On December 30, 2009, the United States made an affirmative decision in the countervailing part of the antidumping and countervailing case on Chinese oil well pipes, imposing countervailing duties of 10.49-15.78 percent for the products in question. Recently, the US Department of Commerce made a preliminary decision for an antidumping duty of 36.53-99.14 percent on Chinese oil well pipes exported to the US. In this context, oil well pipe manufacturers in Shandong Province are losing their market share in the US There are 22 Chinese enterprises affected by this case, with approximate export sales of $300 million.
Affected by this case, Shandong-based enterprises including Feray Petroleum Steel Pipe Co., Ltd., Shengli Oil Field Shengji Petroleum Equipment Co., Ltd., Freet Petroleum Equipment Co., Ltd. of Shengli Oil Field and others have not booked any new orders from the US market since last April and have seen their exports to America almost come to a standstill. For instance, Shandong Molong Petroleum Machinery Co.'s oil casing exports to the US totaled a value of $150 million in 2008, but dropped to zero in 2009, with the company registering a net loss of RMB 345.7 million ($50.63 million) for the year.