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Commerce Preliminarily Finds Dumping of Welded Steel Line Pipe from China, Korea

The Department of Commerce announced late last week its affirmative preliminary determinations in the antidumping duty investigations of imports of circular welded carbon-quality steel line pipe from P.R. China and the Republic of Korea.

Dumping occurs when a foreign company sells a product in the United States at less than normal value.

Commerce preliminarily determined that producers/exporters from China have sold welded line pipe in the United States at 67.83% to 81.52%, and that producers/exporters from Korea have sold welded line pipe in the United States at 0.00% and 2.34% less than normal value.
 
Chinese mandatory respondents, Huludao Steel Pipe Industrial Co., Ltd. and Shanghai Metals & Minerals Import & Export Corp. received dumping rates of 67.83% and 81.52%, respectively, while four Chinese exporters received a separate preliminary rate of 74.68%. All other Chinese producers/exporters of welded line pipe received a rate of 81.52%.
 
Korean mandatory respondents, SeAH Steel Corp. and Hyundai HYSCO received dumping rates of 0.00% and 2.34%, respectively. All other Korean producers/exporters of welded line pipe received a rate of 2.34%.
 
As a result of its preliminary determinations, Commerce will instruct U.S. Customs and Border Protection to suspend liquidation of entries of subject merchandise and to collect a cash deposit or bond based on these preliminary rates for all companies except SeAH Steel Corp.
 
Petitioners for these investigations are Maverick Tube Corp. (Texas), United States Steel Corp. (Pa.), Tex-Tube Co. (Texas), and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC (Pa.).
 
Product covered by these investigations included welded line pipe not more that 406.4 mm (16 inches) in outside diameter, regardless of wall thickness, length, surface finish, end finish or stenciling. This product is typically used for the transmission of gas or oil, generally in pipeline or utility distribution systems.
 
The U.S. Department of Commerce is currently scheduled to make its final determinations in March 2009. If Commerce makes affirmative final determinations, and the U.S. International Trade Commission makes final determinations that imports of welded line pipe from China and Korea materially injure, or threaten material injury to, the domestic industry, Commerce will issue antidumping orders.