October 2, 2007

JAPANESE STEEL INDUSTRY CRITICIZES ITC DECISION TO RETAIN ANTIDUMPING DUTIES ON WELDED
LARGE-DIAMETER LINE PIPE FROM JAPAN

NEW YORK– The U.S. International Trade Commission’s decision to maintain antidumping duties on Japanese welded large-diameter line pipe (WLDLP) was sharply criticized today by Hiroshi Adachi, chairman, Japan Steel Information Center here.
In a “sunset review” of the WLDLP order, first imposed in December 2001, the ITC determined that elimination of the duties would result in a continuation or recurrence of injury to U.S. WLDLP producers.

Mr. Adachi said that the record was “very clear” that maintaining these duties “could not be supported by the record before the Commission.”

“WLDLP is used in the critical natural gas and oil pipeline infrastructure,” said Mr. Adachi. “Numerous reports, including data collected by the U.S. Department of Energy, show that the oil and gas pipeline market will grow strongly for the foreseeable future. This means that the market for WLDLP will be equally strong,” he added.

He further noted that “major U.S. pipeline companies testified and told the Commission of the tremendous lead times that WLDLP customers are now required to endure due to the lack of available capacity. There is simply not sufficient production of WLDLP in the United States, with some producers booked through 2008 and even well into 2009.”

“As can be expected in this booming market,” Mr. Adachi continued, “U.S. WLDLP producers have been doing extremely well. There are at least several additional WLDLP manufacturing plants on the books, some being planned by current U.S. producers themselves.”

Mr. Adachi concluded: “The World Trade Organization rules create a presumption that antidumping orders should normally expire after five years. We will examine the views of the ITC once they have been made available, but we believe that any rationale for continuing the duties cannot be supported by the facts.”

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