Commerce rules in favor of U.S. magnet industry

Manufacturing & Technology News, Feb 28, 2008

Thin flexible magnets that are commonly used on refrigerators imported from China are being dumped into the U.S. market, according to a Feb. 20 "preliminary" determination by the Commerce Department. Chinese producers have received subsidies amounting to 70.4 percent on their exports of magnets to the United States, says the agency's International Trade Administration. "As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to collect a cash deposit or bond based on the preliminary [countervailable] rate," says the agency.

Last year, Chinese imports of flexible magnets totaled 103 million units (up from 83 million units in 2005), valued at $18.2 million. The Commerce Department is scheduled to make its final determination in July. Magnum Magnetics Corp. of Ohio filed the countervailing duty petition against China Ningbo Cixi Import Export Corp. and Polyflex Magnets Ltd.

Meanwhile, the Commerce Department has responded positively to a petition from four U.S. parties seeking a countervailing duty investigation into imports of circular welded stainless pressure pipe from China. The pipe is used as a conduit for liquids and gases. Bringing the case against the Chinese were Bristol Metals of Tennessee, Felker Brothers Corp. of Wisconsin, Marcegaglia USA of Pennsylvania, Outokumpu Stainless Pipe of Illinois and the United Steelworkers of America in Pennsylvania.