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Turkish OCTG firms aided by subsidies: ITA

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NEW YORK — The U.S. Commerce Department’s International Trade Administration (ITA) has assessed countervailing duties on two Turkish oil country tubular goods (OCTG) producers in a post-preliminary decision.
The ITA determined in April 18 filings that Borusan Mannesmann Boru Sanayi ve Ticaret AS and affiliates benefited from a subsidy of 25.76 percent on hot-rolled coil, while Tosçelik Profil ve Sac Endustrisi AS and affiliates benefited from a subsidy of 1.67 percent, amounting to an affirmative preliminary countervailing decision for both companies.
This is in contrast to the ITA’s initial negative preliminary countervailing determination for all Turkish producers in December (amm.com, Dec. 18).
The ITA was not ready to make a decision on the hot-rolled issue at the time of the initial decision, AMM understands.
The decision does not mean the two companies have to post payments for the countervailing duties unless the Federal Register notice regarding the initial preliminary determination is amended, AMM has learned, which one market participant argued it should be.
“We feel they ought to amend the Federal Register notice to provide the domestic industry the relief it is owed under the statute,” he said.
However, the ruling means that the two companies could be subject to these subsidy rates when the final countervailing decisions are made in early July, sources said.
Borusan in a statement called the decision “baseless.”
“Borusan believes that this decision is not in accordance with either U.S. law or World Trade Organization (WTO) requirements, and Borusan intends to pursue all available options to have this unfair decision reversed,” the Istanbul-based company said in a statement.
“Borusan provided to Commerce its purchases of hot coil from private international suppliers as a benchmark to show that the Turkish suppliers were selling their products at commercial prices, but Commerce rejected that information and substituted a constructed benchmark that has never been used in market economy cases and that was far higher than Borusan’s actual prices from private suppliers,” it added.
The company suggested in its statement that the decision was politically motivated as it followed a meeting between Senate staff and the ITA (amm.com, April 16).
“Borusan is surprised and disappointed by such a political decision and the pressure brought by these petitioning producers against Borusan, when Borusan is about to become a U.S. producer itself once the investment in Houston becomes fully operational later this summer,” the company said.
Thorsten Schier
tschier@amm.com

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