December 22, 2008
News Release 08-125
Inv. No. 701-TA-455 (Final)
Contact: Peg O'Laughlin, 202-205-1819

CIRCULAR WELDED CARBON QUALITY STEEL LINE PIPE FROM CHINA INJURES U.S. INDUSTRY, SAYS ITC

The United States International Trade Commission (ITC) today determined that a U.S. industry is materially injured or threatened with material injury by reason of imports of circular welded carbon quality steel line pipe from China that the U.S. Department of Commerce has determined are subsidized.

All six Commissioners voted in the affirmative. Commissioners Charlotte R. Lane, Irving A. Williamson, and Dean A. Pinkert based their affirmative determinations on findings of present material injury. Chairman Shara L. Aranoff, Vice Chairman Daniel R. Pearson, and Commissioner Deanna Tanner Okun based their affirmative determinations on findings of threat of material injury.

As a result of the Commission's affirmative determination, the Department of Commerce will issue a countervailing duty order on imports of this product from China.

The Commission's public report Circular Welded Carbon Quality Steel Line Pipe from China (Investigation No. 701-TA-455 (Final), USITC Publication 4055, January 2009) will contain the views of the Commission and information developed during the investigation.

Copies may be obtained after January 28, 2009, by emailing pubrequest@usitc.gov, calling 202- 205-2000, or by writing the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.


FACTUAL HIGHLIGHTS

Circular Welded Carbon Quality Steel Line Pipe from China
Investigation No. 701-TA-455 (Final) Product Description:

The product covered by this investigation is circular welded carbon quality steel line pipe used for oil and gas pipelines with an outside diameter of not more than 16 inches. The subject merchandise is provided for in subheadings 7306.19.10 and 7306.19.51 of the Harmonized Tariff Schedule of the United States.

Status of Proceedings:

1. Type of investigation: Final countervailing duty.
2. Petitioners (1):  Maverick Tube Corp. (Houston, TX); Tex-Tube Co. (Houston, TX); U.S. Steel Corp.
   (Pittsburgh, PA); and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied
   Industrial and Service Workers International Union, AFL-CIO-CLC (Pittsburgh, PA). 
3. Investigation instituted by USITC:  April 3, 2008.
4. USITC hearing:  November 24, 2008.
5. USITC vote:  December 22, 2008.
6. USITC notification of Department of Commerce:  January 7, 2009.

U.S. Industry:

1. Number of U.S. producers: 10.
2. Location of producers' plants:  Alabama, Arkansas, California, Illinois, Iowa, Kansas, Kentucky,
   Louisiana, Pennsylvania, Ohio, Oklahoma, Tennessee, Texas, and Washington.
3. Employment of production and related workers in 2007: 1,028.
4. U.S. producers' shipments (excluding exports) in 2007:  
   727,185 short tons valued at $758 million.
5. U.S. apparent consumption in 2007:  
   By quantity, 1.4 million short tons valued at $1.2 billion.
6. Ratio of quantity of imports from China to U.S. apparent consumption in 2007: 
   By quantity, 17.2 percent; by value, 12.5 percent. 

U.S. Imports in 2007:
1. Quantity of subject imports: 236,358 short tons.
2. Value of subject imports:  $154 million.
__________________________
(1) On April 4, 2008, Wheatland Tube Co. (Sharon, PA) separately filed an entry of appearance in support of the petitions. Council for petitioning firm Tex-Tube Co. amended its entry of appearance on October 31, 2008, to also include domestic producers Northwest Pipe Co. (Vancouver, WA); Stupp Corp. (Baton Rouge, LA); and TMK IPSCO Tubulars (Lisle, IL); the same council once again amended its entry of appearance on November 3, 2008, to add domestic producer American Steel Pipe Division of ACIPCO (Birmingham, AL).

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