AIIS questions massive OCTG case filing as overkill

A coalition of domestic OCTG producers filed a massive trade action against imports of OCTG from 9 countries, alleging dumping and in some cases, subsidies

WASHINGTON (Scrap Monster) : A coalition of domestic OCTG producers filed a massive trade action against imports of OCTG from 9 countries, alleging dumping and in some cases, subsidies.  We believe that this massive filing is excessive and unwarranted and will disrupt the critical oil and gas drilling market. 

Oil and gas drilling have been one of the bright spots of the US economy since the Great Recession. Whether it is conventional drilling activities or the newer “fracking” method, the US is quickly moving to energy-independence and in the process, tens of thousands of jobs are being created. Put simply, those companies involved in oil and gas drilling need high quality dependable suppliers of OCTG and imports have been and remain an important part of the supply that gets the job done. 

In the US’s open market, some OCTG suppliers have behaved irresponsibly at different times, whether domestic or importer. Such irresponsible behavior has disrupted normal market supply and demand, and in this case involving OCTG has created an inventory overhang that has crippled some lower segments of the OCTG market. However, in the current case, the AIIS believes the vast majority of suppliers of imports and domestic are high quality, responsible suppliers to the US market.

This massive filing will disrupt the oil and gas drilling market for those responsible traders, their suppliers and also could threaten to disrupt drilling operations as well. 

“While AIIS believes that these most recent en masse filings are overkill, AIIS is committed to living by the letter of the U.S. trade laws as they are currently written and we must now let the well established government review process take its course and decide. Steadfast in its mission to support free and responsible trade, AIIS will continue its efforts to amend some of the elements of the law to make them more globally and/or WTO consistent,” said David Phelps, president, AIIS.

“AIIS also believes that the current law will quickly determine that the vast majority of the targets of this massive filing have been responsible suppliers to the US market and allow the critical flow of OCTG to continue to support drilling, jobs and move our country toward American energy independence,” concluded Phelps.

Courtesy : American Institute for International Steel