U.S. Relations with the People's Republic of China (2005)

Magnesium from China, Russia Dumped on U.S. Market, Agency Rules

Commerce Department's ruling opens the way for injury determination

Washington -- Imports of magnesium metal from China and Russia were dumped on the U.S. market, the U.S. Department of Commerce has ruled.

In a final affirmative determination issued February 17, the department calculated the following dumping rates:

-- China: Tianjin Magnesium International Co. Ltd., and Guangling Jinghua Science and Technology Co. Ltd., 91.31 percent; all others, 141.49 percent;

-- Russia: Solikamsk Magnesium Works, 18.65 percent; Avisma Magnesium-Titanium Works, 22.28 percent, all others, 21.45 percent.

Imposition of anti-dumping duties requires final affirmative determinations -- both from the Commerce Department that dumping occurred, and from the U.S. International Trade Commission (USITC) that the imports injured or threatened U.S. industry.

A final USITC determination on injury that could lead to the imposition of duties is expected in April.

In the meantime, U.S. customs agents will collect a cash deposit or bond on any imports of the products.

U.S. imports in 2003 of the products under investigation in this case amounted to $21 million from China, up from $18.2 million in 2002; and $37.5 million from Russia, up from $29.5 million in 2002.

Dumping is the import of goods at a price below the home-market or a third-country price or below the cost of production. A dumping margin represents by how much the fair-value price exceeds the dumped price.

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International Trade Administration (ITA)
Office of Public Affairs

FACT SHEET

Final Determinations in the Antidumping Duty Investigations on Magnesium Metal from the People's Republic of China and the Russian Federation

On February 17, 2005, the Department of Commerce (the Department) announced its final determinations in the antidumping duty investigations of magnesium metal from the People's Republic of China (PRC) and the Russian Federation (Russia). The Department found that producers/exporters have sold magnesium metal from the PRC and Russia in the U.S. market at less than fair value, with margins ranging from 91.31 to 141.49 percent and from 18.65 to 22.28 percent, respectively.

Company Qualifying for a "Separate Rate" (Section A Respondents): The Department has determined that one Chinese company in this investigation, Guangling Jinghua Science and Technology Co, Ltd., has demonstrated an absence of government control with respect to its export activities and is eligible for "separate rate" status. This "separate rate" is determined by weighted-averaging the dumping margin of the mandatory respondents in this investigation, excluding rates which are based on "adverse facts available". Therefore, imports produced and/or exported by Guangling Jinghua Science and Technology Co, Ltd., will be subject to a "separate rate" of 91.31 percent.

Next Steps: The U.S. International Trade Commission (ITC) is scheduled to announce its final injury determination on or about April 4, 2005. If the ITC makes an affirmative determination that imports of magnesium metal from the PRC and Russia are materially injuring, or threatening to materially injure, the domestic industry in the United States, the Department will issue antidumping duty orders and instruct U.S. Customs and Border Protection to collect antidumping duties on the subject imports. If the ITC makes a negative injury determination, the investigations will be terminated and no order will be issued.

Petitioners: The petitions requesting these investigations were filed on February 27, 2004, by the US Magnesium Corporation LLC (US Magnesium), (UT); United Steelworkers of America, Local 8319, (UT); and Glass, Molders, Pottery, Plastics & Allied Workers International, Local 374, (CA), (collectively, "petitioners"), an ad hoc coalition representative of U.S. producers of magnesium metal.

Product Description: The products covered by the two investigations include primary and secondary pure and alloy magnesium metal, regardless of chemistry, raw material source, form, shape, or size. Although the Department has determined these products are one like product for purposes of these investigations, the respective scopes of the Chinese and Russian investigations differ because prior antidumping duty orders exist on pure magnesium in both ingot and granular form from the PRC. Therefore, the scope of the investigation for Russia covers primary and secondary pure and alloy magnesium metal, whereas the scope of the investigation for the PRC covers primary and secondary alloy magnesium metal. Additional information on the scope of these investigations is included in the Department's notices of final determination.

Final Dumping Margins:

Country	MARGIN
People's Republic of China
Tianjin Magnesium International Co., Ltd.	91.31%
Section A/Separate Rate Respondent: Guangling Jinghua Science and Technology Co, Ltd.	91.31%
PRC-wide Entity*	141.49%
Russian Federation
Solikamsk Magnesium Works	18.65%
Avisma Magnesium-Titanium Works	22.28%
All Other's Rate	21.45%

* The RSM Group and China Nonferrous Metals I/E Corp., Jiangsu Branch, received margins based on total adverse facts available, and are included as part of the PRC-wide entity.

Case Calendar:

EVENT	DATE OF ACTION
Petitions Filed	February 27, 2004
Initiation Date	March 18, 2004
ITC Preliminary Determinations	April 12, 2004
ITA Preliminary Determinations	September 24, 2004
ITA Final Determinations	February 16, 2005
ITC Final Determinations (estimated)	April 4, 2005
Signature of Orders (estimated)*	April 11, 2005

* This will take place only in the event of a final affirmative determination by both the Department and the ITC.

Import Statistics:

PRC	2000	2001	2002	2003
Quantity (MT)	21,933.000	12,336.000	12,046.000	12,919.000
Value ($)	$41,828,803	$22,142,499	$18,203,973	$20,932,755

Source: U.S. ITC Trade DataWeb for HTS 8104.19.00.00 and HTS 8104.30.00.

Russia	2000	2001	2002	2003
Quantity (MT)	13,685.046	11,901.877	16,667.829	21,745.033
Value ($)	$31,893,770	$21,134,125	$29,546,358	$37,480,966

Source: U.S. ITC Trade DataWeb for HTS 8104.11.00.00, HTS 8104.19.00.00, and HTS 8104.30.00.00.