The United Steelworkers (USW) is applauding the U.S. Department of Commerce (DOC) for its preliminary finding that Chinese producers of circular welded pipe are dumping below-cost product in the U.S.

The DOC will impose anti-dumping duties on Chinese pipe exports at an average rate of 25.67 percent, according to a statement released by the USW last week, while individual company margins for Chinese producers range from zero to 51.34 percent. These anti-dumping duties are in addition to the anti-subsidy duties imposed by the DOC in November, when it was determined that the Chinese government was illegally subsidizing pipe makers.

Circular welded steel pipe products, known as standard and structural pipe, are used in plumbing applications, HVAC systems, sprinkler systems, fencing, and construction.

“This is an important decision today for domestic pipe and steel workers,” said USW International President Leo Gerard. “We have seen significant layoffs in the pipe and tube industry as a result of skyrocketing China imports. Chinese producers sell at prices that vastly undercut U.S. companies, meaning lost sales, lost jobs, and closed facilities. The ripple effects are enormous, as thousands of steel jobs have been lost in the mills that supply steel to the pipe and tube producers, particularly in the Ohio Valley.”

The pipe imports subject to the petition against China have surged from 10,000 tons in 2002 to more than 750,000 in 2007, an increase of 6,900 percent, the statement said. “The result has been the loss of 500 American jobs, or about 25 percent of the total work force employed in this segment of the domestic pipe industry.”

Six U.S. pipe makers joined the USW in a petition filed jointly before the DOC and the U.S. International Trade Commission in June 2007.

Posted 1/9/2008