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PB steel firm alleges Chinese dumping, says job cuts possible
Friday, Jun 8, 2007

Arkansas News Bureau

LITTLE ROCK - A Pine Bluff steel pipe plant could be forced to cut jobs if U.S. regulators do not impose duties on Chinese government-subsidized imports that are being placed on the market in large quantities at low prices, the company president said Thursday.

Allied Tube & Conduit, which operates four U.S. plants, including one in Pine Bluff, is one of six welded standard steel pipe manufacturers that filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission seeking to have duties imposed on the Chinese imports.

"Absent an end to dumping and a reduction in imports from China, we will be forced to make reductions at our plants despite very strong demand for our products," Allied President Rick Filetti said in a release. "We are asking for the U.S. government to restore the level playing field and allow the rules of comparative advantage to hold sway."

The filing purports to document allegedly unfair Chinese trading practices, including sales at less than fair value and subsidies to the Chinese industry. The alleged margins of dumping range as high as 88 percent.

The subsidies documented include policy loans, land-use programs, tax subsidies, input material subsidies, grants and export tax subsidies.

The petition also addresses an export subsidy nominally known as a value-added tax rebate program. The petition alleges that the rebate is discretionary, excessive and used by the Chinese government to provide an advantage to Chinese exports in global markets.

The petition contends Chinese imports of circular standard and structural pipe increased 6,800 percent between 2002 and 2006, causing four U.S. plants to cease production and more than 500 employees to lose their jobs.

Under the anti-dumping and countervailing duty statues, the International Trade Commission will make a preliminary injury determination by the end of July 2007. The Department of Commerce should issue preliminary determinations in the countervailing duty and antidumping duty cases in October and November 2007, respectively, according to the petitioners.

Other petitioners include IPSCO Tubulars Inc., Northwest Pipe Co., Sharon Tube Co., Western Tube & Conduit Corp. and Wheatland Tube Co.



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