Mechanical pipe was small part of firms portfolio

U.S. Steel Tubular Products Inc. in Lone Star, Texas, a unit of U.S. Steel Corp. will stop making certain steel pipe and tube to focus on its main sheet and tubular steel products. The production lines to be closed sometime this quarter make drawn-over-mandrel (DOM) mechanical-grade pipes bought by auto makers, mine operators, fluid power component manufacturers and steel distributors.
DOM mechanical pipes account for less than 3% of the tubular steels, or about 50,000 tons, shipped by U.S. Steel last year. The plan to exit the DOM mechanical pipe markets follows a tough period for the mining industry, which stumbled in late 2008 as housing, automobile and other manufacturers that use metals cut back amid a global recession.
Also, U.S. Steel Tubular Products is idling indefinitely a welded tube plant in Bellville, Texas, due to reduced oilfield customer orders. Bellville produces oil country tubular goods, line pipe and specifically high-strength production tubing.