On October 10, 2024, the U.S. Department of Commerce released preliminary results concerning the sale of oil country tubular goods imported from the Republic of Korea. This administrative review, which covers the period from September 1, 2022, to August 31, 2023, has revealed that these products were sold in the U.S. market at prices below their normal value. The findings underscore the significance of monitoring international trade practices, particularly for essential commodities like OCTG, which are critical for the energy sector.
The initiation of this review took place on November 15, 2023, prompted by requests for administrative scrutiny of the dumping practices associated with OCTG. Notably, companies such as NEXTEEL Co., Ltd. and SeAH Steel Corporation were focal points in this investigation. On May 2, 2024, the Department extended the preliminary results deadline to September 27, 2024, indicating the complexity of evaluating pricing practices and the need for thorough analysis in trade investigations.
The scope of this review specifically targets oil country tubular goods, which are primarily used in oil and gas extraction. The Department employed a detailed methodology to assess export prices, normal values, and constructed export prices, ensuring that calculations adhere to the provisions outlined in the Tariff Act of 1930. This rigorous approach allows the Department to establish a fair assessment of whether imports are being sold at unfairly low prices, potentially harming domestic producers.
Among the preliminary findings, NEXTEEL Co., Ltd. was determined to have a weighted-average dumping margin of 0.00%, indicating that their pricing practices did not result in dumping as defined under U.S. trade laws. In contrast, SeAH Steel Corporation was assigned a marginal dumping margin of 0.53%. This difference highlights the varying pricing strategies employed by different companies within the same industry and raises questions about competitive practices in the global market.
The review also established rates for non-examined companies, applying the same margin found for SeAH Steel Corporation. This means that other companies, including AJU Besteel Co., Ltd., Hyundai Steel Company, Husteel Co., Ltd., and ILJIN Steel Corporation, will also be subject to a 0.53% dumping margin. Such measures aim to ensure consistency in trade enforcement and prevent circumvention of duties among companies not individually examined in the review.
The preliminary results are now open for public comment, inviting feedback from various stakeholders in the industry. This process is crucial as it allows companies, trade associations, and other interested parties to voice their opinions on the findings, potentially influencing the final determinations. The Department of Commerce has made its preliminary decision memorandum publicly available, ensuring transparency and accessibility to its methodologies and findings.
