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U.S. Commerce Department Begins Unfair Trade Investigation of OCTG Imports

07/29/2013 - The U.S. Department of Commerce (Commerce) has initiated antidumping duty investigations of imports of certain oil country tubular goods (OCTG) from India, the Republic of Korea, the Republic of the Philippines, Saudi Arabia, Taiwan, Thailand, the Republic of Turkey, Ukraine, and the Socialist Republic of Vietnam and countervailing duty investigations of imports of OCTG from India and the Republic of Turkey

• The AD and CVD law provides U.S. businesses and workers with a transparent and internationally approved mechanism to seek relief from the market-distorting effects caused by injurious dumping and unfair subsidization of imports into the United States, establishing an opportunity to compete on a level playing field.
• For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value. For the purpose of CVD investigations, countervailable subsidies are financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent either upon export performance or upon the use of domestic goods over imported goods.
• The petitioners for these investigations are United States Steel Corporation (Pittsburgh, Pa.), Maverick Tube Corporation (Houston, Texas), Boomerang Tube LLC (Chesterfield, Mo.), Energex Tube (Chicago, Ill.), Northwest Pipe Company (Vancouver, Wash.), Tejas Tubular Products Inc. (Houston, Texas), TMK IPSCO (Houston, Texas), Vallourec Star, L.P. (Houston, Texas), and Welded Tube USA, Inc. (Lackawanna, N.Y.). Maverick Tube Corporation and Vallourec Star, L.P., are not petitioners for the investigation of OCTG imports from Saudi Arabia.
• The products covered by the scope of these investigations are hollow steel products of circular cross-section, including oil well casing and tubing, of iron (other than cast iron) or steel (both carbon and alloy), whether seamless or welded, regardless of end finish (e.g., whether or not plain end, threaded, or threaded and coupled), whether or not conforming to American Petroleum Institute (API) or non-API specifications, whether finished (including limited service OCTG products) or unfinished (including green tubes and limited service OCTG products), whether or not thread protectors are attached. The scope of the investigations also covers OCTG coupling stock. Excluded from the scope of the investigations are: casing or tubing containing 10.5% or more by weight of chromium; drill pipe; unattached couplings; and unattached thread protectors.
• In 2012, imports of OCTG from India, Korea, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, and Vietnam were valued at an estimated US$216.6 million, US$831.1 million, US$59.7 million, US$99.9 million, US$89.8 million, US$40.5 million, US$135.9 million, US$129.6 million, and US$189.2 million, respectively.

Alleged Dumping Margins

Country

Dumping Margins

India

12.67–239.64%

Korea

66.19–158.53%

Philippines

46.04–56.38%

Saudi Arabia

53.34%

Taiwan

68.44–70.98%

Thailand

118.32%

Turkey

44.52–47.20%

Ukraine

25.75–30.76%

Vietnam

103.43–111.47%

Estimated Subsidy Rate

Country

Subsidy Rate

India

Above de minimis*

Turkey

Above de minimis*
* de minimis=less than 1% for developed countries, less than 2% for developing countries.
NEXT STEPS
• The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injury determinations on or before 16 August 2013.
• If the ITC determines that there is a reasonable indication that imports from India, Korea, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, and/or Vietnam materially injure, or threaten material injury to, the domestic industry, the investigations will continue and Commerce will be scheduled to make its preliminary CVD determinations in September 2013 and its preliminary AD determinations in December 2013, unless the statutory deadlines are extended. If the ITC preliminary determinations are negative, the investigations will be terminated.