August 22, 2008

US SS seamless tube makers concerned over imports from China

As part of an on going undertaking to deal with increasing volumes of low priced seamless stainless steel tubing from China, the US producers, which comprise the Seamless Stainless Tube Trade Action Committee, expressed their growing concern with the rapidly expanding Chinese presence in the US market.

Mr David A Hartquist legal counsel of Seamless Stainless Tube Trade said that "As the US Census Bureau's most recently released data underscore, China's exports of seamless stainless steel tubing to the United States are surging. China is now the largest foreign supplier overall of this tubing to the United States, at prices that are notably depressed. Even in categories in which it presently is not the largest supplier, such as high nickel seamless tubing, it can be expected that China will soon overtake the current largest foreign supplier, Germany."

Mr Hartquist added that "There is evidence that the Chinese are dumping seamless stainless tubing into the US, in violation of our law and WTO rules. In addition to estimated dumping margins of 125 % to 223% ad valorem, the Chinese government provides a range of subsidies, including undervaluation of their currency, the CNY at 40% or more. Even as US producers have been investing their own funds in added capacity, equipment, and technology, Chinese producers have been receiving large amounts of money from the Chinese government for these purposes. Simply put, this is unfair competition."

Through September 2007, imports of seamless stainless steel tubing from China into US for the year doubled from the corresponding period of the first nine months of 2006 to 15,131 tons at USD 6,265 per ton up by 31% of total imports of 48,879 tons from all foreign sources having an average unit value of USD 9,115 per ton. Imports of high nickel seamless tubing from China during the same period were 245 tons at USD 1,917 per ton as compared with 944 tons imported at USD 7,976 per ton from Germany.