US DOC formally initiates AD, CVD investigations against Chinese OCTG

The US Department of Commerce (DOC) formally initiated the antidumping (AD) and countervailing (CVD) investigations of oil country tubular goods (OCTG) from China Tuesday morning.

In its initiation notice of the AD investigation, the DOC stated that the estimated dumping margins from the Petition range from 36.94 to 99.14 percent.

The DOC did not quantify the estimated CVD margin for China, though it identified 38 alleged subsidy programs it will investigate.

Mandatory respondents in the AD investigation will be selected by Quantity and Value Questionnaires sent by the DOC to all known Chinese producers and exporters of OCTG. The DOC will also accept Separate Rate Applications from Chinese producers and exporters of OCTG, with the submission deadline of May 19.

Mandatory respondents in the CVD investigation of China will be selected on the basis of import data from US Customs and Border Protection.

“Critical circumstances” inquiries have also been initiated in both investigations by the DOC. Petitioners claimed that there were sufficient pre-filing notice of the AD and CVD petitions to warrant the comparison of OCTG imports from January through June 2008 to imports during July through December 2008 for purposes of this determination, supporting this allegation with copies of news articles discussing the likelihood of filing unfair trade complaints against producers of OCTG. The petitioners have also requested an expedited “critical circumstances” determination by the DOC, which means that a potential "critical circumstances" determination would take effect 90 days prior to the DOC's preliminary dumping and subsidy determinations, though not prior to the May 5 date of the DOC's initiation notice.

The US International Trade Commission (ITC) has scheduled its vote in its preliminary injury investigation of OCTG from China for May 22. A negative determination by the ITC, indicating that there is no reasonable indication of material injury or threat of material injury to the domestic industry from Chinese OCTG, would result in these investigations being terminated. If the ITC makes an affirmative determination, indicating there is a reasonable indication of material injury or threat of material injury, the DOC will proceed with these investigations.

To see the details of the scope for the OCTG items covered in these investigations, please refer to SteelOrbis' previous report on the subject.