Commerce Department Flags Italian Steel Pricing Practices

The U.S. Department of Commerce has released preliminary results in its antidumping duty administrative review of carbon and alloy steel cut-to-length plate (CTL plate) imported from Italy, covering the period from May 1, 2023, through April 30, 2024. According to findings published on May 15, 2025, Commerce has determined that two major Italian steel manufacturers likely sold these industrial steel products in the American market at prices below normal value. The investigation, which began following timely requests from industry stakeholders, represents the latest chapter in ongoing trade scrutiny that dates back to the original antidumping duty order issued in May 2017. If finalized, the ruling would impose duties of 3.52% on NLMK Verona S.p.A. and 5.51% on Metinvest Trametal S.p.A. and its affiliated company Ferriera Valsider S.p.A.

Investigation Timeline and Methodology

The administrative review process followed a structured timeline since its initiation in July 2024. Commerce selected NLMK Verona S.p.A. (NVR) and Metinvest Trametal S.p.A. (MTS) as mandatory respondents on August 9, 2024, requiring these companies to provide detailed information about their U.S. sales practices and production costs. The investigation experienced multiple deadline extensions, including a seven-day tolling announced on July 22, 2024, and a significant 90-day extension issued on December 9, 2024. Commerce conducted on-site verifications of NVR's responses in Verona, Italy from February 24-28, 2025, and at NLMK North American Plate in Farell, Pennsylvania from March 11-13, 2025. The investigation methodology adhered to standard protocols established under the Tariff Act of 1930, with export price and constructed export price calculated according to section 772 of the Act and normal value determined following section 773 guidelines.

Strategic Importance of Cut-to-Length Steel Plate

Cut-to-length steel plate represents a critical industrial material with applications across multiple sectors of the economy. These steel products, typically manufactured in specific dimensions according to customer requirements, serve as essential components in construction, shipbuilding, heavy machinery manufacturing, and infrastructure projects. The specialized nature of CTL plate makes it particularly important for industrial applications requiring high strength, durability, and precise specifications. The investigation focuses specifically on whether Italian producers' pricing practices for these materials constitute dumping, which occurs when foreign manufacturers sell goods in export markets at prices lower than in their home market or below production cost, potentially harming domestic manufacturers through artificially low pricing that domestic producers cannot match while maintaining profitability.

Partial Rescission for Companies Without U.S. Imports

While the investigation continues for the primary respondents, Commerce has announced its intent to partially rescind the review for two companies initially included in the scope of the investigation. According to data provided by U.S. Customs and Border Protection (CBP), F.A.R. Fonderie Acciaerie S.p.A. and Officine Technosider s.r.l. had no suspended entries of subject merchandise during the review period. Commerce's practice, pursuant to regulation 19 CFR 351.213(d)(3), is to rescind administrative reviews for companies that did not export subject merchandise to the United States during the period under investigation. This partial rescission reflects the practical reality that without actual imports during the review period, there would be no entries for CBP to assess potential duties against. Interested parties have been given seven days from the publication of the preliminary results to submit comments regarding this rescission decision, with rebuttal comments due seven days thereafter.

Market Impact and Industry Significance

The preliminary determination highlights the ongoing trade tensions in the global steel industry, particularly for specialized products like cut-to-length plate. For the Italian manufacturers named in the investigation, the potential duties of 3.52% and 5.51% could significantly impact their competitiveness in the American market, potentially forcing price adjustments or strategic shifts in export focus. For U.S. steel producers, who initiated the original antidumping case, the preliminary findings may provide some relief from what they have characterized as unfairly priced competition. The steel industry remains highly sensitive to international pricing pressures, with manufacturers on both sides of the Atlantic navigating complex market conditions including fluctuating raw material costs, energy price volatility, and evolving environmental regulations that impact production costs.

Broader Context of U.S.-EU Steel Trade Relations

This investigation occurs against the backdrop of complex trade relations between the United States and European Union in the steel sector. While focused on specific Italian manufacturers, the case reflects ongoing concerns about global steel overcapacity and its impact on market prices. The investigation runs parallel to broader discussions between the U.S. and EU regarding steel and aluminum tariffs, carbon border adjustment mechanisms, and other trade measures affecting metal products. The outcome of this specific case could influence the tone of these larger negotiations, as it signals continued U.S. willingness to pursue trade remedy actions against European steel producers despite diplomatic efforts to resolve broader sectoral disputes. For Italian steel manufacturers, the case represents another challenge in navigating the increasingly complex regulatory environment governing transatlantic steel trade.

Next Steps in the Administrative Process

Following the publication of these preliminary results, interested parties have the opportunity to comment on Commerce's findings and methodologies. This comment period represents a critical phase in the administrative review process, allowing both the exporters and domestic industry to present arguments and additional evidence for consideration. After evaluating these submissions, Commerce will issue its final determination, which may affirm, modify, or reverse the preliminary findings. The timeline for final determination will be established in accordance with regulatory requirements, typically allowing several months for the submission and consideration of comments. If the preliminary results are upheld, U.S. Customs and Border Protection will be instructed to collect cash deposits at the determined rates from importers of the affected Italian steel products.

Key Takeaways:

• The U.S. Department of Commerce has preliminarily determined that Italian steel manufacturers NLMK Verona and Metinvest Trametal sold carbon and alloy steel cut-to-length plate at less than fair value, potentially subjecting these imports to duties of 3.52% and 5.51% respectively.

• The investigation included on-site verifications at facilities in both Italy and the United States, reflecting the thorough nature of the administrative review process for these specialized steel products.

• Commerce intends to rescind its review of two other Italian companies, F.A.R. Fonderie Acciaerie S.p.A. and Officine Technosider s.r.l., after determining they had no U.S. imports during the review period, highlighting the case-by-case approach to trade enforcement.