U.S. Sen. Evan Bayh urged the International Trade Commission to take steps to protect American jobs and the U.S. steel industry from imports of unfairly traded steel pipe from China.

On Tuesday, Bayh testified before the ITC about American steel producers, including hot-rolled steel and pipe and tube manufacturers in Indiana, that are being undercut by circular welded steel pipe sold in the United States at as much as 85 percent below fair market value.

In 2005, the International Trade Commission found that Chinese circular welded steel pipe imports hurt American companies. The ITC is considering the renewal of a temporary trade tariff this summer. Indiana is one of the largest producers of circular welded pipe.

In November, the U.S. Department of Commerce determined that Chinese companies producing circular welded steel pipe are subsidized by the Chinese government, which gives them an unfair advantage in the world market over U.S. producers.

"The subsidies, as I understand it, have been determined by the Department of Commerce to be as high as 265 percent in some cases. The product is being sold in our markets at below the market price, in some cases as high as 85 percent below market price," Bayh said.

"Profit margins in the industry have sunk from about a 10 percent profit margin to about a 3.4 percent profit margin. Roughly 120 people have been laid off because of this predatory activity."

Bayh said the Chinese, in this case, cheat because they can.

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