December 30, 2009
News Release 09-108
Inv. Nos. 701-TA-463 (Final)
Contact: Peg O'Laughlin, 202-205-1819

CERTAIN OIL COUNTRY TUBULAR GOODS FROM CHINA INJURE U.S. INDUSTRY, SAYS USITC

 The United States International Trade Commission (USITC or Commission) today determined that a U.S. industry is materially injured or threatened with material injury by reason of imports of certain oil country tubular goods from China that the U.S. Department of Commerce has determined are subsidized.

All six Commissioners voted in the affirmative. Chairman Shara L. Aranoff, Vice Chairman Daniel R. Pearson, and Commissioners Deanna Tanner Okun and Dean A. Pinkert based their affirmative determination on threat of material injury. Commissioners Charlotte R. Lane and Irving A. Williamson based their affirmative determination on present material injury.

As a result of the Commission's affirmative determination, the Department of Commerce will issue a countervailing duty order on imports of these products from China.

The Commission's public report Certain Oil Country Tubular Goods from China Investigation No. 701-TA-463 (Final), USITC Publication 4124, January 2010) will contain the views of the Commission and information developed during the investigation.

Copies may be obtained after February 3, 2010, by emailing pubrequest@usitc.gov, calling 202-205- 2000, or by writing the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.

FACTUAL HIGHLIGHTS

Certain Oil Country Tubular Goods from China
Investigation No. 701-TA-463 (Final)

Product Description:

This investigation covers certain oil country tubular goods (circular hollow carbon and alloy steel products used in drilling for oil or gas). The subject merchandise includes seamless and welded casing and tubing as well as OCTG coupling stock but excludes casing or tubing containing 10.5 or more by weight of chromium, drill pipe, unattached couplings, and unattached thread protectors. The Harmonized Tariff Schedule of the United States provides for the subject merchandise in subheadings 7304.29, 7305.20, and 7306.29 (casing and tubing), as well as subheadings 7304.39 and 7304.59 (OCTG coupling stock).

Status of Proceedings:

1.    Type of investigation:  Final countervailing duty.
2.    Petitioners:  Maverick Tube Corporation, Houston, TX; United States Steel Corporation,
      Pittsburgh, PA; V&M Star LP, Houston, TX; V&M Tubular Corporation of America, Houston,
      TX; TMK IPSCO, Camanche, IA; Evraz Rocky Mountain Steel, Pueblo, CO; Wheatland Tube
      Corp., Wheatland, PA; and the United Steel, Paper and Forestry, Rubber, Manufacturing,
      Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC, Pittsburgh,
      PA. 
3.    Investigation instituted by USITC:  April 8, 2009.
4.    USITC hearing:  December 1, 2009.
5.    USITC vote:  December 30, 2009.
6.    USITC notification of U.S. Department of Commerce:  January 13, 2010.

U.S. Industry:

1.    Number of U.S. producers:  7.
2.    Location of producers' plants: Arkansas, Colorado, Iowa, Kentucky, Ohio, Oklahoma,
 Pennsylvania, and Texas. 
3.    Employment of production and related workers in 2008: 5,819.
4.    U.S. producers' U.S. shipments in 2008:  3.0 million short tons valued at $6.2 billion.
5.    Apparent U.S. consumption in 2008:  6.7 million short tons valued at $11.6 billion.
6.    Ratio of subject imports from China to apparent U.S. consumption in 2008: 
  By quantity, 32.7 percent;
  By value, 24.3 percent. 

U.S. Imports in 2008:

1.    Quantity of subject imports from China:  2.2 million short tons.
2.    Value of subject imports from China:  $2.8 billion.
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