Steel pipe industry’s pressure may decline but the declining tendency is hard to change

    U.S.19th, the U.S. Federal Circuit Court of Appeals has ruled, countervailing duties are not suitable for non-market economy country, which was interpreted by a lot of lawyers and professionals that the United States may be suspended the countervailing duties of import products from China.
    Listening this news, China’s steel pipe group management is not particularly exciting, the excessive domestic market and U.S. market suffocated exports , has given way to this domestic producers choose to build plant in the United States.
    Since 2007, the United States began to apply anti-subsidy investigations of China’s exports, which is not be recognized as a market economy countries. This later, domestic exports of steel pipe products became one of the popular products by the effect of anti-dumping and countervailing investigations in the U.S..
    Since 2008, U.S. has imposed anti-dumping and countervailing duties for four kinds steel tubes of China, which are circular welded pipe, thin-walled rectangular steel pipe, small diameter line pipe and welded stainless pressure steel pipe
    A series of implementation of anti-dumping countervailing duty had blown the China’s steel pipe producers, the amount of U.S. exports decline sharply. According to analysts’ data, the first 10 months of this year, China’s volume of seamless steel pipe exported to the United States was 128,500 tons, the estimated annual export volume will not exceed 15 tons. And as many as 2.292 million tons in 2008, and the United States has been the largest exporter of seamless steel pipe of China back to eighth place.
    For the weld steel pipe exports, the first 10 months of this year, China’s exported steel tubes 61,900 tons, the estimated annual volume of exports will not exceed 70,000 tons, while in 2008 was 814,600 tons, the United States has been the largest weld steel pipe exporting country of China back to later ten.
    Prior to 2009, the domestic steel tube companies are focused on exports to the U.S., the amount the company’s steel tube exports to the United States for one year was 10 million tons. But since 2009 the United States launched dual investigations and anti-tax, due to the sharp increase in the cost of exports, now the companies do not has much American exports, and in the last two years, they were mainly developing in the Middle East, Southeast Asia and other emerging markets.
    For the U.S. Federal Circuit Court of Appeals rule’s potential impact on the United States export, experts believe that if suspended countervailing duty may reduce the cost of export certainly, but in fact the remaining anti-dumping tax rate is higher. If suspend imposition of countervailing duties, under the cost pressure of anti-dumping duties, companies’ competitiveness is still not large.
    Experts point out that it is unclear whether the U.S. Department of Commerce will actually stop the countervailing duty of domestic steel tube export, but because the U.S. economy is still relatively low, and is expected and will not be fully liberalized trade restrictions on imported steel shortly for the United States. While the United States blocked, the export of domestic steel pipe market is not optimistic. “At present, domestic steel industry has been in oversupply, the industry has been trapped in large losses, and because in previous years the project has been approved, continue to increase invest next year, new steel tube industry is expected negative ”       
    In the case of domestic surplus, exports blocked, some steel companies have decided to set up factories in the United States to open up the market, “now the steel plant is under construction, after the construction possibly will have a full set of steel production line.” 

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