Secretary of Commerce Wilbur Ross recently announced the final results of an annual administrative review of the anti-dumping duty order on imports of oil country tubular goods (OCTG) from the Republic of Korea (South Korea). Commerce found that Korean steel producers have been unfairly dumping OCTG in the U.S. market, hurting American workers and businesses.
Commerce announced, in a press release, that it is exercising its authority under Congress for the first time to address market distortions in the production of foreign merchandise, and to calculate dumping margins that “more accurately account for the unfair pricing practices of foreign exporters. Section 504 of the Trade Preferences Extension of 2015 is a vital instrument in helping to identify distortions in the market that can enable and facilitate dumping practices.”
During the period covered by the administrative review (July 2014 to August 2015), OCTG imports from South Korea were valued at an estimated $1.1 billion, accounting for nearly 25% of all U.S. imports of OCTG. The dumping margins, or the rate at which the imported materials were under sold below fair value in the U.S., were found to range from 2.76% to 24.9%.
A 24.92%t tariff rate was imposed on OCTG from Nexteel, 2.76% on SeAh Steel and 13.84% on Hyundai Steel and other South Korean steelmakers.
The review also concluded that prices of the hot-rolled coil used to produce OCTG, as well as Korean electricity prices, were distorted. Anti-dumping tariffs on Nexteel and Hyundai each increased 16.88% and 7.92%, respectively, during this review. The initial preliminary rulings and the lower percentages were announced last October.
Seah Steel, however, saw a 1.04% reduction, making it the only South Korean steelmaker that was levied a lower tariff rate.
“There is fair and unfair trade, and the distinction is not very hard to make,” Secretary Ross said in the release. “We will not stand for the distortions in foreign markets being used against U.S. businesses. The Trump Administration will continue to employ all of the tools provided under the law to take swift action against harmful trade practices from foreign nations attempting to take advantage of our markets, workers, and businesses.”