China accused of selling subsidized standard pipe
By Tom Stundza -- Purchasing, 8/7/2007 1:11:00 PM
U.S. standard steel pipe producers are about to file trade actions against Chinese competitors, alleging their operations are subsidized so they can undercut market prices from U.S. producers. In fact, shipments of underpriced from China's cheap exports to the U.S. are having an impact on the steel and tube industry in North America, and the whole sector is mulling action, executives from Tenaris, the world's largest steel tube maker, told analysts in a conference call Monday.
"We aren't happy to see prices drop because of China's subsidized exports," Tenaris’ chief financial officer Carlos Condorelli told analysts, adding that the steel tube sector collectively was evaluating the impact of China's cheap exports. “A trade case against (China's) standard pipes is being filed” with the U.S. international Trade Commision, he says. Government trade data shows that imports of standard and structural pipe from China have increased to 690,000 tons in 2006 from 10,000 tons in 2002.
Luxembourg-based Tenaris recently increased its exposure in North America with the acquisition of the U.S. companies Hydril, which manufactures oil field pressure control products, and Maverick Tube. Tenaris specializes in high-end tube products that oil companies use for their drilling and production activities.
In June, the United Steelworkers union filed a petition with the U.S. Department of Commerce and the U.S. International Trade Commission, alleging that imports of welded standard pipes from China are subsidized and dumped on U.S. markets. With that move, the Dow Jones News Service says the USW joined the petition already filed by six U.S. producers of welded standard steel pipe, which are seeking to have the U.S. government impose duties to offset China's allegedly subsidized exports.
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