TPT January 2010

The investigation covers seamless carbon and alloy steel standard, line, and pressure pipe used in industrial piping systems. The ITC (despite its name, a domestic agency that provides trade policy advice to branches of government) launches a probe on “reasonable indications” that specific imports could harm US producers. By that point in 2009 it had found sufficient grounds for Commerce to impose final anti-dumping or countervailing duties on nine Chinese products. These include small welded stainless steel pipe, steel threaded rod, and circular welded carbon quality steel line pipe. The investigation approved in late October covers imports from China that the Commerce Dept claims have increased nearly 132% by volume from 2006 to 2008. The agency’s decision on the countervailing duties was expected in December; on the anti- dumping duties, in February. Final determinations must be reached this year. For its part, China promptly applied to the World Trade Organisation (WTO) to start a dispute resolution process whose 60-day term will likely overlap the ITC procedures. An earlier ITC case, involving imports of Chinese oil country tubular goods, was decided in favour of the United Steelworkers and the domestic producers US Steel (Pittsburgh), Wheatland Tube Co (Sharon, Pennsylvania), and Evraz Inc NA (Portland, Oregon). In September, after an ITC investigation into the merits of the largest countervailing duty complaint ever lodged by American companies against Chinese-made products, the Dept of Commerce imposed import duties of up to 31% (average, 21.3%) on OCTG from China. › In one of his first major decisions on trade policy, President Barack Obama on 11 September imposed a 35% tariff on tyres from China. The move was intended to bolster the domestic tyre industry, in which more than 5,000 jobs were lost over five years as the volume of Chinese tyres in the US market tripled. But if any of the steel pipe events should turn out to be the opening volley in an all-out trade war between America and China, the Chinese will find that sentiment in US producer circles is not unanimous in these matters. Writing in the Engineering News- Record , Dan Carsen noted that, when the OCTG determination was published, a Washington, DC-based industry trade group promptly protested it as being protectionist and unfair. Eugene Patrone, director of the Consuming Industries Trade Action Coalition, said the tariffs would “hurt US industries by raising their costs and making sources of supply uncertain,” as well as aggravating the difficulties of oil and gas exploration and production. (“Duties Hit China Pipe Imports,” 23 September) Roughly $2.8bn in Chinese steel pipe is imported into the US annually. Industry analysts consulted by Mr Carsen say that the tariffs could cause a sharp decline in those imports or even cut them off altogether. Other news of pipe . . . › United Spiral Pipe LLC on 30 October dedicated its new spiral-weld pipe manufacturing and coating plant in Pittsburg, California. The formal announcement by the company — a joint venture of US Steel Corp with Pohang Iron and Steel Co (POSCO) and tube maker Seah Steel Corp, both of South Korea — noted that the plant represents some 320,000 hours of local building and construction trades labour: an irrelevant statistic in ordinary times but not now when manufacturing jobs are scarce in Northern California. At its peak the new facility will produce 300,000 tons of large- diameter (24" to 64" OD) product per year to meet anticipated demand in North America for line pipe for oil and natural gas transmission projects. US Steel and POSCO, each with a 35% stake in the new venture, have been partners in a steel finishing plant in Pittsburg for more than 20 years.

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J anuary 2010

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