US ATI denied tariff exclusion

Specialty steel and alloy producer Allegheny Technologies' (ATI) joint venture request with China-based Tsingshan Group for a Section 232 tariff exclusion has been denied by denied by the US Department of Commerce.

The joint venture imports semi-finished stainless slab products from Indonesia to be hot-rolled into coils at ATI's hot-rolling and processing facility in Brackenridge, Pennsylvania, to produce 60-inch stainless steel sheet products.

The slabs from Indonesia will continue to be subject to the 25pc tariff on all stainless steel products imported into the US, ATI said.

The joint venture is treated as a 50-50 equity investment between the two companies and operates under the name Allegheny & Tsingshan Stainless.

"Although we believe the unique status of the North American stainless steel industry warranted approval of our exclusion, we are committed to meeting our customers' needs and delivering value to our shareholders," ATI chief executive Robert Wetherbee said. "We will work with our joint venture partner to determine our next steps."

Pittsburgh-based ATI produces specialty steel and alloys used in the aerospace, defense, oil and gas, utilities, medical and automotive markets.