Commercial Metals Applauds 127% Anti-Dumping Margin on Algerian Rebar Following Preliminary Commerce Department Ruling
The Department of Commerce (DoC) has issued a preliminary ruling that will immediately apply a massive 127% anti-dumping margin on all rebar originating from Algeria and entering the United States market, a decision strongly supported by domestic steel producer Commercial Metals Company (NYSE: CMC).
Preliminary Ruling Targets Unfair Trade Practices
The ruling, announced on December 19, 2025, follows an investigation into allegations that Algerian rebar was being sold in the U.S. at prices below fair market value, a practice known as dumping. CMC, based in Irving, Texas, confirmed that the DoC recognized that the imports were indeed unfairly priced, triggering the steep tariff.
The Company applauds the preliminary ruling issued by the Department of Commerce recognizing that rebar originating from Algeria has been unfairly dumped into the United States market. As a result of this finding, an anti-dumping margin of 127% will be immediately applied to all rebar sourced from Algeria and entering the domestic market.
The imposition of the 127% margin is designed to level the playing field for U.S. manufacturers like CMC, which produce steel reinforcing bar (rebar) used extensively in construction and infrastructure projects. The immediate application of such a high duty is expected to significantly curtail the flow of low-cost Algerian rebar, thereby reducing competitive pressure on domestic prices and volumes.
Impact on the Domestic Rebar Market
Rebar is a foundational material for the construction sector, and trade protections are critical for maintaining the profitability and operational stability of U.S. steel mills. The preliminary ruling signals a strong commitment by the DoC to enforce trade laws against foreign entities found to be engaging in unfair trade practices.
While this is a preliminary finding, the immediate application of the margin provides instant relief to domestic producers. The final determination process will continue, but the current duties will remain in effect, potentially leading to a permanent change in sourcing dynamics for U.S. construction firms that previously relied on Algerian imports.
CMC’s Strong Financial Position Ahead of Trade Victory
The positive trade development for CMC arrives amid a period of significant financial strength for the company. Over the two years leading up to the ruling, CMC has delivered impressive returns, suggesting operational efficiency and strong demand for its products even before the new trade barriers were erected.
Key financial metrics for CMC over the past two years highlight its robust performance:
- Total Return: The company generated a total return of 47.00% for shareholders over the two-year period.
- Annualized Growth: The Compound Annual Growth Rate (CAGR) and annualized return both stood at 21.24%.
- Risk-Adjusted Performance: CMC achieved a Sharpe Ratio of 4.03, indicating superior risk-adjusted returns relative to its volatility.
The stock’s recent trading activity reflects this momentum. The latest close price for CMC was $69.62, near its two-year high close price of $71.36. The lowest close price recorded during this period was $38.94, while the average close price was $52.98, demonstrating a clear upward trend.
The combination of strong underlying financial health and a favorable trade ruling positions Commercial Metals Company well for future growth. The 127% anti-dumping margin effectively shields a portion of the domestic market from foreign competition, allowing CMC and other U.S. producers to capture greater market share and potentially improve pricing power in the rebar segment.
The maximum drawdown over the past two years was contained at 0.30%, further underscoring the stability and resilience of the stock during market fluctuations.
