Pipe producers score win on tariff issue

The ruling calls for tariffs that would average 26 percent.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

Wheatland Tube, Sharon Tube and other pipe producers scored another victory in their battle to place tariffs on Chinese imports.

The U.S. Department of Commerce issued a preliminary ruling Friday that would place duties on Chinese pipe imports at an average rate of 26 percent.

The duties would be in addition to tariffs that were announced in November.

Final rulings in both cases are expected in the spring.

Friday’s ruling deals with the domestic producers’ claim that Chinese companies have been dumping product, which is selling a product at a lower price here than in the producer’s home market.

“This important decision sends a strong message to Chinese producers that they cannot dump their excess production in our market,” said Armand Lauzon, chief executive of John Maneely Co., which owns Wheatland Tube and Sharon Tube.

Domestic producers say China has targeted their industry by offering preferred lending terms and direct subsidies to its pipe producers. Imports of standard pipe from China have increased from 10,000 tons in 2002 to 750,000 tons last year. Domestic producers say they have had to cut 500 jobs, or 25 percent of their nationwide work force.

Leo Gerard, president of the United Steelworkers of America, said the loss of work at pipe producers also has hurt other companies.

“The ripple effects are enormous, as thousands of steel jobs have also been lost in the mills that supply steel to the pipe and tube producers, particularly in the Ohio Valley,” he said.

Standard pipe is used in plumbing, sprinkler systems, fencing and construction.

Importers of Chinese pipe will have to post bonds to cover the anti-dumping duties. For individual companies, the duties range from zero to 51 percent.

The ruling in November covered subsidies that China gives its companies. The tariffs in that case ranged from zero to 265 percent.

Both of the preliminary rulings support the domestic producers’ request that tariffs be applied retroactively by 90 days.

The Commerce Department is to issue its final ruling in both cases March 18. The case will then go to the U.S. International Trade Commission, which will decide the case in the spring.

shilling@vindy.com