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The U.S. International Trade Commission (ITC) has moved forward with an investigation into Chinese imports of tungsten shot, a metal critical for manufacturing shotgun shells. The commission found that these imports may be hindering the development of a domestic tungsten shot industry.

Chinese Shotgun Metal Imports Lawsuit : Unfair Trade Practices Alleged

The ITC's trade commissioners voted 3-0 on Friday, concluding that U.S. industry establishment could be “materially retarded” by the influx of Chinese tungsten shot imports. The investigation was initiated after Tungsten Parts Wyoming Inc., the sole U.S. producer of tungsten shot, filed a trade petition claiming that Chinese producers were benefiting from unfair trade practices, such as price dumping and government subsidies.

Commission Chair Amy Karpel and Commissioners David Johanson and Rhonda Schmidtlein voted in favor of advancing the investigation. Commissioner Jason Kearns did not vote.

U.S. Department of Commerce Joins the Probe

The ITC's vote will allow the U.S. Department of Commerce to continue its parallel investigation into whether Chinese tungsten shot producers are dumping their products in the U.S. market and receiving subsidies from the Chinese government. The Department of Commerce is expected to release preliminary results from the dumping investigation in October and the subsidies probe in December.

Market Domination by Chinese Producers

Tungsten Parts Wyoming Inc. began producing tungsten shot in 2023, but claims it has yet to break even due to the dominance of Chinese producers, who currently control over 95% of the U.S. tungsten shot market. The company alleges that Chinese producers have been underselling their products in the U.S., with potential dumping margins exceeding 160%, preventing Tungsten Parts from establishing competitive pricing.

"The domestic industry suffers negative price effects by attempting to enter a market where pricing levels are set by the Chinese and that do not allow for reasonable profitability rates," Tungsten Parts said in its trade petition.

Chinese Shotgun Metal Imports Lawsuit : Focus of the Investigation

The investigation covers tungsten shot composed of 92.6% or more tungsten by weight, which is primarily used to manufacture shotgun shells. Other forms of tungsten shot, such as those used in aerospace, automotive, and medical sectors, are not included in the probe.

Tungsten Parts Wyoming is represented by Daniel Pickard, Claire Webster, Caroline Bisk, and Grace Wellborn of Buchanan Ingersoll & Rooney PC. Neither representatives for Tungsten Parts nor the Chinese government were available for comment.