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Domestic Stainless Tube Producers Express Concern over Imports from China
12/05/2007 - Domestic producers representing the Seamless Stainless Tube Trade Action Committee (SSTTAC) express growing concern with the rapidly expanding increasing volumes of low-priced seamless stainless steel tubing from China.
In the face of increasing volumes of low-priced seamless stainless steel tubing from China, domestic producers representing the Seamless Stainless Tube Trade Action Committee (SSTTAC) have expressed growing concern with the rapidly expanding Chinese presence in the U.S. market.
"As the U.S. Census Bureau's most recently released data underscore, China's exports of seamless stainless steel tubing to the United States are surging,” said David A. Hartquist, the SSTTAC's legal counsel. “China is now the largest foreign supplier overall of this tubing to the United States, at prices that are notably depressed. Even in categories in which it presently is not the largest supplier, such as high-nickel seamless tubing, it can be expected that China will soon overtake the current largest foreign supplier, Germany."
Through September 2007, imports into the United States of seamless stainless steel tubing from China doubled compared to the first nine months of 2006. With 15,131 tons at $6,265/ton, imports from China represent almost 31% of the 48,879 tons of total imports (from all foreign sources, with an average unit value of $9,115/ton). The U.S. also imported 245 tons of high-nickel seamless tubing from China at $1,917/ton during the same period, which compares with 944 tons imported from Germany at $7,976/ton.
"There is evidence that the Chinese are dumping seamless stainless tubing into the US, in violation of our law and WTO rules,” added Hartquist. “In addition to estimated dumping margins of 125 to 223% ad valorem, the Chinese government provides a range of subsidies—including undervaluation of their currency, the Yuan, at 40% or more. Even as U.S. producers have been investing their own funds in added capacity, equipment, and technology, Chinese producers have been receiving large amounts of money from the Chinese government for these purposes.”
“Simply put, this is unfair competition," said Hartquist.
David A. Hartquist, Senior Partner and Chairman of the International Trade Practice Group at Kelley Drye Collier Shannon in Washington, D.C., has over 30 years of experience on international trade issues and has filed many successful trade cases against Chinese producers.
