SÃO PAULO South Korean producers of oil country tubular goods (OCTG) likely will reduce the amount of material shipped to the United States due to recent trade action, according to Posco Ltd.s top executive.
"A reduction is expected," Joon-Yang Chung, chief executive officer of the Pohang, South Korea-based steelmaker, told AMM on the sidelines of the World Steel Association (WorldSteel) annual conference in São Paulo. "Of course, there are many countries and many steelmakers, so its not an overall opinion."
U.S. producers filed a long-anticipated trade complaint against OCTG imports from South Korea and eight other countries (amm.com, July 2). Posco doesnt produce its own pipe, but sells substrate to pipe producers that may be affected by the case.
Chung noted that the company is going to participate in the process while also reducing shipments. "We dont want to fight," he said. "On one hand, were going to participate in the legal process. On the other hand, were going to review everything."
There is a lot of "trade tension" between Asian steelmakers and U.S. players, he added.
South Korean shipments of OCTG are a particular point of discussion for U.S. players, with the nation having shipped some 78,081 tonnes of the product in August, according to preliminary data from the U.S. Commerce Departments Import Administration (amm.com, Sept. 26), up 43.2 percent from July and the highest level since January.