Commerce Secretary Wilbur Ross has yet to announce the results of the Section 232 investigation, but many within the US market question whether issuing “commerce crushing tariffs” against US import OCTG casing from Korea would harm national security—despite national security being the impetus for restricting imports in the first place.
“North Korea continues to be unstable and all things considered, it’s probably not the best time for [the US] to start a trade war with South Korea,” a source said. “At this point, Nexsteel is priced out of the market due to the margins that were slapped against them in the AD/ CVD case and while yes, the other mills can still ship, they’re barely turning a profit.”
In terms of pricing, the last-heard pricing for US import J55 ERW OCTG casing from Korea in the US domestic market trended between $42.50-$44.00 cwt. ($937-$970/mt or $850-$880/nt), DDP loaded truck in US Gulf coast ports, before applicable duties from the already-decided antidumping case. Pricing for US import J55 ERW OCTG casing from Taiwan in the US domestic market was last heard trending $0.50 cwt. ($11/mt or $10/nt) below Korean pricing range.
Multiple sources close to SteelOrbis, however, say they’re waiting for more clarity with regard to the 232 investigation before they make any significant buying decisions.