The United States International Trade Commission (ITC) today determined that there is a reasonable indication that a U.S. industry is threatened with material injury by reason of imports of certain hot-rolled steel products from Brazil, Japan, and Russia.

The Commission's determinations resulted from 6-0 affirmative votes. Chairman Lynn M. Bragg, Vice Chairman Marcia E. Miller, and Commissioners Carol T. Crawford, Jennifer A. Hillman, Stephen Koplan, and Thelma J. Askey voted in the affirmative.

The hot-rolled steel products under investigation from Brazil, Japan, and Russia are allegedly sold in the United States at less than fair value, and those from Brazil are also allegedly subsidized. As a result of the ITC's affirmative determinations, the U.S. Department of Commerce will continue to conduct countervailing duty and antidumping investigations of imports of certain hot-rolled steel products from Brazil, Japan, and Russia, with its preliminary countervailing duty determination due on or about December 24, 1998, and its preliminary antidumping determination due on or about March 9, 1999.

The Commission's public report Certain Hot-Rolled Steel Products from Brazil, Japan, and Russia (Investigations Nos. 701-TA-384 and 731-TA-806-808 (Preliminary), USITC Publication 3142, November 1998) will contain the views of the Commission and information developed during the investigations.

Copies of the report are expected to be available without charge after December 21, 1998, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

Product Description: The product subject to these investigations consists of hot-rolled flat-rolled carbon-quality steel products of a rectangular shape, of a width of 0.5 inch or greater, neither clad, plated, nor coated with metal and whether or not painted, varnished, or coated with plastics or other nonmetallic substances, in coils (whether or not in successively superimposed layers) regardless of thickness, or in straight lengths, of a thickness less than 4.75 mm and of a width measuring at least 10 times the thickness. This excludes universal mill plate. Specifically included are vacuum degassed, fully stabilized steels (interstitial-free), high strength low alloy steels, and the substrate for motor lamination steels. Steels that are regarded as alloy steels are excluded from the investigation. Certain hot-rolled steel products are primarily classified in HTS headings 7208, 7210, 7211, and 7212. Also, certain subject merchandise, including IF, HSLA, and motor lamination substrate steels, may be classified in HTS headings 7225 and 7226.

Status of Proceedings:
     1.  Type of investigations:  Preliminary countervailing duty and preliminary antidumping.
     2.  Petitioners:   Bethlehem Steel Corp.; U.S. Steel Group (USX Corp.); Ispat/Inland; LTV Steel Co.;
                   National Steel Corp.; California Steel Industries, Inc.; Gallatin Steel Co.; Geneva
                   Steel Co.; Gulf States Steel, Inc.; IPSCO, Inc.; Steel Dynamics, Inc.; Weirton Steel
                   Corp.; Independent Steelworkers Union; and the United Steelworkers of America. 
     3.  Investigations instituted by USITC:     September 30, 1998.
     4.  Conference:    October 21, 1998.
     5.  USITC vote:    November 13, 1998.
     6.  USITC notification of Department of Commerce: November 16, 1998.

U.S. Industry Production of Hot-Rolled Carbon Steel:
     1.  Number of U.S. firms reporting production:  24.
     2.  Production volume is concentrated in Illinois, Indiana, Maryland, Michigan, Ohio, and West Virginia.
     3.  Employment of production and related workers in U.S. mills in 1997:   32,746.
     4.  Total U.S. apparent consumption in 1997: 66,823,506 short tons (valued at $23.8 billion).
     5.  U.S. producers' shipments in 1997:  60,354,717 short tons (valued at $21.7 billion)
              Amount captively consumed:  37,377,941 short tons (valued at $13.5 billion) 
     6.  Market shares in 1997:
              U.S.:  90.3%
              Brazil, Japan, and Russia:  4.4%  (Brazil, 0.7%; Japan, 0.8%; Russia, 3%)
              Other countries:  5.2%

U.S. Imports:
     1.  Quantity of imports from Brazil, Japan, Russia in 1997:  2,968,898 short tons.
     2.  Value of imports from Brazil, Japan, and Russia in 1997:  $897,750,000.