A Sault Ste. Marie steelmaker is applauding a new investigation into the alleged illegal dumping of foreign exports of hot-rolled heavy steel plate.
On May 27, the Canada Border Services Agency (CBSA) announced it would examine whether foreign steel exports – from Chinese Taipei, Germany, South Korea, Malaysia, and Turkey – are negatively impacting the Canadian industry.
The investigation stems from an early-April complaint lodged by Sault-based Algoma Steel and supported by SSAB Central Inc. and Janco Steel Ltd.
In the complaint, Algoma Steel alleges that Canadian steelmakers are being put at a disadvantage because cheap steel exports are undercutting prices, taking up more market share, and posing an overall threat to the domestic industry.
Heavy plate is used in the production of rail cars, oil and gas storage tanks, heavy machinery, agricultural equipment, bridges, industrial buildings, high-rise office towers, ships and barges, and pressure vessels.
At its Sault facility, Algoma Steel produces hot and cold rolled steel products, including sheet and plate, with a production capacity of 2.8 million tonnes a year.
Its products are used in the automotive, construction, energy, defence, and manufacturing sectors.
Company CEO Michael McQuade welcomed the investigation.
“On a level playing field, Algoma will compete with any producer in the world; however, where exporters choose to dump steel into Canada, we will not hesitate to respond,” he said in a May 27 news release.
“Maintaining a strong Canadian trade defence system is especially critical in today’s volatile trading environment.”
The Canadian International Trade Tribunal (CITT) will start an inquiry and issue a preliminary decision by July 24.
The CBSA will conduct its own investigation and make a preliminary decision by August 25.
If the CBSA finds steel has been dumped illegally in the market, provisional duties will be imposed.
If the CBSA goes on to make a final determination of illegal dumping, and the CITT finds domestic producers have been impacted by this activity, anti-dumping duties will be applied over the next five years.
