[Federal Register Volume 75, Number 247 (Monday, December 27, 2010)]
[Notices]
[Pages 81221-81224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32478]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-822 ]


Stainless Steel Sheet and Strip in Coils From Mexico; Preliminary 
Results of the Five-Year (``Sunset'') Review of Antidumping Duty Order

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On June 2, 2010, the Department of Commerce (``the 
Department'') initiated the second sunset review of the antidumping 
duty order on stainless steel sheet and strip (``SSSS'') in coils from 
Mexico, pursuant to section 751(c) of the Tariff Act of 1930, as 
amended (``the Act'').
    On the basis of the notice of intent to participate, and adequate 
substantive responses filed on behalf of the domestic and respondent 
interested parties, the Department is conducting a full sunset review 
of the antidumping duty order on SSSS in coils from Mexico, pursuant to 
section 751(e)(3)(B) of the Act and 19 CFR 351.218(e)(2)(i).
    As a result of this sunset review, the Department preliminarily 
finds that revocation of the antidumping duty order with respect to 
SSSS in coils from Mexico would likely lead to continuation or 
recurrence of dumping at the levels listed below in the section 
entitled ``Preliminary Results of Review.''

[[Page 81222]]


FOR FURTHER INFORMATION CONTACT: David Cordell or Angelica Mendoza, AD/
CVD Operations, Office 7, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0408 or (202) 482-3019, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 2, 2010, the Department published the notice of initiation 
of the second sunset review of the antidumping duty order on SSSS in 
coils from Mexico, pursuant to section 751(c) of the Act. See 
Initiation of Five-Year (``Sunset'') Review, 75 FR 30777 (June 2, 2010) 
(``Notice of Initiation'').
    The Department received a notice of intent to participate from the 
AK Steel Corporation; Allegheny Ludlum Corporation; North American 
Stainless; the United Steel, Paper and Forestry, Rubber, Manufacturing, 
Energy, Allied Industrial Service Workers International Union; United 
Autoworkers (``UAW'') Local 3303; and UAW Local 4104 (``domestic 
interested parties'' or ``petitioners'') within the deadline specified 
in 19 CFR 351.218(d)(1)(i). The petitioners claimed interested party 
status under sections 771(9)(C) and (D) of the Act stating that its 
individual members are each producers in the United States of a 
domestic like product or certified unions representing workers in the 
domestic industry producing subject merchandise.
    The Department received substantive responses to the Notice of 
Initiation from the domestic interested parties within the 30-day 
deadline specified in 19 CFR 351.218(d)(3)(i). The Department received 
a substantive response from respondent interested parties, ThyssenKrupp 
Mexinox S.A. de C.V. and Mexinox USA, Inc. (collectively, 
``respondent'' or ``Mexinox''), within the applicable deadline 
specified in 19 CFR 351.218(d)(3)(i).\1\
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    \1\ Domestic interested and respondent parties filed substantive 
responses on July 2, 2010.
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    On July 6, 2010, the Department received a request from domestic 
interested parties for an extension of the deadline for filing rebuttal 
comments to the substantive response. Pursuant to 19 CFR 351.302(b), 
domestic and respondent parties were granted an extension to file 
rebuttal comments to the substantive responses until July 9, 2010. On 
July 9, 2010, the Department received rebuttal comments to the 
substantive responses from the domestic interested parties and the 
respondent.
    Section 351.218(e)(1)(ii)(A) of the Department's regulations 
provides that the Secretary normally will conclude that respondent 
interested parties have provided adequate response to a notice of 
initiation where it receives complete substantive responses from 
respondent interested parties accounting on average for more than 50 
percent, by volume, or value basis, if appropriate, of the total 
exports of the subject merchandise to the United States over the five 
calendar years preceding the year of publication of the notice of 
initiation. On July 22, 2010, the Department determined that Mexinox's 
and the domestic interested parties' responses constituted adequate 
responses to the notice of initiation. In accordance with 19 CFR 
351.218(e)(2)(i), the Department determined to conduct a full sunset 
review of this antidumping duty order and notified the International 
Trade Commission. See Letter to Ms. Catherine DeFilippo, Director, 
Office of Investigations, U.S. International Trade Commission from 
James Maeder, Director, Office 2, AD/CVD Operations, entitled 
``Expedited and Full Sunset Reviews of the Antidumping Duty Orders 
Initiated in June 2010,'' dated July 22, 2010.
    On September 23, 2010, the Department extended the deadlines for 
both the preliminary and final results of this review by 90 days. See 
Certain Stainless Steel Sheet and Strip in Coils from Italy and Mexico: 
Extension of Time Limits for Preliminary and Final Results of Full 
Five-Year (``Sunset'') Reviews of Antidumping Duty Orders, 75 FR 57899 
(September 23, 2010).

Scope of the Order

    For purposes of the order, the products covered are certain 
stainless steel sheet and strip in coils. Stainless steel is an alloy 
steel containing, by weight, 1.2 percent or less of carbon and 10.5 
percent or more of chromium, with or without other elements. The 
subject sheet and strip is a flat-rolled product in coils that is 
greater than 9.5 mm in width and less than 4.75 mm in thickness, and 
that is annealed or otherwise heat treated and pickled or otherwise 
descaled. The subject sheet and strip may also be further processed 
(e.g., cold-rolled, polished, aluminized, coated, etc.) provided that 
it maintains the specific dimensions of sheet and strip following such 
processing. The merchandise subject to the order is classified in the 
Harmonized Tariff Schedule of the United States (``HTS'') at 
subheadings: 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 
7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.32.0005, 7219.32.0020, 
7219.32.0025, 7219.32.0035, 7219.32.0036, 7219.32.0038, 7219.32.0042, 
7219.32.0044, 7219.33.0005, 7219.33.0020, 7219.33.0025, 7219.33.0035, 
7219.33.0036, 7219.33.0038, 7219.33.0042, 7219.33.0044, 7219.34.0005, 
7219.34.0020, 7219.34.0025, 7219.34.0030, 7219.34.0035, 7219.35.0005, 
7219.35.0015, 7219.35.0030, 7219.35.0035, 7219.90.0010, 7219.90.0020, 
7219.90.0025, 7219.90.0060, 7219.90.0080, 7220.12.1000, 7220.12.5000, 
7220.20.1010, 7220.20.1015, 7220.20.1060, 7220.20.1080, 7220.20.6005, 
7220.20.6010, 7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 
7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 7220.20.8000, 
7220.20.9030, 7220.20.9060, 7220.90.0010, 7220.90.0015, 7220.90.0060, 
and 7220.90.0080. Although the HTS subheadings are provided for 
convenience and customs purposes, the Department's written description 
of the merchandise under the order is dispositive.
    Excluded from the scope of the order are the following: (1) Sheet 
and strip that is not annealed or otherwise heat treated and pickled or 
otherwise descaled, (2) sheet and strip that is cut to length, (3) 
plate (i.e., flat-rolled stainless steel products of a thickness of 
4.75 mm or more), (4) flat wire (i.e., cold-rolled sections, with a 
prepared edge, rectangular in shape, of a width of not more than 9.5 
mm), and (5) razor blade steel. Razor blade steel is a flat-rolled 
product of stainless steel, not further worked than cold-rolled (cold-
reduced), in coils, of a width of not more than 23 mm and a thickness 
of 0.266 mm or less, containing, by weight, 12.5 to 14.5 percent 
chromium, and certified at the time of entry to be used in the 
manufacture of razor blades. See Chapter 72 of the HTS, ``Additional 
U.S. Note'' 1(d). Flapper valve steel is also excluded from the scope 
of the order. This product is defined as stainless steel strip in coils 
containing, by weight, between 0.37 and 0.43 percent carbon, between 
1.15 and 1.35 percent molybdenum, and between 0.20 and 0.80 percent 
manganese. This steel also contains, by weight, phosphorus of 0.025 
percent or less, silicon of between 0.20 and 0.50 percent, and sulfur 
of 0.020 percent or less. The product is manufactured by means of 
vacuum arc remelting, with inclusion controls for sulphide of no more 
than 0.04 percent

[[Page 81223]]

and for oxide of no more than 0.05 percent. Flapper valve steel has a 
tensile strength of between 210 and 300 ksi, yield strength of between 
170 and 270 ksi, plus or minus 8 ksi, and a hardness (Hv) of between 
460 and 590. Flapper valve steel is most commonly used to produce 
specialty flapper valves in compressors. Also excluded is a product 
referred to as suspension foil, a specialty steel product used in the 
manufacture of suspension assemblies for computer disk drives. 
Suspension foil is described as 302/304 grade or 202 grade stainless 
steel of a thickness between 14 and 127 microns, with a thickness 
tolerance of plus-or-minus 2.01 microns, and surface glossiness of 200 
to 700 percent Gs. Suspension foil must be supplied in coil widths of 
not more than 407 mm, and with a mass of 225 kg or less. Roll marks may 
only be visible on one side, with no scratches of measurable depth. The 
material must exhibit residual stresses of 2 mm maximum deflection, and 
flatness of 1.6 mm over 685 mm length. Certain stainless steel foil for 
automotive catalytic converters is also excluded from the scope of the 
order. This stainless steel strip in coils is a specialty foil with a 
thickness of between 20 and 110 microns used to produce a metallic 
substrate with a honeycomb structure for use in automotive catalytic 
converters. The steel contains, by weight, carbon of no more than 0.030 
percent, silicon of no more than 1.0 percent, manganese of no more than 
1.0 percent, chromium of between 19 and 22 percent, aluminum of no less 
than 5.0 percent, phosphorus of no more than 0.045 percent, sulfur of 
no more than 0.03 percent, lanthanum of less than 0.002 or greater than 
0.05 percent, and total rare earth elements of more than 0.06 percent, 
with the balance iron. Permanent magnet iron-chromium-cobalt alloy 
stainless strip is also excluded from the scope of the order. This 
ductile stainless steel strip contains, by weight, 26 to 30 percent 
chromium, and 7 to 10 percent cobalt, with the remainder of iron, in 
widths 228.6 mm or less, and a thickness between 0.127 and 1.270 mm. It 
exhibits magnetic remanence between 9,000 and 12,000 gauss, and a 
coercivity of between 50 and 300 oersteds. This product is most 
commonly used in electronic sensors and is currently available under 
proprietary trade names such as ``Arnokrome III.'' \2\
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    \2\ ``Arnokrome III'' is a trademark of the Arnold Engineering 
Company.
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    Certain electrical resistance alloy steel is also excluded from the 
scope of the order. This product is defined as a non-magnetic stainless 
steel manufactured to American Society of Testing and Materials (ASTM) 
specification B344 and containing, by weight, 36 percent nickel, 18 
percent chromium, and 46 percent iron, and is most notable for its 
resistance to high temperature corrosion. It has a melting point of 
1390 degrees Celsius and displays a creep rupture limit of 4 kilograms 
per square millimeter at 1000 degrees Celsius. This steel is most 
commonly used in the production of heating ribbons for circuit breakers 
and industrial furnaces, and in rheostats for railway locomotives. The 
product is currently available under proprietary trade names such as 
``Gilphy 36.'' \3\
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    \3\ ``Gilphy 36'' is a trademark of Imphy, S.A.
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    Certain martensitic precipitation-hardenable stainless steel is 
also excluded from the scope of the order. This high-strength, ductile 
stainless steel product is designated under the Unified Numbering 
System (UNS) as S45500-grade steel, and contains, by weight, 11 to 13 
percent chromium, and 7 to 10 percent nickel. Carbon, manganese, 
silicon and molybdenum each comprise, by weight, 0.05 percent or less, 
with phosphorus and sulfur each comprising, by weight, 0.03 percent or 
less. This steel has copper, niobium, and titanium added to achieve 
aging, and will exhibit yield strengths as high as 1700 Mpa and 
ultimate tensile strengths as high as 1750 Mpa after aging, with 
elongation percentages of 3 percent or less in 50 mm. It is generally 
provided in thicknesses between 0.635 and 0.787 mm, and in widths of 
25.4 mm. This product is most commonly used in the manufacture of 
television tubes and is currently available under proprietary trade 
names such as ``Durphynox 17.'' \4\
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    \4\ ``Durphynox 17'' is a trademark of Imphy, S.A.
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    Finally, three specialty stainless steels typically used in certain 
industrial blades and surgical and medical instruments are also 
excluded from the scope of the order. These include stainless steel 
strip in coils used in the production of textile cutting tools (e.g., 
carpet knives).\5\ This steel is similar to AISI grade 420 but 
containing, by weight, 0.5 to 0.7 percent of molybdenum. The steel also 
contains, by weight, carbon of between 1.0 and 1.1 percent, sulfur of 
0.020 percent or less, and includes between 0.20 and 0.30 percent 
copper and between 0.20 and 0.50 percent cobalt. This steel is sold 
under proprietary names such as ``GIN4 Mo.'' The second excluded 
stainless steel strip in coils is similar to AISI 420-J2 and contains, 
by weight, carbon of between 0.62 and 0.70 percent, silicon of between 
0.20 and 0.50 percent, manganese of between 0.45 and 0.80 percent, 
phosphorus of no more than 0.025 percent and sulfur of no more than 
0.020 percent. This steel has a carbide density on average of 100 
carbide particles per 100 square microns. An example of this product is 
``GIN5'' steel. The third specialty steel has a chemical composition 
similar to AISI 420 F, with carbon of between 0.37 and 0.43 percent, 
molybdenum of between 1.15 and 1.35 percent, but lower manganese of 
between 0.20 and 0.80 percent, phosphorus of no more than 0.025 
percent, silicon of between 0.20 and 0.50 percent, and sulfur of no 
more than 0.020 percent. This product is supplied with a hardness of 
more than Hv 500 guaranteed after customer processing, and is supplied 
as, for example, ``GIN6''.\6\ Also excluded from the order is a 
permanent magnet iron-chromium-cobalt stainless steel strip containing, 
by weight, 13 percent chromium, 6 percent cobalt, 71 percent iron, 6 
percent nickel and 4 percent molybdenum. The product is supplied in 
widths up to 1.27 cm (12.7 mm), inclusive, with a thickness between 45 
and 75 microns, inclusive. This product exhibits magnetic remanence 
between 400 and 780 nWb, and coercivity of between 60 and 100 oersteds. 
This product is currently supplied under the trade name ``SemiVac 90.''
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    \5\ This list of uses is illustrative and provided for 
descriptive purposes only.\\
    \6\ ``GIN4 Mo,'' ``GIN5,'' and ``GIN6'' are the proprietary 
grades of Hitachi Metals America, Ltd.
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Analysis of Comments Received

    All issues raised in this review are addressed in the ``Issues and 
Decision Memorandum for the Preliminary Results of the Full Five-Year 
(``Sunset'') Review of the Antidumping Duty Order on Stainless Steel 
Sheet and Strip in Coils from Mexico,'' from Christian Marsh, Deputy 
Assistant Secretary for Antidumping and Countervailing Duty Operations, 
to Ronald K. Lorentzen, Deputy Assistant Secretary for Import 
Administration (``Decision Memorandum''), which is hereby adopted by, 
and issued concurrently with, this notice. The issues discussed in the 
Decision Memorandum include the likelihood of continuation or 
recurrence of dumping and the magnitude of the margins likely to 
prevail if the order was revoked. Parties can find a complete 
discussion of all issues raised in this review and the corresponding 
recommendations in this public memorandum which is on file in the 
Central Records Unit, room 7046 of the main Department building. In

[[Page 81224]]

addition, a complete version of the Decision Memorandum can be accessed 
directly on the Web at http://ia.ita.doc.gov/frn. The paper copy and 
electronic version of the Decision Memorandum are identical in content.

Preliminary Results of Review

    The Department preliminarily determines that revocation of the 
antidumping duty order on SSSS in coils from Mexico is likely to lead 
to continuation or recurrence of dumping at the following weighted-
average margins:

Mexinox--30.69 percent.
All Other's--30.69 percent.

Public Comments and Hearing

    Any interested party may request a hearing within 30 days of 
publication of this notice in accordance with 19 CFR 351.310(c). 
Consistent with 19 CFR 351.310(d)(1), any hearing, if requested, will 
generally be held two days after the scheduled date for submission of 
rebuttal briefs, in accordance with 19 CFR 351.309(d). Interested 
parties may submit case briefs no later than 50 days after the date of 
publication of these preliminary results of review, in accordance with 
19 CFR 351.309(c)(1)(i). Rebuttal briefs, which must be limited to 
issues raised in the case briefs, may be filed not later than five days 
after the time limit for filing the case brief, unless the Secretary 
alters this time limit. See 19 CFR 351.309(d). The Department will 
issue a notice of final results of this sunset review, which will 
include the results of its analysis of issues raised in any such 
briefs, no later than April 28, 2011.
    This five-year (``sunset'') review and notice are in accordance 
with sections 751(c), 752, and 777(i)(1) of the Act.

    Dated: December 20, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2010-32478 Filed 12-23-10; 8:45 am]
BILLING CODE 3510-DS-P