U.S. panel approves final duties on China drill pipe

A U.S. trade panel on Monday approved combined final duties ranging up to nearly 450 percent on steel drill pipe from China used in oil production.

The U.S. International Trade Commission said there was sufficient evidence U.S. companies are threatened with harm by unfairly low priced competition from China.

The decision is a victory for the United Steelworkers union and four U.S. producers that joined together to bring the case.

They were VAM Drilling USA, Texas Steel Conversions Inc and

Rotary Drilling Tools of Texas and TMK IPSCO of Illinois.

The United States imported $119.2 million of the drill pipe from China in 2009, down from $193.8 million in 2008.

The vote clears the way for the Commerce Department issue final antidumping and countervailing duties on the imports.

The Department last month approved final antidumping rates of 69 to nearly 430 percent on a swath of Chinese companies to offset unfairly low pricing.

Two companies, Baoshan Iron & Steel and Shanxi Yida Special Steel Import and Export, escaped being hit with any antidumping duties in that investigation.

However, all Chinese drill pipe producers and exporters will face an 18.18 percent countervailing duty to offset subsidies they receive from the Chinese government.