U.S. Producers of Cold-Drawn Steel Mechanical Tubing File Trade Petitions Against Six Countries

WASHINGTON, April 19, 2017 /PRNewswire/ -- Five U.S. steel tubular products manufacturers – ArcelorMittal Tubular Products, Michigan Seamless Tube, LLC, PTC Alliance Corp., Webco Industries, Inc., and Zekelman Industries, Inc.  – today 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:

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 United States Department of Commerce ("Commerce Department") and the United States International Trade Commission ("USITC").  

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."

FACT SHEET

Antidumping and countervailing duties:  Antidumping duties are intended to offset the amount by which a product is sold at less than fair value, or "dumped," in the United States. The margin of dumping is calculated by the Commerce Department.  Estimated duties in the amount of the dumping are collected from importers at the time of importation. Countervailing duties are intended to offset unfair subsidies that are provided by foreign governments and benefit the production of a particular good.  The USITC, an independent agency, will determine whether the domestic industry is materially injured or threatened with material injury by reason of the unfairly traded imports.

Next steps:  The Commerce Department will determine whether to initiate the antidumping and countervailing duty investigations within 20 days of today's filing of the petitions and the USITC will reach a preliminary determination of material injury or threat of material injury within 45 days of today's filing. The entire investigative process will take approximately one year, with final determinations of dumping, subsidization, and injury likely occurring in the spring of 2018.

Product description:  The product covered by these petitions is certain circular cold-drawn mechanical tubing of carbon and alloy steel less than 13.00 inches in actual cross-sectional diameter ("cold-drawn mechanical tubing"). Cold-drawn mechanical tubing has close dimensional tolerances, enhanced mechanical properties, superior finish and machinability and excellent shape.  It is used in the production of bushings, spacers, bearings, axels, steering columns, and other mechanical parts in transportation equipment (autos, trucks, buses, trains, and aircraft), construction equipment, agricultural equipment, and oil and gas equipment.   

Petitioning companies:  The petitioning companies are ArcelorMittal Tubular Products, Michigan Seamless Tube, LLC, PTC Alliance Corp., Webco Industries, Inc., and Zekelman Industries, Inc. They are represented by R. Alan Luberda, Kathleen W. Cannon and Paul C. Rosenthal of Kelley Drye & Warren LLP.

Contact: Alan Luberda, Kelley Drye & Warren LLP, (202) 342-8835

SOURCE Kelley Drye & Warren LLP