April 20, 2017 - Five U.S. steel tubular products manufacturers – ArcelorMittal Tubular Products, Michigan Seamless Tube LLC, PTC Alliance Corp., Webco Industries Inc. and Zekelman Industries Inc. – filed petitions charging that unfairly-traded imports of cold-drawn steel mechanical tubing from the People's Republic of China, the Federal Republic of Germany, India, Italy, the Republic of Korea, and Switzerland are causing material injury to the domestic industry. The petitions allege that producers in each of the six countries are dumping cold-drawn mechanical tubing in the U.S. market at sizeable margins in a range from 12 to 189 percent.
The petitions also allege that the Governments of China and India are providing significant countervailable subsidies to producers of cold-drawn mechanical tubing. The petitions identify numerous subsidy programs related to export loans, credit, and insurance at preferential rates, preferential tax treatment, and government grants, among other programs.
The petitions were filed concurrently with the U.S. Department of Commerce and the U.S. International Trade Commission. The filing is in response to large and increasing volumes of low-priced imports of cold-drawn mechanical tubing from the subject countries since 2014 that have driven down prices and injured U.S. producers.
The petitions allege that subject imports were able to take a significantly increased share of the U.S. market by undercutting U.S. prices. As a result of increasing volumes of low-priced imports, U.S. producers have suffered lost sales and significant declines in prices and profits. Foreign producers of cold-drawn mechanical tubing also continue to threaten the domestic industry with additional injury due to their massive and growing production capacity and extensive unused capacity that will be used to export large volumes of unfairly low-priced and subsidized product to the United States. The price declines and financial deterioration that U.S. producers have suffered are likely to continue and worsen if duties are not imposed to offset these unfair trading practices.
"Low-priced and unfairly-traded imports of cold-drawn mechanical tubing from these six countries increased their volume and market share in the U.S. market at the expense of domestic producers by undercutting domestic prices." according to Alan Luberda of Kelley Drye & Warren LLP, counsel for the petitioning domestic producers. "Effective trade relief is critical to reverse the growing injury the domestic industry is experiencing as a result of the dumped and subsidized imports."