After Schumer's Push, The International Trade Commission Has Voted Unanimously To Protect Nucor Vulcraft And Other NY Steelmakers

Press Release

U.S. Senator Charles E. Schumer today announced that, following his push, the International Trade Commission (ITC) has voted unanimously to protect American steel making jobs that were being put at risk by unfair trade practices. The ITC's decision puts in place duties on foreign companies that were unfairly undercutting Nucor. These duties will prevent unfairly subsidized and artificially cheap steal from entering into the US market, putting Nucor Vulcraft and their workers on a level playing field. The duties are on corrosion-resistant and cold-rolled steel.

"This unanimous ruling is great news for Nucor Vulcraft, its workers and the Southern Tier-- which has a long and storied past as a steel making region. We could not afford to let our steel manufacturing base melt away because China refuses to play by the rules," said Senator Schumer. "That's why I went to bat for our New York steel industry and pushed the ITC and the Department of Commerce to implement new duties to guard against this unfair foreign competition."

"These final determinations by the International Trade Commission confirm that the U.S. steel industry has suffered harmful effects from imports of dumped and subsidized corrosion-resistant steel," said John Ferriola, Chairman, CEO and President of Nucor Corporation. "Today's decision and the decision earlier this week in two of the cold-rolled steel cases are important steps in returning fair trade to the U.S. flat rolled steel market. Our government is sending a clear message that all countries must play by the rules of international trade and will be held accountable for failure to do so."

Nucor employs 579 workers in New York. Nucor's Chemung facility produces steel floors and joists and employs 320 workers. A massive amount of Chinese steel has entered global markets, including the U.S., harming American steel producers and the communities that rely on these manufacturers, like those in the Southern Tier where Nucor Vulcraft is located. According to the American Iron and Steel Institute, steel facilities averaged roughly 70 percent capacity utilization in 2015, well below the levels necessary to be profitable, invest in plant and equipment, or be positioned to hire new workers. Bureau of Labor Statistics data indicates that employment in the steel industry has declined by over 12,000 jobs over the last twelvemonths for which data are available.

In 2015, imports of corrosion-resistant steel from China, India, Italy, Korea, and Taiwan were valued at an estimated $500.3 million, $219.6 million, $110 million, $509.1 million, and $534.4 million, respectively. The duties put in place on this steel are as high as 450% for China, 34% for India, 92% for Italy, 47% for Korea and 3.7% for Taiwan.

Schumer explained that China's government, especially, is providing massive subsidies to its steel and aluminum sectors, which are primarily state-owned, in order to export high volumes of steel and aluminum. These steel and aluminum products are sold at artificially low prices in the U.S. markets and foreign market where U.S. producers export, putting jobs at local companies at risk. In addition, Schumer urged the USTR and Dept. of Commerce to implement and enforce previous laws that he has already supported, like the Level The Playing Field Act, which strengthens Commerce's ability to defend American workers and producers against predatory trade practices.

According to the Organization for Economic Cooperation and Development, global crude steelmaking capacity more than doubled between 2000 and 2014, with growth during this period led principally by China. However, global demand for steel, including U.S. demand and Chinese demand, has decreased overall. Schumer said this discrepancy is due to the fact that Chinese companies have continued to produce these products at high rates, mainly through the aid of government subsidies and other market-distorting measures. Estimates of global excess steel production capacity range as high as 700 million tons, with as much as 425 million tons coming from China alone. China exported a record 123 million net tons of steel last year, up 350 percent from 2009. Many Chinese mills continue operating at a loss.

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