The US International Trade Commission has agreed with a group of US steelmakers that the local steel industry is suffering because of alleged dumping by Chinese steelmakers at heavily subsidised tubular and pipe steel in the country.
In the final phase the investigation by the ITC on whether to impose countervailing duties on Chinese tubular and pipe steel imports, the federal agency voted 6-0 to allow the US commerce department to impose duties between 10.36 per cent and 15.78 per cent on the pipes, which are used mainly by the oil and gas industries.
In a statement on its website, the ITC said it "Determined that US industry is materially injured or threatened with material injury by reason of imports of certain oil country tubular goods from China that the US Department of Commerce has determined are subsidised."
With all six commissioners ruling in favour of imposing duties, the decision would affect about $2.8 billion of tubular and pipe steel exported from China.
The US commerce department will make a final decision on imposing anti-dumping duties as high as 96 per cent early next year to offset the subsidies given by Beijing to its steel industry.
In the biggest ever anti-dumping case filed by the US against China, the US steel manufacturers alleged that Chinese producers benefit from massive government subsidies and dumping margins ranging from 40 to 90 per cent.