After the US import OCTG trade case was finalized, many in the US felt that the 9.89 – 15.75 percent dumping margins levied against Nexteel, Hyundai Hysco and other South Korean producers was essentially a slap on the wrist. Even with the added margins, Korean-made OCTG casing is still $4.00-$5.00 cwt. ($88-$110/mt or $80-$100/nt) less than domestic offerings, and imports from that country are still coming in at full speed ahead. Korean producers, however, have a different perspective and feel they got the “short end of the stick.” This week, an official appeal has been filed with the US Court of International Trade, alleging the US Department of Commerce was wrong in using the profitability of Tenaris Argentina, as opposed to US mills, to calculate dumping margins. According to reports, the Koreans feel that although the current margins still allow them to be competitive, that 10 to 15 percent could hurt them if the market changes and domestic pricing drops. However, sources say that while their argument is legitimate, it won’t change anything in the short term because it could easily take another two years for the matter to be resolved.
In terms of prices, everything has held stable in the past seven days. US Domestic spot prices for J55 ERW OCTG casing are steady at $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt) ex-Midwest mill, while the most commonly reported J55 ERW OCTG casing futures offer price from Korean mills continue to hold at approximately $53.00-$54.00 cwt. ($1,168-$1,187/mt or $1,060-$1,080/nt) DDP loaded truck in US Gulf coast ports; offers out of Taiwan continue to trend approximately $2.00 cwt. ($44/mt or $40/nt) below that range. Offers from Philippine producers are also still available in the approximate range of $47.50-$48.50 cwt. ($1,047-$1,068/mt or $950-$970/nt), range, DDP loaded truck in US Gulf coast ports, although interest in bookings from that country continue to trend weak.