X US Steel Corp

By John W. Miller 

PITTSBURGH -- U.S. Steel Corp. Tuesday upped trade pressure on China, filing a complaint that could eventually threaten Chinese steel imports into the U.S.

The complaint, known as a Section 337 and designed to protect the U.S. against intellectual property theft, was filed with the International Trade Commission and demanded "the exclusion of all unfairly traded Chinese steel products from the U.S. market." Chinese steelmakers could face a number of penalties, including a total ban of imports to the U.S.

In particular, U.S. Steel said that Chinese steelmakers conspired to fix prices, stole trade secrets and circumvented duties with false labeling.

"We have said that we will use every tool available to fight for fair trade," said President and Chief Executive Officer Mario Longhi. "With today's filing, we continue the work we have pursued through countervailing and anti-dumping cases and pushing for increased enforcement of existing laws."

The move by U.S. Steel comes amid rising tension between American metal makers and China, which has dramatically ramped up production and exports of steel and aluminum this decade. Chinese steel exports rose 22% last year to 100.4 million tons, while aluminum shipments increased 9% to 6.7 million tons.

This year already, the U.S. has slapped tariffs on imports of several categories of Chinese steel. This month, the ITC announced an investigation into overproduction in global aluminum, a move that could pave the way for new tariffs on Chinese imports.

The Pittsburgh-based steelmaker lost $1.5 billion last year, and laid off thousands of workers, laying much of the blame on China's actions.

The company made the announcement on its own, shortly before reporting first quarter earnings. A spokesman for ArcelorMittal, which operates steel mills in the same regions as U.S. Steel, said the company had not been asked to support the petition.

A spokeswoman for the ITC said the complaint was being processed but it doesn't comment on the content of complaints.

The ITC held hearings in Washington earlier this month on damage suffered by the American steel sector.

The ITC now has 30 days to evaluate the petition and decide whether to initiate a case. After that, such a case can take up to 18 month to prosecute, according to trade experts.

Write to John W. Miller at john.miller@wsj.com

(END) Dow Jones Newswires

April 26, 2016 17:34 ET (21:34 GMT)

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