Ryan, Williams testify on steel

Local, state and federal officials are appealing to the U.S. International Trade Commission for fair trade policies to offset Chinese government-subsidized steel imports, the impact of which is affecting steel producers in Howland and Youngstown.

The Chinese surge, they say, has forced domestic mills to cut back production and lay off workers, and in response, V&M Star Steel and Wheatland Tube are among U.S. producers to file countervailing and anti-dumping cases on Chinese imports.

''Without relief from unfair trade practices, we will not regain lost jobs in the steel industry. Indeed, we will lose more,'' said Ohio Gov. Ted Strickland, who testified by the ITC Tuesday.

Testimony from Strickland and other officials, including U.S. Rep. Timothy J. Ryan and Youngstown Mayor Jay Williams, focused on Oil Country Tubular Goods of China, which Ryan says have decimated U.S. industry.

''The recent preliminary findings from the Commerce Department have proven that the Chinese have dumped, on average, margins of 36 percent and subsidized these imports in margins from 11 to 31 percent,'' Ryan, D-Niles, said.

Additionally, Ryan said, U.S. imports from China totaled 2.2 million tons in 2008, which accounted for nearly 33 percent of the U.S. quantity. During the first three quarters of 2009, it was 37 percent.

Tuesday's hearing was the ITC's last in regard to Oil Country Tubular Goods.

The United Steelworkers added its voice in calling for duties on Chinese pipe imports. Noting that 2,421 pipe workers have been idled in 2009 through September, President Leo W. Gerard said that the future of 6,000 workers employed by seven OCTG pipe producers, including Wheatland Tube Corp., and their communities are at stake.

''We come before you today seeking much-needed trade relief to permit the massive inventories of unfairly traded imports from China to be worked off so our workers can go back to work and regain their livelihoods and dignity,'' he said.

Gerard noted nearly half of the domestic work force has been laid off at different times since the case was jointly filed in April by the USW and the participating companies. The pipe imports case is the largest in U.S. history with imports valued at $2.6 billion in 2008, the union said.

Ryan said the imports have caused V&M and Wheatland Tube to reduce production, causing layoffs.

An attorney from V&M Star said in September that the amount of Chinese import has increased from 158,000 tons in 2006 to 366,000 tons in 2008, which has a value of $400 million. The attorney, Roger B. Schagrin, said that there is too much steel coming into the country for U.S. industries to stay competitive.

Members of both congressional houses signed onto letters to ITC Chairman Shara L. Aranoff supporting the Steelworkers and other petitioners' position, including 41 members of the House and 13 senators.

In addition to the USW as co-petitioner, the seven producers of the petition are Wheatland, which has operations in Howland and western Pennsylvania; V&M Star LLP, a Houston-based company with a large mill in Youngstown; V&M TCA, Houston; U.S. Steel Corp., Pittsburgh, Pa.; Maverick Tube Corp., Hickman, Ark.; Evraz Rocky Mountain Steel, Pueblo, Colo., and TMK IPSCO, Downers Grove, Ill.

The anti-dumping hearings have been met with anger among Chinese government commerce officials, who call the hearings "protectionist."

Beijing responded to the hearings by launching their own anti-dumping investigations into U.S. imports such as automobiles, according to a November report from the Associated Press. The case could result in higher tariffs on U.S. autos if China concludes that American automakers received improper subsidies or sold below fair-market price.

At the same time, the Chinese steel industry group said on Friday that major steel mills there have asked the Commerce Ministry to launch an anti-dumping investigation of U.S. and European steel, claiming that the steel was being sold at improperly low prices and causing injury to the Chinese market.

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