Oil Country Tubular Goods From Argentina, Italy, Japan, Korea, and Mexico

294 Pages·2007·3.2 MB·English

Oil Country Tubular Goods From
Argentina, Italy, Japan, Korea, and Mexico
Investigation Nos. 731-TA-711 and 713-716 (Second Review)
Publication 3923 June 2007
Washington, DC 20436
U.S. International Trade Commission
COMMISSIONERS
Daniel R. Pearson, Chairman
Shara L. Aranoff, Vice Chairman
Deanna Tanner Okun
Charlotte R. Lane
Irving A. Williamson
Dean A. Pinkert
Robert A. Rogowsky
Director of Operations
Staff assigned
Eric Land, Investigator
Fred Ruggles, Investigator
Norman Vantoai, Industry Analyst
James Fetzer, Economist
Mary Klir, Accountant
Marc Bernstein, Attorney
Gabriel Ellenberger, Research Assistant
Lita David-Harris, Statistician
Douglas Corkran, Supervisor Investigator
Address all communications to
Secretary to the Commission
United States International Trade Commission
Washington, DC 20436
U.S. International Trade Commission
Washington, DC 20436
www.usitc.gov
Oil Country Tubular Goods From
Argentina, Italy, Japan, Korea, and Mexico
Investigation Nos. 731-TA-711 and 713-716 (Second Review)
Publication 3923 June 2007

CONTENTS
Page
Determinations ................................................................. 1
Views of the Commission ......................................................... 3
Dissenting views of Commissioner Charlotte R. Lane ................................. 51
Dissenting Views of Commissioner Dean A. Pinkert with Respect to Casing and Tubing
from Japan and Korea ........................................................ 65
Part I: Introduction and overview ................................................. I-1
Background .................................................................. I-1
The original investigations ................................................... I-1
The first reviews ........................................................... I-3
Summary data ............................................................. I-3
Related Title VII investigations ................................................ I-13
Related safeguard investigation ................................................ I-15
Statutory criteria and organization of the report ...................................... I-15
Statutory criteria ........................................................... I-15
Organization of the report .................................................... I-17
Commerce’s reviews ........................................................... I-17
Administrative reviews of casing and tubing ..................................... I-17
Administrative reviews of drill pipe ............................................ I-20
Results of expedited and full five-year reviews ................................... I-21
Distribution of Continued Dumping and Subsidy Offset Act funds ....................... I-23
The subject merchandise ........................................................ I-24
Commerce’s scope .......................................................... I-24
Tariff treatment ............................................................ I-25
The domestic like product....................................................... I-25
Description and applications .................................................. I-26
Manufacturing processes ..................................................... I-31
Channels of distribution...................................................... I-39
U.S. market participants ........................................................ I-39
U.S. producers ............................................................. I-39
U.S. importers ............................................................. I-42
U.S. purchasers ............................................................ I-43
Apparent U.S. consumption and market shares ...................................... I-43
Part II: Conditions of competition in the U.S. market ................................ II-1
U.S. market characteristics ...................................................... II-1
Channels of distribution ........................................................ II-1
Supply and demand considerations................................................ II-2
U.S. supply ............................................................... II-2
U.S. demand .............................................................. II-5
Substitutability issues .......................................................... II-10
Factors affecting purchasing decisions .......................................... II-10
Comparisons of domestic products and subject imports ............................. II-15
Comparisons of domestic products and nonsubject imports .......................... II-15
Comparisons of subject imports and nonsubject imports ............................ II-20
i
CONTENTS
Page
Part II: Conditions of competition in the U.S. market–Continued
Elasticity estimates ............................................................ II-21
U.S. supply elasticity ........................................................ II-21
U.S. demand elasticity ....................................................... II-21
Substitution elasticity ....................................................... II-21
Part III: Condition of the U.S. industry ............................................ III-1
U.S. producers’ capacity, production, and capacity utilization .......................... III-2
Casing, tubing, and drill pipe operations ......................................... III-2
Alternative products ........................................................ III-5
U.S. producers’ domestic shipments and export shipments ............................. III-7
U.S. producers’ inventories ..................................................... III-9
U.S. producers’ imports ........................................................ III-9
U.S. producers’ purchases ...................................................... III-10
U.S. producers’ employment, wages, and productivity ................................ III-10
Financial experience of U.S. producers ............................................ III-12
Background ............................................................... III-12
Operations on casing and tubing ............................................... III-12
Operations on drill pipe ...................................................... III-16
Variance analyses .......................................................... III-16
Capital expenditures and research and development expenses ........................ III-17
Assets and return on investment ............................................... III-17
Part IV: U.S. imports and the foreign industries ..................................... IV-1
U.S. imports ................................................................. IV-1
Casing and tubing imports .................................................... IV-1
Drill pipe imports........................................................... IV-4
Cumulation considerations ...................................................... IV-6
Fungibility ................................................................ IV-6
Geographic markets ......................................................... IV-7
Presence in the market ....................................................... IV-7
U.S. importers’ inventories ...................................................... IV-11
Dumping in third-country markets ................................................ IV-11
The industry in Argentina ....................................................... IV-11
Overview ................................................................. IV-11
Casing and tubing operations ................................................. IV-12
Alternative products ........................................................ IV-13
The industry in Italy ........................................................... IV-14
Overview ................................................................. IV-14
Casing and tubing operations ................................................. IV-14
Alternative products ........................................................ IV-15
ii
CONTENTS
Page
Part IV: U.S. imports and the foreign industries–Continued
The industries in Japan ......................................................... IV-15
Overview ................................................................. IV-15
Casing and tubing operations ................................................. IV-17
Drill pipe operations ........................................................ IV-20
Alternative products ........................................................ IV-21
The industry in Korea ..................................................... IV-21
Overview ................................................................. IV-21
Casing and tubing operations ................................................. IV-22
Alternative products ........................................................ IV-22
The industry in Mexico ......................................................... IV-23
Overview ................................................................. IV-23
Casing and tubing operations ................................................. IV-23
Alternative products ........................................................ IV-24
Global market ................................................................ IV-25
Supply ................................................................... IV-25
Demand .................................................................. IV-30
Prices .................................................................... IV-35
Part V: Pricing and related information ............................................ V-1
Factors affecting prices ......................................................... V-1
Raw material costs .......................................................... V-1
U.S. inland transportation costs ................................................ V-1
Transportation costs to the U.S. market.......................................... V-1
Exchange rates ............................................................. V-3
Pricing practices .............................................................. V-6
Pricing methods ............................................................ V-6
Sales terms and discounts .................................................... V-7
Price data ................................................................... V-7
Price trends ............................................................... V-14
Price comparisons .......................................................... V-14
iii
Appendixes
A. Federal Register notices and statement on adequacy ................................ A-1
B. Hearing witnesses ............................................................ B-1
C. Summary data............................................................... C-1
D. Responses of U.S. producers, U.S. importers, U.S. purchasers, and foreign producers
concerning the significance of the antidumping duty orders and the likely effects
of revocation .............................................................. D-1
E. 2007 tariff treatment .......................................................... E-1
F. Selected data concerning seamless and welded OCTG ............................... F-1
Note.–Information that would reveal confidential operations of individual concerns may not be published
and therefore has been deleted from this report. Such deletions are indicated by asterisks.
iv
UNITED STATES INTERNATIONAL TRADE COMMISSION
Investigation Nos. 731-TA-711 and 713-716 (Second Review)
OIL COUNTRY TUBULAR GOODS FROM ARGENTINA, ITALY, JAPAN, KOREA, AND MEXICO
DETERMINATIONS
On the basis of the record1 developed in the subject five-year reviews, the United States
International Trade Commission (Commission) determines, pursuant to section 751(c) of the Tariff Act of
1930 (19 U.S.C. § 1675(c)) (the Act), that revocation of the antidumping duty orders on oil country
tubular goods from Argentina, Italy, Japan, Korea, and Mexico would not be likely to lead to continuation
or recurrence of material injury to the industries in the United States producing oil country tubular goods
other than drill pipe (“casing and tubing”) and, with respect to Japan, drill pipe, within a reasonably
foreseeable time.2
BACKGROUND
The Commission instituted these reviews on June 1, 2006 (71 F.R. 31207) and determined on
September 5, 2006 that it would conduct full reviews (71 F.R. 54520, September 15, 2006). Notice of the
scheduling of the Commission’s reviews and of a public hearing to be held in connection therewith was
given by posting copies of the notice in the Office of the Secretary, U.S. International Trade Commission,
Washington, DC, and by publishing the notice in the Federal Register on September 29, 2006
(71 F.R. 57566). The hearing was held in Washington, DC, on April 12, 2007, and all persons who
requested the opportunity were permitted to appear in person or by counsel.
1 The record is defined in sec. 207.2(f) of the Commission’s Rules of Practice and Procedure (19 CFR § 207.2(f)).
2 Commissioners Charlotte R. Lane dissenting with respect to casing and tubing from all countries and
Commissioner Dean A. Pinkert dissenting with respect to casing and tubing from Japan and Korea.