OCTG Trade Case | ITA Preliminary Ruling

 

Photo Courtesy of MRC Global Inc.

Photo Courtesy of MRC Global Inc.

Susan Murphy | Publisher

Susan Murphy | Publisher

This bulletin will update you on the preliminary ruling in the OCTG trade case against imports from nine countries that was released late today. The determination was expected on February 13 but was delayed due to a snow day and the President’s Day holiday Monday.

The Department of Commerce (Commerce) announced its affirmative preliminary determinations in the antidumping duty (AD) investigations of imports of certain OCTG from India, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine and Vietnam and negative preliminary determination in the AD investigation of imports of OCTG from Korea. A mixture of dumping margins were assigned to the various countries that were determined to be dumping, most considered very low.

On December 18, 2013, petitioners timely filed allegations of critical circumstances in all cases except Saudi Arabia, Taiwan and Thailand. Domestic producers claimed that a recent surge in imports was an attempt to avoid potential duties. Critical circumstances are designed to keep people from trying to flood the market before the determination date.

For India, the ITA found that critical circumstances exist for Jindal SAW and did not find that critical circumstances for GVN and all others. For Vietnam, they made a negative critical circumstances determination for SeAH Steel VINA Corporation, but an affirmative determination for the Vietnam-wide entity. For Korea, the Philippines, Turkey, and Ukraine, they made negative critical circumstances determinations. In each instance where they found that affirmative critical circumstances exist, they will instruct CBP to impose provisional measures retroactively on entries of subject OCTG up to 90 days prior to these determinations.

Commerce is scheduled to announce its final determinations on or about July 8, 2014. If Commerce makes affirmative final determinations, and the U.S. International Trade Commission (ITC) makes affirmative final determinations that imports of OCTG from India, Korea, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine and/or Vietnam, materially injure, or threaten material injury to the domestic industry, Commerce will issue AD orders. If either Commerce or the ITC’s final determinations are negative, no AD orders will be issued. The ITC will make its final injury determination in August 2014.

The negative preliminary decision on South Korean imports and low margins assigned to other countries leads us to believe that the relief sought is unlikely and pressure on OCTG spot market prices will continue unabated.

About The OCTG Situation Report

Susan Murphy is the publisher of The OCTG Situation Report, a leading authority focused on the North American Oil Country Tubular Goods market. Susan has worked alongside the founder of The OCTG Situation Report, Duane Murphy (and yes, there is a family connection!) for the past decade assisting in various aspects of producing the monthly publication and special projects including market research and development. It had long been suspected that Susan carried the 'OCTGene,' a fact that was confirmed when she took the reins in 2012. A native of Michigan and now practicing cowgirl, Susan employs her education from both the University of Michigan and Michigan State University bringing her expertise in the areas of research, marketing, branding and creative and technical writing to The Report. She has also enjoyed a successful business career as a lauded entrepreneur, running her own brand/marketing and advertising/design firms.
This entry was posted in AD Investigation, Critical Circumstances, Department of Commerce, OCTG, OCTG Trade Case, Oil & Gas Industry, Oil & Gas Pricing, Oil Country Tublular Goods, Oil Patch, Pipe and tagged , , , , , , , , , . Bookmark the permalink.

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