Commerce Department Concludes Year-Long SteelDumping Investigation
The U.S. Department of Commerce has finalized itsantidumping duty administrative review of certain corrosion-resistant steelproducts (CORE) from Taiwan, covering the period from July 1, 2022, throughJune 30, 2023. The investigation, conducted by Commerce's Enforcement andCompliance division, determined that some Taiwanese manufacturers sold CORE inthe United States at less than fair market value, a practice commonly known asdumping. This final determination follows preliminary results published in September2024 and represents the culmination of a complex review process that includedsubmissions from both Taiwanese manufacturers and U.S. steel producers.
Prosperity Tieh Faces Modest Duty While SYSCOEscapes Penalties
The investigation focused on two mandatory respondents:Prosperity Tieh Enterprise Co., Ltd. and Sheng Yu Steel Co., Ltd. (SYSCO).Following its analysis, Commerce assigned Prosperity Tieh a weighted-averagedumping margin of 0.99%, meaning the company will face corresponding duties onits exports to the United States. In contrast, SYSCO received a zero percentmargin, effectively clearing the company of dumping allegations for the reviewperiod. A third company, Great Grandeul Steel Company Limited (Samoa), whichwas not individually examined, received the same 0.99% rate as Prosperity Tieh,following standard Commerce Department practice for non-examined companies.
Legal Challenges and Procedural ComplexitiesMarked Review Process
The path to this final determination was marked by severalprocedural developments. Following the preliminary results in September 2024,Prosperity Tieh submitted a case brief challenging Commerce's initial findings,while U.S. producer Cleveland-Cliffs Inc. filed a rebuttal brief defending theDepartment's position. The review timeline was extended multiple times,including a 90-day tolling of the deadline in December 2024 and an additional30-day extension in March 2025, pushing the final determination to May 2025.These extensions reflect the technical complexity and contested nature ofantidumping investigations.
Scope of Investigation Covers Specialized SteelProducts
The products under review are specific types of flat-rolledsteel that have been clad, plated, or coated with corrosion-resistant metals.These specialized steel products are critical components in various industries,including construction, automotive manufacturing, and appliance production. Thefull technical definition of the covered products is detailed in theDepartment's Issues and Decision Memorandum, which serves as the comprehensiveexplanation of Commerce's methodology and reasoning in this case.
Methodology Adjustments Made BetweenPreliminary and Final Determinations
Commerce made several adjustments to its calculationsbetween the preliminary and final determinations. For Prosperity Tieh, changeswere made to the margin calculation based on issues raised in the company'scase brief and the Department's own review of the record. While SYSCO did notcontest the preliminary findings, Commerce incorporated updated sales datarequested from the company during the post-preliminary stage of the review.Interestingly, this updated information did not alter SYSCO's zero percentmargin, suggesting the company's pricing practices were consistently at orabove fair value thresholds.
Broader Context of U.S.-Taiwan Trade Relations
This determination comes amid ongoing scrutiny of globalsteel trade and continuing U.S. efforts to protect domestic steel producersfrom unfair foreign competition. The relatively low dumping margins in thiscase contrast with higher duties imposed in other steel-related investigations,potentially reflecting either improved compliance by Taiwanese producers orshifting market conditions. The decision also occurs against the backdrop ofcomplex U.S.-Taiwan economic relations, which balance strategic partnershipwith trade enforcement.
Implications for Market Participants and FutureCompliance
For affected companies, even the modest 0.99% duty hasmeaningful implications for pricing strategies and competitiveness in the U.S. market.Prosperity Tieh and Great Grandeul will need to factor these duties into theirexport pricing, potentially adjusting their business approaches to avoid highermargins in future review periods. For U.S. purchasers of Taiwanese COREproducts, the determination provides clarity on pricing expectations and supplychain planning. Meanwhile, SYSCO's zero percent finding may position thecompany advantageously relative to its competitors facing duties.
Key Takeaways:
• The Commerce Department determined a 0.99% antidumpingduty margin for Prosperity Tieh Enterprise Co., Ltd. and Great Grandeul SteelCompany Limited (Samoa), while Sheng Yu Steel Co., Ltd. received a zero percentmargin
• The investigation covered corrosion-resistant steelproducts from Taiwan sold in the U.S. market during the period from July 1,2022, through June 30, 2023
• The final determination followed multiple timelineextensions and legal challenges, including case briefs from Prosperity Tieh andrebuttal submissions from U.S. producer Cleveland-Cliffs Inc.
