Chinese stainless fittings flood market

U.S. producers of stainless steel butt-weld pipe fittings in

mid-February pointed to increasing volumes of low-priced imports

from China as a serious and growing problem.

"What is occurring here is a remarkable influx of Chinese

stainless fittings over a very short period of time and at depressed

values," said David A. Hartquist, an international trade counsel

speaking on behalf of the Flowline Division of Markovitz

Enterprises, Gerlin and Shaw Alloy Piping Products.

Official U.S. Census Bureau data reflect that from an annual

volume of 287,223 kilograms in 2002, stainless fittings imports from

China skyrocketed 403% to 1,446,603 kg through the first 11 months

of 2005. China is now the largest single source of stainless

fittings imported into the United States among all countries that

export stainless fittings to the U.S. market.

From January to November 2005, the average unit value of the

Chinese stainless fittings was $8.91, almost 15% less than the

average unit value of $10.46 during that period for total stainless

steel fittings imported into the United States from all other

countries.

"As disturbing as these trends are, they are not surprising given

the unfair advantages Chinese producers have, not the least of which

are the Chinese government's manipulative undervaluation of the yuan

and other subsidies," Hartquist said. "We intend to monitor these

imports from China very closely and take action as appropriate."

Hartquist practices international trade law at the Washington law

firm Collier Shannon Scott, where he serves as chairman of the

International Trade and Customs section.