Drill Pipe and Drill Collars from China Threaten U.S. Industry, Says USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is threatened with material injury by reason of imports of drill pipe and drill collars from China that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold in the United States at less than fair value.

Vice Chairman Irving A. Williamson and Commissioners Charlotte R. Lane and Dean A. Pinkert made affirmative determinations on the basis of threat. Chairman Deanna Tanner Okun and Commissioners Daniel R. Pearson and Shara L. Aranoff made negative determinations.

As a result of the USITC's affirmative threat determinations, Commerce will issue antidumping and countervailing duty orders on imports of these products from China.

The Commission's public report Drill Pipe and Drill Collars from China (Investigation Nos. 701-TA-474 and 731-TA-1176 (Final), USITC Publication 4213, February 2011) will contain the views of the Commissioners and information developed during the investigations.

Copies may be obtained after March 10, 2011, 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.

Product Description: These investigations cover finished and unfinished steel drill pipe and drill collars, whether or not conforming to American Petroleum Institute or other specifications and without regard to length, outside diameter, or steel chemistry. Drill pipe and drill collars are hollow drill string components used in drilling rigs (particularly those intended to extract oil and gas) to transmit power and conduct lubricant during the drilling process. This description does not include unattached tool joints or unfinished tubes for casing and tubing. The 2011 Harmonized Tariff Schedule of the United States provides for drill pipe (without tool joints) in subheadings 7304.22.00, 7304.23.30, and 7304.23.60, and for drill pipe (with tool joints) and drill collars in subheading 8431.43.80.

Status of Proceedings:

1. Type of investigations: Final antidumping and countervailing duty.
2. Petitioners: Rotary Drilling Tools, Beasley, TX; Texas Steel Conversions, Inc., Houston, TX;
TMK IPSCO, Downers Grove, IL; VAM Drilling USA Inc., Houston, TX; and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO-CLC, Pittsburgh, PA.
3. Investigations instituted by USITC: December 31, 2009.
4. USITC hearing: January 5, 2011.
5. USITC vote: February 7, 2011.
6. USITC notification of Department of Commerce: February 17, 2011.

U.S. Industry:

1. Number of U.S. producers: 14.
2. Location of producers' plants: Alabama, Illinois, Louisiana, Minnesota, Ohio, Oklahoma, Pennsylvania, and Texas.
3. Employment of production and related workers of finished drill pipe and drill collars in 2009: 1204.
4. U.S. producers' U.S. shipments of finished drill pipe and drill collars in 2009: $528.4 million.
5. Apparent U.S. consumption of finished drill pipe and drill collars in 2009: (1)
6. Ratio of subject imports from China to apparent U.S. consumption in 2009: (1)

U.S. Imports in 2009:

1. Quantity of subject imports from China: (1)
2. Value of subject imports from China: (1)

(1) Withheld to avoid disclosure of business proprietary information.