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###### Department of Commerce

###### International Trade Administration

          - [A-201-822 ]

# AGENCY:

Import Administration, International Trade Administration, Department of Commerce.

# SUMMARY:

On June 2, 2010, the Department of Commerce (“the Department”) initiated the second sunset review of the antidumping duty order on stainless steel sheet and strip (“SSSS”) in coils from Mexico, pursuant to section 751(c) of the Tariff Act of 1930, as amended (“the Act”).

On the basis of the notice of intent to participate, and adequate substantive responses filed on behalf of the domestic and respondent interested parties, the Department is conducting a full sunset review of the antidumping duty order on SSSS in coils from Mexico, pursuant to section 751(e)(3)(B) of the Act and 19 CFR 351.218(e)(2)(i).

As a result of this sunset review, the Department preliminarily finds that revocation of the antidumping duty order with respect to SSSS in coils from Mexico would likely lead to continuation or recurrence of dumping at the levels listed below in the section entitled “Preliminary Results of Review.”

      ( print page 81222)    

# FOR FURTHER INFORMATION CONTACT:

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

# SUPPLEMENTARY INFORMATION:

## Background

                    On June 2, 2010, the Department published the notice of initiation of the second sunset review of the antidumping duty order on SSSS in coils from Mexico, pursuant to section 751(c) of the Act.                     *See Initiation of Five-Year (“Sunset”) Review,*75 FR 30777 (June 2, 2010) (“                    *Notice of Initiation”*).                

The Department received a notice of intent to participate from the AK Steel Corporation; Allegheny Ludlum Corporation; North American Stainless; the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial Service Workers International Union; United Autoworkers (“UAW”) Local 3303; and UAW Local 4104 (“domestic interested parties” or “petitioners”) within the deadline specified in 19 CFR 351.218(d)(1)(i). The petitioners claimed interested party status under sections 771(9)(C) and (D) of the Act stating that its individual members are each producers in the United States of a domestic like product or certified unions representing workers in the domestic industry producing subject merchandise.

                    The Department received substantive responses to the                     *Notice of Initiation*                     from the domestic interested parties within the 30-day deadline specified in 19 CFR 351.218(d)(3)(i). The Department received a substantive response from respondent interested parties, ThyssenKrupp Mexinox S.A. de C.V. and Mexinox USA, Inc. (collectively, “respondent” or “Mexinox”), within the applicable deadline specified in 19 CFR 351.218(d)(3)(i).[1] 

On July 6, 2010, the Department received a request from domestic interested parties for an extension of the deadline for filing rebuttal comments to the substantive response. Pursuant to 19 CFR 351.302(b), domestic and respondent parties were granted an extension to file rebuttal comments to the substantive responses until July 9, 2010. On July 9, 2010, the Department received rebuttal comments to the substantive responses from the domestic interested parties and the respondent.

                    Section 351.218(e)(1)(ii)(A) of the Department's regulations provides that the Secretary normally will conclude that respondent interested parties have provided adequate response to a notice of initiation where it receives complete substantive responses from respondent interested parties accounting on average for more than 50 percent, by volume, or value basis, if appropriate, of the total exports of the subject merchandise to the United States over the five calendar years preceding the year of publication of the notice of initiation. On July 22, 2010, the Department determined that Mexinox's and the domestic interested parties' responses constituted adequate responses to the notice of initiation. In accordance with 19 CFR 351.218(e)(2)(i), the Department determined to conduct a full sunset review of this antidumping duty order and notified the International Trade Commission.                     *See*                     Letter to Ms. Catherine DeFilippo, Director, Office of Investigations, U.S. International Trade Commission from James Maeder, Director, Office 2, AD/CVD Operations, entitled “Expedited and Full Sunset Reviews of the Antidumping Duty Orders Initiated in June 2010,” dated July 22, 2010.                

                    On September 23, 2010, the Department extended the deadlines for both the preliminary and final results of this review by 90 days.                     *See Certain Stainless Steel Sheet and Strip in Coils from Italy and Mexico: Extension of Time Limits for Preliminary and Final Results of Full Five-Year (“Sunset”) Reviews of Antidumping Duty Orders,*75 FR 57899 (September 23, 2010).                

## Scope of the Order

                    For purposes of the order, the products covered are certain stainless steel sheet and strip in coils. Stainless steel is an alloy steel containing, by weight, 1.2 percent or less of carbon and 10.5 percent or more of chromium, with or without other elements. The subject sheet and strip is a flat-rolled product in coils that is greater than 9.5 mm in width and less than 4.75 mm in thickness, and that is annealed or otherwise heat treated and pickled or otherwise descaled. The subject sheet and strip may also be further processed (                    *e.g.,*                     cold-rolled, polished, aluminized, coated,                     *etc.*) provided that it maintains the specific dimensions of sheet and strip following such processing. The merchandise subject to the order is classified in the Harmonized Tariff Schedule of the United States (“HTS”) at subheadings: 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.32.0005, 7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.33.0005, 7219.33.0020, 7219.33.0025, 7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 7219.33.0044, 7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 7219.34.0035, 7219.35.0005, 7219.35.0015, 7219.35.0030, 7219.35.0035, 7219.90.0010, 7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 7220.20.8000, 7220.20.9030, 7220.20.9060, 7220.90.0010, 7220.90.0015, 7220.90.0060, and 7220.90.0080. Although the HTS subheadings are provided for convenience and customs purposes, the Department's written description of the merchandise under the order is dispositive.                

                    Excluded from the scope of the order are the following: (1) Sheet and strip that is not annealed or otherwise heat treated and pickled or otherwise descaled, (2) sheet and strip that is cut to length, (3) plate (                    *i.e.,*                     flat-rolled stainless steel products of a thickness of 4.75 mm or more), (4) flat wire (                    *i.e.,*                     cold-rolled sections, with a prepared edge, rectangular in shape, of a width of not more than 9.5 mm), and (5) razor blade steel. Razor blade steel is a flat-rolled product of stainless steel, not further worked than cold-rolled (cold-reduced), in coils, of a width of not more than 23 mm and a thickness of 0.266 mm or less, containing, by weight, 12.5 to 14.5 percent chromium, and certified at the time of entry to be used in the manufacture of razor blades.                     *See*                     Chapter 72 of the HTS, “Additional U.S. Note” 1(d). Flapper valve steel is also excluded from the scope of the order. This product is defined as stainless steel strip in coils containing, by weight, between 0.37 and 0.43 percent carbon, between 1.15 and 1.35 percent molybdenum, and between 0.20 and 0.80 percent manganese. This steel also contains, by weight, phosphorus of 0.025 percent or less, silicon of between 0.20 and 0.50 percent, and sulfur of 0.020 percent or less. The product is manufactured by means of vacuum arc remelting, with inclusion controls for sulphide of no more than 0.04 percent                           ( print page 81223)                        and for oxide of no more than 0.05 percent. Flapper valve steel has a tensile strength of between 210 and 300 ksi, yield strength of between 170 and 270 ksi, plus or minus 8 ksi, and a hardness (Hv) of between 460 and 590. Flapper valve steel is most commonly used to produce specialty flapper valves in compressors. Also excluded is a product referred to as suspension foil, a specialty steel product used in the manufacture of suspension assemblies for computer disk drives. Suspension foil is described as 302/304 grade or 202 grade stainless steel of a thickness between 14 and 127 microns, with a thickness tolerance of plus-or-minus 2.01 microns, and surface glossiness of 200 to 700 percent Gs. Suspension foil must be supplied in coil widths of not more than 407 mm, and with a mass of 225 kg or less. Roll marks may only be visible on one side, with no scratches of measurable depth. The material must exhibit residual stresses of 2 mm maximum deflection, and flatness of 1.6 mm over 685 mm length. Certain stainless steel foil for automotive catalytic converters is also excluded from the scope of the order. This stainless steel strip in coils is a specialty foil with a thickness of between 20 and 110 microns used to produce a metallic substrate with a honeycomb structure for use in automotive catalytic converters. The steel contains, by weight, carbon of no more than 0.030 percent, silicon of no more than 1.0 percent, manganese of no more than 1.0 percent, chromium of between 19 and 22 percent, aluminum of no less than 5.0 percent, phosphorus of no more than 0.045 percent, sulfur of no more than 0.03 percent, lanthanum of less than 0.002 or greater than 0.05 percent, and total rare earth elements of more than 0.06 percent, with the balance iron. Permanent magnet iron-chromium-cobalt alloy stainless strip is also excluded from the scope of the order. This ductile stainless steel strip contains, by weight, 26 to 30 percent chromium, and 7 to 10 percent cobalt, with the remainder of iron, in widths 228.6 mm or less, and a thickness between 0.127 and 1.270 mm. It exhibits magnetic remanence between 9,000 and 12,000 gauss, and a coercivity of between 50 and 300 oersteds. This product is most commonly used in electronic sensors and is currently available under proprietary trade names such as “Arnokrome III.” [2] 

                    Certain electrical resistance alloy steel is also excluded from the scope of the order. This product is defined as a non-magnetic stainless steel manufactured to American Society of Testing and Materials (ASTM) specification B344 and containing, by weight, 36 percent nickel, 18 percent chromium, and 46 percent iron, and is most notable for its resistance to high temperature corrosion. It has a melting point of 1390 degrees Celsius and displays a creep rupture limit of 4 kilograms per square millimeter at 1000 degrees Celsius. This steel is most commonly used in the production of heating ribbons for circuit breakers and industrial furnaces, and in rheostats for railway locomotives. The product is currently available under proprietary trade names such as “Gilphy 36.” [3] 

                    Certain martensitic precipitation-hardenable stainless steel is also excluded from the scope of the order. This high-strength, ductile stainless steel product is designated under the Unified Numbering System (UNS) as S45500-grade steel, and contains, by weight, 11 to 13 percent chromium, and 7 to 10 percent nickel. Carbon, manganese, silicon and molybdenum each comprise, by weight, 0.05 percent or less, with phosphorus and sulfur each comprising, by weight, 0.03 percent or less. This steel has copper, niobium, and titanium added to achieve aging, and will exhibit yield strengths as high as 1700 Mpa and ultimate tensile strengths as high as 1750 Mpa after aging, with elongation percentages of 3 percent or less in 50 mm. It is generally provided in thicknesses between 0.635 and 0.787 mm, and in widths of 25.4 mm. This product is most commonly used in the manufacture of television tubes and is currently available under proprietary trade names such as “Durphynox 17.” [4] 

                    Finally, three specialty stainless steels typically used in certain industrial blades and surgical and medical instruments are also excluded from the scope of the order. These include stainless steel strip in coils used in the production of textile cutting tools (                    *e.g.,*                     carpet knives).[5]                                          This steel is similar to AISI grade 420 but containing, by weight, 0.5 to 0.7 percent of molybdenum. The steel also contains, by weight, carbon of between 1.0 and 1.1 percent, sulfur of 0.020 percent or less, and includes between 0.20 and 0.30 percent copper and between 0.20 and 0.50 percent cobalt. This steel is sold under proprietary names such as “GIN4 Mo.” The second excluded stainless steel strip in coils is similar to AISI 420-J2 and contains, by weight, carbon of between 0.62 and 0.70 percent, silicon of between 0.20 and 0.50 percent, manganese of between 0.45 and 0.80 percent, phosphorus of no more than 0.025 percent and sulfur of no more than 0.020 percent. This steel has a carbide density on average of 100 carbide particles per 100 square microns. An example of this product is “GIN5” steel. The third specialty steel has a chemical composition similar to AISI 420 F, with carbon of between 0.37 and 0.43 percent, molybdenum of between 1.15 and 1.35 percent, but lower manganese of between 0.20 and 0.80 percent, phosphorus of no more than 0.025 percent, silicon of between 0.20 and 0.50 percent, and sulfur of no more than 0.020 percent. This product is supplied with a hardness of more than Hv 500 guaranteed after customer processing, and is supplied as, for example, “GIN6”.[6]                                          Also excluded from the order is a permanent magnet iron-chromium-cobalt stainless steel strip containing, by weight, 13 percent chromium, 6 percent cobalt, 71 percent iron, 6 percent nickel and 4 percent molybdenum. The product is supplied in widths up to 1.27 cm (12.7 mm), inclusive, with a thickness between 45 and 75 microns, inclusive. This product exhibits magnetic remanence between 400 and 780 nWb, and coercivity of between 60 and 100 oersteds. This product is currently supplied under the trade name “SemiVac 90.”                

## Analysis of Comments Received

                    All issues raised in this review are addressed in the “Issues and Decision Memorandum for the Preliminary Results of the Full Five-Year (“Sunset”) Review of the Antidumping Duty Order on Stainless Steel Sheet and Strip in Coils from Mexico,” from Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Ronald K. Lorentzen, Deputy Assistant Secretary for Import Administration (“Decision Memorandum”), which is hereby adopted by, and issued concurrently with, this notice. The issues discussed in the Decision Memorandum include the likelihood of continuation or recurrence of dumping and the magnitude of the margins likely to prevail if the order was revoked. Parties can find a complete discussion of all issues raised in this review and the corresponding recommendations in this public memorandum which is on file in the Central Records Unit, room 7046 of the main Department building. In                           ( print page 81224)                        addition, a complete version of the Decision Memorandum can be accessed directly on the Web at                     *http://ia.ita.doc.gov/​frn.*                     The paper copy and electronic version of the Decision Memorandum are identical in content.                

## Preliminary Results of Review

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

Mexinox—30.69 percent.

All Other's—30.69 percent.

## Public Comments and Hearing

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

This five-year (“sunset”) review and notice are in accordance with sections 751(c), 752, and 777(i)(1) of the Act.

Dated: December 20, 2010.

Ronald K. Lorentzen,

Deputy Assistant Secretary for Import Administration.

# Footnotes

1.                             Domestic interested and respondent parties filed substantive responses on July 2, 2010.                    
        Back to Citation      

2.                             “Arnokrome III” is a trademark of the Arnold Engineering Company.                    
        Back to Citation      

3.                             “Gilphy 36” is a trademark of Imphy, S.A.                    
        Back to Citation      

4.                             “Durphynox 17” is a trademark of Imphy, S.A.                    
        Back to Citation      

5.                             This list of uses is illustrative and provided for descriptive purposes only..                        
        Back to Citation      

6.                             “GIN4 Mo,” “GIN5,” and “GIN6” are the proprietary grades of Hitachi Metals America, Ltd.                    
        Back to Citation      

[FR Doc. 2010-32478 Filed 12-23-10; 8:45 am]

BILLING CODE 3510-DS-P