In a June 12 press release, the U.S. Department of Commerce announced that it was initiating an investigation into whether steel propane cylinders from China, Taiwan, and Thailand are being dumped in the United States at much lower prices, stifling competition from American manufacturers.
The cylinders are portable tanks of propane commonly used to heat and power objects being transported. The investigation was initiated after American companies Worthington Industries, based in Columbus, Ohio, and Manchester Tank & Equipment Co. based in Franklin, Tennessee, filed petitions. They claimed that the Chinese government has 18 subsidy programs that assist Chinese manufacturers in producing propane cylinders, which are then dumped in the United States at much lower than market value.
“For the past several years, China, Thailand and Taiwan have been pretty aggressive in selling propane cylinders at prices dramatically lower than the domestic industry,” Cathy Lyttle, spokeswoman for Worthington Industries, told the Columbus Dispatch in a June 13 report. “And it has driven down prices and taken sales away from U.S. producers.”
The U.S. International Trade Commission (ITC) will conduct a preliminary investigation into whether imports from China, Taiwan, and Thailand have injured domestic industries by July 6. If such a determination is made, the Commerce Department will continue investigations, results of which will be announced in August and October.
The Commerce Department said it would impose duties on steel propane cylinder imports if it is determined that dumping and unfair government subsidies exist.
