Subsidized Stainless Steel Flanges from China Injure U.S. Industry, Says USITC

May 11, 2018
News Release 18-057
Inv. No. Inv. No. 701-TA-585 (Final)
Contact: Peg O'Laughlin, 202-205-1819
Subsidized Stainless Steel Flanges from China Injure U.S. Industry, Says USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of stainless steel flanges from China that the U.S. Department of Commerce (Commerce) has determined are subsidized.

Chairman Rhonda K. Schmidtlein, Vice Chairman David S. Johanson, and Commissioners Irving A. Williamson, Meredith M. Broadbent, and Jason E. Kearns voted in the affirmative.

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

The Commission’s public report Stainless Steel Flanges from China (Inv. No. 701-TA-585 (Final), USITC Publication 4788, May 2018) will contain the views of the Commission and information developed during the investigation.

The report will be available by June 19, 2018; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

UNITED STATES INTERNATIONAL TRADE COMMISSION

Washington, DC 20436

 

FACTUAL HIGHLIGHTS

 

Stainless Steel Flanges from China

Investigation No. 701-TA-585 (Final)

 

Product Description:  The stainless steel flanges subject to these investigations are forged and can be finished, semifinished, or unfinished. Subject flanges are made from stainless steel and are generally manufactured to, but not limited to, the material specification of ASTM/ASME A/SA182 or comparable domestic or foreign specifications. Subject stainless steel flanges meet the sizes and description standards for all pressure classes of ASME B16.5 and range in size from one-half inch to 24 inches in nominal pipe size. Stainless steel flanges are used to connect stainless steel pipe sections and piping components (valves, pumps, tanks, and other equipment) to form a piping system. Stainless steel flanges are usually welded or screwed to the ends of pipes or other equipment requiring a connection and are joined to each other by bolting. Forged stainless steel flanges are a component of stainless steel process piping in oil and gas refineries, nuclear power plants, chemical synthesis plants, paper mills, food processing facilities, and other applications where cleanliness and corrosion resistance are required and in electric power-generating plants where their high-temperature properties are needed.

Status of Proceedings:

1.   Type of investigation:  Final phase countervailing duty investigation

2.   Petitioners:  Core Pipe Products, Inc., Carol Stream, IL; and Maass Flange Corporation, Houston, TX

3.   USITC Institution Date:  August 16, 2017

4.   USITC Hearing Date:  April 10, 2018

5.   USITC Vote Date:  May 11, 2018

6.   USITC Notification to Commerce Date:  May 29, 2018

U.S. Industry in 2017:

1.   Number of U.S. producers:  5

2.   Location of producers’ plants:  Illinois, Michigan, and Texas

3.   Production and related workers:  218

4.   U.S. producers’ U.S. shipments:  [1]

5.   Apparent U.S. consumption:  1

6.   Ratio of subject imports to apparent U.S. consumption:  1

U.S. Imports in 2017:

1.   Subject imports:  $77.8 million (China and India)

2.   Nonsubject imports:  $61.7 million

3.   Leading import sources:  India, China, Canada, Philippines, and Mexico (in terms of total quantity)

 


[1] Withheld to avoid disclosure of business proprietary information.

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