In its preliminary findings, the U.S. Department of Commercereported that Chinese producers of circular welded pipe are dumping below-cost product in the United States. The Commerce Department will impose antidumping duties on China pipe exports at an average rate of 25.67 percent. Individual company margins range from zero to 51.34 percent.
These antidumping duties are in addition to the antisubsidy duties imposed by the Commerce Department on Nov. 6, 2007, when it was determined that the government of China was illegally subsidizing Chinese pipe makers. Circular welded steel pipe products, known as standard and structural pipe, are used in plumbing applications, HVAC systems, sprinkler systems, fencing, and construction.
According to U.S. pipe makers and the United Steelworkers (USW), the pipe imports subject to the petition against China have surged from 10,000 tons in 2002 to more than 750,000 tons in 2007 ― a 6,900 percent increase. The result has been the loss of 500 American jobs, approximately 25 percent of the total workforce employed in this segment of the domestic pipe industry.