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Commerce Finds Dumping of Small Diameter Graphite Electrodes from China

01/07/2009 - The U.S. Department of Commerce announces its final determination that Chinese producers are dumping small-diameter graphite electrodes in the United States.

The U.S. Department of Commerce announced its final determination that Chinese producers are dumping small-diameter graphite electrodes in the United States, confirming the Department’s August 2008 preliminary decision. Commerce will apply provisional antidumping duties on imports of these products from China as a result of the affirmative finding.
 

Produced from various grades of petroleum coke, small-diameter graphite electrodes are used in ladle metallurgy and specialty furnace applications, typically in foundries, smelters, and steel refining operations.
 
Graphite electrodes act as conductors of electricity in melting or refining furnaces. As electricity is passed through the graphite electrodes, an electric arc is created between the electrode and taw materials. The arc generates the heat necessary to produce and refine steel and other materials.
 
"On behalf of the petitioners SGL Carbon and Superior Graphite, we are not surprised by the U.S. Department of Commerce's final decision that Chinese small diameter graphite electrode producers were selling their product in the United States at unfair prices," said David A. Hartquist, the domestic small diameter graphite electrodes industry's lead trade counsel.

 
Commerce determined that Chinese producers/exporters have sold graphite electrodes in the United States at 132.90 to 159.64% less than normal value. Final margins for both mandatory respondents are based on adverse facts available, as both respondents failed to cooperate in the investigation to the best of their ability.
 
Commerce also determined that critical circumstances exist for all exporters of the subject merchandise. As a result, subject merchandise entered 90 days prior to publication of the preliminary determination (i.e., May 23, 2008) remaining unliquidated will be suspended. If an antidumping order is issued, such entries will be subject to antidumping duties at the suspension rate or, if an administrative review is requested, then at the rate determined in the administrative review.
 
"The case will now continue to the next step of this proceeding at the U.S. International Trade Commission,” commented Hartquist. “The Commission will vote in February whether it believes that these dumped imports have caused or threaten to cause injury to the U.S. industry. The U.S. industry already knows the answer to this question; U.S. producers have had to bear the burden of low-priced Chinese imports that have caused serious harm to our market."
 
Imports of small-diameter graphite electrodes from China have surged dramatically over the last several years, taking a growing market share and causing significant financial harm to the domestic industry. In 2008, imports from China constituted the majority of all imports of small diameter graphite electrodes.
 
Petitioners in this investigation are Superior Graphite Co., Chicago, Ill., and SGL Carbon LLC, Charlotte, N.C. They are represented by David A. Hartquist, Chairman of the International Trade and Customs Practice of Kelley Drye & Warren LLP.