The Canadian International Trade Tribunal has conducted an inquiry to determine whether injury has been caused or threatened by the dumping in Canada of cold drawn and annealed stainless steel round wire from the Republic of Korea, Switzerland and the United States of America, and the subsidizing of such product from India. The inquiry included stainless wire up to and including 0.300 inches (7.62 mm) in maximum solid cross-sectional dimension.

Preliminary and final determinations that product from the Republic of Korea, Switzerland and the United States of America had been dumped and, in the case of India, subsidized, were issued by the Canada Border Services Agency on April 2, 2004, and June 30, 2004, respectively. The Agency had also determined that the margins of dumping and the amount of subsidy of the product were not insignificant.

As a result of the inquiry, the CITT found that the dumping of product from the Republic of Korea and Switzerland, and the subsidizing of product from India, have caused injury to the Canadian industry. The Tribunal also found that dumping of product from the United States of America had caused injury to the Canadian industry.

The following products are excluded from the injury findings:

• Nickel-coated stainless steel wire.
• Copper-coated stainless steel wire.
• Stainless steel wire for use in the manufacture of springs, per ASTM A313, matte finish, lubricant coated (all types), in all grades and in all diameters.
• Stainless steel wire in diameters of 0.032 inches (0.813 mm) and smaller.
• Stainless steel lashing wire.
• Type 27-7MO (trade name) stainless steel wire, also identified as UNS S31277, or equivalent.
• Types 302 and 430 stainless steel cold-heading wire for use in the manufacture of semi-tubular solid rivets.
• Types 308LHS, 309LHS, 387, 409CB and 430LCB stainless steel welding wire packaged in fiber-drum bulk packs, drum packs or barrel packs, in sizes of 250 lbs. (113.4 kg) or greater, for use in long-run welding applications.
• Type 439 titanium stabilized, solid stainless steel welding wire packaged in 500-lb. (226.8-kg) drums.
• Type A-286 stainless steel cold-heading wire, also identified as AISI No. 660, UNS K66286 DIN-1.4980.
• Type A286/A286SF stainless steel cold-heading wire.
• Type XM-19 stainless steel wire, also identified as UNS S20910.

The CBSA's dumping and subsidizing investigation covered imports of the subject goods from October 1, 2002, to September 30, 2003. Korean and Swiss products were determined to have been dumped at average dumping margins of 181%, with margin expressed as a percentage of the export price. United States products were found to have been dumped at margins ranging from 10.2 to 181%, with an average dumping margin of 165%. Product from India was found to have subsidized at rates ranging from 667 to 13,857 rupees per tonne, which corresponded, at the time of the investigation, to rates ranging from Canadian $29 to $414. Benefits received from the subsidies represented, on average, 6.2% of the value of the goods.

Throughout the period of inquiry, stainless steel wire was produced at plants located in Perth and Erin, Ont., both owned by Central Wire, the only producer in Canada of stainless steel wire since December 2002. Central Wire submitted that it has been materially injured by the dumping and subsidizing of the subject goods. Central Wire noted the decline in its sales volume from 2001 to 2003, as well as the decline in its market share, which worsened in the first quarter of 2004 when a large increase in imports of the subject goods occurred. Despite rising alloy costs, and the domestic industry could not increase its prices, which had a very negative impact on its gross margin.

The Tribunal sent questionnaires to 28 importers of stainless steel wire that were either distributors or end-users of the product. During the period of inquiry, these 28 importer respondents accounted for between 62 and 88% of the total volume of imports of stainless steel wire. The Tribunal also sent questionnaires to 69 foreign producers and distributors of stainless steel wire. It received complete responses from 12 foreign producers and 2 foreign distributors—two Indian producers, ten U.S. producers and two U.S. distributors. Together, these 14 companies accounted for between 35 and 41% of the total volume of imports of stainless steel wire from India and the United States during the Tribunal's period of inquiry.