Chung Hung Steel Corp’s (中鴻) shares rose yesterday after an anti-dumping investigation by the US Department of Commerce ruled that the company had not engaged in any unfair practices.
Chung Hung shares rose 0.96 percent to close at NT$8.39 with 1.1 million shares changing hands, outperforming the broader market, in which the TAIEX closed up 0.24 percent at 8,577.01.
The stock attracted buying soon after the local bourse opened in the wake of a preliminary decision issued by the department and moved above its previous closing level, where it remained until the end of the session.
In a preliminary ruling, the department said that Chung Hung had not violated any US anti-dumping rules when it sold oil country tubular goods (OCTG), used by oil and natural gas producers, on the US market.
However, other Taiwanese OCTG exporters, including Tension Steel Industries Co (天聲), were found to have employed dumping practices and face an anti-dumping tariff of 2.65 percent imposed by the department in its preliminary decision.
In early July last year, US steel manufacturers filed a petition with the department in which they accused their counterparts in nine countries, including Taiwan and South Korea, of dumping OCTG in the US market.
The department and the US International Trade Commission conducted their own investigations into the complaint. In mid-August, the commission ruled in a preliminary decision that OCTG exporters from the nine countries named had violated US anti-dumping laws.
The commission’s decision prompted the department to continue with its investigation.
The department found that South Korean steel oil pipe manufacturers named in the investigation had not engaged in unfair trading practices.
The department is to continue its investigations and is scheduled to hand down a final decision on anti-dumping tariffs on July 7.
Chung Hung has said the company would cooperate with US authorities in the probe.
Taiwan exports about 100,000 tonnes of OCTG to the US per year, of which Chung Hung accounts for between 30,000 tonnes and 40,000 tonnes.
The commission is expected to issue its final ruling on Aug. 21 to determine whether the OCTG producers imposed material damage on US manufacturers.
The department is set to announce an anti-dumping order, based upon the commission’s decision, on Aug. 28 at the earliest.