NEW YORK Market
sources have seen little impact on oil country tubular goods
(OCTG) prices as a result of the recent filing of an
anti-dumping and countervailing petition by domestic producers
against nine countries, but effects could be seen once
preliminary decisions in the case are made.
"If the Department of
Commerce comes out and says this petition is worth assessment,
then you might see things change," Kurt Minnich, manager of
Tulsa, Okla.-based Pipe Logix Inc., told AMM. He said
an impact could be felt "if not by the end of this quarter,
then the next one."
Department is scheduled to decide by July 22 whether or not to
initiate an investigation into OCTG imports from India, the
Philippines, Saudi Arabia, South Korea, Taiwan, Thailand,
Turkey, Ukraine and Vietnam.
cautioned that potentially removing the volumes imported from
the nine countries, which totaled 747,115 tonnes in the first
half of 2013 (
amm.com, July 11), is not a cure-all for the OCTG
oversupply and its not just those suppliers (in the
dumping case). There are other things in the pricing equation,"
he said, such as increasing domestic supply, with a number of
foreign producers slated to build new mills in the United
One southern OCTG
distributor said he had seen little change in the marketplace
as a result of the filing. "Pricing right now is as competitive
as its ever been. Any company in my position is doing
whatever they have to do to sell inventory," he said.
Analysts at New
York-based Jefferies Group LLC do not expect a significant
long-term benefit for domestic OCTG producers
profitability from the case as the industry might struggle to
get significant duties on some of the more-established Korean
producers and also due to increasing domestic capacity,
according to a research note. The analysts said the current
market environment is not as bad as it was in 2009, when
domestic producers succeeded in getting anti-dumping duties on
Chinese OCTG, making the latest case more challenging.
Jefferies sees the
strongest possibility of significant duties against alleged
Chinese transplants in Vietnam, Thailand and the Philippines
amm.com, July 3).
In the meantime, Evraz
North America Inc.s OCTG-producing subsidiary, Pueblo,
Colo.-based Rocky Mountain Steel, has thrown its weight behind
the trade petition, according to a letter sent to the Commerce
Department. Parent company Evraz Plc said recently that its
second-quarter tubular production in North America was impacted
by growing imports.