US domestic producers of oil country
tubular goods (OCTG) are still rejoicing in the wake of last week’s final determinations announcement by the
US ITC. Affirmative final determinations were made in the AD/CVD investigations of OCTG from India,
Korea,
Taiwan, Turkey,
Ukraine and
Vietnam; as previously expected, negative final determinations were made with respect to Thailand and the Philippines. Although many are calling the ruling an essential “win” for domestic mills, noting the six named countries represent more than 90 percent of the “unfairly traded imports” that entered the
US market in 2013, they also recognize that little, if anything will change in terms of Korean OCTG imports to the
US. Korean producers will continue to ship OCTG, but will simply do so at higher prices, which are still far below
US domestic prices. “The win is less about knocking imports entirely out of the market,” according to one trader source, “it’s about the domestic industry as a whole feeling more confident that they can win trade cases.”
In terms of pricing, everything has held on par with levels seen one week ago. In terms of the
US domestic market, the most commonly reported spot price transaction range has held at approximately $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt) ex-Midwest mill, while futures offers from Taiwanese and Korean producers are still coming in at approximately $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) and $52.00-$53.00 cwt. ($1,146-$1,168/mt or $1,040-$1,060/nt), respectively, both DDP loaded truck in
US Gulf coast ports. SteelOrbis sources still believe domestic mills may soon roll out a price increase, and that futures offers from Thailand and the Philippines are imminent.