Pipe makers seek to move up imposition of duties on China

Chinese pipe imports have increased rapidly, domestic producers say.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

Two area pipe makers are asking the federal government to start charging duties on Chinese imports three months sooner than they originally requested.

Wheatland Tube Co. and Sharon Tube Co. are among six U.S. producers of welded standard steel pipe that filed the request this week with the Department of Commerce.

The request is part of a petition filed in June by the pipe companies. It asked that duties be imposed on Chinese imports starting in November.

Chinese companies are accelerating exports in advance to avoid possible duties, said Armand Lauzon, chief executive of John Maneely Co. of Washington, D.C., the parent company of both local pipe producers.

U.S. law allows duties to be imposed 90 days before the completion of the Department of Commerce’s preliminary investigation of a trade case such as this if certain conditions are met.

The pipe producers say they filed this week documents that showed these conditions have been met. Comparing the three months before the petition was filed with the three months after, Chinese imports of welded circular pipe increased by more than 35 percent, the producers said.

Product dumping

Also, there is a history of product dumping that has injured industries, they said. Dumping is selling product at less than the cost of production. Australia imposed anti-dumping duties on welded standard pipe last year.

Even though the U.S. pipe producers have asked that the duties be moved back to August, they must first win their trade case for the duties to be enacted.

The U.S. International Trade Commission found merit with the case in July and forwarded it to the Department of Commerce, which will make the final ruling.

The pipe producers say that Chinese companies are receiving unfair government subsidies which are allowing them to offer products at low prices. Chinese imports of standard pipe have increased from 10,000 tons in 2002 to 690,000 tons last year.

Both Wheatland Tube and Sharon Tube have operations in Sharon, Pa., and Wheatland also has plants in Wheatland, Pa., and Warren, Ohio.

shilling@vindy.com