U.S. Steel Corporation, based in Pittsburgh, has expressed strong support for the U.S. Commerce Department’s preliminary findings regarding the dumping of oil country tubular goodsin the U.S. market. These findings validate U.S. Steel’s long-standing trade complaints against Tenaris S.A., a global supplier of steel pipes used in the energy industry. The federal government's early report, published on December 5, 2024, highlights continued unfair trade practices by two subsidiaries of Tenaris, reinforcing U.S. Steel's position that these imports are being sold below fair market value.
The Commerce Department’s investigation found that oil country tubular goods produced by Tenaris subsidiaries Siderca S.A.I.C. in Argentina and Tubos de Acero de Mexico S.A. in Mexico are being sold at unfairly low prices in the U.S. market. The department determined that these OCTG are being dumped at rates of 6.80% for Argentine-made products and a much higher 30.38% for Mexican-made products, according to the preliminary results. This comes as part of the ongoing review for the 2022-2023 period, where U.S. Steel has raised concerns over the harmful impact these practices have on the domestic steel industry.
U.S. Steel has long been vocal about the negative effects of unfairly traded imports, particularly from foreign competitors who engage in dumping practices—selling goods at artificially low prices to undercut local markets. In a statement, Duane Holloway, U.S. Steel’s senior vice president, general counsel, and chief ethics and compliance officer, reiterated the company’s commitment to leading the fight against such practices. Holloway emphasized that U.S. Steel has been at the forefront of defending U.S. steelworkers, local communities, and customers from unfair competition. The company’s stance aligns with its longstanding efforts to ensure a fair playing field in the U.S. steel industry.
As part of the investigation, the Commerce Department issued its preliminary ruling that all imports of Tenaris’ Argentine OCTG will remain subject to cash deposits of 78.3%. Additionally, imports of the Mexican OCTG will face a cash deposit rate of 44.93%. This step is intended to protect U.S. producers from the harmful effects of unfairly priced imports. The deposits are essentially a safeguard while the department works to calculate the final dumping margins, which will likely be announced in 2025. This measure ensures that U.S. Steel and other domestic manufacturers are not put at a competitive disadvantage due to foreign products being sold at artificially low prices.
In addition to the anti-dumping duties, the Argentine OCTG is also subject to an annual Section 232 quota of 148,000 metric tons. This quota is part of the broader U.S. trade policy to protect its steel industry from excessive foreign competition, particularly in products deemed critical to national security, such as oil country tubular goods. The imposition of quotas and duties reflects the ongoing efforts by the U.S. government to ensure fair trade practices in industries vital to the economy and security.
While U.S. Steel has welcomed the preliminary findings, the company expressed concerns that the dumping margins for Argentine OCTG could be higher than the initial 6.80% rate calculated by the Commerce Department. U.S. Steel’s Holloway noted that they would continue to work closely with the department to ensure that the final calculations accurately reflect the full extent of the dumping and its impact on the U.S. market. The company is committed to ensuring that the final results of the review process provide fair and comprehensive protection for domestic steel producers.
The ongoing investigations and trade measures are significant in the context of U.S. trade policy, as the steel industry remains a critical part of the nation’s manufacturing sector. The U.S. government has placed increasing emphasis on enforcing anti-dumping regulations and safeguarding domestic industries from unfair foreign competition. In this context, the results of this investigation will be watched closely, not only by U.S. Steel but also by other domestic steel manufacturers who are facing similar challenges.
The findings also highlight the broader issue of global trade imbalances in the steel industry, where countries like Argentina and Mexico, with lower production costs, can sometimes flood the U.S. market with cheaper products. Such practices can undermine the pricing power of U.S. producers, ultimately hurting local workers, manufacturers, and the wider economy. The federal government's actions to investigate and impose duties on these imports are a critical part of the strategy to rebalance global steel trade and support the long-term viability of the U.S. steel sector.
