The United States International Trade Commission (ITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of pure magnesium from Israel and Russia and pure granular magnesium from China that are allegedly sold in the United States at less than fair value, and by reason of imports of pure magnesium from Israel that are also allegedly subsidized.

As a result of the Commission's affirmative determinations, the U.S. Department of Commerce will continue to conduct its investigations of imports of pure magnesium from China, Israel, and Russia, with its preliminary countervailing duty determination due on or about January 10, 2001, and its preliminary antidumping duty determinations due on or about March 26, 2001.

Chairman Stephen Koplan, Vice Chairman Deanna Tanner Okun, and Commissioner Lynn M. Bragg made affirmative determinations in all investigations.

Commissioners Marcia E. Miller and Jennifer A. Hillman found two like products in these investigations. With respect to pure magnesium ingot from Israel and Russia, they made negative determinations. With respect to pure granular magnesium, they made a negative determination concerning China and found that imports from Israel and Russia were negligible. Imports are generally deemed "negligible" if they amounted to less than 3 percent of all such merchandise imported into the United States within the most recent 12-month period for which data are available preceding the filing of the petition.

Commissioner Thelma J. Askey found two like products in these investigations. With respect to pure magnesium ingot, she made an affirmative determination concerning Russia and a negative determination concerning Israel. With respect to pure granular magnesium, she made a negative determination concerning China and found that imports from Israel and Russia were negligible.

The Commission's public report Pure Magnesium from China, Israel, and Russia (Investigations Nos. 701-TA-403 (Preliminary) and 731-TA-895-897 (Preliminary), USITC Publication 3376, December 2000) will contain the views of the Commission and information developed during the investigation.

Copies of the report are expected to be available after December 29, 2000, 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 imported goods covered in the investigations concerning Israel and Russia include pure magnesium, regardless of chemistry, form, or size, including, without limitation, ingots, raspings, granules, turnings, chips, powder, and briquettes. The imported goods covered in the investigation concerning China include all of the foregoing pure magnesium products, except pure magnesium ingots (which are covered by an existing order and are classifiable under subheadings 8104.11.00 and 8104.19.00 of the Harmonized Tariff Schedule of the United States (HTS)). Pure magnesium includes: (1) products that contain at least 99.95 percent primary magnesium, by weight (generally referred to as "ultra-pure" magnesium); (2) products that contain less than 99.95 percent but not less than 99.8 percent primary magnesium, by weight (generally referred to as "pure" magnesium); and (3) products that contain 50 percent or greater, but less than 99.8 percent primary magnesium, by weight, and that do not conform to an American Society for Testing and Materials specification for magnesium alloy (generally referred to as "off-specification pure"magnesium). It does not include articles of magnesium, secondary magnesium, or magnesium waste and scrap. The merchandise subject to the investigations concerning Israel and Russia is classifiable under subheadings 8104.11.00, 8104.19.00, and 8104.30.00 of the HTS. The merchandise subject to the investigation concerning China is classifiable under subheading 8104.30.00 of the HTS.

Status of Proceedings:
  1. Type of investigations:  Preliminary phase countervailing duty and
     antidumping duty.
  2. Petitioners: Magnesium Corporation of America (Magcorp), Salt Lake City,
     UT; the United Steel Workers of America (USW), Local 8319, Salt
     Lake City, UT; and the United Steelworkers of America, AFL-CIO-CLC 
     (USWA International).
  3. Investigations instituted by USITC: Oct. 17, 2000.
  4. Conference: Nov. 7, 2000.    
  5. USITC vote: Dec. 1, 2000.
  6. USITC notification of Commerce: Dec. 1, 2000.

U.S. Industry:
  1. Number of producers: two producers of ingot and six producers of
     granules, 1999. 
  2. Location of producers' plants: Utah, Washington, Pennsylvania, Indiana,
     New Jersey, Ohio, and Colorado.
  3. Employment of production and related workers: (1)
  4. U.S. shipments, 1999: (1)
  5. U.S. consumption, 1999: (1)

U. S. imports (1999):
  Pure magnesium ingot:
  1. Quantity of imports (metric tons):  Israel (1); Russia, 9,998; Other
     sources, 5,079; Total (1).
  2. Value of imports (1,000 dollars): Israel (1); Russia, 26,590; Other 
     sources, 17,088; Total (1).
  3. Leading source of imports of pure magnesium ingot (quantity): Russia.

  Pure granular magnesium:
  1. Quantity of imports (metric tons): Israel, 0; Russia, 0; China, 13,185;
     Other sources, 5,433; Total, 18,618.
  2. Value of imports (1,000 dollars): Israel, 0; Russia, 0; China, 35,462;
     Other sources, 14,460; Total, 49,922.
  3. Leading source of imports of pure granular magnesium (quantity): China.

(1) Withheld to avoid disclosure of business proprietary information.