On June 2nd, the International Trade Commission (“ITC”) voted to continue the antidumping and countervailing duty investigations on cold-drawn mechanical tubing from China, Germany, India, Italy, Korea, and Switzerland. The ITC’s preliminary vote finding a reasonable indication that the domestic industry is material injured by reason of imports from the six countries was unanimous. As a result of the affirmative preliminary injury finding, the Commerce Department will continue its respective investigations to determine whether cold-drawn mechanical tubing from each of the six countries is being unfairly subsidized and/or sold at less than fair value. The petitions for trade relief, filed on April 19th, allege margins of dumping that range from the double digits to the triple digits for certain countries, including China, Germany, and Switzerland. The countervailing duty petitions for China and India identify numerous subsidy programs including, for example, export loans, credit and insurance at preferential rates, preferential tax treatment, and government grants. The ITC and Commerce Department are expected to issue their final determinations by or before early next year.
Cold-drawn mechanical tubing is a tubular product that is used by a number of industries, including for automotive, agricultural, industrial, and oil and gas applications. Kelley Drye & Warren LLP represents the domestic petitioning industry in this case, which includes ArcelorMittal Tubular Products, Michigan Seamless Tube, LLC, Plymouth Tube Co. USA, PTC Alliance Corp., Webco Industries, Inc., and Zekelman Industries.