NEW YORK 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 product.
"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).
"The Commerce 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 year.