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.