United States Steel Corporation has responded to the U.S. Department of Commerce’s preliminary findings on the dumping of oil country tubular goods from Argentina and Mexico. The findings, announced on December 5, 2024, concluded that OCTG produced and exported by Tenaris from Argentina and Mexico had been sold at unfairly low prices in the U.S. market. Specifically, the Department of Commerce determined that Argentine OCTG, produced by Tenaris’ Siderca S.A.I.C., was being dumped at a rate of 6.80%, while Mexican OCTG, produced by Tenaris’ Tubos de Acero de Mexico, S.A., had a much higher dumping rate of 30.38% for the 2022-2023 review period.
U.S. Steel, a major player in the American steel industry, expressed both support for the Commerce Department’s investigation and concerns about the findings. Duane Holloway, Senior Vice President, General Counsel, and Chief Ethics and Compliance Officer of U.S. Steel, acknowledged the positive steps taken by the Commerce Department in reviewing Mexican OCTG. However, he voiced concerns that the Argentine OCTG was being dumped at much higher levels than the preliminary rate, which could potentially harm the domestic market. Holloway stated that U.S. Steel would continue to engage with the Commerce Department to ensure the final dumping margins are accurate and fair.
The investigation into the Argentine and Mexican OCTG imports is part of the U.S. government’s ongoing efforts to protect domestic industries from unfair trade practices. Dumping occurs when foreign manufacturers sell goods at lower prices than they charge in their home markets or below the cost of production, which can severely undercut U.S. manufacturers. In response to these findings, the Commerce Department has already implemented provisional anti-dumping measures. Imports of Argentine OCTG are currently subject to a 78.3% cash deposit requirement, while Mexican OCTG imports are subject to a 44.93% cash deposit.
The ongoing review process has major implications for both U.S. steelmakers and the U.S. energy sector, which relies on OCTG for the production of oil and natural gas. U.S. Steel itself produces billets and seamless OCTG at its facility in Fairfield, Alabama, primarily to serve the U.S. energy sector. These products are vital for drilling operations, especially in oil and gas exploration, where high-quality steel tubing is essential. The company has emphasized its commitment to defending fair market conditions for domestic producers, particularly those who supply crucial products like OCTG to the energy sector.
In addition to the cash deposit measures, Argentine OCTG imports are also subject to a Section 232 quota, which limits the amount of these goods that can enter the U.S. market annually. For 2024, the quota for Argentine OCTG has been set at 148,000 metric tons, a measure designed to mitigate the negative impact of unfairly priced imports. The Section 232 tariffs were implemented by the U.S. government to protect national security interests and reduce dependence on foreign steel, particularly from countries with excess production capacity that can flood the U.S. market with subsidized goods.
As part of its strategy to counteract unfair trade practices, U.S. Steel has long been at the forefront of efforts to address dumping and other forms of trade distortion. The company has actively participated in trade remedy investigations and continues to work closely with government agencies to ensure that U.S. manufacturers are not undercut by unfairly traded imports. Over the years, U.S. Steel has also been a vocal advocate for strengthening U.S. trade laws and ensuring that foreign competitors play by the same rules as domestic producers.
The next steps in the investigation will see the Commerce Department continue its review of the dumping margins for both Argentine and Mexican OCTG. The final determination on these margins will be made in 2025, with the possibility of additional tariffs or adjustments to the cash deposit rates depending on the outcome. Meanwhile, U.S. Steel will continue to monitor the situation closely and take necessary actions to protect the interests of its workers, communities, and customers.
This ongoing case highlights the broader issue of global trade imbalances and the importance of safeguarding American manufacturing industries from unfair competition. As the U.S. steel industry continues to face challenges from low-cost imports, the outcome of this investigation will be crucial in determining the future landscape of the OCTG market and the broader steel sector in the U.S.
