Washington, D.C. (Feb. 20) – Four U.S. stainless pipe producers, and the United Steelworkers (USW) today applauded a final order by the unanimous vote of the U.S. International Trade Commission (ITC) that found injury by dumped and subsidized Chinese imports of welded austenitic stainless steel pressure pipe.
Leo W. Gerard, USW President, said: “The determination by the commission against illegal stainless steel pipe imports from China was desperately needed to preserve American family supportive jobs.” He pledged that “the USW and the companies who employ our members will continue to vigorously battle these Chinese unfair trade practices.”
The domestic producers who filed the petition with the USW were: Bristol Metals L.L.C., Bristol, Tenn.; Felker Brothers Corp., with units in Marshfield, Wis. and Glasgow, Ky.; Outokumpu Stainless Pipe Inc., Wildwood, Fla.; and Marcegaglia USA, Inc., Munhall, Pa.. The USW represents workers at: Bristol Metals, Marcegaglia and Outokumpu.
Gerard added in his statement, “We urge Congress and the White House to take further action against Chinese unfair trade practices, especially currency manipulation.”
Mike Boling, president of Bristol Metals said, “Thursday’s decision is welcome, and affirms what we have said for some time, and that is the Chinese government subsidized a massive expansion of both their stainless flat rolled and pipe capacity which resulted in unfair trade practices that injured our company and workers.”
The products subject to the petition are primarily used as a conduit for liquids or gases under high pressure in the chemical, petrochemical, pharmaceutical, food processing, energy, brewery, automotive and paper industries.
The U.S. Department of Commerce made final determinations in January 2007, with margins ranging up to 55 percent for dumping, and 298 percent for subsidies. These margins will be applied to China imports as required by trade law for the next five years.
Imports of stainless steel pipe from China increased from 13,993 tons in 2005 to 31,766 tons in 2007, valued at $160 million. Imports are believed to have taken approximately 30 percent of the U.S. market. After the antidumping and countervailing duty petitions were filed Jan. 20, 2008, imports declined to less than 7,000 tons in 2008.
David Cornelius, president of Marcegagalia USA said, “The vote clearly confirms what we argued were blatantly unfair trade practices by the Chinese to dump and subsidize stainless pipe products which injured our industry. Paul Carpenter, executive vice president of Outokumpu Stainless Pipe stated: “This will result in leveling the playing field and will force Chinese producers to engage in fair trade. It will also give us the ability to recover and compete in the global market.”
Roger B. Schagrin, trade counsel in Washington for the stainless pipe case, said, “In 2008, 3.1 million tons of steel pipe and tube have entered from China, amounting to almost two-thirds of the total steel imports from China. We have now obtained orders against imports of circular welded steel pipe, welded small diameter line pipe, light-walled rectangular tubing from China and now stainless steel pipe.”
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