core sector communique

CHINESE PRESS RELEASE ERRONEOUSLY IDENTIFIED THE COMPANY SUBJECT TO THE U.S. DEPARTMENT OF COMMERCE’S CIRCUMVENTION FINDING ON SMALL DIAMETER GRAPHITE ELECTRODES

(Washington, D.C.) (July 5, 2012) – On June 11, 2012, the Chinese Ministry of Commerce (“MOFCOM”) erroneously issued a press release that did not properly identify UK Carbon and Graphite Co., Ltd. (“UKCG”) as the United Kingdom company that was preliminarily found by the U.S. Department of Commerce to be circumventing the antidumping duty order covering small diameter graphite electrodes (“SDGE”) from China.

In reporting on the affirmative preliminary circumvention finding covering SDGEs, MOFCOM failed to identify UKCG as the company that was preliminarily found to be circumvention the antidumping order on SDGEs. In May 2012, the U.S. Department of Commerce preliminarily found that circumvention was occurring because UKCG was importing unfinished SDGEs from China to the United Kingdom, performing minor finishing operations on these items in the UK, and exporting the finished product to the United States.

MOFCOM erroneously reported that Superior Graphite (not UKCG) was circumventing the order. In fact, Superior Graphite was one of the U.S. producers who filed the circumvention claim against UKCG.

If Commerce makes a final determination of circumvention, the Chinese product exported by UKCG to the United States may be subject to duties up to 159.64%.

The anticircumvention inquiry, like the antidumping duty proceeding, covered SDGEs which are defined as 16 inches (400 mm) or under in diameter, 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.

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