USW Calls U.S. Trade Commission Vote on China Imports; Urgent Step for Laid-Off Workers at Idled OCTG Pipe Plants

Contact:  Gary Hubbard 202-256-8125; ghubbard@usw.org

Washington, DC (May 22) – The United Steelworkers (USW) called today’s affirmative vote by the U.S. International Trade Commission to proceed with the trade case investigation against China imports of oil country tubular goods an urgent step for the thousands of laid-off workers at idled pipe production facilities of seven domestic companies.

“The OCTG producers and jobless pipe workers are paying the price of China’s massive government subsidies and unfair dumping of imports in our market,” USW President Leo W. Gerard declared. “More than a third of this industry’s 6,000 workers are now laid off, threatening the future of a critical product used in our energy extraction industry.”

Seven domestic OCTG producers and the USW filed an antidumping and countervailing duty trade case against China imports with the ITC and the U.S. Department of Commerce (DOC) on April 8 of this year.  OCTG represents welded and stainless steel pipes that are used to extract oil or gas from a drill well.

USW Vice President Tom Conway said the 6-0 U.S. trade panel vote gives approval to a Commerce Department investigation that could lead to steep U.S. duties on around $2.6 billion worth of steel pipe used in oil production and help return laid-off American pipe workers back on the job.

The USW and the domestic companies allege that Chinese producers benefit from massive government subsidies and dumping margins ranging from 40 to 90 percent. According to the USW, the increase in Chinese imports of OCTG are made worse by the global recession that increases the impact on good jobs in the steel and pipe manufacturing sector.

In addition to the USW as co-petitioner, the seven producers of the OCTG petition are:  U.S. Steel Corp., Pittsburgh, Pa.; Maverick Tube Corp., Hickman, Ark.; Evraz Rocky Mountain Steel, Pueblo, Colo.; TMK IPSCO, Downers Grove, Ill.; V&M Star, LLP, Houston, Tx.; V&M TCA, Houston, Tx.; and Wheatland Tube Corp., Beachwood, Oh.

According to Schagrin Associates, trade counsel for the USW, today’s ITC vote allows the DOC investigation to proceed immediately. A preliminary DOC anti-subsidy finding is expected by Sept. 8, 2009, and a preliminary dumping finding by Nov. 6, 2009. 

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