The U.S. Commerce Department (DoC) has made a preliminary affirmative determination in its countervailing duty (CVD) investigation of aluminum wire and cable from China, setting subsidy rates up to 164% for one manufacturer.

Per DoC, on April 2 the agency issued its findings in the investigation that had been petitioned last September by Encore Wire Corporation and Southwire Company. DoC is scheduled to announce its final determination on or about August 13, 2019. If that also is affirmative, and the U.S. International Trade Commission (ITC) makes an affirmative final determination that imports of aluminum wire and cable from China "materially injures, or threatens material injury to, the domestic industry," Commerce will issue a CVD order. The ITC is scheduled to make its final injury determination approximately 45 days after Commerce issues its final determination, if affirmative.

DoC assigned a preliminary subsidy rate of 15.77% to mandatory respondent Shanghai Silin Special Equipment Co., Ltd.; 11.57% to mandatory respondent Chanfeng Wire & Cable Co., Ltd.; and 164.16%—based entirely on adverse facts available—to mandatory respondent Shanghai Yang Pu Qu Gong. The rate for all other Chinese producers and exporters is 13.67%.

"Encore supports the U.S. Government’s ongoing antidumping and CVD investigations because we believe that illegally dumped and subsidized aluminum wire from China has undermined our investments in aluminum wire production to complement our market-leading copper building wire business," said Encore Wire Chairman, President and CEO Daniel Jones. He called the preliminary decision "a positive development and an important step toward restoring a level playing field."

The scope of the investigation covers aluminum wire and cable, which is defined as an assembly of one or more electrical conductors made from 8000 Series Aluminum Alloys (defined in accordance with ASTM B800), Aluminum Alloy 1350 (defined in accordance with ASTM B230/B230M or B609/B609M), and/or Aluminum Alloy 6201 (defined in accordance with ASTM B398/B398M), provided that: (1) at least one of the electrical conductors is insulated; (2) each insulated electrical conductor has a voltage rating greater than 80 volts and not exceeding 1000 volts; and (3) at least one electrical conductor is stranded and has a size not less than 16.5 thousand circular mil (kcmil) and not greater than 1000 kcmil. The assembly may: (1) include a grounding or neutral conductor; (2) be clad with aluminum, steel, or other base metal; or (3) include a steel support center wire, one or more connectors, a tape shield, a jacket or other covering, and/or filler materials.