Washington, D.C.  –  Congressman Pete Visclosky (D-IN), Chairman of the Congressional Steel Caucus, and Congressman Tim Murphy (R-PA), Vice Chairman of the Caucus, today submitted written testimony to the U.S. International Trade Commission (ITC) urging it to determine that unfairly traded circular welded stainless austenitic pressure pipe from China injures U.S. industry and workers.  If the ITC finds in the affirmative it will direct the Department of Commerce to issue antidumping and countervailing duties on such Chinese products:

January 14, 2009

The Honorable Shara L. Aranoff
Chairman
U.S. International Trade Commission
500 E Street, Southwest
Washington, DC 20436

Re: Circular Welded Stainless Austenitic Pressure Pipe from
People’s Republic of China, Inv. Nos. 701-TA-454 and 731-TA-1144 (Final)

Dear Chairman Aranoff:

We are writing to urge the U.S. International Trade Commission to determine that imports of unfairly traded stainless austenitic pressure pipe from China are injuring the U.S. industry and its workers.  It is our understanding that the Commission held the final injury hearing on this matter on January 13, 2009, and we ask that these comments be submitted for the record.

As the Chairman and Vice Chairman of the Congressional Steel Caucus, we have been strong supporters of the industry and its workers and recognize the importance of this current case under final review at the Commission.  The petitioners in this case include Bristol Metals L.L.C., (Bristol, Tennessee); Felker Brothers Corporation (Marshfield, Wisconsin and Glasgow, Kentucky), Marcegaglia USA, Inc., (Munhall, Pennsylvania), Outokumpu Stainless Pipe of Wildwood, Florida and the United Steelworkers (USW).  They filed the antidumping and countervailing duty petitions on imports of stainless steel pipe from China on January 30, 2008.

These stainless steel pipe producers are important to the overall health of the industry and our nation’s economy.  The products manufactured at these companies are used for the chemical, petrochemical, food processing, energy, brewery, automotive, and paper industries, which are all important components of the domestic manufacturing base.  This industry is also an important customer to the domestic stainless flat rolled industry that manufactures the input product used in stainless pipe production.

We are all too aware of the state of our national economy that has been crippled by a devastating recession.  At a time when the industry is facing financial losses and when workers are being laid off, it is imperative that we work to ensure that our trade laws are vigorously enforced for domestic companies and workers.   This industry has experienced the financial losses incurred as a result of dumped and subsidized imports.  In August 2008, the Department of Commerce issued a preliminary antidumping determination and announced that imports of stainless pipe were dumped at a margin of 22.03%.  In June 2008, the Department issued a preliminary countervailing duty determination that imports were subsidized at a rate of 1% to 100%.  The Department is expected to issue their final antidumping and countervailing duty determinations this month.

As the data reflects in the recent Commission’s staff report, Chinese imports more than doubled from 13,993 tons in 2005 to 31,766 tons in 2007.  These imports took approximately 30 percent of the U.S. market.  It is very important that the trade laws are used to provide relief to the industry and workers and in this investigation, the data clearly shows that without restraints in place, imports will injure the domestic industry and lead to further economic losses.

We also believe that the industry has made a very strong case that it has incurred material injury as a result of these unfairly dumped and subsidized imports.  An affirmative determination by the Commission in this investigation will ensure that this important sector of the U.S. steel industry has the ability to compete now and into the future.

We ask the Commission to keep these views in mind as you consider this matter.

Sincerely,

                        Peter J. Visclosky                                                       Tim Murphy
                        Chairman                                                                    Vice Chairman
                        Congressional Steel Caucus                                       Congressional Steel Caucus