Domestic pipe and tube makers have applauded a final ruling by
the Commerce Departments International Trade
Administration (ITA) that unfinished oil country tubular goods
(OCTG) made in China and processed in other countries before
being shipped to the United States should be subject to the
anti-dumping and countervailing duties imposed on Chinese
"U.S. Steel (Corp.)
firmly believes that we can remain globally competitive
provided there is a level playing field and fair trade laws are
enforced. This is an important decision for our industry and we
are pleased with the ruling," a spokeswoman for the
Pittsburgh-based steelmaker told AMM in an e-mail.
"Its a big win
for us," said Scott Barnes, senior vice president and chief
commercial officer at Houston-based TMK Ipsco. "At our facility
in Brookfield (Ohio), this is the type of product that we
produce and sell. Obviously we would not have filed the case if
we did not think it was important to block the loophole."
The decision affirms a
preliminary ruling by the ITA in June (
amm.com, June 5).
Departments ruling is excellent news for Ohios
workers and manufacturers like those at U.S. Steel and
Vallourec Star (LP),"
Sen. Sherrod Brown (D., Ohio) said in a statement.
The value of finishing
equipment and the cost of transforming the tubes in third
countries were at issue in the case, and the ITA ruled in the
domestic industrys favor on both counts. "We continue to
find that (PT) Citra Tubindo (Tbk)s level of investment
in its finishing operations is small in comparison to the
investment necessary for a complete pipe mill," ITA staff wrote
in the filing. "We continue to find that the value added by the
processing performed by Citra Tubindo is not significant in
comparison to the total value of finished OCTG."
Citra Tubindo, an
Indonesian processor of OCTG distributed in the United States
by Bell Supply Co. LLC, Gainesville, Texas, was the sole
respondent in the case.
The ruling applies
only to product that is heat-treated by tempering and
quenching, upsetting and threading or threading and coupling,
and adheres to American Petroleum Institute specification 5CT
in grades P110, T95 and Q125.
The U.S. industry
asked for clarification on the scope of the duties in March
2012, and the ITA initiated a scope inquiry in June that