China Investigates Alleged Dumping

China's Ministry of Commerce began an anti-dumping investigation into grain-oriented flat-rolled electrical steel imported from the United States and Russia.

"The trade remedy measure is only to correct unfair trade affairs and the Ministry of Commerce will protect the interests of domestic enterprises via a trade remedy investigation," the Chinese ministry said in a statement. Grain-oriented electrical steel, also known as grain-oriented silicon steel, is used to make the cores of high-efficiency transformers, electric motors and generators.

The Chinese investigation follows a complaint against China filed by seven U.S. steelmakers seeking punitive duties on imports of Chinese-made steel pipes known as "oil country tubular goods." The complainants in that case include U.S. Steel and two Russian-owned American firms, Evraz Rocky Mountain Steel Mills and TMK IPSCO.

On May 22, the U.S. International Trade Commission gave its unanimous approval to a U.S. government probe that could eventually lead to the imposition of high U.S. duties on an estimated $2.6 billion of steel imports from China. Although global demand for steel has collapsed this year, China has continued to produce steel at an even higher volume than in 2008.

Contact Alan Field at afield@joc.com.