This is not a pipe.
[With apologies to Rene Magritte.]
Not the sexiest topic in the world, but certainly important: on Wednesday, the US Department of Commerce into whether or not to impose anti-dumping and countervailing duties on imports of steel pipes from China. This follows upon the mostly symbolic mid-September imposition of duties on Chinese tire imports, and recent EU duties against the same products.
For reasons that I won’t go into right now, I’ve spent an inordinate amount of time in factories that manufacture the sort of pipe in question here, and I’m personally acquainted with some of the factory owners. Though I’ve no interest in excusing the alleged dumping in question here, I think I can offer some limited perspective on why – in fact – the situation is more complex than the one suggested by the aggressive proponents of imposing new duties. In truth, I don’t expect I’m going to hold many of my casual readers with a discussion of seamless pipe dumping, but I do think that – if you’re interested in how greed and a total mis-comprehension/mis-trust of motives can contribute to trade disputes – this is as good an example as any.
Above, an image of a seamless pipe factory in Qinghuangdao, taken two years ago.
Seamless steel pipe is just what it sounds like: a pipe with no seams suitable for use as a conveyance for high-pressure fluids such as oil and natural gas. To the casual observer, a pipe is a steel pipe; but if you drill for oil, say, you’re going to want every assurance that your pipe is manufactured to certain industry-mandated standards (for example, so that the pipe can handle the threads that may be cut into it at a later date). (more…)

