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Press release from PR Newswire

AK Steel Comments Regarding The Government Of China's Failure To Implement WTO Rulings On Grain Oriented Electrical Steel

Wednesday, July 31, 2013

AK Steel Comments Regarding The Government Of China's Failure To Implement WTO Rulings On Grain Oriented Electrical Steel

17:55 EDT Wednesday, July 31, 2013

WEST CHESTER, Ohio, July 31, 2013 /PRNewswire/ -- AK Steel (NYSE: AKS) said today that the Chinese Ministry of Commerce ("MOFCOM") has announced its purported implementation of the recommendations and rulings of the World Trade Organization ("WTO") Dispute Settlement Body ("DSB") regarding MOFCOM's flawed investigation regarding imports of grain oriented electrical steel ("GOES") from the United States.  

While the determination released today reduces the duties on imports of GOES produced by AK Steel, it fails to comply with the WTO rulings and recommendations.  Under WTO rules, antidumping and countervailing duties can only be applied if the administering authority determines, based on positive evidence and an objective examination of the evidence, that the domestic industry is materially injured by reason of the dumped and subsidized imports. 

In the GOES case, a WTO dispute panel found that MOFCOM's findings on injury and causation violated China's WTO obligations because, among other things, they were not based on positive evidence and an objective examination of the evidence.  Moreover, the panel found that MOFCOM did not analyze other significant factors affecting domestic industry performance that the panel found were important to any valid causation determination.  Notwithstanding the WTO's rulings, and without collecting any new or additional evidence, it appears that MOFCOM has simply reiterated essentially the same findings on injury and causation without even addressing the flaws identified by the panel and the Appellate Body. 

"AK Steel applauds the efforts of the United States Trade Representative to enforce China's WTO obligations in this dispute," said James L. Wainscott, Chairman, President and CEO of AK Steel. "We are disappointed that the Government of China has chosen to disregard its WTO obligations, and we will continue to urge the U.S. Government to seek further rulings that China has not complied with the DSB's recommendations and rulings."  

AK Steel will also request that the U.S. Government seek WTO authorization to impose retaliatory tariffs against certain imports from China until China comes into compliance by revoking the antidumping and countervailing duty measures on GOES from the United States.

AK Steel

AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, infrastructure and manufacturing, construction and electrical power generation and distribution markets.  The company employs about 6,100 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporate headquarters in West Chester, Ohio.  Additional information about AK Steel is available on the company's web site at

AK Tube LLC, a wholly-owned subsidiary of AK Steel, employs about 300 men and women in plants in Walbridge, Ohio and Columbus, Indiana.  AK Tube produces carbon and stainless electric resistance welded (ERW) tubular steel products for truck, automotive and other markets.  Additional information about AK Tube LLC is available on its web site at 

AK Coal Resources, Inc., another wholly-owned subsidiary of AK Steel, controls and is developing metallurgical coal reserves in Somerset County, Pennsylvania.  AK Steel also owns 49.9% of Magnetation LLC, a joint venture headquartered in Grand Rapids, Minnesota, which produces iron ore concentrate from previously mined ore reserves.  



For further information: Media - Michael P. Wallner, General Manager, Communications and PR (513) 425-2688 or Investors - Albert E. Ferrara, Jr., Senior Vice President, Corporate Strategy and Investor Relations (513) 425-2888

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