U.S. International Trade CommissionPublication 4496 October 2014

Washington, DC 20436

Steel Concrete Reinforcing Bar from Mexico and Turkey

Investigation Nos. 701-TA-502 and 731-TA-1227 (Final)

U.S. International Trade Commission

COMMISSIONERS

Meredith M. Broadbent, Chairman Dean A. Pinkert, Vice Chairman

Irving A. Williamson David S. Johanson

F. Scott Kieff Rhonda K. Schmidtlein

Karen Laney

Staff assigned

Address all communications to Secretary to the Commission

United States International Trade Commission Washington, DC 20436

Acting Director of Operations

Alan Treat, Investigator and Industry Analyst Amelia Preece, Economist

David Boyland, Accountant Maureen Letostak, Statistician

Mara Alexander, Statistician Assistant John Henderson, Attorney

Douglas Corkran, Supervisory Investigator

U.S. International Trade CommissionWashington, DC 20436

www.usitc.gov

Publication 4496 October 2014

Steel Concrete Reinforcing Bar from Mexico and Turkey

Investigation Nos. 701-TA-502 and 731-TA-1227 (Final)

CONTENTSPage

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Determinations...............................................................................................................................1ViewsoftheCommission...............................................................................................................3PartI:Introduction................................................................................................................I1Background................................................................................................................................I1Statutorycriteriaandorganizationofthereport.....................................................................I2Statutorycriteria...................................................................................................................I2Organizationofreport...........................................................................................................I3

Marketsummary.......................................................................................................................I3Summarydataanddatasources...............................................................................................I4Previousandrelatedinvestigations..........................................................................................I5Previousandrelatedglobalsafeguardinvestigations..............................................................I7NatureandextentofsubsidiesandsalesatLTFV....................................................................I8Natureofthesubsidies.........................................................................................................I8SalesatLTFV..........................................................................................................................I9

Thesubjectmerchandise........................................................................................................I10Commercesscope..............................................................................................................I10Tarifftreatment...................................................................................................................I10

Theproduct.............................................................................................................................I11Descriptionandapplications...............................................................................................I11Manufacturingprocesses....................................................................................................I14

Domesticlikeproduct.............................................................................................................I16PartII:ConditionsofcompetitionintheU.S.market............................................................II1U.S.marketcharacteristics.......................................................................................................II1U.S.purchasers.........................................................................................................................II1Channelsofdistribution...........................................................................................................II2Purchasersmajorcustomers...............................................................................................II6Regionalsales.......................................................................................................................II8Shippingdistances................................................................................................................II9

CONTENTSPage

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PartII:ConditionsofcompetitionintheU.S.marketContinued..............................................Supplyanddemandconsiderations.........................................................................................II9U.S.supply............................................................................................................................II9U.S.demand.......................................................................................................................II13

Substitutabilityissues.............................................................................................................II18Leadtimes..........................................................................................................................II18Knowledgeofcountrysources...........................................................................................II19Factorsaffectingpurchasingdecisions...............................................................................II19Comparisonsofdomesticproducts,subjectimports,andnonsubjectimports................II25ComparisonofU.S.producedandimportedrebar...........................................................II28

Elasticityestimates.................................................................................................................II30U.S.supplyelasticity...........................................................................................................II30U.S.demandelasticity........................................................................................................II31Substitutionelasticity.........................................................................................................II31

PartIII:U.S.producersproduction,shipments,andemployment.......................................III1U.S.producers.........................................................................................................................III1U.S.production,capacity,andcapacityutilization.................................................................III4Alternativeproducts............................................................................................................III4

U.S.producersU.S.shipmentsandexports...........................................................................III6U.S.producersinventories.....................................................................................................III8U.S.producersimportsandpurchases..................................................................................III9U.S.employment,wages,andproductivity............................................................................III9

PartIV:U.S.imports,apparentU.S.consumption,andmarketshares................................IV1U.S.importers..........................................................................................................................IV1U.S.imports.............................................................................................................................IV2Criticalcircumstances..............................................................................................................IV6Negligibility..............................................................................................................................IV9Cumulationconsiderations.....................................................................................................IV9

CONTENTSPage

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PartIV:U.S.imports,apparentconsumption,andmarketsharesContinued...........................Fungibility............................................................................................................................IV9Presenceinthemarket.....................................................................................................IV13Geographicalmarkets.......................................................................................................IV16

ApparentU.S.consumption..................................................................................................IV17U.S.marketshares................................................................................................................IV17RatioofimportstoU.S.production......................................................................................IV20

PartV:Pricingdata...............................................................................................................V1Factorsaffectingprices............................................................................................................V1Rawmaterialcosts...............................................................................................................V1U.S.inlandtransportationcosts...........................................................................................V2

Pricingpractices.......................................................................................................................V3Pricingmethods....................................................................................................................V3Salestermsanddiscounts....................................................................................................V4IndependentSteelAlliance...................................................................................................V5Purchasesfromrelatedfabricators......................................................................................V6Priceleadership....................................................................................................................V6

Pricedata..................................................................................................................................V9Pricetrends.........................................................................................................................V17Pricecomparisons..............................................................................................................V19

Lostsalesandlostrevenue....................................................................................................V19PartVI:FinancialexperienceofU.S.producers....................................................................VI1Background..............................................................................................................................VI1Operationsonrebar................................................................................................................VI2Revenue...............................................................................................................................VI6Costofgoodssoldandgrossprofit.....................................................................................VI6SG&Aexpensesandoperatingincomeor(loss).................................................................VI8

Capitalexpendituresandresearchanddevelopmentexpenses............................................VI9

CONTENTSPage

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PartVI:FinancialexperienceofU.S.producersContinued.......................................................Capitalandinvestment...........................................................................................................VI9Actualnegativeeffects........................................................................................................VI9Anticipatednegativeeffects................................................................................................VI9

PartVII:Threatconsiderationsandinformationonnonsubjectcountries..........................VII1TheindustryinMexico...........................................................................................................VII2Operationsonrebar...........................................................................................................VII4Alternativeproducts...........................................................................................................VII5

TheindustryinTurkey............................................................................................................VII6Operationsonrebar...........................................................................................................VII7Alternativeproducts...........................................................................................................VII8

Subjectcountriescombined...................................................................................................VII8U.S.inventoriesofimportedmerchandise............................................................................VII9U.S.importersoutstandingorders......................................................................................VII10Traderemedymeasuresinthirdcountrymarkets..............................................................VII11Informationonnonsubjectsources.....................................................................................VII12NonsubjectTurkishproducerHabas................................................................................VII13Ukraine.............................................................................................................................VII14Spain.................................................................................................................................VII16Belarus..............................................................................................................................VII18Portugal............................................................................................................................VII20Latvia................................................................................................................................VII22Korea.................................................................................................................................VII24DominicanRepublic..........................................................................................................VII26

CONTENTSPage

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AppendixesA. FederalRegisternotices....................................................................................................A1B. Listofhearingwitnesses...................................................................................................B1C. Summarydata...................................................................................................................C1D. Domesticlikeproductissuesandinformationondeformedsteelwire..........................D1E. U.S.producercommercialandtransfersales:averagepershorttonvalue....................E1

Note.Informationthatwouldrevealconfidentialoperationsofindividualconcernsmaynotbepublishedandthereforehasbeendeleted.Suchdeletionsareindicatedbyasterisks.

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UNITEDSTATESINTERNATIONALTRADECOMMISSION InvestigationNos.701TA502and731TA1227(Final) STEELCONCRETEREINFORCINGBARFROMMEXICOANDTURKEYDETERMINATIONS

Onthebasisoftherecord1developedinthesubjectinvestigations,theUnitedStatesInternationalTradeCommission(Commission)determines,pursuanttosections705(b)and735(b)oftheTariffActof1930(19U.S.C.1671d(b))and(19U.S.C.1673d(b))(theAct),thatanindustryintheUnitedStatesismateriallyinjuredbyreasonofimportsfromMexicoofsteelconcretereinforcingbar(rebar)thathavebeenfoundbytheDepartmentofCommerce(Commerce)tobesoldintheUnitedStatesatlessthanfairvalue,andbyreasonofimportsfromTurkeyofrebarthathavebeenfoundbyCommercetobesubsidizedbythegovernmentofTurkey.Thesubjectmerchandiseisprovidedforprimarilyinsubheadings7213.10.00and7214.20.00andstatisticalreportingnumber7228.30.8010oftheHarmonizedTariffScheduleoftheUnitedStates.2

BACKGROUND

TheCommissioninstitutedtheseinvestigationseffectiveSeptember4,2013,followingreceiptofapetitionfiledwiththeCommissionandCommercebytheRebarTradeActionCoalitionanditsindividualmembers:NucorCorporation,Charlotte,NC;GerdauAmeristeelU.S.Inc.,Tampa;FL;CommercialMetalsCompany,Irving,TX;CascadeSteelRollingMills,Inc.,McMinnville,OR;andByerSteelCorporation,Cincinnati,OH.ThefinalphaseoftheinvestigationswasscheduledbytheCommissionfollowingnotificationofpreliminarydeterminationsbyCommerceregardingimportsofrebarfromMexicoandTurkey.3Noticeof

1Therecordisdefinedinsec.207.2(f)oftheCommissionsRulesofPracticeandProcedure(19CFR207.2(f)).

2AllsixCommissionersvotedintheaffirmative.TheCommissionalsofindsthatimportssubjecttoCommerce'saffirmativecriticalcircumstancesdeterminationsarenotlikelytoundermineseriouslytheremedialeffectoftheantidumpingdutyorderonrebarfromMexicoandthecountervailingdutyorderonrebarfromTurkey.

3OnFebruary26,2014,CommercepreliminarilydeterminedthatimportsofrebarfromTurkeywerenotsubsidizedwithinthemeaningofsection703(b)oftheAct(19U.S.C.1671b(b))(79F.R.10771).OnApril24,2014,CommercepreliminarilydeterminedthatimportsofrebarfromMexicoandTurkeyweredumpedwithinthemeaningof733(b)oftheAct(19U.S.C.1673b(b))(79F.R.2280222804).OnSeptember15,2014,CommercepublishednoticeofitsfinalaffirmativedeterminationofcountervailablesubsidiesforproducersandexportersofrebarfromTurkey(79F.R.54963),itsfinalaffirmativedeterminationofsalesatlessthanfairvaluewithrespecttoimportsfromMexico(79F.R.

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theschedulingofthefinalphaseoftheCommissionsinvestigationsandofapublichearingtobeheldinconnectiontherewithwasgivenbypostingcopiesofthenoticeintheOfficeoftheSecretary,U.S.InternationalTradeCommission,Washington,DC,andbypublishingthenoticeintheFederalRegisteronMay30,2014(79F.R.31136).ThehearingwasheldinWashington,DC,onSeptember15,2014,andallpersonswhorequestedtheopportunitywerepermittedtoappearinpersonorbycounsel.

(continued)54967),anditsfinalnegativedeterminationofsalesatlessthanfairvaluewithrespecttoimportsfromTurkey(79F.R.54965).

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ViewsoftheCommissionBasedontherecordinthefinalphaseoftheseinvestigations,wefindthatanindustryin

theUnitedStatesismateriallyinjuredbyreasonofimportsofsteelconcretereinforcingbar(rebar)fromMexicofoundbytheU.S.DepartmentofCommerce(Commerce)tobesoldintheUnitedStatesatlessthanfairvalue,andbyreasonofimportsofrebarfromTurkeyfoundbyCommercetohavebeensubsidizedbythegovernmentofTurkey.WealsofindthatcriticalcircumstancesdonotexistwithrespecttoimportsofrebarfromMexicoandTurkeythatarecoveredbyCommercesfinalaffirmativecriticalcircumstancesdeterminations.

BackgroundI.

ThepetitionsintheseinvestigationswerefiledonSeptember4,2013,bytheRebarTradeActionCoalition(RTACorPetitioner),whoseindividualmembersareByerSteelCorporation(Byer),CascadeSteelRollingMills,Inc.,CommercialMetalsCompany(CMC),GerdauAmeristeelUSInc.(Gerdau),andNucorCorporation(Nucor),allU.S.producersofrebar.RepresentativesoffourmembercompaniesofRTAC(Byer,CMC,Gerdau,andNucor)appearedwithcounselatthehearing,andPetitionersubmittedprehearingandposthearingbriefs.

Severalrespondententitiesparticipatedintheseinvestigations.DeaceroS.A.deC.V.andDeaceroUSA,Inc.(collectivelyDeacero),whichrespectivelyproduceandimportsubjectmerchandisefromMexico,appearedwithcounselatthehearingandsubmittedprehearingandposthearingbriefs.AnotherMexicanproducerofsubjectmerchandise,GrupoSimec,submittedaprehearingbrief,whileathirdMexicanproducerofsubjectmerchandise,GrupoAcerero,S.A.deC.V.(GrupoAcerero),appearedwithcounselatthehearing,andmadeaposthearingsubmission.1TheTurkishSteelExportersAssociation,atradeassociation,andtwoTurkishrebarproducers,IcdasCelikEnerjiTersaneveUlasimSanayiA.S.(Icdas),andColakogluMetalurjiA.S.(collectivelyTurkishRespondents),appearedwithcounselatthehearingandsubmittedprehearingandposthearingbriefs.

U.S.industrydataarebasedonthequestionnaireresponsesfromninedomesticproducersthataccountedforvirtuallyalldomesticproductionofrebarin2013.2U.S.importdataarebasedonofficialCommerceimportstatisticsand***.3Usablequestionnaireresponseswerereceivedfrom18U.S.importers,accountingforvirtuallyallimportsofrebarfromMexico,and84.2percentofimportsofrebarfromTurkeyin2013.4UsablequestionnaireresponseswerereceivedfromsevenMexicanproducersthataccountedforvirtuallyall

1ArepresentativefromtheEmbassyofMexicoalsoparticipatedinthehearing.2ConfidentialReport(CR)atIII1;PublicReport(PR)atIII1.3CRatIV1n.2;PRatIV1n.2.4CRatIV1;PRatIV1n.2.

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productionofsubjectmerchandiseinMexicoin2013,andfromsixTurkishproducersthatestimatedthattheyaccountedfor***productionofsubjectmerchandiseinTurkeyin2013.5

DomesticLikeProductII.

A. InGeneralIndeterminingwhetheranindustryintheUnitedStatesismateriallyinjuredor

threatenedwithmaterialinjurybyreasonofimportsofsubjectmerchandise,theCommissionfirstdefinesthedomesticlikeproductandtheindustry.6Section771(4)(A)oftheTariffActof1930,asamended(theTariffAct),definestherelevantdomesticindustryastheproducersasawholeofadomesticlikeproduct,orthoseproducerswhosecollectiveoutputofadomesticlikeproductconstitutesamajorproportionofthetotaldomesticproductionoftheproduct.7Inturn,theTariffActdefinesdomesticlikeproductasaproductwhichislike,orintheabsenceoflike,mostsimilarincharacteristicsanduseswith,thearticlesubjecttoaninvestigation.8

Thedecisionregardingtheappropriatedomesticlikeproductinaninvestigationisafactualdetermination,andtheCommissionhasappliedthestatutorystandardoflikeormostsimilarincharacteristicsandusesonacasebycasebasis.9Nosinglefactorisdispositive,andtheCommissionmayconsiderotherfactorsitdeemsrelevantbasedonthefactsofaparticularinvestigation.10TheCommissionlooksforcleardividinglinesamongpossiblelikeproductsanddisregardsminorvariations.11AlthoughtheCommissionmustaccept

5CRatVII3,VII10;PRatVII3,VII6.TheTurkishproducersestimateofcoverageislikely***.CRatVII10n.17;PRatVII6n.17.Theperiodofinvestigation(POI)fortheseinvestigationswasJanuary2011throughMarch2014,includingcalendaryears2011,2012,and2013,andinterimperiodsin2013and2014(JanuaryMarchforeachyear).

619U.S.C.1677(4)(A).719U.S.C.1677(4)(A).819U.S.C.1677(10).9See,e.g.,CleoInc.v.UnitedStates,501F.3d1291,1299(Fed.Cir.2007);NECCorp.v.

DepartmentofCommerce,36F.Supp.2d380,383(Ct.IntlTrade1998);NipponSteelCorp.v.UnitedStates,19CIT450,455(1995);TorringtonCo.v.UnitedStates,747F.Supp.744,749n.3(Ct.IntlTrade1990),affd,938F.2d1278(Fed.Cir.1991)(everylikeproductdeterminationmustbemadeontheparticularrecordatissueandtheuniquefactsofeachcase).TheCommissiongenerallyconsidersanumberoffactors,includingthefollowing:(1)physicalcharacteristicsanduses;(2)interchangeability;(3)channelsofdistribution;(4)customerandproducerperceptionsoftheproducts;(5)commonmanufacturingfacilities,productionprocesses,andproductionemployees;and,whereappropriate,(6)price.SeeNippon,19CITat455n.4;TimkenCo.v.UnitedStates,913F.Supp.580,584(Ct.IntlTrade1996).

10See,e.g.,S.Rep.No.96249at9091(1979).11Nippon,19CITat455;Torrington,747F.Supp.at74849;seealsoS.Rep.No.96249at9091

(Congresshasindicatedthatthelikeproductstandardshouldnotbeinterpretedinsuchanarrowfashionastopermitminordifferencesinphysicalcharacteristicsorusestoleadtotheconclusionthattheproductandarticlearenotlikeeachother,norshouldthedefinitionoflikeproductbe(Continued...)

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Commercesdeterminationastothescopeoftheimportedmerchandisethatissubsidizedorsoldatlessthanfairvalue,12theCommissiondetermineswhatdomesticproductisliketheimportedarticlesCommercehasidentified.13

B. ProductDescriptionCommercedefinedthescopeoftheimportedmerchandiseunderinvestigationas

follows:Themerchandise subject to these investigations is steel

concretereinforcingbar imported ineitherstraight lengthorcoilform (rebar) regardless of metallurgy, length, diameter, orgrade.Thesubjectmerchandise isclassifiable in theHarmonizedTariff Schedule of the United States (HTSUS) primarily underitemnumbers7213.10.0000,7214.20.0000,and7228.30.8010.

The subject merchandise may also enter under otherHTSUS numbers including 7215.90.1000, 7215.90.5000,7221.00.0015, 7221.00.0030, 7221.00.0045, 7222.11.0001,7222.11.0057, 7222.11.0059, 7222.30.0001, 7227.20.0080,7227.90.6085, 7228.20.1000, and 7228.60.6000. Specificallyexcludedareplain rounds (i.e.,nondeformedor smooth rebar).Also excluded from the scope is deformed steel wire meetingASTMA1064/A1064Mwithnobarmarkings(e.g.,millmark,size,orgrade)andwithoutbeingsubjecttoanelongationtest.HTSUSnumbers are provided for convenience and customs purposes;however, the written description of the scope remainsdispositive.14

(Continued)interpretedinsuchafashionastopreventconsiderationofanindustryadverselyaffectedbytheimportsunderconsideration.).

12See,e.g.,USEC,Inc.v.UnitedStates,34Fed.Appx.725,730(Fed.Cir.2002)(TheITCmaynotmodifytheclassorkindofimportedmerchandiseexaminedbyCommerce.);AlgomaSteelCorp.v.UnitedStates,688F.Supp.639,644(Ct.IntlTrade1988),affd,865F.3d240(Fed.Cir.),cert.denied,492U.S.919(1989).

13HosidenCorp.v.AdvancedDisplayMfrs.,85F.3d1561,1568(Fed.Cir.1996)(theCommissionmayfindasinglelikeproductcorrespondingtoseveraldifferentclassesorkindsdefinedbyCommerce);Cleo,501F.3dat1298n.1(Commerces{scope}findingdoesnotcontroltheCommissions{likeproduct}determination.);Torrington,747F.Supp.at74852(affirmingtheCommissionsdeterminationdefiningsixlikeproductsininvestigationsinwhichCommercefoundfiveclassesorkinds).

14SteelConcreteReinforcingBarfromMexico:FinalDeterminationofSalesatLessthanFairValueandFinalAffirmativeDeterminationofCriticalCircumstances,79Fed.Reg.54967(Sept.15,2014).Thenexttolastsentenceinthescopedefinition,regardingtheexclusionofcertaindeformedsteelwire(Continued...)

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Rebarisalongrolledsteelproductthatiscommonlyusedinconstructionprojectstoprovidestrengthtoconcrete.15RebarsoldintheU.S.marketisgenerallymanufacturedtoconformtothestandardsoftheAmericanSocietyforTestingandMaterialInternational(ASTM),whichspecifyforeachbarsizethenominalweight,nominaldimensionsanddeformationrequirements,aswellaschemicalcomposition,tensilestrength,yieldstrength(grade),andelongationtolerances.16Theconstructionindustryistheprincipalenduserofrebar,andusesitextensivelytoreinforceconcretestructures.17

Deformedsteelwireisacolddrawnwireproductusedforthereinforcementofconcrete,andisoftenusedtoproduceweldedwiremeshforconcretereinforcement.18UnderCommercesscopedefinition,deformedsteelwiremeetingASTMA1064/A1064M,notcontainingbarmarkings,andnotsubjecttoanelongationtest,isexcludedfromthescope.Bycontrast,deformedsteelwirethatmeetsASTMA1064/A1064M,containsbarmarkings,and/orissubjecttoanelongationtest,isnotexcludedandiswithinthescope.Accordingtopetitioner,deformedsteelwirethatmeetsASTMA1064/A1064M,containsbarmarkings,andissubjecttoanelongationtestcanbeusedasrebar,butifitdoesnotmeetallthreecriteria,itcannotbeusedasrebar.19Deacero***.20Accordingly,***.

WhilethereissomeU.S.productionofdeformedsteelwire,therecorddoesnotindicateanyreportedU.S.productionofdeformedsteelwiremeetingASTMA1064/A1064M,containingbarmarkings,andsubjecttoanelongationtest***.21

C. ArgumentsofthePartiesPetitionersArguments.PetitionerarguesthattheCommissionshouldfindasingle

domesticlikeproductthatiscoextensivewiththescopeoftheseinvestigations,includingdeformedsteelwirewithinthescopedefinition.22

RespondentsArguments.DeaceroarguesthattheCommissionshouldfindthatdeformedsteelwireisaseparatelikeproductfromrebar,arguing,interalia,thatdeformed(Continued)fromthescope,wasanamendmentfirstincludedinCommercesfinaldeterminationonSeptember15,2014.Id.Previously,inApril2014,CommercehadpreliminarilydeterminedthattwoparticulardeformedsteelwireproductsproducedbyDeacerowerewithinthescope.SeeMemorandumfromJamesDoyletoPaulPiquadodatedApril18,2014,entitledScopeCommentsDecisionMemorandumforthePreliminaryDeterminationoftheLessThanFairValueInvestigationofSteelConcreteReinforcingBarfromMexico(includedasAttachment3toMay28,2014submissionbyDeacerototheCommission)(EDISDocumentNo.534642)(April18,2014CommerceDecisionMemo).

15CRatI15;PRatI11.16CRatI16;PRatI12.17CRatI15;PRatI11.18CRatI18toI19;PRatI13toI14.19PetitionersPosthearingBrief,Exh.1at5051.20SeeCR/PRatTableIV2n.1.21CRatI24toI25;PRatI17;PetitionersPosthearingBrief,Exh.1at5152.22PetitionersPosthearingBrief,Exh.1at5254.

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steelwirehasdifferentphysicalcharacteristicsfromrebarandismanufacturedthroughadifferentprocess.23Deacerostatesthatitisunclearwhetherthereisanydomesticproductionofdeformedsteelwirecorrespondingtothesubjectimportsofdeformedsteelwire,butarguesthattheCommissionshouldfindaseparatelikeproductevenifthereisnosuchdomesticproduction.24TurkishRespondentshavenotobjectedtothedefinitionofthelikeproductfromthepreliminarydeterminations,buthavenototherwisecommented.25

D. DomesticLikeProductAnalysisInthepreliminarydeterminations,theCommissionfoundtherewasnocleardividing

linebetweendifferenttypesofrebar,anddefinedasingledomesticlikeproductconsistingofrebar,whethercoiledorstraightlength,thatwascoextensivewiththescopeoftheinvestigations.26Aspreviouslydiscussed,CommercehasmodifiedthescopeofinvestigationsincetheCommissionissueditspreliminarydeterminations.

Inthefinalphaseoftheseinvestigations,weconsiderDeacerosargument,madewithrespecttothemodifiedscopedefinition,thattheCommissionshouldconsiderrebaranddeformedsteelwirewithinthescopeasseparatedomesticlikeproducts.27Deacerodoesnotindicatethatitsproposeddeformedsteelwiredomesticlikeproductwouldencompassdomesticallyproducedarticlesoutsidethescopedefinition,andwedonotconstrueitinthatmanner.Forpurposesofourdiscussionbelow,weassumearguendothatthereisorcouldbedomesticproductionofthosedeformedsteelwireproductswithinthescope,althoughtherecorddoesnotindicatethatthereisanysuchproduction.28Basedontherecord,wedefineasingledomesticlikeproductthatiscoextensivewiththescope.

Inouranalysisbelow,weexaminedomesticallyproducedarticlesthatarelikethearticlesdescribedinthescope,usingtheCommissionsusualsixfactoranalysistoguidetheinquiry.29Thearticlesdescribedinthescopeincluderebar(importedineitherstraightlength

23DeacerosPrehearingBriefat310;DeacerosPosthearingBrief,AnswerstoCommissionerQuestionsat5960.Deacerosargumentisnotentirelyclear,inthatitrepeatedlyusesnonscopedeformedsteelwiretomean,readincontext,importeddeformedsteelwirethatisnotwithintheexclusiontothescope,andthusissubjectmerchandise(andanycorrespondingdomesticproduction).SeeDeacerosPosthearingBrief,AnswerstoCommissionerQuestionsat5960.

24DeacerosPosthearingBrief,AnswerstoCommissionerQuestionsat5960.25TurkishRespondentsPrehearingBriefat16.26SteelConcreteReinforcingBarfromMexicoandTurkey,Inv.Nos.701TA502and731TA

12271228(Preliminary),USITCPub.4432(Nov.2013)at47.27SeeDeacerosPrehearingBriefat310;DeacerosPosthearingBrief,AnswerstoCommissioner

Questionsat5960.28SeeCRatI24toI25,PRatI17;PetitionersPosthearingBrief,ex.1at52.TheCommissions

practiceinoriginalinvestigationsisnottodefineadomesticlikeproductthatisnotproduceddomestically.See,e.g.,GrainOrientedElectricalSteelfromGermany,Japan,andPoland,Inv.Nos.731TA1233,1234,and1236(Final),USITCPub.4491at10&n.49(Sept.2014).

29See19U.S.C.1677(10)(thedomesticlikeproductisaproductwhichislike,orintheabsenceoflike,mostsimilarincharacteristicsanduseswith,thearticlesubjecttoaninvestigationunderthistitle);Cleo,501F.3dat1295.

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orcoilform,butnotincludingplainrounds)anddeformedsteelwiremeetingASTMA1064/A1064M,containingbarmarkings,and/orbeingsubjecttoanelongationtest.

PhysicalCharacteristicsandUses.Aprincipalcharacteristicofthearticlesincludedwithinthescopedefinitionisthattheycanbeusedforconstructionapplications,inparticularthereinforcementofconcrete.Thisisacharacteristicofrebar.Therecordindicatesthatthisisalsotrueofthespecifieddeformedsteelwirewithinthescope.30

ChannelsofDistribution.Theinformationsuppliedbypetitionersuggeststhatinscopedeformedsteelwirewhenusedforrebarwilllikelybesoldinthesamechannelsofdistributionasthoseforrebar.31Domesticallyproducedrebarissoldtodistributors,endusers,andfirmsthatarebothdistributorsandendusers.32Over***percentofsubjectimportsfromMexicoineachyearofthePOIwerereportedtobesoldtofirmsthatwerestrictlydistributors.33

Interchangeability.InscopedeformedsteelwiremeetingASTMA1064/A1064M,containingbarmarkings,andsubjecttoanelongationtest,canbeusedinterchangeablywithrebarinanumberofconstructionapplications.34CommercespreliminarydecisionmemorandumnotedthatDeacerohadstatedthatitsdeformedsteelwireproductsinquestioncouldbeusedassubstitutesforrebar.35

ManufacturingFacilities,ProductionProcesses,andEmployees.Therecordindicatesthatdeformedsteelwireisusuallyproducedondifferentequipmentthanrebarwithadifferentprocess,inthatrebarishotrolled,whiledeformedsteelwireiscolddrawn.36Petitionerstatesthatinscopedeformedsteelwirecanbemanufacturedinthesamefacilitieswithrebarusingthesameemployees,andthatNucorcouldproducebothproductsinitsConnecticutfacilityusingthesameequipment,althoughitdoesnotcurrentlyproduceinscopedeformedsteelwire.37

ProducerandCustomerPerceptions.ThelimitedrecordindicatesthatbothU.S.producersandU.S.purchasersperceivethatinscopedeformedsteelwireandrebarcanbeusedassubstitutesforeachotherundercertaincircumstances(e.g.,inconcretereinforcementapplications).38Inaddition,petitionerstatesthatDeaceromarketsitsinscopedeformedsteelwireasrebar,usingaSpanishword,Varilla,whichisunderstoodinthesteelindustrytomeanrebar.39

30PetitionersPosthearingBrief,Exh.1at5051;seeApril18,2014CommerceDecisionMemoat

2.31PetitionersPosthearingBrief,Exh.1at53.32CR/PRatTableII1.33CR/PRatTableII1.***.34PetitionersPosthearingBrief,Exh.1at53;seeCRatD7toD9;PRatD4.35April18,2014CommerceDecisionMemoat2.36CRatD5toD6;PRatD3toD4.37PetitionersPosthearingBrief,Exh.1at53.38CRatD10toD12;PRatD4toD5.39PetitionersPosthearingBrief,Exh.1at53andExh.9;seeApril18,2014CommerceDecision

Memoat2;seeEDISDocumentNo.543610(Deaceromarketingbrochure).

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Price.BothPetitionerandDeaceroagreethatdeformedsteelwirecanbemoreexpensivetoproducethanrebar,althoughtheydifferastohowmuchmore.40

Conclusion.Basedontheinformationavailable,wefindthatdomesticallyproducedrebarislikethesubjectmerchandise.Therecordfurtherindicatesthatdomesticallyproduceddeformedsteelwirewithinthescope,totheextentsuchaproductexists,wouldbelikeboththesubjectmerchandiseanddomesticallyproducedrebar,givensimilaritiesincharacteristicsandenduses,aswellasintermsofchannelsofdistribution,interchangeability,andcustomerandproducerperceptions.Consequently,wedefineasingledomesticlikeproductthatiscoextensivewiththescopeoftheseinvestigations.

DomesticIndustryIII.

Thedomesticindustryisdefinedasthedomesticproducersasawholeofadomesticlikeproduct,orthoseproducerswhosecollectiveoutputofadomesticlikeproductconstitutesamajorproportionofthetotaldomesticproductionoftheproduct.41Indefiningthedomesticindustry,theCommissionsgeneralpracticehasbeentoincludeintheindustryproducersofalldomesticproductionofthelikeproduct,whethertollproduced,captivelyconsumed,orsoldinthedomesticmerchantmarket.

Wemustdeterminewhetheranyproducerofthedomesticlikeproductshouldbeexcludedfromthedomesticindustrypursuanttosection771(4)(B)oftheTariffAct.42ThisprovisionallowstheCommission,ifappropriatecircumstancesexist,toexcludefromthedomesticindustryproducersthatarerelatedtoanexporterorimporterofsubjectmerchandiseorwhicharethemselvesimporters.43ExclusionofsuchaproduceriswithintheCommissionsdiscretionbaseduponthefactspresentedineachinvestigation.44

Wefirstidentifywhichdomesticproducersmaybesubjecttoexclusionpursuanttothestatutoryrelatedpartiesprovision.OneU.S.producer,***,directlyimportedsubject

40SeeCRatD15;PRatD5toD6.4119U.S.C.1677(4)(A).4219U.S.C.1677(4)(B).43SeeTorringtonCo.v.UnitedStates,790F.Supp.1161,1168(Ct.IntlTrade1992),affd

withoutopinion,991F.2d809(Fed.Cir.1993);SandvikABv.UnitedStates,721F.Supp.1322,133132(Ct.IntlTrade1989),affdmem.,904F.2d46(Fed.Cir.1990);EmpirePlowCo.v.UnitedStates,675F.Supp.1348,1352(Ct.IntlTrade1987).

44TheprimaryfactorstheCommissionhasexaminedindecidingwhetherappropriatecircumstancesexisttoexcludearelatedpartyincludethefollowing:

(1)thepercentageofdomesticproductionattributabletotheimportingproducer;(2)thereasontheU.S.producerhasdecidedtoimporttheproductsubjecttoinvestigation,i.e.,

whetherthefirmbenefitsfromtheLTFVsalesorsubsidiesorwhetherthefirmmustimportinordertoenableittocontinueproductionandcompeteintheU.S.market;and

(3)thepositionoftherelatedproducervisvistherestoftheindustry,i.e.,whetherinclusionorexclusionoftherelatedpartywillskewthedatafortherestoftheindustry.See,e.g.,TorringtonCo.v.UnitedStates,790F.Supp.at1168.

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merchandisefrombothMexicoandTurkeyduringthePOI,45andisthereforearelatedpartyunder19U.S.C.1677(4)(B)(i).TwoU.S.rebarproducershavecorporateaffiliationswithMexicanrebarproducers.U.S.producerArcelorMittalUSAandsubjectproducerandexporterArcelorMittalLasTruchasarebothsubsidiariesofthesamecorporateparent,ArcelorMittalS.A.(Luxembourg).46Therefore,ArcelorMittalUSAisarelatedpartyunder19U.S.C.1677(4)(B)(ii)(III).U.S.producerGerdauisaffiliatedwithsubjectproducerSidertulSAdeCV(Sidertul),47whichproducesrebar(***).48SinceGerdau***andSidertul***subjectmerchandiseduringthePOI,Gerdauisnotarelatedparty.

Wenextdiscusswhetherthereareappropriatecircumstancestoexcludeeither***orArcelorMittalUSAfromthedomesticindustry.

***.***statedthat***.49***imported***shorttonsofsubjectmerchandisein2011,***shorttonsin2012,***shorttonsin2013,***shorttonsinJanuaryMarch(interim)2013,and***shorttonsininterim2014.50Bycontrast,***domesticproductionwas***shorttonsin2011,***shorttonsin2012,***shorttonsin2013,***shorttonsininterim2013,and***shorttonsininterim2014.51Theratioof***importsofsubjectmerchandisetoitsdomesticproductionwas***percentin2011,***percentin2012,***percentin2013,***percentininterim2013,and***percentininterim2014.

***isamemberofRTAC,whichbroughtthepetition.Itwasthe***U.S.producerofrebarin2013,accountingfor***percentofdomesticproduction.52***ratioofoperatingincometonetsaleswas***thantheindustryaverage***.53Nevertheless,thisfinancialperformance***ofsubjectimports.54

Inlightofits***domesticproductionthanimportationofsubjectmerchandise,***primaryinterestclearlyappearstobeindomesticproductionandnotintheimportationofsubjectmerchandise.Accordingly,wefindthatappropriatecircumstancesdonotexisttoexcludethisfirmfromthedomesticindustry.

45CR/PRatTableIII10;CRatIII14;PRatIII9.46CR/PRatTableIII1andn.1;ArcelorMittalUSAquestionnaireresponse(EDISDocumentNo.

538183).47U.S.producerGerdauAmeristeelUSInc.isownedbyGerdauAmeristeelCorp.(Canada),

whichisinturnownedbyGerdauS.A.(Brazil),whichhasasubsidiaryinMexico,Sidertul.CR/PRatTableIII1n.3.

48CRatVII7n.13;PRatVII5n.13.49***.50CR/PRatTableIII10.51***.52CR/PRatTableIII1.53CR/PRatTableVI2.54Ashehasdoneinotherinvestigations,ViceChairmanPinkerthasnotrelieduponrelated

partiesfinancialperformanceontheirU.S.manufacturingoperationsasafactorindeterminingwhetherthereareappropriatecircumstancestoexcludethemfromthedomesticindustryandhasinsteadreliedontheotherinformationsetforthinthetext.

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ArcelorMittalU.S.A.ArcelorMittalLasTruchasexported***shorttonsofrebartotheUnitedStatesin***,but***totheUnitedStatesin***,***and***.55ArcelorMittalLasTruchassshareoftotalMexicanrebarexportstotheUnitedStateswasapproximately***percentin***and***percentin***,***and***.56

ArcelorMittalUSA***thepetition.57ArcelorMittalUSAproduced***shorttonsofrebarin***,***shorttonsin***,***shorttonsin***,***shorttonsin***,and***shorttonsin***.58ItsshareofU.S.productionwas***percentin***.59ArcelorMittalsratioofoperatingincometonetsaleswas***thantheindustryaveragein***.60

BecausetherecordindicatesthatArcelorMittalUSAsdomesticproductionis***theexportsofArcelorMittalLasTruchas,itsprincipalinterestappearstobeindomesticproduction.Moreover,***financialbenefitfromitsaffiliationwithArcelorMittalLasTruchas.Accordingly,wefindthatappropriatecircumstancesdonotexisttoexcludeitfromthedomesticindustry.

Inlightofourdomesticlikeproductdefinition,wedefinethedomesticindustrytoincludealldomesticproducersofthedomesticlikeproduct.

Cumulation61IV.Forpurposesofevaluatingthevolumeandpriceeffectsforadeterminationofmaterial

injurybyreasonofsubjectimports,section771(7)(G)(i)oftheTariffActrequirestheCommissiontocumulatesubjectimportsfromallcountriesastowhichpetitionswerefiledand/orinvestigationsselfinitiatedbyCommerceonthesameday,ifsuchimportscompetewitheachotherandwiththedomesticlikeproductintheU.S.market.Inassessingwhether

55CRatVII7n.13;PRatVII5n.13.56CR/PRatTableVII1.57CR/PRatTableIII1.58***(EDISDocumentNo.538183).59CR/PRatTableIII1.60CR/PRatTableVI2.61PursuanttoSection771(24)oftheTariffAct,importsfromasubjectcountryofmerchandise

correspondingtoadomesticlikeproductthataccountforlessthan3percentofallsuchmerchandiseimportedintotheUnitedStatesduringthemostrecent12monthsforwhichdataareavailableprecedingthefilingofthepetitionshallbedeemednegligible.19U.S.C.1671b(a),1673b(a),1677(24)(A)(i),1677(24)(B);seealso15C.F.R.2013.1(developingcountriesforpurposesof19U.S.C.1677(36)).Negligibilityisnotanissueintheseinvestigations.Basedonofficialimportstatisticsand***,subjectimportsfromMexicoandTurkeyexceededtherequisitestatutorynegligibilitythresholdforthemostrecent12monthperiodprecedingthefilingofthepetitionforwhichdataareavailable.SubjectimportsfromMexicoaccountedfor30.3percentoftotalU.S.rebarimportsbyquantityduringtheperiodSeptember2012August2013,themostrecent12monthperiodpriortothefilingofthepetitiononSeptember4,2013.ImportsfromsubjectproducersandexportersfromTurkeyaccountedfor***percentoftotalU.S.rebarimportsbyquantityduringtheperiodSeptember2012August2013.CRatIV11;PRatIV9.

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subjectimportscompetewitheachotherandwiththedomesticlikeproduct,theCommissiongenerallyhasconsideredfourfactors:

(1) the degree of fungibility between subject imports from differentcountries and between subject imports and the domestic like product,including consideration of specific customer requirements and otherqualityrelatedquestions;

(2) thepresenceofsalesorofferstosellinthesamegeographicmarketsofsubjectimportsfromdifferentcountriesandthedomesticlikeproduct;

(3) theexistenceofcommonor similarchannelsofdistribution for subjectimportsfromdifferentcountriesandthedomesticlikeproduct;and

(4) whetherthesubjectimportsaresimultaneouslypresentinthemarket.62

Whilenosinglefactorisnecessarilydeterminative,andthelistoffactorsisnotexclusive,thesefactorsareintendedtoprovidetheCommissionwithaframeworkfordeterminingwhetherthesubjectimportscompetewitheachotherandwiththedomesticlikeproduct.63Onlyareasonableoverlapofcompetitionisrequired.64

ThethresholdrequirementforcumulationissatisfiedbecausePetitionerfiledtheantidumpingpetitiononimportsfromMexicoandthecountervailingdutypetitiononimportsfromTurkeyonthesameday,September4,2013.65PetitionerarguesthattheCommissionshouldcumulatesubjectimportsforitspresentmaterialinjuryanalysis,becauseallofthefactorsthattheCommissionexaminesinassessingtheexistenceofareasonableoverlapofcompetitionaresatisfied.66DeaceroarguesthatneithertheWorldTradeOrganization(WTO)AntidumpingAgreementnortheWTOAgreementonSubsidiesandCountervailingMeasures(SCM)permitscrosscumulationofdumpedimportsfromMexicowithsubsidizedimportsfrom

62SeeCertainCastIronPipeFittingsfromBrazil,theRepublicofKorea,andTaiwan,Inv.Nos.

731TA278280(Final),USITCPub.1845(May1986),affd,FundicaoTupy,S.A.v.UnitedStates,678F.Supp.898(Ct.IntlTrade),affd,859F.2d915(Fed.Cir.1988).

63See,e.g.,WielandWerke,AGv.UnitedStates,718F.Supp.50(Ct.IntlTrade1989).64TheStatementofAdministrativeAction(SAA)totheUruguayRoundAgreementsAct(URAA),

expresslystatesthatthenewsectionwillnotaffectcurrentCommissionpracticeunderwhichthestatutoryrequirementissatisfiedifthereisareasonableoverlapofcompetition.H.R.Rep.No.103316,Vol.Iat848(1994)(citingFundicaoTupy,S.A.v.UnitedStates,678F.Supp.at902;seeGossGraphicSys.,Inc.v.UnitedStates,33F.Supp.2d1082,1087(Ct.IntlTrade1998)(cumulationdoesnotrequiretwoproductstobehighlyfungible);WielandWerke,AG,718F.Supp.at52(Completelyoverlappingmarketsarenotrequired.).

65CRatI1;PRatI1.Noneofthestatutoryexceptionstocumulationapplies.66PetitionersPrehearingBriefat31andExh.1at16;PetitionersPosthearingBriefat23and

Exh.1at13(responsetoViceChairmanPinkertandCommissionerKieff).

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Turkey.67Deacerodoesnotargue,however,thatthereisnoreasonableoverlapofcompetitionforcumulationpurposes.TurkishRespondentsdonotaddresscumulationforpurposesofapresentinjuryanalysis.

WithrespecttoDeacerosargument,theCommissionslongstandingpracticeofcrosscumulatingimportssubjecttoCommercesaffirmativesubsidydeterminationswithimportssubjecttoCommercesaffirmativedumpingdeterminations,whentheconditionsforcumulationareotherwisemet,isconsistentwithU.S.law.68WerecognizethataWTOdisputeresolutionpanelrecentlyfoundthispracticetobeinconsistentwithArticle15oftheSCMAgreement,andwenotethatthispanelreporthasnotbeenadoptedbytheWTODisputeSettlementBodyandthattheUnitedStateshasappealedthepanelreport.69

Asdiscussedbelow,thereappearstobeareasonableoverlapofcompetitionbetweensubjectimportsfromMexicoandTurkey,andbetweensubjectimportsfromeachsourceandthedomesticlikeproduct.

Fungibility.AlmostallrespondingU.S.producersreportedthatU.S.producedrebarwasalwaysinterchangeablewithsubjectimportsfromMexicoandsubjectimportsfromTurkey,andthatsubjectimportsfromMexicowerelikewisealwaysinterchangeablewithsubjectimportsfromTurkey.70Similarly,thevastmajorityofrespondingU.S.purchasersreportedthatU.S.producedrebarwasalwaysorfrequentlyinterchangeablewithsubjectimportsfromMexicoandsubjectimportsfromTurkey,andthatsubjectimportsfromMexicowerelikewisealwaysorfrequentlyinterchangeablewithsubjectimportsfromTurkey.71Inaddition,asubstantialmajorityofrespondingU.S.importersreportedthatU.S.producedrebarwasalwaysorfrequentlyinterchangeablewithsubjectimportsfromMexicoandsubjectimportsfrom

67DeacerosPosthearingBrief,AnswerstoCommissionerQuestions,at4044(responsetoCommissionerKieffandViceChairmanPinkert).

6819U.S.C.1677(7)(G).E.g.,CircularWeldedCarbonQualitySteelPipefromIndia,Oman,theUnitedArabEmirates,andVietnam,Inv.Nos.701TA482484and731TA11911194(Final),USITCPub.4362at12n.59(Dec.2012);SoftwoodLumberfromCanada,Inv.Nos.701TA414and731TA928(Final),USITCPub.3509at2931(May2009);Bingham&Taylorv.UnitedStates,815F.2d1482(Fed.Cir.1987).

69www.wto.org/english/tratop_e/dispu_e/cases_e/ds436_e.htm.70CR/PRatTableII14.EightofninerespondingU.S.producersreportedthatdomestically

producedrebarwasalwaysinterchangeablewithsubjectimportsfromMexicoandsubjectimportsfromTurkey.SixofsevenrespondingU.S.producersreportedthatsubjectimportsfromMexicowerealwaysinterchangeablewithsubjectimportsfromTurkey.Id.

71CR/PRatTableII14.Sixof18respondingU.S.purchasersreportedthatdomesticallyproducedrebarwasalwaysinterchangeablewithsubjectimportsfromMexicoandtenpurchasersreportedthatdomesticallyproducedrebarwasfrequentlyinterchangeablewithsubjectimportsfromMexico.Sixof18respondingU.S.purchasersreportedthatdomesticallyproducedrebarwasalwaysinterchangeablewithsubjectimportsfromTurkeyandninepurchasersreportedthatdomesticallyproducedrebarwasfrequentlyinterchangeablewithsubjectimportsfromTurkey.Elevenof17respondingU.S.purchasersreportedthatsubjectimportsfromMexicowerealwaysinterchangeablewithsubjectimportsfromTurkey,andfiveU.S.purchasersreportedthatsubjectimportsfromMexicowerefrequentlyinterchangeablewithsubjectimportsfromTurkey.Id.

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Turkey,andalmostallrespondingU.S.importersreportedthatsubjectimportsfromMexicowerealwaysorfrequentlyinterchangeablewithsubjectimportsfromTurkey.72

ThereisalsoanoverlapbetweendomesticallyproducedrebarandsubjectimportsfromMexicoandTurkeywithrespecttolengths,sizes,andgradesoffered.73AmajorityofpurchasersreportedthatdomesticallyproducedrebarandsubjectimportsfromMexicowerecomparablein13of14nonpricefactors,thatdomesticallyproducedrebarandsubjectimportsfromTurkeywerecomparablein9of14nonpricefactors,andthatsubjectimportsfromMexicoandTurkeywerecomparablein14of14nonpricefactors.74Accordingly,therecordindicatesfungibilitybetweenandamongthedomesticlikeproduct,subjectimportsfromMexico,andsubjectimportsfromTurkey.

ChannelsofDistribution.AlargemajorityofU.S.importersU.S.shipmentsofsubjectrebarfromTurkeyduringthePOIwenttofirmsthatwerestrictlydistributorsduring20112013.75Similarly,alargemajorityofU.S.importersU.S.shipmentsofrebarfromMexicolikewisewenttofirmsthatwerestrictlydistributorsduringeachyearofthePOI.76U.S.producersreportedU.S.shipmentsduringthePOIprimarilywenttofirmsthatwereendusers(includingfirmsthatwerebothdistributorsandendusers).77Therecordindicatesthatduringeachyearfrom2011to2013,appreciablepercentagesofthedomesticlikeproduct,subjectimportsfromMexico,andsubjectimportsfromTurkeyweresoldtodistributors.

72CR/PRatTableII14.Fiveof13respondingU.S.importersreportedthatdomesticallyproducedrebarwasalwaysinterchangeablewithsubjectimportsfromMexico,andfourimportersreportedthatthatdomesticallyproducedrebarwasfrequentlyinterchangeablewithsubjectimportsfromMexico.Sixof17respondingU.S.importersreportedthatdomesticallyproducedrebarwasalwaysinterchangeablewithsubjectimportsfromTurkey,andfourimportersreportedthatdomesticallyproducedrebarwasfrequentlyinterchangeablewithsubjectimportsfromTurkey.SixoftenrespondingU.S.importersreportedthatsubjectimportsfromMexicowerealwaysinterchangeablewithsubjectimportsfromTurkey,andthreeimportersreportedthatsubjectimportsfromMexicowerefrequentlyinterchangeablewithsubjectimportsfromTurkey.Id.

73CR/PRatTablesIV5toIV7.74CR/PRatTableII12.Majoritiesofpurchasersfoundthedomesticproductsuperiortosubject

importsfromMexicoandTurkeyintermsofdeliverytime,andpluralitiesormajoritiesofpurchasersadditionallyfoundthedomesticproductsuperiortosubjectimportsfromTurkeyintermsofavailability,deliveryterms,andreliabilityofsupply.Id.

75ThepercentageofU.S.importersU.S.shipmentsofsubjectrebarfromTurkeythatwenttofirmsthatwerestrictlydistributorswas***percentin2011,***percentin2012,and***percentin2013.CR/PRatTableII1.

76ThepercentageofU.S.importersU.S.shipmentsofsubjectrebarfromMexicothatwenttofirmsthatwerestrictlydistributorswas***percentin2011,***percentin2012,and***percentin2013.CR/PRatTableII1.AsthenotestoTablesII1throughII3indicate,***.

77During20112013,thepercentageofU.S.producersU.S.shipmentsofrebartofirmsthatthatwenttofirmsthatwerestrictlydistributorsrangedbetweenalowof18.7percentin2012andahighof19.7percentin2013,whilethepercentagethatwenttofirmsthatwerestrictlyendusersrangedbetweenalowof28.5percentin2013andahighof29.2percentin2012,andthepercentagethatwenttofirmsthatwerebothdistributorsandendusersrangedbetweenalowof51.8percentin2013toahighof52.2percentin2012.CR/PRatTableII1.

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GeographicOverlap.U.S.producersreportedsellingrebarinallregionsofthecontiguousUnitedStates.78ImportersofrebarfromMexicoreportedservingallgeographicareasoftheUnitedStatesexcepttheNortheast,whileimportersofrebarfromTurkeyreportedservingallgeographicareasexcepttheMountainandPacificCoastregions.79QuestionnairedataindicatethatU.S.producers,subjectimportsfromMexico,andsubjectimportsfromTurkeyallservedtheMidwest,Southeast,andCentralSouthwestgeographicalmarketareasintheUnitedStates.80Thus,thereissubstantialgeographicoverlapbetweenandamongsubjectimportsandthedomesticlikeproduct.

SimultaneousPresenceinMarket.SubjectimportsfromMexicowerepresentintheU.S.marketinall39monthsduringthePOI,whilesubjectimportsfromTurkeywerepresentin***of39monthsduringthePOI.81ThedomesticlikeproductwaspresentintheU.S.marketthroughoutthePOI.82

Conclusion.Therecordindicatesthatthereisareasonableoverlapofcompetitionbetweenandamongsubjectimportsandthedomesticlikeproduct.Accordingly,wecumulatesubjectimportsfromMexicoandTurkeyforouranalysisofwhetherthereismaterialinjurybyreasonofsubjectimports.

MaterialInjurybyReasonofSubjectImportsV.

Basedontherecordinthefinalphaseoftheseinvestigations,wefindthatanindustryintheUnitedStatesismateriallyinjuredbyreasonofimportsofrebarfromMexicothatCommercehasfoundtobesoldintheUnitedStatesatlessthanfairvalueandimportsfromTurkeythatCommercehasfoundtobesubsidized.

A. LegalStandardsInthefinalphaseofantidumpingandcountervailingdutyinvestigations,the

CommissiondetermineswhetheranindustryintheUnitedStatesismateriallyinjuredorthreatenedwithmaterialinjurybyreasonoftheimportsunderinvestigation.83Inmakingthisdetermination,theCommissionmustconsiderthevolumeofsubjectimports,theireffectonpricesforthedomesticlikeproduct,andtheirimpactondomesticproducersofthedomesticlikeproduct,butonlyinthecontextofU.S.productionoperations.84Thestatutedefinesmaterialinjuryasharmwhichisnotinconsequential,immaterial,orunimportant.85In

78CR/PRatTableII5;CRatII11;PRatII8.79CR/PRatTableII5.80CR/PRatTableII5.81CR/PRatTableIV8.82CR/PRatTablesV3throughV8.8319U.S.C.1671d(b),1673d(b).8419U.S.C.1677(7)(B).TheCommissionmayconsidersuchothereconomicfactorsasare

relevanttothedeterminationbutshallidentifyeach{such}factor...andexplaininfullitsrelevancetothedetermination.19U.S.C.1677(7)(B).

8519U.S.C.1677(7)(A).

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assessingwhetherthedomesticindustryismateriallyinjuredbyreasonofsubjectimports,weconsiderallrelevanteconomicfactorsthatbearonthestateoftheindustryintheUnitedStates.86Nosinglefactorisdispositive,andallrelevantfactorsareconsideredwithinthecontextofthebusinesscycleandconditionsofcompetitionthataredistinctivetotheaffectedindustry.87

AlthoughthestatuterequirestheCommissiontodeterminewhetherthedomesticindustryismateriallyinjuredorthreatenedwithmaterialinjurybyreasonofunfairlytradedimports,88itdoesnotdefinethephrasebyreasonof,indicatingthatthisaspectoftheinjuryanalysisislefttotheCommissionsreasonableexerciseofitsdiscretion.89Inidentifyingacausallink,ifany,betweensubjectimportsandmaterialinjurytothedomesticindustry,theCommissionexaminesthefactsofrecordthatrelatetothesignificanceofthevolumeandpriceeffectsofthesubjectimportsandanyimpactofthoseimportsontheconditionofthedomesticindustry.Thisevaluationunderthebyreasonofstandardmustensurethatsubjectimportsaremorethanaminimalortangentialcauseofinjuryandthatthereisasufficientcausal,notmerelyatemporal,nexusbetweensubjectimportsandmaterialinjury.90

Inmanyinvestigations,thereareothereconomicfactorsatwork,someorallofwhichmayalsobehavingadverseeffectsonthedomesticindustry.Sucheconomicfactorsmightincludenonsubjectimports;changesintechnology,demand,orconsumertastes;competitionamongdomesticproducers;ormanagementdecisionsbydomesticproducers.ThelegislativehistoryexplainsthattheCommissionmustexaminefactorsotherthansubjectimportstoensurethatitisnotattributinginjuryfromotherfactorstothesubjectimports,therebyinflatinganotherwisetangentialcauseofinjuryintoonethatsatisfiesthestatutorymaterialinjurythreshold.91Inperformingitsexamination,however,theCommissionneednotisolate

8619U.S.C.1677(7)(C)(iii).8719U.S.C.1677(7)(C)(iii).8819U.S.C.1671d(a),1673d(a).89AngusChemicalCo.v.UnitedStates,140F.3d1478,148485(Fed.Cir.1998)({T}hestatute

doesnotcompelthecommissionerstoemploy{aparticularmethodology}.),affg,944F.Supp.943,951(Ct.IntlTrade1996).

90TheFederalCircuit,inaddressingthecausationstandardofthestatute,observedthat{a}slongasitseffectsarenotmerelyincidental,tangential,ortrivial,theforeignproductsoldatlessthanfairvaluemeetsthecausationrequirement.NipponSteelCorp.v.USITC,345F.3d1379,1384(Fed.Cir.2003).ThiswasfurtherratifiedinMittalSteelPointLisasLtd.v.UnitedStates,542F.3d867,873(Fed.Cir.2008),wheretheFederalCircuit,quotingGeraldMetals,Inc.v.UnitedStates,132F.3d716,722(Fed.Cir.1997),statedthatthiscourtrequiresevidenceintherecordtoshowthattheharmoccurredbyreasonoftheLTFVimports,notbyreasonofaminimalortangentialcontributiontomaterialharmcausedbyLTFVgoods.SeealsoNipponSteelCorp.v.UnitedStates,458F.3d1345,1357(Fed.Cir.2006);TaiwanSemiconductorIndustryAssnv.USITC,266F.3d1339,1345(Fed.Cir.2001).

91SAAat85152({T}heCommissionmustexamineotherfactorstoensurethatitisnotattributinginjuryfromothersourcestothesubjectimports.);S.Rep.96249at75(1979)(theCommissionwillconsiderinformationwhichindicatesthatharmiscausedbyfactorsotherthanlessthanfairvalueimports.);H.R.Rep.96317at47(1979)(inexaminingtheoverallinjurybeingexperiencedbyadomesticindustry,theITCwilltakeintoaccountevidencepresentedtoitwhichdemonstratesthattheharmattributedbythepetitionertothesubsidizedordumpedimportsis(Continued...)

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theinjurycausedbyotherfactorsfrominjurycausedbyunfairlytradedimports.92Nordoesthebyreasonofstandardrequirethatunfairlytradedimportsbetheprincipalcauseofinjuryorcontemplatethatinjuryfromunfairlytradedimportsbeweighedagainstotherfactors,suchasnonsubjectimports,whichmaybecontributingtooverallinjurytoanindustry.93Itisclearthattheexistenceofinjurycausedbyotherfactorsdoesnotcompelanegativedetermination.94

AssessmentofwhethermaterialinjurytothedomesticindustryisbyreasonofsubjectimportsdoesnotrequiretheCommissiontoaddressthecausationissueinanyparticularwayaslongastheinjurytothedomesticindustrycanreasonablybeattributedtothesubjectimportsandtheCommissionensure{s}thatitisnotattributinginjuryfromothersourcestothesubjectimports.9596Indeed,theFederalCircuithasexaminedandaffirmedvariousCommissionmethodologiesandhasdisavowedrigidadherencetoaspecificformula.97(Continued)attributabletosuchotherfactors;thosefactorsincludethevolumeandpricesofnonsubsidizedimportsorimportssoldatfairvalue,contractionindemandorchangesinpatternsofconsumption,traderestrictivepracticesofandcompetitionbetweentheforeignanddomesticproducers,developmentsintechnologyandtheexportperformanceandproductivityofthedomesticindustry);accordMittalSteel,542F.3dat877.

92SAAat85152({T}heCommissionneednotisolatetheinjurycausedbyotherfactorsfrominjurycausedbyunfairimports.);TaiwanSemiconductorIndustryAssn,266F.3dat1345({T}heCommissionneednotisolatetheinjurycausedbyotherfactorsfrominjurycausedbyunfairimports....Rather,theCommissionmustexamineotherfactorstoensurethatitisnotattributinginjuryfromothersourcestothesubjectimports.(emphasisinoriginal));AsociaciondeProductoresdeSalmonyTruchadeChileAGv.UnitedStates,180F.Supp.2d1360,1375(Ct.IntlTrade2002)({t}heCommissionisnotrequiredtoisolatetheeffectsofsubjectimportsfromotherfactorscontributingtoinjuryormakebrightlinedistinctionsbetweentheeffectsofsubjectimportsandothercauses.);seealsoSoftwoodLumberfromCanada,Inv.Nos.701TA414and731TA928(Remand),USITCPub.3658at10001(Dec.2003)(Commissionrecognizedthat{i}fanallegedotherfactorisfoundnottohaveorthreatentohaveinjuriouseffectstothedomesticindustry,i.e.,itisnotanothercausalfactor,thenthereisnothingtofurtherexamineregardingattributiontoinjury),citingGeraldMetals,132F.3dat722(thestatutedoesnotsuggestthatanimporterofLTFVgoodscanescapecountervailingdutiesbyfindingsometangentialorminorcauseunrelatedtotheLTFVgoodsthatcontributedtotheharmfuleffectsondomesticmarketprices.).

93S.Rep.96249at7475;H.R.Rep.96317at47.94SeeNipponSteelCorp.,345F.3dat1381(anaffirmativematerialinjurydeterminationunder

thestatuterequiresnomorethanasubstantialfactorshowing.Thatis,thedumpingneednotbethesoleorprincipalcauseofinjury.).

95MittalSteel,542F.3dat87778;seealsoid.at873(WhiletheCommissionmaynotenteranaffirmativedeterminationunlessitfindsthatadomesticindustryismateriallyinjuredbyreasonofsubjectimports,theCommissionisnotrequiredtofollowasinglemethodologyformakingthatdetermination...{andhas}broaddiscretionwithrespecttoitschoiceofmethodology.)citingUnitedStatesSteelGroupv.UnitedStates,96F.3d1352,1362(Fed.Cir.1996)andS.Rep.96249at75.

96ViceChairmanPinkertdoesnotjointhisparagraphorthefollowingthreeparagraphs.HepointsoutthattheFederalCircuit,inBratsk,444F.3d1369,andMittalSteel,heldthattheCommissionisrequired,incertaincircumstanceswhenconsideringpresentmaterialinjury,toundertakeaparticular(Continued...)

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TheFederalCircuitsdecisionsinGeraldMetals,Bratsk,andMittalSteelallinvolvedcaseswheretherelevantotherfactorwasthepresenceinthemarketofsignificantvolumesofpricecompetitivenonsubjectimports.TheCommissioninterpretedtheFederalCircuitsguidanceinBratskasrequiringittoapplyaparticularadditionalmethodologyfollowingitsfindingofmaterialinjuryincasesinvolvingcommodityproductsandasignificantmarketpresenceofpricecompetitivenonsubjectimports.98Theadditionalreplacement/benefittestlookedatwhethernonsubjectimportsmighthavereplacedsubjectimportswithoutanybenefittotheU.S.industry.TheCommissionappliedthatspecificadditionaltestinsubsequentcases,includingtheCarbonandCertainAlloySteelWireRodfromTrinidadandTobagodeterminationthatunderliestheMittalSteellitigation.

MittalSteelclarifiesthattheCommissionsinterpretationofBratskwastoorigidandmakesclearthattheFederalCircuitdoesnotrequiretheCommissiontoapplyanadditionaltestnoranyonespecificmethodology;instead,thecourtrequirestheCommissiontohaveevidenceintherecordtoshowthattheharmoccurredbyreasonoftheLTFVimports,andrequiresthattheCommissionnotattributeinjuryfromnonsubjectimportsorotherfactorstosubjectimports.99Accordingly,wedonotconsiderourselvesrequiredtoapplythereplacement/benefittestthatwasincludedinCommissionopinionssubsequenttoBratsk.

TheprogressionofGeraldMetals,Bratsk,andMittalSteelclarifiesthat,incasesinvolvingcommodityproductswherepricecompetitivenonsubjectimportsareasignificantfactorintheU.S.market,theCourtwillrequiretheCommissiontogivefullconsideration,withadequateexplanation,tononattributionissueswhenitperformsitscausationanalysis.100(Continued)kindofanalysisofnonsubjectimports,albeitwithoutrelianceuponpresumptionsorrigidformulas.MittalSteelexplainsasfollows:

WhatBratskheldisthatwherecommodityproductsareatissueandfairlytraded,pricecompetitive,nonsubjectimportsareinthemarket,theCommissionwouldnotfulfillitsobligationtoconsideranimportantaspectoftheproblemifitfailedtoconsiderwhethernonsubjectornonLTFVimportswouldhavereplacedLTFVsubjectimportsduringtheperiodofinvestigationwithoutacontinuingbenefittothedomesticindustry.444F.3dat1369.Underthosecircumstances,BratskrequirestheCommissiontoconsiderwhetherreplacementoftheLTFVsubjectimportsmighthaveoccurredduringtheperiodofinvestigation,anditrequirestheCommissiontoprovideanexplanationofitsconclusionwithrespecttothatfactor.

542F.3dat878.97NucorCorp.v.UnitedStates,414F.3d1331,1336,1341(Fed.Cir.2005);seealsoMittalSteel,

542F.3dat879(BratskdidnotreadintotheantidumpingstatuteaProcrusteanformulafordeterminingwhetheradomesticinjurywasbyreasonofsubjectimports.).

98MittalSteel,542F.3dat87579.99MittalSteel,542F.3dat873(quotingfromGeraldMetals,132F.3dat722),87579&n.2

(recognizingtheCommissionsalternativeinterpretationofBratskasaremindertoconductanonattributionanalysis).

100Tothatend,aftertheFederalCircuitissueditsdecisioninBratsk,theCommissionbegantopresentpublishedinformationorsendoutinformationrequestsinfinalphaseinvestigationstoproducersinnonsubjectcountriesthataccountedforsubstantialsharesofU.S.importsofsubjectmerchandise(if,infact,therewerelargenonsubjectimportsuppliers).Inordertoprovideamore(Continued...)

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Thequestionofwhetherthematerialinjurythresholdforsubjectimportsissatisfiednotwithstandinganyinjuryfromotherfactorsisfactual,subjecttoreviewunderthesubstantialevidencestandard.101CongresshasdelegatedthisfactualfindingtotheCommissionbecauseoftheagencysinstitutionalexpertiseinresolvinginjuryissues.102

B. ConditionsofCompetitionandtheBusinessCycleThefollowingconditionsofcompetitioninformouranalysisofwhetherthereismaterial

injurybyreasonofsubjectimports.

1. DemandConditionsRebarisprimarilyusedbytheconstructionindustrytoreinforceconcretestructures,

andtheU.Smarketforrebaristiedcloselytoconstructionactivity.103U.S.demandforrebartypicallyfollowstrendsintheoverallU.S.economyinparticularfornonresidentialconstructionspending,and,toalesserextent,residentialconstructionspending.104Althoughnonresidentialconstructionaccountsforasignificantlylargershareoftotalconstructionspendingthanresidentialconstruction,spendingonresidentialconstructionincreasedtoagreaterdegreethanspendingonnonresidentialconstructionduringthePOI.105Sinceconstructionactivityisseasonal,andisatitslowestattheendofeachyearandthebeginningofthefollowingyear,demandforrebartendstobelowerinthefallandwinter,andcanbeaffectedbyweatherconditions,suchastheseverewinterofearly2014.106

Therearelimitedsubstitutesforrebar.107Rebargenerallyaccountsforasmallshareofthetotalcostoftheapplicationsinwhichitisused.108Assuch,changesinthepriceofrebarhavearelativelysmalleffectontotaldemandforrebar.109

(Continued)completerecordfortheCommissionscausationanalysis,theserequeststypicallyseekinformationoncapacity,production,andshipmentsoftheproductunderinvestigationinthemajorsourcecountriesthatexporttotheUnitedStates.TheCommissionplanstocontinueutilizingpublishedorrequestedinformationinfinalphaseinvestigationsinwhichtherearesubstantiallevelsofnonsubjectimports.

101Weprovideinourrespectivediscussionsofvolume,priceeffects,andimpactafullanalysisofotherfactorsallegedtohavecausedanymaterialinjuryexperiencedbythedomesticindustry.

102MittalSteel,542F.3dat873;NipponSteelCorp.,458F.3dat1350,citingU.S.SteelGroup,96F.3dat1357;S.Rep.96249at75(ThedeterminationoftheITCwithrespecttocausationis...complexanddifficult,andisamatterforthejudgmentoftheITC.).

103CRatI15,II1,II19;PRatI11;II1,II13;seeTranscriptofSeptember15,2014Hearing(HearingTr.)at49(Kerkvliet).

104CRatII19;PRatII13.105CR/PRatFigureII2.106CR/PRatFigureII3;CRatII19,II21;PRatII13toII14.107CRatII24toII25;PRatII17toII18.108CRatII25;PRatII18.109SeeCRatII46;PRatII31.

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Whilesomemanufacturedrebarisusedinconstructionapplicationswithnofurtherprocessing,alargeshareissoldtofabricatorsthatfurtherprocesstherebar,usingittocreateformsusedinconstruction.110ThethreelargestU.S.producers,CMC,Gerdau,andNucor,aswellasByer,ownpurchasingfirmsthatoperateasfabricatorsand/ordistributors.111Thesepurchasingfirmsobtainasignificantshareoftherebarforfabricationordistributionfromtheirparentcompaniesandtheremainderfromotherproducersandimportsuppliers.112

Therecord,however,showsthatasignificantnumberofpurchasers(41of66)boughtrebarfrombothU.S.producersandimportersofsubjectmerchandise.Moreover,13purchaserswerelistedbybothone(ormore)U.S.producerandone(ormore)importerasamongtheirtenlargestpurchasers.113

Bythesametoken,thequestionnairedatafrompurchasersindicatethatthedistributionchannelswerevariedandoverlapping.Somedistributorsarealsoendusers,someareaffiliatedwithdomesticproducers,andsomeareindependent.114Endusersreportedsellingto,interalia,variouscontractorsandsubcontractors,homebuilders,andthegeneralpublic.Distributorsreportedsellingto,interalia,fabricators,lumberyards,wholesalers,distributors,someendusers,andnationalhomeretailcenters.Independentend

110CRatII1;PRatII1.TheIndependentSteelAlliance(ISA),apurchasingcooperative,wascreatedin2013byindependentfabricatorsseekingtoincreasenegotiatingleveragewhenmakingpurchasesfromsteelsuppliers,toearnrebatesbasedonpurchasevolumes,andtorespondtothegrowthoffabricatorsaffiliatedwiththelargestU.S.producers.TheISAalsoprovidesitssuppliers(includingDeacero)withanavenuetoreachnewpurchasersandincreasesales.TheISAisstillrelativelynew,andquestionnaireresponsesfromU.S.producers,importersandpurchasersindicatethatithasthusfarhadlittleornoeffectonpriceorpurchaserpatterns.CRatV6toV8;PRatV5toV6;seeHearingTr.at58(Byer),216(Barzan).

111CRatII1;PRatII1.112CR/PRatTableII4;CRatII1;PRatII1;HearingTr.at40(Darsey);43(Alvarado).Thelargest

purchasersofrebarwere***.CRatII1;PRatII1.During2013,***percentofthecombinedrebarsalesofCMC,Gerdau,NucorandByerweretorelatedpurchasers.CR/PRatTablesVI1,VI2.

Thedomesticindustrysellstoindependentfabricatorsanddistributors,aswellastodomesticproducersaffiliates.CR/PRatTableII4;HearingTr.at39,82(Darsey);50(Kerkvliet).Deacerohaspresentedevidencefromanindependentpurchaserassertingthatthedomesticindustrywasunwillingorunabletomeetthispurchaserssupplyrequests.See,e.g.,DeacerosPosthearingBrief,AnswerstoCommissionerQuestionsat38(responsetoViceChairmanPinkertandCommissionerWilliamson);HearingTr.at162164(Bergren).Petitionerhaspresentedcontraryevidencethattherewerevariouscommercialconsiderationsaffectingsalesbydomesticproducerstothispurchaser.SeeHearingTr.at50(Kerkvliet);PetitionersPosthearingBrief,Exh.1at2226(responsetoChairmanBroadbentandViceChairmanPinkert),Exh.11(Declarationof***,andExh.15(Declarationof***.Wenotethatseveralindependentfabricatorsanddistributorsprovidedtestimonythattheyhadhistoricallybeenabletomeettheirsupplyneedsfromthedomesticindustry,althoughsomeofthesenotedthatthedomesticindustryhadrecentlybeenunabletomeetthelowerpriceofsubjectimportsinsomeinstances.HearingTr.at6061(Melvin);6264,87(Webb);6465(Crowe);8485(Byer).

113CRatII11;PRatII8.114SeeCR/PRatTableII4;CRatII9;PRatII7;HearingTr.at4445,144(Alvarado);97(Porter);

143(Kerkvliet).

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users/distributorsreportedsellingto,interalia,fabricators,contractors,lumberyards,buildingmaterialdealers,andotherdistributors.Relatedendusers/distributorsreportedsellingto,interalia,smallcontractors,locallumberyards,rebarfabricationcompanies,andotherdistributors.115Thesedatademonstratethatdistributorsofallkinds,aswellasdomesticproducers,selltofabricators.Thus,thereisnodistinctchannelofdistributionassociatedwithanymarketsegment;wefindthatthereisinsteadanoverlapamongvariousbroadcategories.116

MostrespondingU.Sproducers,importers,andpurchasersreportedthatU.S.demandforrebarhasincreasedsince2011.117ApparentU.S.consumptionincreasedfrom6.5millionshorttons2011to7.4millionshorttonsin2012,andthento7.7millionshorttonsin2013.118Overall,apparentU.S.consumptionwas18.2percenthigherin2013thanin2011.119

2. SupplyConditions

ThedomesticindustrysuppliedthepredominantshareoftheU.S.marketthroughoutthePOI.ItsshareofapparentU.S.consumptiondeclinedfrom90.0percentin2011to84.4percentin2013.120ThethreelargestU.S.producers,CMC,Gerdau,andNucor,accountedfor***percentoftotaldomesticproductionin2013.121Thedomesticindustryscapacityutilizationin2013was68.4percent.122

CumulatedsubjectimportsshareofapparentU.S.consumptionduringthePOIincreasedthroughoutthePOIfrom***percentin2011to***percentin2013.123Cumulatedsubjectimportsaccountedfor***percentofthequantityofallU.S.importsofrebarin2013.124DuringthePOI,volumesofsubjectimportsfromTurkeyweretypically***inthefirsthalfoftheyear.125

115CRatII9toII10;PRatII7.116SeeHearingTr.at39,82(Darsey);4445,144(Alvarado);6061(Melvin);63(Webb);84

(Byer);97(Porter);143(Kerkvliet).117CR/PRatTableII7.118CR/PRatTablesIV9,C1,C3.Apparentconsumptionwas1.8millionshorttonsininterim

2013and2.0millionshorttonsininterim2014.Id.119CR/PRatTableC1,C3.120ThedomesticindustrysshareofapparentU.S.consumptiondeclinedfrom90.0percentin

2011to86.7percentin2012andto84.4percentin2013,andwas80.5percentininterim2013and77.1percentininterim2014.CR/PRatTablesIV10,C1,C3.

121CR/PRatTableIII1.122CR/PRatTablesIII3,C1.123CumulatedsubjectimportsshareofapparentU.S.consumptionincreasedfrom***percent

in2011to***percentin2012andto***percentin2013,andwas***percentininterim2013and***percentininterim2014.CR/PRatTablesIV10,C1,C3.

124CRatIV2;PRatIV2.125During20112013,***percentoftotalsubjectimportsfromTurkeywereimportedduring

JanuarythroughJune.Bycontrast,importsduringJanuarythroughJuneaccountedfor46.4percentoftotalsubjectimportsfromMexicoduring20112013.SeeCR/PRatTableIV8.

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NonsubjectimportsshareofapparentU.S.consumptionincreasedfrom***percentin2011to***percentin2013.126ThelargestsourceofnonsubjectimportswasTurkishproducer/exporterHabas,whichaccountedfor***percentoftotalU.Simportsin2013.127OthersourcesofnonsubjectimportsduringthePOIincludedSpain,theDominicanRepublic,Japan,Korea,andPeru.128Importsofrebarfromsevennonsubjectcountriesarecurrentlysubjecttoantidumpingdutyorders,andwerethroughoutthePOI.ThesecountriesareBelarus,China,Indonesia,Latvia,Moldova,Poland,andUkraine.129

3. Substitutability

RebarsoldintheU.S.marketisgenerallymanufacturedtoconformtoASTMspecifications,andrebarofthesamegradeanddimensionisgenerallyinterchangeableandsubstitutableregardlessoforigin.130Aspreviouslydiscussed,almostallrespondingU.S.producersandpurchasersandmostrespondingU.S.importersreportedthatthedomesticlikeproduct,subjectimportsfromMexico,andsubjectimportsfromTurkeyarealwaysorfrequentlyinterchangeable.131

Purchasersrankedpriceasbyfarthemostimportantfactorthattheyconsiderintheirpurchasingdecisions,withall28respondingpurchaserslistingitasamongtheirthreemostimportantfactors,and20purchaserslistingitastheirmostimportantfactor.132Twentyfiveof28respondingpurchaserslistedpriceasaveryimportantfactorinpurchasingdecisions,andpriceandqualitymeetsindustrystandardswerethetwofactorslistedbythelargestnumberofpurchasersasveryimportant.133

Respondentshaveraisedanumberoffactorsthattheyclaimlimitsubstitutabilitybetweenthedomesticlikeproductandsubjectimports,includingdifferencesinlength,size,

126NonsubjectimportsasashareofapparentU.S.consumptionincreasedfrom***percentin

2011to***percentin2012,andthento***percentin2013.Theywere***percentininterim2013and***percentininterim2014.CR/PRatTablesIV10,C1,C3.

127CR/PRatTableIV2.BecauseimportsfromHabasreceiveddeminimisdumpingmarginsandsubsidyratesfromCommerce,forpurposesofthesefinaldeterminations,wetreatimportsfromHabasasnonsubjectimports.

128CRatIV3;PRatIV2.129CRatI7toI9;PRatI6toI7.SeegenerallySteelConcreteReinforcingBarfromBelarus,

China,Indonesia,Latvia,Moldova,Poland,andUkraine,Inv.Nos.731TA873874,878880and882(SecondReview),USITCPub.4409(July2013).

130CRat116,II26;PRatI12,II18;HearingTr.at38,82,8687,142(Darsey);42(Alvarado);47(Kerkvliet);62(Webb).

131CR/PRatTableII14.132CR/PRatTableII9.Theotherfactorsmostoftenrankedbypurchasersamongtheirtop

threefactorsinpurchasingdecisionswereavailability,quality,andcredit/paymentterms.Id.133CR/PRatTableII10.Theotherfactorsmostoftenlistedbypurchasersasveryimportant

wereavailability,deliverytime,reliabilityofsupply,andproductconsistency.Id.

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andgrade,affiliationsofU.S.producerswithdownstreamentitiesthatpurchaserebarfromtheirparent,andBuyAmerica(n)andotherdomesticpreferenceprograms.134

Wefindthatthereissignificantoverlapbetweenthedomesticlikeproductandsubjectimportsbylength,size,andgrade.135Subjectimportsareconcentratedprimarilyinlengthsof20feetupto40feet,and40feetupto60feet,anddomesticproducerscompeteheadtoheadwithsubjectimportsinthoselengthranges.Whilethedomesticindustryalsosupplieslengthsof60feetandabove,wheresubjectimportvolumeshavebeenmorelimited,therecordoverallindicatessignificantoverlapbyrebarlength.136Similarly,subjectimportsareconcentratedinrebarsizes3,4,5,and6,andU.S.producerscompeteheadtoheadwithsubjectimportsinthosesizes.Again,therecordindicatesthatsubjectimportvolumeshavebeensomewhatlowerforsizes7,8,9,10,and11,butthereremainscompetitionbetweensubjectimportsandthedomesticlikeproductinthoselargersizesaswell,againindicatingsignificantoveralloverlapbyrebarsize.137Subjectimportsareconcentratedingrades40and60,andU.S.producerscompeteheadtoheadwiththeminthosegrades.Subjectimportsalsocompetewiththedomesticlikeproductingrade75andother,althoughsubjectimportvolumesinthosegradesarerelativelysmall.Thus,thereissignificantoveralloverlapbyrebargrade.138

Therecordindicatesthat***,anddownstreamaffiliatedpurchasersreportedthat***.139However,therecordalsoindicatesthatdownstreamaffiliatesoftheprincipalU.S.producers***purchasenotonlyfromtheirparentcompanies,butalsofromnonaffiliatedsources,includingsubjectimports.140***,141indicatingthatsubjectimportswereabletocompetedirectlywiththedomesticlikeproductinthispartofthemarket.

BuyAmericapreferencesapplytotheprocurementofironandsteelproducts,includingrebar,forcertainFederalaidhighwayconstructionprograms,whileBuyAmericanpreferences

134DeacerosPosthearingBrief,AnswerstoCommissionerQuestionsat1025;TurkishRespondentsPrehearingBriefat1216;TurkishRespondentsPosthearingBriefat1314.RespondentsalsoarguethatlongerleadtimesforimportedproductareamajorfactorlimitingsubstitutabilityDeacerosPrehearingBriefat3031.Asnoted,therecordindicatesthatdeliverytimeisimportanttomanypurchasers,seeCR/PRatTableII10,butleadtimeswererankedbyveryfewpurchasers(onlyfourof28)asamongtheirthreemostimportantfactorsinmakingpurchasingdecisions.CR/PRatTableII9.TherecordindicatesthatleadtimesfromU.S.millsandMexicanmillsareshorterthanleadtimesforsubjectimportsfromTurkey,andthatleadtimesfrominventoriesaresomewhatlongerforsubjectproducersthanfordomesticproducers.CRatII26;PRatII18toII19.Thus,whilethereappeartobesomedifferencesinleadtimebetweenproductfromdifferentsources,therecorddoesnotindicatethatleadtimesplayamajorroleinpurchasingdecisions.

135SeeHearingTr.at44(Alvarado);61(Melvin).136CR/PRatTableIV5.137CR/PRatTableIV6.138CR/PRatTableIV7.139CRatII8;PRatII6;seePurchasersQuestionnaireresponsesofCMC(EDISDocumentNo.

538081);GastrichRebar(EDISDocumentNo.538077);Gerdau(EDISDocumentNo.538075);andHarrisSteelInc.&HarrisSupplySolutionsInc.(EDISDocumentNo.538079).

140CR/PRatTableII4;HearingTr.at40(Darsey);43(Alvarado).141CRatIII14andn.8;PRatIII9andn.8.

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applytoFederalGovernmentprocurementofcertaingoodsandservices.142BuyAmerica(n)requirementsmayimposelimitsonsubstitutability,butprojectssubjecttosuchpreferencesaccountforonlyalimitedportionofU.S.shipments,andtherecordshowsthatthepercentageofthemarketcoveredbypublicconstructionprojectswithBuyAmericanrequirementsdeclinedduringthePOIasfederalstimulusspendingdeclined.143

AnotherprogramthatrespondentsclaimprovidesapreferencetodomesticproducersisavoluntaryprogramunderwhichbuildingprojectsmayseektoqualifyforLEED(LeadershipinEnergyandEnvironmentalDesign)certification,whichencouragessourcingoflocalandregionalmaterialsmadewithin500milesoftheproject.144However,thereappearstobesomeflexibilityforaprojectinmeetingtheLEEDcertificationrequirementsbyusingacertainpercentageoflocallyproducedmaterials,anditisnotclearthatlocallyproducedrebarisnecessarilyrequiredtomeetthelocalmaterialscreditforaparticularproject.145ThereisinsufficientinformationintherecordtodrawanyconclusionthatLEEDcertificationprogramshaveresultedinasignificantpreferenceintheU.S.marketforU.S.rebarproducers.

Accordingly,giventhesubstantialcompetitionbetweenthedomesticlikeproductandsubjectimportsineverypartofthemarketinwhichsubjectimportscompete,wedonotfindthatanyofthefactorsraisedbyrespondentssignificantlyaffectthesubstitutabilityofsubjectimportsandthedomesticlikeproduct.Basedontherecord,wefindthatrebarfromdifferentsourcesishighlysubstitutable,andthatpriceisanimportantfactorinpurchasingdecisions.146

4. OtherConditions

Theprimaryrawmaterialinputforrebarproductionissteelscrap.Rawmaterialcostsaccountedforapproximatelytwothirdsofdomesticproducerscostofgoodssold(COGS)betweenJanuary2011andMarch2014,rangingbetweenahighof70.7percentin2011andalowof65.4percentin2013.147PricesforsteelscrapintheUnitedStatesfluctuatedbetweenJanuary2011andMarch2014.Theydeclinedby14.3percentoverall,withthehighestpriceinthebeginningof2012($415pershortton)andthelowestpriceinmid2012($299pershort

142CRatII35;PRatII23toII24.143CRatII36;PRatII24;HearingTr.at39,142(Darsey);48(Kerkvliet);141(Crowe);see

DeacerosPrehearingBriefat3940.TheConcreteReinforcingSteelInstituteestimatedthatprojectssubjecttoBuyAmerica(n)requirementsareexpectedtoaccountforapproximately10.6percentoftotalU.S.rebardemand.CRatII36;PRatII24.

144CRatII37toII38;PRatII25.WhilemostbuildingprojectsinthecontinentalUnitedStatesarewithin500milesofadomesticrebarproductionfacility,theproductionfacilitiesofsubjectproducersfromMexicoandTurkeyarereportedtobemorethan500milesfromtheUnitedStates.CRatII38;PRatII25.

145CR/PRatII38;PRatII25.146SeeCRatII26;PRatII18.147CRatV1,VI15;PRatV1;VI6toVI7.

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ton).148SeveralU.S.producers,includingCMC,Gerdau,andNucor,haveupstreamaffiliatesthatprocessandsupplysteelscrap.149

C. VolumeofSubjectImportsSection771(7)(C)(i)oftheTariffActprovidesthattheCommissionshallconsider

whetherthevolumeofimportsofthemerchandise,oranyincreaseinthatvolume,eitherinabsolutetermsorrelativetoproductionorconsumptionintheUnitedStates,issignificant.150

Thevolumeofcumulatedsubjectimportsincreasedfrom***shorttonsin2011to***shorttonsin2012,andthento***shorttonsin2013.151TheshareofapparentU.S.consumptionheldbycumulatedsubjectimports,byquantity,increasedfrom***percentin2011to***percentin2012,andthento***percentin2013.152

SubjectimportsincreasedduringatimeofrisingapparentU.S.consumption,butthevolumeofsubjectimportsincreasedatamuchgreaterrate.Subjectimportsincreasedby***percentfrom2011to2013,whileapparentU.S.consumptionincreasedby18.2percentduringthesameperiod.153Asaresultoftheirrapidincrease,subjectimportstookmarketsharefromthedomesticindustry:subjectimportsgained***percentagepointsofmarketsharefrom2011to2013,andthedomesticindustrysmarketsharedeclinedby5.6percentagepointsduringthisperiod.154

Wefindthatthevolumeofcumulatedsubjectimports,andtheincreaseinthatvolume,aresignificantbothinabsolutetermsandrelativetoconsumptionintheUnitedStates.

D. PriceEffectsoftheSubjectImportsSection771(7)(C)(ii)oftheTariffActprovidesthatevaluatingthepriceeffectsofthe

subjectimports,theCommissionshallconsiderwhether

148CR/PRatFigureV1;CRatV1;PRatV1;seeEDISDocumentNo.543307.149CRatVI2;PRatVI1toVI2.15019U.S.C.1677(7)(C)(i).151CR/PRatTableIV2.Thevolumeofcumulatedsubjectimportswas***shorttonsininterim

2013,and***shorttonsininterim2014.Id.152CR/PRatTablesIV10,C1,C3.TheshareofapparentU.S.consumptionheldbycumulated

subjectimports,byquantity,was***percentininterim2013and***percentininterim2014.Id.153CR/PRatTableC1.154CR/PRatTablesIV10,C1.Werejectrespondentsargumentthatthedeclineindomestic

industrymarketshareduringthePOIshouldbegivenlimitedweightonthebasisthatimportshavehistoricallyoccupiedanequalorgreatershareoftheU.S.marketthantheydidoverthePOI.SeeTurkishRespondentsPrehearingBriefat2022.Therecorddoesnotindicatethatthedomesticindustrymarketsharelevelin2011wasananomaly.Tothecontrary,therecordinthepreliminaryphaseinvestigationsindicatedthatthedomesticindustrysmarketsharewasevenhigherin2010thanitwasin2011.INVLL085atTableIV7(Oct.28,2013)(EDISDocumentNo.532415).NordoestherecordindicatethatthedomesticindustrycouldnotsupplygrowingU.S.demandduringthePOI.Tothecontrary,throughoutthePOIthedomesticindustryscapacityexceededapparentU.S.consumption.SeeCR/PRatTablesIII3,IV9.

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(I) therehasbeen significantpriceundersellingby the importedmerchandise as compared with the price of domestic likeproductsoftheUnitedStates,and(II)theeffectofimportsofsuchmerchandiseotherwisedepressesprices to a significantdegreeorpreventsprice increases,whichotherwisewouldhaveoccurred,toasignificantdegree.155

Asdiscussedabove,therecordintheseinvestigationsindicatesthatsubjectimportsanddomesticallyproducedrebararemadetoASTMspecificationsandarehighlysubstitutable,andthatpriceisanimportantfactorinpurchasingdecisions.

Inthefinalphaseoftheseinvestigations,theCommissioncollectedpricingdataonsixdifferentproducts.156Thereportedpricingdataaccountedfor81.0percentofU.S.shipmentsofsubjectimportsfromMexico,***percentofU.S.shipmentsofsubjectimportsfromTurkey,andapproximately32.5percentofU.S.producersU.S.shipmentsduringthePOI.157

Wehaveusedthepricingdatawithoutadjustmentandfindthatthedataprovidemeaningfulcomparisonsbetweenthepricesforthedomesticlikeproductandthesubjectimports.WefirstobservethattheCommissioncollecteddataonthef.o.b.valueofthesixproducts,inaccordancewithourusualpractice.158ThereisnoindicationintheavailabledatathatU.S.freightcostsaccountedforasignificantdistinctionbetweensubjectimportsandthedomesticlikeproduct,sinceU.S.producersreportedthattheirU.S.inlandtransportationcostsrangedfrom5to10percent,whileimportersreportedtransportationcostsrangingfrom1to7percent.159Weconsequentlydisagreewithrespondentsthatthepricingdatashouldbeadjustedtoaccountforhigherfreightexpensesthatmayhavebeenincurredforshipmentsofsubjectimports.160

15519U.S.C.1677(7)(C)(ii).156FouroftheproductsconcernstraightASTMA615,grade60rebar,astowhichseparate

pricingdatawerecollectedforno.3,no.4,no.5,andno.6sizes.CRatV12toV13;PRatV9.TwooftheproductsconcernstraightASTMA615,grade40rebar,astowhichseparatepricingdatawerecollectedforno.3andno.5sizes.Id.

157CRatV13;PRatV9.Thepricingdataaccountedforapproximately57.2percentofU.S.producerscommercialshipments.CRatV13n.28;PRatV9n.28.Asnotedabove,asignificantshareofthedomesticindustryssaleswastorelatedpurchasersand,consequently,wasnotincludedinthesepricingdata.

158CRatV12;PRatV9.TheCommissionreceivednocommentsonthedraftquestionnairesfromanypartysuggestingthattheCommissionshouldcollectpricingdataonabasisotherthanthef.o.b.value.SeeDeacerosCommentsonDraftQuestionnaires,May27,2014(EDISDocumentNo.534545);TurkishRespondentsCommentsonDraftQuestionnaires,May27,2014(EDISDocumentNo.534518).

159CRatV3;PRatV2toV3;seeHearingTr.at48,103104(Kerkvliet).160DeacerosPosthearingBriefat5andAnswerstoCommissionerQuestionsat4951(response

toCommissionerJohanson).

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Wealsofollowedourusualpracticeofexaminingarmslengthtransactionsbetweenunaffiliatedpartiesinourpricingdata,andnotincludingtransfersbetweenaffiliates.ThepricingdatacollectedbytheCommissionreflectsasubstantialshare(approximately32.5percent)ofU.S.producersdomesticshipments.Moreover,theinformationavailableintherecordindicatesthatthetransfersbydomesticproducerstotheirdownstreamaffiliateswere,onaverage,***.161Ascomparedtorelevantaveragecommercialsalesvalues,averagetransfervalues***.162Weobservethat***wouldbeconsistentwithavolumediscountthatproducersgivetopurchasersoflargevolumes.163Furthermore,***wouldbelessthantheaveragemarginofundersellingbysubjectimports,asdescribedbelow.Becauseweviewthepricingdatareportedbythedomesticindustryasreliableandrepresentative,anddonotbelievethemethodproposedwouldyieldresultsdifferentfromthoseintherecordbasedonourtraditionalapproach,wedisagreewithrespondentsthattransfersofrebarfromthethreelargestproducerstotheiraffiliatesshouldbeincludedinthesedata.164

JustaswithourdatarequestsinpriorinvestigationsandreviewswithrespecttorebarthattheCommissionhasconductedsince1997,theCommissioncollectedpricingdataforproductsinwhichthegradeandsizeofrebarwerespecified,butdidnotcollectdataforparticularlengthsofrebar,including60footrebar.165NopartysuggestedintheircommentsonthedraftquestionnairesthattheCommissioncollectpricingdatabylengthofrebar,orthattheCommissionspecificallycollectpricingdatafor60footrebar.166Wenotethatsubjectimportvolumesaresignificantlylowerforthislengththanforshorterlengths.167Accordingly,werejectrespondentscontentionthatthepricingdataareunrepresentativebecausetheydonotincludespecificdatafor60footrebar,anddonotaccountforapricepremiumthatrespondentsclaimexistswithrespecttodomesticallyproduced60footrebar.168

Thesubjectimportsundersoldthedomesticlikeproductin155outof156pricingquarterlycomparisonsduringthisperiod,bymarginsrangingfrom0.6percentto17.5percent,andanaveragemarginofundersellingof9.7percent.169Wefindthisundersellingtobesignificantinthelightoftheimportanceofpriceinpurchasingdecisions.Indeed,subject

161SeePetitionersPosthearingBrief,Exh.8(Declarationof***)atAttachmentA;Exh.11

(Declarationof***)atAttachmentA;Exh.15(Declarationof***)atAttachmentA.162CR/PRatTableE1.163CRatV6;PRatV4.164DeacerosPosthearingBriefat5andAnswerstoCommissionerQuestionsat5253(response

toCommissionerJohanson);seeTurkishRespondentsPrehearingBriefat1314.165CRatV12n.27;PRatV9n.27.166SeeDeacerosCommentsonDraftQuestionnaires,May27,2014(EDISDocumentNo.

534545);TurkishRespondentsCommentsonDraftQuestionnaires,May27,2014(EDISDocumentNo.534518).

167CR/PRatTableIV5.168DeacerosPosthearingBriefat5andAnswerstoCommissionerQuestionsat52(responseto

CommissionerJohanson);DeacerosFinalCommentsat23.169CR/PRatTableV10.

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importsgainedmarketshareattheexpenseofthedomesticindustrywhilethispervasiveundersellingwastakingplace.170171

Wedonotagreewithrespondentscontentionthattheundersellingdatashouldbeaccordedlittleweightbecauseofadomesticpricepremiumreflectingpurchaserpreferencesfordomesticallyproducedrebaroverthesubjectimports.172Inlightofthematerialintherecordindicatingthehighinterchangeabilityandsubstitutabilityofthedomesticandsubjectproducts,thatprogramsrequiringuseofdomesticallyproducedproductaccountforonlyasmallanddecliningpercentageofthemarket,andthatpriceisthemostimportantfactorinpurchasingdecisions,thereisnobasisforfindingthatdomesticallyproducedproductcommandsapricepremium.Aspreviouslystated,therecordshowsthatthedomesticindustrycompetesinthesamesegmentsinwhichsubjectimportscompete.

WedonotfindthatsubjectimportsdepressedU.S.producerspricestoasignificantdegree.Therecordindicatesthatpricesdeclined