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Commerce action against steel pipe 'dumping' welcomed by U.S. producers

Stephen Huba
151170ptrdurabond
Jared Wickerham | For The Tribune-Review
Inside the fusion epoxy mill at the Dura-Bond Coating facility in Duquesne.

A coalition of steel pipe producers is hailing a U.S. Commerce Department decision to assess anti-dumping duties on exporters from six countries.

The American Line Pipe Producers Association, whose membership includes Export-based Dura-Bond Industries, said the preliminary action by Commerce was necessary because the domestic industry is operating at less than 40 percent of capacity.

“We believe the final results of these investigations will reflect the full value of the dumping that has driven harmful volumes of foreign large-diameter welded pipe into the United States and taken sales from U.S. producers,” said Tim Brightbill, trade counsel to the coalition.

A group of six producers, including Dura-Bond, asked Commerce in February to pursue anti-dumping and countervailing duty investigations against exporters from Canada, China, Greece, India, South Korea and Turkey.

Producers from those countries are accused of “dumping” steel pipe — that is, selling the product at less than fair market value — in the United States and of receiving unfair subsidies from foreign governments.

In June, Commerce found in favor of the U.S. producers in their countervailing duty complaint involving large-diameter welded pipe from China, India, South Korea and Turkey. A final determination is expected by Nov. 6.

On Tuesday, Commerce issued a favorable preliminary ruling on the companion anti-dumping complaint. A final determination is expected by Jan. 3.

Duties are assessed to offset negative affects of the foreign government subsidies and the dumping practices, the Commerce Department said.

“Anti-dumping duty laws provide U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States,” the department said.

Cash deposits will start being collected immediately by U.S. Customs and Border Protection at the preliminary margin levels announced by Commerce on Tuesday.

Dura-Bond makes and coats large-diameter steel pipe mostly for use by the oil and gas industry at facilities in Export, Duquesne, Mc­Keesport and Steelton.

Stephen Huba is a Tribune-Review staff writer. You can contact Stephen at 724-850-1280, shuba@tribweb.com or via Twitter @shuba_trib.