US preliminary ruling to impose punitive tariffs on Chinese oil pipes

The US Commerce Department has made the preliminary decision Thursday of imposing as much as 99 percent in punitive tariffs on China-imported tubular steel goods used in the oil and gas industry.

According to the preliminary decision, 37 Chinese companies will be imposed a punitive tariff of 36.53 percent, while some other companies will receive a preliminary dumping rate of up to 99.14 percent.

The department claimed that the selling price of Chinese-exported tubular steel goods in the US market was less than the normal market, ranging from zero to 99.14 percent.

According to statistics from the US Commerce Department, the total amount of Chinese-made tubular steel goods exported to the US was valued at $2.6 billion.

This decision was an addition to the preliminary extra duties of 10.69 percent to 30.69 percent for Chinese oil pipes the Commerce Department announced in September.

"The anti-dumping ruling is unfair to Chinese producers who sold the pipes in the US at a 20 percent premium to our domestic prices," said Li Liancang, an export manager from Tianjin Pipe Group Co., a State-owned Chinese producer. "Chinese pipe exports to the US have almost stopped since the preliminary ruling in September," he added.

Chinese steel exports to the US in the first eight months slumped 73 percent year-on-year, the China Iron & Steel Association said last month.

On Friday China condemned the new US tariffs on imports of Chinese tubular steel goods, saying it was an "abuse of protectionism."

"China firmly opposes the abuse of protectionism and will take measures to seriously protect the interests of the domestic industry," the Commerce Ministry said in a statement on its website.