On October 15, 2024, the U.S. Department of Commerce announced the initiation of changed circumstances reviews concerning antidumping and countervailing duty orders related to carbon and alloy steel threaded rods imported from the People’s Republic of China. This decision follows a request from Logistical Resource Development, a U.S. importer, which seeks to revoke these orders in part, specifically targeting certain wheel studs used in various applications. The review reflects the evolving dynamics of the steel market and the interests of domestic producers.
The original orders were established on April 9, 2020, as part of an effort to protect U.S. manufacturers from unfair pricing practices by foreign producers. In its request, LRD argued that it qualifies as an interested party and asserted that certain wheel studs currently subject to duties should be exempted from these orders. Notably, LRD’s request received a supportive response from Vulcan Threaded Rod Products Inc., the original petitioner, which indicated no opposition to the proposed revocation.
As part of the review process, the Department of Commerce sought additional information from LRD, which it provided in a timely manner. This included statements from domestic producers such as All Ohio Threaded Rod, Highland Thread, and Bay Standard Manufacturing, who indicated either a lack of interest in participating in the CCRs or support for LRD’s proposal. This consensus among producers suggests that a significant portion of the domestic industry no longer sees value in maintaining the current orders for the specific products in question.
Commerce officials observed that the domestic industry representatives collectively account for "substantially all" of the production of the domestic like product, as they represent over 85% of total production. The lack of opposition to the CCR request further reinforced the Department's preliminary determination that changed circumstances exist, warranting a review of the existing orders. This situation underscores the shifting landscape in the U.S. steel market and the ongoing adjustments by domestic producers to competitive pressures.
The specific wheel studs under consideration feature various specifications, including diameters of M12 and M14, and differing thread spacings. LRD's proposal for partial revocation includes details about the characteristics and measurements of these products, indicating the specificity of the items affected by the orders. The potential revocation of these orders could lead to significant changes in pricing and availability for these wheel studs in the U.S. market.
The Department of Commerce has also indicated that if the final determination supports the revocation, it intends to apply this change retroactively to January 1, 2022. This could have considerable implications for past and future entries of the specified merchandise, allowing LRD and other importers to benefit from the adjusted duties.
Moreover, the review has prompted the Department to preliminarily intend to rescind a related scope inquiry concerning these wheel studs. This inquiry had been initiated prior to LRD’s CCR request but now appears redundant in light of the developments.
Interested parties are invited to submit comments on the preliminary results, with a timeframe established for case and rebuttal briefs. The opportunity for public comment ensures transparency in the process and allows stakeholders to voice their opinions on the proposed changes to the orders. As the review unfolds, it will be critical to monitor how the decisions made by the Department of Commerce impact both the domestic steel industry and the import market for these products.
