Will this unfair-trade, anti-dumping case against steel companies from India and eight other nations see a positive outcome, or just delay oil and gas operations? So far, there’s no consensus on the anti-dumping move by US steel companies.
US companies filed one of the biggest anti-dumping complaints recently against steel companies from as many as nine countries, including India.
A bunch of US companies that manufacture specialty steel pipe used to drill for oil and gas have asked the US International Trade Commission (ITC) and the Department of Commerce (DOC) to stem what they claimed was “a flood of unfairly traded products from nine countries.”
The petition was filed on behalf of the US Steel and other companies earlier this week, asking the commission to investigate imports of some oil country tubular goods from India, the Philippines, Saudi Arabia, South Korea, Taiwan, Thailand, Turkey, Ukraine and Vietnam.
According to a report filed by Reuters, if the US steel producers succeed, the price of some high-margin steel products sold to the energy industry could rise, benefiting US domestic producers such as United States Steel Corp(X.N).
It added that US steel manufacturing has been hit by weaker demand in the past year, but steel pipe sales to the oil sector have been a bright spot for the industry, and that has increased imports.
While there has been no reaction yet from the Indian companies named in the anti-dumping charge, some of those in South Korea and the Philippines have vehemently denied the dumping allegation. Analysts following the sector went on record saying it would be difficult to prove the charges, especially since many of the US companies in the business were running profitable businesses.
However, the American Institute for International Steel, a group representing steel importers and exporters, has dubbed the move as “excessive and unwarranted,” adding it could disrupt oil and gas exploration business.
But another trade association representing North American steel producers, feeling otherwise, has lent its support to petitions filed with the DOC and the ITC seeking anti-dumping relief.
Thomas J. Gibson, President and CEO of the American Iron and Steel Institute (AISI), was quoted in this report as saying that imports from the named countries had surged by 111 percent in the past few years, and they had caused material injury to the domestic steel industry. He urged the DOC and ITC to “take a hard look and provide anti-dumping and countervailing duty relief for our industry.”
Imports of oil country tubular goods from the nine countries have doubled in the past few years to almost 1.8 million metric tons, according to the American Iron and Steel Institute.