NEW YORK The
Philippines and Thailand have been included in a recent
anti-dumping and countervailing petition filed against nine
nations that produce oil country tubular goods (OCTG) because
Chinese tube makers that were barred from supplying the
domestic market by anti-dumping and countervailing duties
imposed in 2009 have set up shop in the two countries, the
"The likely source of
most, if not all, of that material (OCTG imports from the
Philippines to the United States) is an operation that was set
up in the Philippines by a Chinese producer of OCTG (HLD Clark
Steel Pipe Co. Inc, a subsidiary of China-based Huludao City
Steel Pipe Industrial Co. Ltd.) whose access to the U.S. market
was restricted by the 2009 anti-dumping and countervailing
cases against Chinese OCTG," attorneys wrote in a filing on
behalf of domestic producers.
Thailands inclusion in the case was the result of a
similar association with a Chinese seamless producer, WSP
Holdings Ltd., whose subsidiary in the country is WSP Pipe Co.
Ltd., attorneys with Washington-based law firms Skadden, Arps,
Slate, Meagher & Flom LLP; Wiley Rein LLP; and Schagrin
Associates said in the filing.
expressed surprise at the inclusion of the two countries, as
well as Saudi Arabia, due to their relatively low shipment
volumes compared to other countries cited in the filing.
"The only two that are
surprising ... are Saudi Arabia and Philippines. Thailand is
interesting too," one trader said.
In addition to Chinese
producers transplanting their operations to other Asian
countries, threats to the domestic industry mentioned in the
filing were significant expansions in seamless and welded
production in India by Rashmi Seamless Ltd., Khanna Industrial
Pipes Private Ltd. and Maharashtra Seamless Ltd.; welded OCTG
production expansions in Turkey by Toscelik Profil Ve Sac End.
AS, which has claimed it is building the largest pipe plant in
Turkey in a single investment, and a seamless capacity
expansion to 2 million tonnes annually by Interpipe NTRP in the
The case against South
Korean OCTG producers, by far the largest shippers of the
countries targeted in the suit, could be complicated by the
fact that many sources believe their advantage lies in low coil
A second trader said
that in his opinion, "this case is as much against (South
Korean flat-rolled producers) as against the pipe mills."
As a result, he said
he expects a difficult case.
"This will not be
decided within the regular deadlines. Its going to be a
long, long, drawn-out affair," he said, but added that a trade
case had become almost inevitable due to growing import
"When imports take
half of the market, its bound to happen," he said.
Sources have said some
countries might try to increase shipments before any
preliminary margins are set, though there is a danger of
essentially retroactive provisions coming into play that would
make any potential duties effective closer to the date of
filing, they said.
foreign producers with U.S. operations participating in the
case have facilities were largely left out of the filing. An
exception is Chesterfield, Mo.-based Maverick Tube Corp., a
subsidiary of Tenaris SA, and Vallourec Star LP, a subsidiary
of Frances Vallouorec SA, which did not take a position
in the filing against Saudi Arabia, where Luxembourg-based
Tenaris has a threading operation, according to its
Prior to the filing,
the U.S. International Trade Commission had revoked
anti-dumping duties on imports of OCTG from Argentina, Italy,
Japan, Korea, and Mexico in 2007, determining that the move
"would not be likely to lead to continuation or recurrence of
material injury within a reasonably foreseeable time,"
according to a statement.
In other recent energy
tubular filings, domestic producers filed an anti-dumping
petition against Chinese and Korean producers of
circular-welded steel line pipe in 2008, only to later withdraw
the filing against Korea.
The domestic industry lost a case last year asking for
anti-dumping duties on circular-welded carbon-quality steel
pipe from India, Oman, the United Arab Emirates and Vietnam,
with the ITC determining in a 4-2 vote that the domestic
industry was not hurt by imports from those countries.