Exporters of drill pipes have been accused of selling the piping, commonly used on oil rigs, to the US at unfairly low prices, prompting the US International Trade Commission to give the green light Monday to slap heavy duties on the imports.
In a 3-3 vote Monday, the US International Trade Commission determined that the low-priced imports were damaging to US industry and are subsidized and sold in the United States at less than fair value.
According to the commission, the US Department of Commerce is set to impose antidumping and counter-vailing duties on Chineseexports of drill pipes and drill collars used in oil drilling applications this month.
The commerce department made its final ruling in January - excluding Baoshan Iron &Steel Co and Shanxi Yida Special Steel Import &Export Co - that all Chinese exporters of these products would be hit with anti-dumping duty rates ranging between 69.32 percent and 429.95 percent.
In addition, all offending companies will face a countervailing duty rate of 18.18 percent.
China's Ministry of Commerce would not comment on the ruling Tuesday.
Industry analysts said the case would have limited impact on Chinese exporters of these products.
"Given the small volume of Chinese drill pipe exports to the US, there won't be a big impact," said Wang Jianhua, director of research at the Shanghai-based Mysteel.com, a steel industry information provider.
US imports of drill pipes were valued at an estimated $119.2 million in 2009, according to the US Department of Commerce.
But the case, following a series of other complaints that resulted in heavy duties on Chinese steel and iron product exports to the US, have to a large extent affected bilateral steel and iron trade, Shanghai-based Mysteel.com's Wang said.
In May last year, the US commission affirmed anti-dumping duties ranging from 29.94 percent to 99.14 percent on imports of oil-well piping involving several billion US dollars.
"The heavy duties plus sluggish demand due to the financial crisis have prompted Chinese exporters to adjust their export strategies," said Wang Zhe, an industry analyst with China Securities Co in Beijing.
Exporters have increasingly put an emphasis on the markets of Asian countries and the Middle East region as a way of diversifying risks, Mysteel. com's Wang said.
Exporters should also pay attention to their pricing mechanism to avoid dumping and subsidy complaints, Wang at Mysteel.com also said.
In a 3-3 vote Monday, the US International Trade Commission determined that the low-priced imports were damaging to US industry and are subsidized and sold in the United States at less than fair value.
According to the commission, the US Department of Commerce is set to impose antidumping and counter-vailing duties on Chineseexports of drill pipes and drill collars used in oil drilling applications this month.
The commerce department made its final ruling in January - excluding Baoshan Iron &Steel Co and Shanxi Yida Special Steel Import &Export Co - that all Chinese exporters of these products would be hit with anti-dumping duty rates ranging between 69.32 percent and 429.95 percent.
In addition, all offending companies will face a countervailing duty rate of 18.18 percent.
China's Ministry of Commerce would not comment on the ruling Tuesday.
Industry analysts said the case would have limited impact on Chinese exporters of these products.
"Given the small volume of Chinese drill pipe exports to the US, there won't be a big impact," said Wang Jianhua, director of research at the Shanghai-based Mysteel.com, a steel industry information provider.
US imports of drill pipes were valued at an estimated $119.2 million in 2009, according to the US Department of Commerce.
But the case, following a series of other complaints that resulted in heavy duties on Chinese steel and iron product exports to the US, have to a large extent affected bilateral steel and iron trade, Shanghai-based Mysteel.com's Wang said.
In May last year, the US commission affirmed anti-dumping duties ranging from 29.94 percent to 99.14 percent on imports of oil-well piping involving several billion US dollars.
"The heavy duties plus sluggish demand due to the financial crisis have prompted Chinese exporters to adjust their export strategies," said Wang Zhe, an industry analyst with China Securities Co in Beijing.
Exporters have increasingly put an emphasis on the markets of Asian countries and the Middle East region as a way of diversifying risks, Mysteel. com's Wang said.
Exporters should also pay attention to their pricing mechanism to avoid dumping and subsidy complaints, Wang at Mysteel.com also said.
