Area steel companies push for tariffs

By Don Shilling

Jay Williams testified that rising imports threaten V&M’s proposed expansion.

Two area steel companies are part of a big push to enact tariffs on Chinese pipe.

The U.S. International Trade Commission had a hearing Tuesday on a case filed by domestic producers, including V&M Star Steel, which has a mill in Youngstown, and Wheatland Tube, which has several plants in the Mahoning and Shenango valleys.

“We think we have a very strong case,” said Bill Kerins, Wheatland Tube vice president of operations.

The commission will make a recommendation to the U.S. Department of Commerce, which is expected to rule this coming spring.

The domestic producers are looking for duties and tariffs on Chinese products. Domestic producers say the Chinese government has been subsidizing its pipe industry so that it can unfairly dump products in the U.S. market, which is selling them for less than they cost to produce.

The pipe in question is called oil country tubular goods and is used in the extraction of oil and natural gas from wells.

This type of pipe is a major part of the business for both V&M and Wheatland Tube.

The domestic industry last year was successful in a similar case that led to tariffs on Chinese imports of standard pipe.

Youngstown Mayor Jay Williams was among those who testified Tuesday on behalf of the domestic producers. Williams’ concern was that China could unfairly take over too much of the domestic market and hurt V&M, which is considering whether to invest $1 billion to expand its Youngstown mill.

Williams said V&M and other domestic producers have the “ingenuity and work force” to compete globally, but the competition has to be fair.

“It isn’t about protectionism. It’s about fairness,” he said.

Kerins said the producers testified that Chinese imports of oil country tubular goods increased more than 200 percent from 2006 to 2008. Imports slowed this year once the trade case was filed, but plenty of inexpensive inventory remains in this country, he said.

The rise in Chinese imports has resulted in layoffs at Wheatland Tube, he said. About 100 of the company’s 800 area workers are off the job, he said.

Others who testified Tuesday included Ohio Gov. Ted Strickland, U.S. Rep. Tim Ryan of Niles, D-17th, and Sen. Sherrod Brown, D-Avon.

Representatives of the Chinese producers also testified.

shilling@vindy.com