Trade Cases

US Sets High Dumping Margins on OCTG from Three Countries

Written by Laura Miller

May 12, 2022

The US Department of Commerce has made affirmative preliminary determinations in the trade case investigating the dumping of OCTG by Argentina, Mexico, and Russia.

High dumping margins were set for most producers and exporters from the three countries, which could slow down OCTG imports further in an already undersupplied market.

steel pipeCritical circumstances were found to exist in the cases against Argentina and Mexico but not in the Russian case. Critical circumstances allow for duties to be applied retroactively for 90 days before the imposition of the provisional measures, which began on May 11. The period of investigation for these cases is October 1, 2020 through September 30, 2021.

In the Argentinian case, Commerce set preliminary weighted-average dumping margins of 76.43% for Siderca SAIC and the same margin for all other Argentinian companies.

In the case against Mexico, a 69.56% preliminary dumping margin was set on imports from Tubos de Acero de Mexico (TAMSA), and the same rate was applied to all-other Mexican producers and exporters.

Preliminary margins in the Russian case were set at 11.35% for JSC Vyksa Steel Works, 121.11% for a handful of pipe plants, and 70.49% for the all-others rate.

Commerce has decided to postpone making its final determinations in these cases, setting a new deadline of September 23.

During the one-year period of review, OCTG imports from Argentina were 119,060 net tons, from Mexico 264,809 tons, and from Russia 100,610 tons, according to data from the US International Trade Commission. In the first three months of this year, imports reached 44,533 tons from Argentina, 85,130 tons from Mexico, and 61,712 tons from Russia. The subject merchandise may also enter under additional HTSUS codes, so actual figures may be higher.

In the first three months of 2022, the largest foreign suppliers of OCTG to the US in descending order were South Korea, Mexico, Russia, Argentina, Austria, Taiwan, Canada, Ukraine, and Brazil. According to licensing data, no product was imported from Russia or Ukraine during all of April and or the beginning of May.

A countervailing duty case is also currently pending on allegedly subsidized OCTG imports from Russia and South Korea. Both the countervailing and antidumping cases include both seamless and welded product.

The OCTG market in the US, which is a major consumer of flat-rolled steel and plate, has been undersupplied now for some time, plagued by high prices and lead times extended out for several quarters. The high margins found in these trade cases could slow imports from these countries, or increase prices further for imported product. Either way, elevated OCTG prices are expected to continue in the US for the foreseeable future.

By Laura Miller, Laura@SteelMarketUpdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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