U.S. Department of Commerce: Preliminary Decision on Graphite Electrodes from China

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Investigation Details

The U.S. Department of Commerce (Commerce) has issued a preliminary affirmative determination on countervailable subsidies for large diameter graphite electrodes from the People’s Republic of China (China). This came after finding evidence that such subsidies were provided to Chinese producers and exporters.

The investigation covers a period from January 1, 2025, to December 31, 2025. A decision was postponed earlier but was issued on July 24, 2026. The Department of Commerce encourages interested parties to submit comments on this determination.

Scope of the Investigation

The scope includes large graphite electrodes used in furnaces from China. These have a diameter over 425 millimeters and might be attached to specific joining systems. The investigation also covers large graphite pins. Any graphite electrode identified under HTSUS statistical reporting number 8545.11.0020 is included.

Certain thermal energy storage (TES) graphite blocks, defined by specific dimensions and properties, are excluded from this investigation’s scope.

Methodology and Findings

The U.S. Department of Commerce followed procedures set by the Tariff Act of 1930. This involved identifying financial contributions that might give subsidies. Commerce used facts and drew adverse conclusions since the respondents did not provide all required information.

Preliminary Determination

The preliminary determination found a subsidy rate of 103.49% for certain Chinese companies in the graphite electrode sector. These include Dantan New Materials Co., Ltd. and Shanxi Juxian Graphite New Material Co., Ltd.

Suspension of Liquidation

Commerce has instructed U.S. Customs and Border Protection to suspend the liquidation of entries related to these imports, enforcing cash deposits at the subsidy rates found.

Public Comment and ITC Notification

The Department invites public comments on non-scope related issues by a specified date and acknowledges the importance of hearing parties on the matter. The U.S. International Trade Commission (ITC) will determine the injury status to U.S. industries related to these imports following Commerce’s findings.

This decision is part of a larger enforcement and compliance strategy by the Department to address potential unfair trade practices concerning large diameter graphite electrodes from China.

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