Network Metals LLC

On Wednesday, the US Commerce Department took the first steps toward imposing import tariffs on steel pipe from China. The tariffs will range as high as 31%, but the average will still be around 21.3%. We usually talk about Chinese export rebates as a good way to look at China’s attitude toward its domestic production, but the same can be said for this measure being considered by the US. This is quite a protective measure being put forth, and we ultimately feel it is a good thing for US manufacturing, which has seen some tough times over the last year or so. This goes right in line with the numbers coming out of China: steel pipe imports into the US from China have seen an increase of over 200% since 2006, and this measure, if instituted, would put a significant dent in that volume for next year.