The United States International Trade Commission (ITC) today determined that a U.S. industry is materially injured by reason of imports of magnesium from China and Russia that the U.S. Department of Commerce has determined are sold in the United States at less than fair value.

Chairman Stephen Koplan, Vice Chairman Deanna Tanner Okun, and Commissioners Charlotte R. Lane and Daniel R. Pearson found one like product consisting of pure and alloy magnesium and voted in the affirmative. Commissioners Marcia E. Miller and Jennifer A. Hillman voted with the majority, except that they found granular magnesium to be a separate like product and found subject imports of granular magnesium from Russia to be negligible. (Imports are generally deemed "negligible" if they amounted to less than 3 percent of all such merchandise imported into the United States in the most recent 12-month period for which data are available preceding the filing of the petition.)

As a result of the Commission's affirmative determinations, the U.S. Department of Commerce will issue antidumping duty orders on imports of magnesium from China and Russia.

The Commerce Department previously made an affirmative critical circumstances determination with regard to certain of these imports from China. Therefore, the Commissioners who made an affirmative injury determination today are required to determine whether the imports are likely to undermine seriously the remedial effect of the antidumping duty order Commerce will issue. All six Commissioners made negative findings with regard to critical circumstances. As a result, the antidumping duty order concerning these imports will not apply to subject goods that entered the United States prior to October 4, 2004, the date of the Department of Commerce's affirmative preliminary determination.

The Commission's public report Magnesium from China and Russia (Investigation No. 731-TA- 1071 and 1072 (Final), USITC Publication 3763, April 2005) will contain the views of the Commission and information developed during the investigations.

Copies may be obtained after May 2, 2005, by calling 202-205-1809 or from the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202- 205-2104.

Product Description: The products covered by this investigation are primary and secondary pure and alloy magnesium metal, regardless of chemistry, raw material source, form, shape, or size. Primary magnesium is produced by decomposing raw materials into magnesium metal. Secondary magnesium is produced by recycling magnesium-based scrap into magnesium metal. Pure magnesium contains at least 99.8 percent magnesium by weight. Alloy magnesium consists of magnesium and other metals, typically aluminum and zinc, containing less than 99.8 percent magnesium by weight but more than 50 percent magnesium by weight, with magnesium the largest metallic element in the alloy by weight. Alloy magnesium is typically produced to meet various ASTM specifications for alloy magnesium such as AM50A, AM60B, and AZ91D. "Off- specification pure" magnesium is magnesium that contains 50 percent or greater, but less than 99.8 percent, magnesium by weight, that does not conform to an ASTM specification for alloy magnesium; pure magnesium from China is currently covered by an antidumping duty order. Pure magnesium is widely used in commercial and industrial applications because it is easily machined and lightweight, has a high strength-to-weight ratio, and has special chemical and electrical properties. Alloy magnesium is principally used in structural applications, primarily in castings and extrusions for the automotive industry. Secondary magnesium is magnesium produced by recycling magnesium-based scrap, containing less than 50 percent of primary magnesium. Granular magnesium consists of all physical forms of magnesium other than ingots, such as raspings, turnings, granules, and powders. Granular magnesium is typically used in the production of magnesium-based desulfurizing reagent mixtures. Excluded from the subject merchandise is magnesium in liquid or molten form and magnesium-based reagent mixtures.

Status of Proceedings:
1.   Type of investigations:  Final antidumping.
2.   Petitioners:  US Magnesium Corp. (Salt Lake City, UT); United Steelworkers of America, Local 8319, Salt
     Lake City, UT, and Glass, Molders, Pottery, Plastics & Allied Workers International, Local 374, Long Beach,
     CA.  
3.   Preliminary investigations instituted by USITC:  February 27, 2004. 
4.   Commission's conference:  March 19, 2005.    
5.   USITC vote:  March 23, 2005.
6.   USITC determinations to the U.S. Department of Commerce: April 11, 2005.

U.S. Industry:
1.   Number of producers in 2003: One firm produced primary pure and alloy magnesium; four firms produced
     secondary alloy magnesium; and three firms produced granular magnesium.  
2.   Location of producers' plants:  Utah, California, Indiana, and Ohio.
3.   Employment of production and related workers: (1) 
4.   U.S. shipments, 2004: (1)
5.   U.S. consumption, 2004: (1)

U. S. Imports:
1.   From the subject countries during 2003: $65,537,000.
2.   From non-subject countries during 2003: $96,597,000.
3.   Leading sources during 2003 (based on value): Canada, Russia, China.