Chinese OCTG makers find US AD decision unfair

17/11/2009 12:00 - 519 Views

National Business Daily reported that the US Commerce Department has announced to impose 36.53% to 99.14% antidumping duties on China export oil pipes in its preliminary decision on November 6th with the involved value of USD 3.2 billion in total last year including nearly 90 Chinese steel enterprises, like Baosteel, Angang and Tianjin Steel Pipe etc this is the biggest antidumping and countervailing case in Chinese history.

The Commerce Ministry in Beijing said the levies of as much as 99% on USD 3.2 billion of Chinese exports are discriminatory. While, many steel mills are intentionally to keep cautious on this sensitive moment because US President Mr Barack Obama first visit to China this month. So, most of them refused to deliver any comments on this matter.

As per report, Chinese steel mills choose to take low keyed attitudes towards the antidumping investigations, hoping to find a new way for survivals. US imported USD 2.63 billion oil pipes from China in 2008, up more than 200% from one year ago experiencing a import growth of 203% from 2006 to 2008.

Jiangsu Changbao Steel Tube Co didn't get any antidumping duties, while Tianjin Pipe and the other 37 steelmaker were assessed a 36.53% duty and 99.14% for the rest steel enterprises. To China Baosteel and Hunan Valin Steel, they didn't get a lot of influences from this as two of them only covered a very small amount of oil pipes to US. While, Tianjin Pipe exported 1.25 million tonnes oil pipes to US in 2008 occupying 19% of the total. In fact, Hunan Valin Steel noticed that it was easier to get antidumping investigation by US earlier in 2007 so it decided to shift export destinations.

The Beijing Commerce Ministry criticized the US decision to raise tariffs on Chinese pipes as protectionist. It said the move violated World Trade Organization principles and commitments by Washington and other Group of 20 major economies to avoid protectionism amid the global economic crisis.

China steel exports started shrinking especially after the entry of Q2 in 2009 with a much higher price sold in American market than domestic market in fact. And Mysteel analyst Mr Zhang Limin viewed that Chinese steel mills should enlarge their export destinations, especially in Mid-Asian, African and CIS markets. It is beneficial for them to establish plants in overseas markets, and in fact, many mills have earlier built plants there, like Wuhan Steel co established a 5 million tonnes per year steel making mills with a Brazil miner.

Also On November 6th Friday, Beijing announced it was launching an anti dumping investigation of imported US autos. It said it was acting on a complaint by Chinese automakers but gave no details of the alleged American misconduct. The case could result in higher tariffs on US autos if Chinese investigators conclude American automakers received improper subsidies or sold below fair market price.

Mr Zhang hoped that we, Chinese steel enterprises would search new ways to cope with the difficulties in front of us amid the world financial crisis.

from MySteel.net

Friday, 13 Nov 2009

Source: steelguru.com
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