U.S. Steel Corp. (X:US), the largest U.S. producer of the metal by volume, said South Korea is dumping steel pipes and tubes in the U.S.
South Korean steelmakers created a network of related companies in order to evade U.S. trade laws, Mario Longhi, chief executive officer of Pittsburgh-based U.S. Steel, said in remarks prepared for the U.S. Congressional Steel Caucus today.
“The evidence in this case clearly shows that OCTG products are being illegally dumped in what remains the most open and attractive market in the world at prices below fair value and in ways designed to circumvent our trade laws,” the CEO was due to say in his testimony. Republican Representative Tim Murphy of Pennsylvania’s 18th district and chairman of the Congressional Steel Caucus, convened the hearing in Washington today.
Steelmakers including U.S. Steel, the biggest domestic producer of pipes and tubes sold to oil and gas extracting companies, known as oil-country tubular goods or OCTG, stand to lose profits from continued imports of the products if they are sold more cheaply than domestic producers can make them. Sales of the products have bolstered profitability at U.S. Steel, representing 48 percent of the company’s 2013 operating income, as well as other steelmakers such as Charlotte, North Carolina-based Nucor Corp., which sells rolled steel to companies that form the metal into pipes.
The Commerce Department announced a preliminary ruling last month that imposed anti-dumping duties on imports from eight countries but excluded South Korea. A final determination may be made in July, with the U.S. International Trade Commission making a final decision by Aug. 21, the department said in a statement.
Dumping occurs when a foreign company sells a product in the U.S. at less than its fair value, according to the department. Last month’s decision applied import tariffs from India, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, and Vietnam.
To contact the reporter on this story: Sonja Elmquist in New York at firstname.lastname@example.org
To contact the editors responsible for this story: Simon Casey at email@example.com Stephen Cunningham