 7225.40.90.93, 7225.40.90.94
• 7225.99.00.90
• 7226.20.00.91, 7226.20.00.92
• 7226.91.10.00, 7226.91.90.20, 7226.91.90.30, 7226.91.90.40, 7226.91.90.90
• 7226.99.90.00

APPENDIX 6

APPARENT CANADIAN MARKET CERTAIN HOT-ROLLED STEEL SHEET

1996 TO SEPTEMBER 1998

(All Data are Net Tons)

	1996	1997	9 Months 1998
Domestic Shipments	3,924,150	4,070,623	2,907,928
IMPORTS:
France Romania Russia Slovakia All Named Imports Other Imports Total Imports	67,611 6,316 173,620 2,843 250,390 597,744 848,134	87,371 652 433,324 21,307 542,654 946,646 1,489,300	63,369 79,051 483,961 47,028 673,409 827,691 1,501,100
TOTAL MARKET	4,722,284	5,559,923	4,409,028
MARKET SHARES:
Domestic Named Countries Other Imports Total Imports	82.2% 5.2% 12.5% 17.8%	73.2% 9.8% 17.0% 26.8%	66.0% 15.3% 18.8% 34.0%

SOURCES:

• Domestic Shipment data based on data provided by each of the Canadian Producers
• Import Data for 1998: See Appendix 7
• Import Data for 1996 and 1997 based on Adjusted Complainant Data compiled from Statistics Canada Import Data

APPENDIX 7

IMPORT VOLUMES CERTAIN HOT-ROLLED STEEL SHEET

(January 1, 1998 to September 30, 1998)

Country of Export	Total Volume Imported Net Tons	Per cent of Total Imports	Total Volume Dumped Net Tons	Dumped Imports as Per Cent of Total Imports
France Romania Russia Slovakia Total - Named Countries Total - Other Countries TOTAL IMPORTS	63,369 79,051 483,961 47,028 673,409 827,691 1,501,100	4.22% 5.27% 32.24% 3.13% 44.86% 55.14%	62,509 79,051 483,961 47,028	4.16% 5.27% 32.24% 3.13%

Sources for named countries:

• Department’s internal information systems
• customs entries
• importer and exporter submissions

Source for other countries:

• data acquired from Statistics Canada and adjusted for non-subject goods

APPENDIX 8

MARGINS OF DUMPING BY EXPORTER/COUNTRY CERTAIN HOT-ROLLED STEEL SHEET

(January 1, 1998 to September 30, 1998)

Country/ Exporter	Quantity of Goods Dumped (%)	(1) Margin of Dumping Range	(2) Weighted Average Margin of Dumping
France: Sollac (Fos Plant) Sollac (Dunkerque Plant) Romania: Sidex Galati S.A. Russian Federation: JSC “Severstal” Magnitogorsk Iron and Steel Works Novolipetsk Iron & Steel Corp. Slovak Republic: VSZ Holding, a.s. All Other Exporters of Goods Originating in the Named Countries	98.6% 100% 100% 100% 100% 100% 100% 100%	0.03% to 43% 5% to 16% 19% to 46% 22% to 41% 34% to 47% 32% to 49% 7% to 43% 43%	12% 11% 42% 30% 43% 42% 35% 43%

NOTES:

1. Expressed as a percentage of normal value for the dumped goods only
2. Expressed as a percentage of total normal value for all imported goods (dumped and non-dumped)