USW, Four Domestic Welded Stainless Pipe Producers File Anti-dumping, Anti-subsidy Duty Petitions Against China Imports

January 30, 2008 -- Washington, D.C. – A trade case was filed with the federal government today by the United Steelworkers (USW) and four domestic producers of welded austenitic stainless pipe against surging China imports. The producers are Bristol Metals L.P., (Bristol, Tennessee); Felker Brothers Corporation, (Marshfield, Wisconsin); Outokumpu Stainless Pipe Inc., (Wildwood, Florida); and Marcegaglia USA, Inc. (Munhall, Pennsylvania).

Leo W. Gerard, USW International President, said: “Today’s trade case filing against illegal stainless pipe imports from China is desperately needed to preserve American family supportive jobs. But more action is needed and I call on the U.S. Congress to pass legislation that expands the enforcement tools to combat the predatory trade practices of Communist China’s subsidized industries before it’s too late.”

Mike Boling, President of Bristol Metals, LP said, “Over the past decade, the Chinese have subsidized a massive expansion of both stainless flat rolled and pipe capacity. They are now exporting that excess capacity at dumped and subsidized prices to the U.S. market.”

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.

David Cornelius, President of Marcegagalia USA said, “It is not uncommon for Chinese pipe to be sold into the U.S. market at prices below the cost of raw materials. This is clearly unfair trade as the raw steel input costs are essentially a world price and do not vary so dramatically from country to country.”

Imports from China increased from 13,993 tons in 2005 to 31,766 tons in 2007 with a value of $160 million. They are believed to have taken approximately 30 percent of the U.S. market. The petitions filed allege numerous subsidy programs including subsidized loans and dumping margins ranging from 25 to 45 percent.

Roger B. Schagrin of Schagrin Associates in Washington, D.C., observed, “This is my third case on pipe and tube against China in the past six months. In 2007, almost one out of two tons of steel imports from China entered as pipe and tube. The Commerce Department found high subsidy and dumping duties in the other two cases and I am confident they will here as well.”

Source: USW

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