Boston, MA 04/21/2014 (wallstreetpr) – Insteel Industries Inc. (NASDAQ:IIIN) is hoping for a landmark ruling on a pending trade case against Chinese wire rod producers. The Case is also being monitored closely by other industry players in the U.S who have been affected by the Chinese trader’s practices. There has been an uproar in the recent past, concerning the huge dumping of cheap Chinese wire rod in the U.S, something that is thought to be greatly affecting locally produced products.
Chinese companies have been allowed over the years to export their cheaply produced wire rod products to the U.S something that is thought to have caused unfair trading practices in the markets. Insteel maintains that a ruling in their favor will not result in shortages, in the U.S market.
Insteel Industries Inc. (NASDAQ:IIIN) maintains that significant duties need to be imposed on Chinese traders to make them uncompetitive so that they can exit the U.S markets. The U.S commerce department is expected to give its anti-dumping decision on July 10 with the International Trade Administration ITA having postponed its preliminary hearing to June 30.
Insteel Reports Drop in Income
The dumping of cheap wire rods from China looks to have greatly affected Insteel level of income that slipped by 5.1% to a low of $3.5 million in the second quarter. Sales for the quarter were up by 10.3% coming in at $91.4 million. The surge in sales was as a result of Insteel benefiting from the huge gap in sales made to customers compared to raw material costs. Increased shipments also had a hand in increased sales.
Second quarter results were not affected by a fire that damaged portion of the company’s Gallatin Tenn. Plant as earlier thought. Improvement in private nonresidential construction could act as the primary demand driver for the current quarter which could drive sales even further.
Insteel Industries Inc. (NASDAQ:IIIN) continues to demonstrate strengths in key areas such as positive growth in earnings per share, demonstrated over the past two years. The trend is expected to continue in the current year at the back of Insteel commanding a solid financial position.
