U.S. Government Publishes Antidumping Order Against China on Small Diameter Graphite Electrodes

On February 26, 2009, the United States Department of Commerce ("Commerce") published an antidumping duty order against small diameter graphite electrodes from the People's Republic of China ("China"). Commerce has ordered U.S. Customs & Border Protection ("CBP") to begin collecting estimated antidumping duty deposits ranging from 132.9 to 159.64 percent of the entered value of all entries of small diameter graphite electrodes from China.

The antidumping duty order was the culmination of an investigation before the Commerce Department and U.S. International Trade Commission ("ITC") that began with the filing of a petition on January 17, 2008, by SGL Carbon and Superior Graphite, two domestic producers of small diameter graphite electrodes. After the year-long investigation, on January 6, 2009, the Commerce Department issued a final determination finding that the Chinese exporters of small diameter graphite electrodes were dumping small diameter graphite electrodes in the United States. On February 5, 2009, the ITC determined by a unanimous 6-0 vote that the dumped imports of such products from the PRC cause material injury to the domestic industry, the last step necessary for issuance of the antidumping duty order.

"It was critical that the domestic industry be given relief from severe financial harm inflicted by dumped imports of small diameter graphite electrodes from China, and we are very pleased with the outcome," commented David A. Hartquist, the domestic industry's lead trade counsel. "Going forward, we will continue to monitor imports from China and assist Commerce and CBP in ensuring that this antidumping order is properly enforced. That includes addressing any improper attempts to circumvent the antidumping order such as by sending transshipments through third countries, relabeling with false country-of-origin identification, or machining of Chinese electrodes in other countries," Hartquist said.

Small diameter graphite electrodes are produced from various grades of petroleum coke and are used in ladle metallurgy and specialty furnace applications in industries including foundries, smelters, and steel refining operations. Graphite electrodes act as conductors of electricity in furnaces and generate heat to produce steel and other materials. Heat is generated by the graphite electrodes as electricity passes through them and creates an electric arc between the electrodes and the raw material.

The successful petitioners are Superior Graphite Company and SGL Carbon LLC, and they are represented in this investigation by David A. Hartquist, head of the International Trade and Customs Practice at Kelley Drye & Warren, LLP.