Last week, the
US Department of Commerce announced they would be extending its deadline for the administrative review of anti-dumping duties on
US import oil country
tubular goods (OCTG) from Korean steelmakers.
The current dumping margins, which span from 3.98 percent to 5.24 percent, have done little to discourage
US buyers and Korean OCTG producers from engaging in commerce, but sources close to SteelOrbis say that there is widespread concern that these margins could be revised much higher.
“The argument being made is that all Korean pipe is made from dumped Chinese HRC, and that because of this, the dumping margins on OCTG should be spiked. Depending on what the DOC decides, the decision could have widespread ramifications for the market,” a source said.
Another source pointed to the possible trickle-down effect that the removal of Korean OCTG from the
US market could have on drilling.
As such, Korean steelmakers are not currently offering OCTG casing in the
US domestic market.
“If the new margins mean the Korean sales price lands at, let’s say, $85 cwt. ($1874/mt or $1,700/nt), the domestic mills will happily raise their prices to $80 cwt. ($1764/mt or $1600/nt), which will crush a lot of drilling projects because the costs will be out of control,” another source said.
Current
US ERW OCTG casing is trending at “at least” $50-$52 cwt. ($1102-$1146/mt or $1000-$1040/nt), ex-mill, another source said.
In terms of other imports, prices for unfinished J55 ERW OCTG casing from Taiwan in the
US domestic market have recently been heard at $40.00 cwt. ($882/mt or $800/nt), DDP loaded truck in
US Gulf coast ports, although some trader sources say a better average range would be $40.00-$42.50 cwt. ($882-$937/mt or $800-$850/nt), due to mills’ increased input costs.