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USW, Pipe Producers Applaud Finding against Imports from China
08/29/2008 - Domestic stainless pipe producers and the USW applaud a preliminary determination by the U.S. Department of Commerce that Chinese imports of welded austenitic stainless steel pressure pipe were dumped at a margin of 22.03%.
Four U.S. stainless pipe producers and the United Steelworkers (USW) are applauding a preliminary determination by the U.S. Department of Commerce (DOC) that Chinese imports of welded austenitic stainless steel pressure pipe were dumped at a margin of 22.03%.
"Today's determination by the Commerce Department against illegal stainless steel pipe imports from China is good news as a first step in this case to enforce fair trade laws that protect American family supportive jobs,” said Leo W. Gerard, USW President. “The USW and the companies who employ our members will continue to vigorously battle China's predatory trade practices."
The domestic producers who filed the petition with the USW were Bristol Metals LLC, Bristol, Tenn.; Felker Brothers Corp., with units in Marshfield, Wis., and Glasgow, Ky.; Outokumpu Stainless Pipe Inc., Wildwood, Fla.; Marcegaglia USA, Inc., Munhall, Pa. The USW represents workers at Bristol Metals, Marcegaglia and Outokumpu.
"Over the past decade, the Chinese have massively expanded both their stainless flat rolled and pipe capacity,” said Mike Boling, President of Bristol Metals, LLC. “After 2005, they ramped up exports of that excess capacity at prices well below U.S. market prices.”
The products subject to the petition are used as a conduit for liquids or gases under high pressure in the chemical, petrochemical, pharmaceutical, food processing, energy, brewery, automotive and paper industries.
Imports from China increased from 13,993 tons in 2005 to 31,766 tons in 2007 with a value of $160 million. In the first half of 2008, following the filing of the antidumping and countervailing duty petitions on January 30, 2008, the imports have begun to decline.
“Chinese pipe producers and importers failed to adjust prices for the big changes in stainless raw material inputs like chrome, nickel and molybdenum,” said David Cornelius, President of Marcegagalia USA. “This is clearly unfair trade as the raw steel input costs are essentially world commodity prices and do not vary substantially from country to country.”
Paul Carpenter, Executive Vice President of Outokumpu Stainless Pipe added: "The imposition of these dumping duties will literally level the playing field for our workers and give us a chance to compete with imports from China that are forced to be fairly traded."
The Department of Commerce will make final subsidy and dumping determinations in January 2009, and the ITC is expected to make a final injury determination in February 2009.
"This is my third case on pipe and tube against China in the past year,” said Roger B. Schagrin, a Washington, DC trade attorney and principal of Schagrin Associates. Schagrin is counsel to the petitioners. “In 2007, 2.7 million tons of steel pipe and tube entered from China, almost one out of two tons of steel imports from China. We have obtained orders against imports of circular welded steel pipe and light-walled rectangular tubing from China and I remain confident that we will obtain dumping and countervailing duty orders on stainless steel pipe in early 2009. The DOC and ITC are doing their jobs in enforcing the trade laws and American industry and workers are prepared to do their jobs to compete in a global marketplace governed by unfair trade rules."
The Department of Commerce made a preliminary subsidy determination in June 30, 2008 with margins ranging from de minimus to 100%.
