Recently, China has dumped a flood of subsidized OCTG (Oil Country Tubular Goods) steel pipe into the U.S. market. Known as OCTG pipe because it is used for the extraction of oil and gas, this pipe has flooded the U.S. market and, from 2006 to 2008 alone, the volume of these imports increased by 203 percent.
While OCTG pipe imports from China have surged into the U.S., natural gas drilling and overall demand for pipes has collapsed. As a result, there has been a massive inventory build-up that has essentially devastated domestic OCTG production, with large numbers of jobs lost and plants shut down.
On Tuesday morning, the U.S. International Trade Commission (ITC) is holding a final hearing on Oil Country Tubular Goods from China. Several petitioners, including U.S. Steel and the United Steelworkers, will allege that steel pipes imported from China is subsidized and sold in the United States at less than fair market value in order to gain a competitive advantage.
A number of U.S. congressmen and senators have signed a letter to ITC Chairman Shara Aranoff, urging support for the U.S. OCTG industry. These elected officials are taking a stand in favor of American manufacturers and their workers.