Sep. 10--MERCER COUNTY -- Different folks, same strokes.

Chinese pipe producers got the second of a one-two punch Wednesday when the U.S. Commerce Department ruled duties of as much as 31 percent should be slapped on Chinese oil tubular products used in gas and oil wells.

The ruling follows a May decision by the U.S. International Trade Commission to proceed with an unfair trade case against Chinese producers that had been filed by Wheatland Tube Co. and six other American producers along with the United Steelworkers.

In its ruling the Commerce Department said Chinese oil tubular producers were getting unfair subsidies on $2.8 billion in annual imports.

Locally, such tubes are produced at Wheatland Tube's Warren, Ohio, plant and are finished at the company's Sharon mill where only a handful of employees are working because of Chinese imports. Wheatland Tube and the other companies said the Chinese goods were being unfairly subsidized by the Chinese government and were being dumped on the market at a price below what they cost to produce.

Wednesday's ruling by the Commerce Department deals only with subsidies. A ruling on dumping is expected by Nov. 5.

"I think this is certainly a positive step,'' said Bill Kerins, president of Wheatland Tube. "It shows when the right information is presented and the trade laws are enforced the right thing happens.''

Oil prices plunged more than half from last year's record highs due to the economic downturn and thus curbed demand for oil tubular goods. But that isn't why the unfair trade case was filed against Chinese producers, Kerins said.

"We didn't file this trade case based on the economy,'' he said. "We filed the case because products were being unfairly subsidized and dumped in the country.''

American producers are alleging Chinese companies are benefiting from massive government subsidies which are prohibited under international trade laws. Further, it alleges Chinese products are being dumped on American shores on margins ranging from 40 to 90 percent below their cost.

Dumped and subsidized oil country imports from China have tripled from 750,000 tons in 2006 to 2.2 million tons in 2008 and continued increasing in the first quarter of this year, according to the trade complaint.

As part of its ruling the Commerce Department denied a request from American producers to place the trade case under "critical circumstances.'' If the request had been approved duties could have been imposed 90 days before its preliminary findings were made.

In addition to Wheatland Tube, the six other American petitioners in the case are: U.S.