Wednesday, December 30, 2009

ITC Steel Pipe Ruling

Breaking good news for Greater Youngstown:

The Commerce Department is likely to issue an order Jan. 14 for U.S. Customs offices to collect duties that would counteract the subsidies, [International Trade Commission spokesman John Greer] said.

Seven U.S. producers of steel piping that is used in oil and natural gas wells, along with the Downtown-based United Steelworkers union, filed a trade complaint in April, claiming the subsidized Chinese products have hurt the industry and resulted in the loss of about 2,400 steelworker jobs.

The Business Journal has some additional information you can find here. Again, I'll point out that this steel product is important to the booming natural gas industry centered in Pennsylvania and New York. The close proximity to the Marcellus Shale Play is likely a key factor in V&M Star's decision about where to expand operations. I would speculate that the imposed duty makes the investment more likely, but doesn't necessarily privilege the Youngstown location.

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