U S International Trade Commission : Subsidized Cold-Drawn Mechanical Tubing from China and India Injures U.S. Industry, Says USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of cold-drawn mechanical tubing from China and India that the U.S. Department of Commerce (Commerce) has determined are subsidized by the governments of China and India.

Chairman Rhonda K. Schmidtlein, Vice Chairman David S. Johanson, and Commissioners Irving A. Williamson and Meredith M. Broadbent voted in the affirmative.

As a result of the USITC's affirmative determinations, Commerce will issue countervailing duty orders on imports of this product from China and India.

The Commission also made a negative finding concerning critical circumstances with regard to imports of this product from China. As a result, subsidized imports of cold-drawn mechanical tubing from China will not be subject to retroactive countervailing duties.

The Commission's public report Cold-Drawn Mechanical Tubing from China and India (Investigation Nos. 701-TA-576-577 (Final), USITC Publication 4755, January 2018) will contain the views of the Commission and information developed during the investigations.

The report will be available by February 14, 2018; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Cold-Drawn Mechanical Tubing from China and India
Investigation Nos. 701-TA-576-577 (Final)

Product Description: The scope of these investigations covers cold-drawn mechanical tubing of carbon and alloy steel of circular cross-section, 304.8 mm or more in length, in actual outside diameters of less than 331 mm, and regardless of wall thickness, surface finish, end finish or industry specification. The subject cold-drawn mechanical tubing has been cold-drawn or otherwise cold-finished after the initial tube formation in a manner that involves a change in the diameter or wall thickness of the tubing, or both, and may be produced from either welded or seamless carbon or alloy steel tubular products.

Status of Proceedings:

1. Type of investigation: Final countervailing duty investigations.
2. Petitioners: ArcelorMittal Tubular Products, Shelby, Ohio; Michigan Seamless Tube LLC, South Lyon, Michigan; PTC Alliance Corp., Wexford, Pennsylvania; Webco Industries Inc., Sand Springs, Oklahoma; and Zekelman Industries Inc., Farrell, Pennsylvania.
3. USITC Institution Date: Wednesday, April 19, 2017.
4. USITC Hearing Date: Wednesday, December 6, 2017.
5. USITC Vote Date: Friday, January 5, 2018.
6. USITC Notification to Commerce Date: Wednesday, January 24, 2018.

U.S. Industry in 2016:

1. Number of U.S. producers: 8.
2. Location of producers' plants: Illinois, Indiana, Michigan, Ohio, Oklahoma, and Pennsylvania.
3. Production and related workers: 1,802.
4. U.S. producers' U.S. shipments: $530.8 million.
5. Apparent U.S. consumption: $774.4 million.
6. Ratio of subject imports to apparent U.S. consumption:

U.S. Imports in 2016:

1. Subject imports:
2. Nonsubject imports:
3. Leading import sources: India, Germany, China, and Switzerland.

[1] Withheld to avoid disclosure of business proprietary information.