Certain Oil Country Tubular Goods

from India, Korea, The Philippines,
Saudi Arabia, Taiwan, Thailand,
Turkey, Ukraine, and Vietnam
Investigation Nos. 701-TA-499-500 and 731-TA-1215-1223 (Preliminary)

Publication 4422

August 2013

U.S. International Trade Commission

Washington, DC 20436

U.S. International Trade Commission
COMMISSIONERS
Irving A. Williamson, Chairman
Daniel R. Pearson
Shara L. Aranoff
Dean A. Pinkert
David S. Johanson
Meredith M. Broadbent

Robert B. Koopman
Director, Office of Operations
Staff assigned
Michael Szustakowski, Investigator
Alan Treat, Industry Analyst
Mahnaz Khan, Industry Analyst
Craig Thomsen, Economist
Charles Yost, Accountant
Jennifer Brinckhaus, Statistician
Carolyn Holmes, Statistical Assistant
Peter Sultan, Attorney
Nataline Viray-Fung, Attorney
Andrew Warner, Intern
Douglas Corkran, Supervisory 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

Certain Oil Country Tubular Goods
from India, Korea, The Philippines,
Saudi Arabia, Taiwan, Thailand,
Turkey, Ukraine, and Vietnam
Investigation Nos. 701-TA-499-500 and 731-TA-1215-1223 (Preliminary)

Publication 4422

August 2013



..............................................................................................................................................................IͲ4 Previousandrelatedinvestigations....IͲ3 Marketsummary....................................................................IͲ6 NatureandextentofallegedsubsidiesandsalesatLTFV......IͲ25 Channelsofdistribution....................................................................................................................................................................................................................................................................................................................IͲ11 Tarifftreatment...........................................................................................................................................................................IͲ23 Physicalcharacteristicsanduses.......................................IͲ7 AllegedsalesatLTFV...........................IͲ26 i  ..........................IͲ13 Manufacturingprocesses........................................................................................................................................................IͲ1 Background..............................IͲ12 Descriptionandapplications.................................................................................IͲ4 Antidumpingandcountervailingdutyinvestigations................1 ViewsoftheCommission.......................................................................................................................................................................IͲ11 Theproduct...................................................................................................................................IͲ1 Statutorycriteriaandorganizationofthereport...............................................................................IͲ24 Interchangeabilityandcustomerandproducerperceptions...........................................................3 PartI:Introduction...........................IͲ10 Thesubjectmerchandise......................................................................IͲ2 Statutorycriteria......................................................................................IͲ4 Safeguardinvestigations.......................................................................................................................................IͲ2 Organizationofreport...............IͲ11 Commerce’sscope......................................................................................................................................................................IͲ18 Domesticlikeproductissues..........................................................................................IͲ7 Allegedsubsidies....................................................................................................IͲ12 Overview.......IͲ3 Summarydataanddatasources................................................................................................................................................................................................................................................................................................................................................................................................................  CONTENTS Page Determination...............................................................................................................IͲ25 Price......IͲ23 Manufacturingfacilitiesandproductionemployees....................................................................

.......................IIͲ4 Supply.......................................................................................................................................................................................S..........................andproductivity.....shipmentsandexports....................................andnonsubjectimports.............................................................employment................S............................producers’U..................................subjectimports........................................................IͲ27 Value...........................................S.....................................................wages..........................................IIͲ4 Demand..........................IͲ26 Uses...................IIͲ19 PartIII:U..........................IͲ28 PartII:Supplyanddemandinformation...............................................................................................S.................................................................................IIͲ1 U.....................................................................................................IͲ26 Markets.................................................................................................................producers’importsandpurchases..IIIͲ5 U..................................S......................................producers.........IIͲ1 Channelsofdistribution.................................................................................................................................................................................................S..........................producers’inventories...........................................IIIͲ9   ii  ........................................IͲ28 Transformationprocess.......................................................................................................  CONTENTS Page PartI:IntroductionͲͲContinued Intermediateproducts.................................................................IIͲ18 Factorsaffectingpurchasingdecisions......................................IIͲ10 Substitutabilityissues...................................producers’production..............................IIͲ1 Geographicdistribution..capacity...................................IIIͲ7 Orderbooks.........IͲ27 Characteristicsandfunctions...............................................................................................IIIͲ1 U.............S...................................S.....................................andcapacityutilization.....IIIͲ8 U.......................S..marketcharacteristics..........................shipments..production..........IIͲ3 Supplyanddemandconsiderations.............................................................................................................IIIͲ7 U......................................................................IIͲ18 Comparisonsofdomesticproducts....................................................................IIIͲ8 U................................................................IIIͲ1 U...........andemployment.........

.................IVͲ1 U..................IVͲ9 Geographicalmarkets.........................................................................................................................................................................................................................................................................................................................................................S...................................................................................................S......................................................imports....................................................................................................................................................IVͲ10 ApparentU..S...................S.................................VͲ1 Factorsaffectingprices...................................IVͲ1 U..........................................................................producers..............................................................VͲ5 Pricedata..............................................VͲ6 Pricetrends.................................marketshares.....................................................................................VIͲ6 Capitalexpendituresandresearchanddevelopmentexpenses.................................................................VIͲ1 Varianceanalysis....................VIͲ9 iii  ...VͲ1 Rawmaterialcosts......................................VIͲ7 Assetsandreturnoninvestment................................................................................production......................................................................................................................................................................................................................................................inlandtransportationcosts....................................imports..................................  CONTENTS Page PartIV:U....................................................................................................................................VͲ3 Pricingmethods...consumption...........................................................................importers...........................IVͲ12 RatioofimportstoU......................................................................VIͲ1 OperationsonOCTG.............IVͲ3 Negligibility....VIͲ1 Background............................andmarketshares.......................................................................................................................................IVͲ8 Fungibility.................................VͲ3 Pricingpractices.......................VͲ20 PartVI:FinancialexperienceofU..................................S....................................S....................................IVͲ11 U............VͲ3 Salestermsanddiscounts.....................................................VͲ1 U..................................................IVͲ8 Presenceinthemarket.....VͲ17 Lostsalesandlostrevenues.....IVͲ6 Cumulationconsiderations..................................................................................................S............................................................IVͲ13 PartV:Pricingdata...................................................................consumption............................S..................................................................................................apparentU.............................................S..................................................................................................................................................VͲ14 Pricecomparisons.

................................................S.........................  CONTENTS Page PartVI:FinancialexperienceofU..............................................................................................................................................................................................................................VIͲ11 Anticipatednegativeeffects.......VIIͲ3 OperationsonOCTG...............................................VIIͲ4 Alternativeproducts.................................VIIͲ13 TheindustryinThailand........................................................................................................................................................................VIIͲ16   iv  ...................................................................................................................................................VIͲ12 PartVII:Threatconsiderationsandinformationonnonsubjectcountries.................VIIͲ13 OperationsonOCTG......................................................................................................................................................................................VIIͲ8 OperationsonOCTG............................................................................................VIIͲ12 Alternativeproducts...............VIIͲ10 Alternativeproducts...........................................................................................................VIIͲ5 TheindustryinKorea................................................................................................................................................................................VIIͲ15 Alternativeproducts...................VIIͲ14 OperationsonOCTG.......VIͲ10 Actualnegativeeffects...........................................................................................................................................VIIͲ8 TheindustryinthePhilippines...................................................................VIIͲ9 TheindustryinSaudiArabia......VIIͲ14 TheindustryinTurkey.................VIIͲ11 TheindustryinTaiwan...........................................................VIIͲ11 OperationsonOCTG................................................................................VIIͲ6 OperationsonOCTG........................................................................................................................................................................................................................................................producersͲͲContinued Capitalandinvestment..................................................................VIIͲ14 Alternativeproducts.......................................................................................VIIͲ6 Alternativeproducts....................................................................VIIͲ10 OperationsonOCTG..................................................................................................................................VIIͲ9 Alternativeproducts...................VIIͲ1 TheindustryinIndia............................................................................................................................................................................................................................................

...................................VIIͲ23 AntidumpingorcountervailingdutyordersinthirdͲcountrymarkets.................................VIIͲ36 Mexico.............................................VIIͲ16 OperationsonOCTG.................................................VIIͲ20 Subjectcountriescombined.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................VIIͲ31 Canada......................  CONTENTS Page PartVII:ThreatconsiderationsandinformationonnonsubjectcountriesͲͲContinued TheindustryinUkraine...............................................................VIIͲ22 U...........................................importers’outstandingorders.............................................................................................................................................................................................................................................................................................................................................................................................................................VIIͲ18 OperationsonOCTG..................................................................CͲ1 D................VIIͲ21 U............................S...........................VIIͲ38 Appendixes A......................... v  .................................................................................................................... QuarterlynonsubjectͲcountrypricedata..................VIIͲ19 Alternativeproducts.............................VIIͲ33 Germany.......................................................inventoriesofimportedmerchandise..............VIIͲ24 Argentina........................................ Summarydata.........................VIIͲ24 Informationonnonsubjectcountries.DͲ1  Note..........AͲ1 B......................................................................................................VIIͲ17 Alternativeproducts............................................................VIIͲ35 Japan....................................BͲ1 C......... Calendarofthepublicconference............................S.................Suchdeletionsareindicatedbyasterisks........VIIͲ18 TheindustryinVietnam........... FederalRegisternotices........................................................................................—Informationthatwouldrevealconfidentialoperationsofindividualconcernsmaynot bepublishedandthereforehasbeendeleted...

 .

thatarealleged tobesoldintheUnitedStatesatlessthanfairvalue(LTFV).MaverickTubeCorporation.Ukraine.representativeconsumer organizationshavetherighttoappearaspartiesinCommissionantidumpingandcountervailing dutyinvestigations.207.ortheirrepresentatives.Pittsburgh.TX. .S.Partiesthatfiledentriesofappearanceinthepreliminaryphaseoftheinvestigationsneed notenteraseparateappearanceforthefinalphaseoftheinvestigations.thePhilippines.TheSecretarywillprepareapublicservicelistcontainingthenamesand addressesofallpersons.andVietnam  DETERMINATIONS  Onthebasisoftherecord1 developedinthesubjectinvestigations.SaudiArabia.TheCommissionwillissueafinal phasenoticeofscheduling.Taiwan.adivisionofJMCSteelGroup.theCommissionalsogivesnotice ofthecommencementofthefinalphaseofitsinvestigations.apetitionwasfiledwiththeCommissionandCommercebyUnited StatesSteelCorporation.PA.pursuanttosections703(a)and 733(a)oftheTariffActof1930(19U.''1671b(a)and1673b(a))(theAct).uponnoticeof affirmativefinaldeterminationsinthoseinvestigationsundersections705(a)or735(a)ofthe Act.Thailand.or.UNITEDSTATESINTERNATIONALTRADECOMMISSION  InvestigationNos.Korea.2(f)).Turkey.providedforprimarilyinsubheadings7304.701ͲTAͲ499Ͳ500and731ͲTAͲ1215Ͳ1223(Preliminary)  CertainOilCountryTubularGoodsfromIndia.IL.thePhilippines.Taiwan. VallourecStar.TX..uponnoticefromtheDepartmentofCommerce (Commerce)ofaffirmativepreliminarydeterminationsintheinvestigationsundersections 703(b)or733(b)oftheAct.TX.Turkey.andbyimportsofcertainoil countrytubulargoodsthatareallegedlysubsidizedbytheGovernmentsofIndiaandTurkey.andWeldedTubeUSA.and7306.2(f)oftheCommission=sRulesofPracticeandProcedure(19 CFR'207.Houston.TejasTubularProductsInc.29.Inc.  COMMENCEMENTOFFINALPHASEINVESTIGATIONS   Pursuanttosection207.and Vietnamofcertainoilcountrytubulargoods.20.Chesterfield.21oftheCommission=srules.C.theUnitedStates InternationalTradeCommission(Commission)determines. SaudiArabia.Houston.P.NorthwestPipe Company.L.thatthereisa reasonableindicationthatanindustryintheUnitedStatesismateriallyinjuredbyreasonof importsfromIndia.2013.ifthepreliminarydeterminationsarenegative.Vancouver.TMKIPSCO.Chicago.WA.Boomerang TubeLLC.allegingthatan      1 Therecordisdefinedinsec.Lackawanna.whoarepartiestotheinvestigations.EnergeX. ifthemerchandiseunderinvestigationissoldattheretaillevel.  BACKGROUND  OnJuly2.Korea.MO. 7305.Thailand.29oftheHarmonizedTariffScheduleoftheUnitedStates.Houston.whichwillbepublishedintheFederalRegisterasprovidedin section207.18oftheCommission=srules..Industrialusers.Houston.and..TX.NY.

 Taiwan.DC.onJuly23.S.InternationalTradeCommission.2013.U.Washington.TheconferencewasheldinWashington.Korea.SaudiArabia.Thailand. DC.Ukraine.the CommissioninstitutedcountervailingdutyinvestigationNos.effectiveJuly2.2013.731ͲTAͲ1215Ͳ1223(Preliminary).  .Turkey.2013(78FR41421).thePhilippines.andbypublishingthenotice intheFederalRegisterofJuly10.andallpersonswhorequestedtheopportunitywerepermittedtoappear inpersonorbycounsel. NoticeoftheinstitutionoftheCommission=sinvestigationsandofapublicconference tobeheldinconnectiontherewithwasgivenbypostingcopiesofthenoticeintheOfficeofthe Secretary.701ͲTAͲ499Ͳ500(Preliminary)and antidumpingdutyinvestigationNos.Accordingly.andVietnam.industryintheUnitedStatesismateriallyinjuredorthreatenedwithmaterialinjurybyreason ofsubsidizedimportsofcertainoilcountrytubulargoodsfromIndiaandTurkeyandLTFV importsofcertainoilcountrytubulargoodsfromIndia.

EnergeX.1986). 1001Ͳ04(Fed.”2 II.Taiwan.2013)(“PR”)atTableIIIͲ1.andVietnamthatareallegedlysoldintheUnited StatesatlessthanfairvalueandimportsofthesubjectmerchandisefromIndiaandTurkeythat areallegedlysubsidizedbytheGovernmentsofIndiaandTurkey.Maverick.2d994. TheLegalStandardforPreliminaryDeterminations Thelegalstandardforpreliminaryantidumpingandcountervailingdutydeterminations requirestheCommissiontodetermine.MemorandumINVͲLLͲ059(Aug.Saudi Arabia.(collectively“Joint Petitioners”)(U.701Ͳ TAͲ499Ͳ500and731ͲTAͲ1215Ͳ1223(Preliminary).theCommissionweighstheevidencebeforeitanddetermineswhether“(1)the recordasawholecontainsclearandconvincingevidencethatthereisnomaterialinjuryor threatofsuchinjury. 3  .AristechChem.Philippines.Inv.USITCPub.orthattheestablishmentofanindustryis materiallyretarded.35F.20CIT353. Background ThepetitionsintheseinvestigationswerefiledonJuly2.3Petitionersappearedatthestaff conferenceandsubmittedpostconferencebriefs.3d 1535. 3 SeeConfidentialStaffReport.PublicReport.4422(Aug.andJointPetitionersarecollectivelythe“Petitioners”).Taiwan.Turkey.S.CertainOilCountryTubularGoodsfrom India.whetherthereisareasonableindicationthatadomesticindustryis materiallyinjuredorthreatenedwithmaterialinjury.seealsoTexasCrushedStoneCo.1Inapplyingthis standard.v.Noparty arguesthattheestablishmentofanindustryintheUnitedStatesismateriallyretardedbytheallegedly unfairlytradedimports.Ukraine.Cir.SaudiArabia.Korea.785F.Inc. I.Thailand..VallourecStar.TMKIPSCO.andVietnam.Nos.basedupontheinformationavailableatthetimeofthe preliminarydeterminations. Thefollowingrespondentsandgroupsofrespondentsappearedatthestaffconference andsubmittedpostconferencebriefs:  1 19U.thePhilippines.354Ͳ55(1996).1543(Fed.asamendedby MemorandumINVͲLLͲ061(“CR”)atTableIIIͲ1.9.v.§§1671b(a).2dat1001.NorthwestPipeCompany.UnitedStates.UnitedStates.1673b(a)(2000).TejasTubularProducts Inc.Steel”).wefindthatthere isareasonableindicationthatanindustryintheUnitedStatesismateriallyinjuredbyreasonof importsofcertainoilcountrytubulargoods(“OCTG”)fromIndia.2013).adivisionofJMCSteelGroup.P.andWeldedTubeUSA.Thailand.Cir.seealsoAmericanLambCo.v.Turkey.bytheUnitedStates SteelCorporation(“U.Korea.1994).S.UnitedStates..byreasonoftheallegedlyunfairlytradedimports.MaverickTubeCorporation(“Maverick”). 2 AmericanLambCo.Corp.Ukraine.  ViewsoftheCommission Basedontherecordinthepreliminaryphaseoftheseinvestigations.S.and(2)nolikelihoodexiststhatcontraryevidencewillariseinafinal investigation.785F.andBoomerangTube LLC.2013.C. PetitionersaredomesticproducersofcertainOCTGandaccountedforapproximately*** percentofreporteddomesticOCTGproductionin2012.Steel.L..

S.producersand/orexportersofsubject merchandisefromIndia.aproducerandexporterofsubjectmerchandise..Ltd.S.NexteelCo...aproducerand exporterofsubjectmerchandisefromTurkey("Borusan").andDufercoSteelInc.aproducerandexporterofsubjectmerchandisefromUkraineandNorth AmericanInterpipe.TaiwanRespondents.U.aproducerandexporterofsubject merchandisefromVietnam..S.and (13)SeAHSteelVINACorporation(“SeAH”).MaharashtraSeamlessLtd.. (9)ÇayirovaBoruSanayiveTicaretA.S. (6)JubailEnergyServicesCompany..importersofsubjectmerchandise(“Korean RespondentGroup”)4..Inconnectionwiththatbrief.importdataarebasedon officialU. (11)Interpipe.Ltd..ShinYangSteelCo.HyundaiHYSCO.importers(“the JindalGroup”)..Ltd.Inc.....S.aU.andJindalSawLtd..” 5 CRatIͲ5. U.Inc..S.Hyundai HYSCOUSA.JindalSawLtd.S.S.Inc.ISMTLtd.producersofsubjectmerchandise. (4)ILJINSteelCorporation.anexporterofsubjectmerchandisefromIndia(collectively “USTPL/OCTL”)...HusteelCo..importerofsubjectmerchandise(“UkraineRespondents”).GVNFuelsLtd.aproducerandexporterofsubject merchandisefromVietnam.Ltd.S.and TosçelikProfilveSacEndustrisiA.DepartmentofCommerce(“Commerce”)importstatisticsandquestionnaire responsesfrom46U.Ltd...aproducerandexporterofsubjectmerchandise fromSaudiArabia. 4  .5U.Inc.producersand exportersofsubjectmerchandisefromTaiwan(collectively“TaiwanRespondents”).SeAHSteel Corp.TosyaliDisTicaretA.FarEastMachineryCo.Inc.aproducerandexporterofsubjectmerchandisefrom Thailand(“ThaiRespondent”).importers.werefertotheserespondentsasthe“JointRespondentsGroup.. (7)ChungHungSteelCorporation..CR/PRatTableIVͲ2.PRatIVͲ1.andBorusanfiledajointpostconference brief.importerofsubjectmerchandise(“Saudi Respondents”).. andOilCountryTubularLtd..importdataconsistedofthesumof:(i)  4 TheKoreanRespondentGroup.S.KaoHsingChangIron andSteelCorp.Jindal PipesLtd.andHusteelUSA.(“WSP”)..aU..  (1)JindalIndiaLtd. (10)BorusanMannesmannBoruSanayiveTicaretAnonimSirketi.. (5)HLDClarkSteelPipeCo.Ltd.industrydataarebasedonthequestionnaireresponsesof13producers..believed toaccountforthevastmajorityofU.U..aproducerandexporterofsubjectmerchandisefrom thePhilippines(“PhilippineRespondent”).Ltd.Ltd.PRatIͲ4. 6 CRatIVͲ1..aproducerandexporterofsubjectmerchandisefromKorea (“ILJIN”).S.HyundaiUSA. (3)AJUBesteelCo..andTensionSteelIndustriesCo...S.Ltd.. (8)WSPPipeCo.producersandexportersofsubject merchandisefromTurkey(collectively“Çayirova/Tosçelik”)... (12)HotRollingPipeCo. (2)UnitedSeamlessTubulaarPvt.SeAHSteelAmerica.6Morespecifically.Ltd.(US)andIndianSeamlessInc.Vietnam(“HRP”).YücelBoruIthalatͲIhracatvePazarlamaA.SuryaGlobalSteelTubesLtd..S.productionofOCTG.

PRatVIIͲ14.(ii)dataforcouplingstock(forwhichtherearenotspecificHTS statisticalreportingnumbers)obtainedfromimporters.PRatVIIͲ7. 14 CRatVIIͲ30.asfollows: •tenproducers/exportersinIndia.14 •twoproducers/exportersinUkraine. CRatVIIͲ4. 9 CRatVIIͲ9.15and •twoproducers/exportersinVietnam. 15 CRatVIIͲ34.8 •sevenproducers/exportersinKorea.accountingfor***importsofOCTGfrom thePhilippinesin2012.2.accountingfor***ofallimportsofOCTGfrom Vietnamin2012.2. 11 CRatVIIͲ17.CR/PRatTableIVͲ3.13 •threeproducers/exportersinTurkey.S.accountingfor***importsofOCTGfromThailand in2012.11 •fourproducers/exportersinTaiwan.and(iii)importsofcasingandtubing fromthe***.accountingforvirtuallyallU.S.importsofOCTGfrom Indiain2012. 16 CRatVIIͲ38.10 •twoproducers/exportersinSaudiArabia.PRatVIIͲ17.PRatVIIͲ19.importsofOCTG fromKoreaoverthePOI.theCommissionfirstdefinesthe“domesticlikeproduct”andthe  7 CRatIVͲ1n. DomesticLikeProduct  A. 12 CRatVIIͲ22.516328.accountingfor***importsofOCTGfromUkraine in2012.accountingforvirtuallyallU.12 •oneproducer/exporterinThailand.PRatIVͲ1n.PRatVIIͲ16.PRatVIIͲ13.accountingfor***percentofimportsof OCTGfromSaudiArabiain2012.7 TheCommissionreceivedresponsestoitsquestionnairesfrom32foreign producers/exportersofsubjectmerchandise.16 III.9 •oneproducer/exporterinthePhilippines.accountingforvirtuallyallimportsofOCTGfrom Taiwanin2012. 10 CRatVIIͲ13.PRatVIIͲ3. InGeneral IndeterminingwhetherthereisareasonableindicationthatanindustryintheUnited Statesismateriallyinjuredorthreatenedwithmaterialinjurybyreasonofimportsofthe subjectmerchandise.PRatVIIͲ11.accountingfor***percentofimportsofOCTG fromTurkeyin2012. 8 5  .  officialCommerceimportstatisticsforcasingandtubing(forwhichtherearespecificHTS statisticalreportingnumbers).EDISDoc.PRatVIIͲ9. 13 CRatVIIͲ26.No.

1991)(“everylikeproductdetermination‘mustbemadeontheparticular recordatissue’andthe‘uniquefactsofeachcase’”).TheCommissiongenerallyconsidersanumberof factorsincludingthefollowing:(1)physicalcharacteristicsanduses.584(Ct.Inv.NECCorp.andproductionemployees.productionprocesses.andtheCommissionhasappliedthestatutorystandardof“like”or “mostsimilarincharacteristicsanduses”onacaseͲbyͲcasebasis.§1677(10).e.g.2d1278(Fed.TorringtonCo.C.No. Artists'CanvasfromChina.747F.v.g.defines therelevantdomesticindustryasthe“producersasawholeofadomesticlikeproduct.No.22TheCommissionlooksforcleardividinglinesamong possiblelikeproductsanddisregardsminorvariations.Cir.Int’lTrade1998).NipponSteelCorp.USITCPub.§1677(4)(A).No.§1677(4)(A).3533at7(Aug.v.3853at6(May2006).See Nippon.Rep.USITCPub.(5)commonmanufacturing facilities.Supp.whereappropriate. (3)differencesinthephysicalcharacteristicsandfunctionsoftheupstreamanddownstreamarticles.455(1995).731ͲTAͲ1091(Final).UnitedStates.1299(Fed.orintheabsenceoflike.Inv.96Ͳ249at 90Ͳ91(Congresshasindicatedthatthelikeproductstandardshouldnotbeinterpretedin“sucha narrowfashionastopermitminordifferencesinphysicalcharacteristicsorusestoleadtothe conclusionthattheproductandarticlearenot‘like’eachother.e.Inv.seealsoS.S.and(5) differencesinthecostsorvalueoftheverticallydifferentiatedarticles.e.2021Nosinglefactoris dispositive..UnitedStates.norshouldthedefinitionof‘like product’beinterpretedinsuchafashionastopreventconsiderationofanindustryadverselyaffected bytheimportsunderconsideration.andKorea. 22 See.(3)channels ofdistribution.3921at7(May2007).Inv. 21 InasemiͲfinishedproductsanalysis.UnitedStates.Nippon. 20 See..and.(2)whether theupstreamarticleisdedicatedtotheproductionofthedownstreamarticleorhasindependentuses.(4)customerandproducerperceptionsoftheproducts..(4) whetherthereareperceivedtobeseparatemarketsfortheupstreamanddownstreamarticles.913F.CertainFrozen FishFilletsfromVietnam.v.C. 19U.No.theTariffActdefines “domesticlikeproduct”as“aproductwhichislike.C.Int’lTrade1990).Department ofCommerce.Rep.US1TCPub. 938F.744.3(Ct.Torrington.Int’lTrade1996).(6)price.96Ͳ249at90Ͳ91(1979).19CITat455n.theCommissionexaminesthefollowing:(1)thesignificance andextentoftheprocessesusedtotransformtheupstreamintothedownstreamarticles.No.Live SwinefromCanada.See.3d1291.e.”17Section771(4)(A)oftheTariffActof1930.501F.747F.Nos.No.Cir.USITCPub. 19 19U. Japan.”).andtheCommissionmayconsiderotherfactorsitdeemsrelevantbasedonthe factsofaparticularinvestigation.4.CleoInc.aff’d.No.Supp. 23 See.2005).S.2007).UnitedStates.”18Inturn..580.g.GlycinefromIndia.19CIT 450.731ͲTAͲ1012(Preliminary).749n.thearticlesubjecttoaninvestigation.  “industry.S.383(Ct.731ͲTAͲ1076(Final).asamended(“theTariffAct”).or thoseproducerswhosecollectiveoutputofadomesticlikeproductconstitutesamajor proportionofthetotaldomesticproductionoftheproduct.mostsimilarin characteristicsanduseswith.(2)interchangeability.”19 Thedecisionregardingtheappropriatedomesticlikeproduct(s)inaninvestigationisa factualdetermination.S.v.g.No.at748Ͳ49.19CITat455.23AlthoughtheCommissionmustaccept Commerce’sdeterminationastothescopeoftheimportedmerchandisethatissubsidized  17 19U. 18 6  .2d380.731ͲTAͲ1111Ͳ1113(Preliminary).v.40(Apr.2002).Supp.3766at8n.TimkenCo.Supp.36F.

orthreadedandcoupled)whetheror notconformingtoAmericanPetroleumInstitute(“API”)ornonͲAPI specifications.10.747F.29.whereappropriate.31.S.10.40.7304.31.Cir. 501F.UnitedStates.30.31.24theCommissiondetermineswhatdomesticproductislike theimportedarticlesCommercehasidentified.10.29.31.7304.Inv.80.”).5percentormorebyweightofchromium.41.10.whetherornotplainͲend.threaded.10.29.29.919(1989).10.coͲ extensivewiththescope). 7304. 7304. Excludedfromthescopeoftheinvestigationsare:casingortubing containing10.Cir.AlgomaSteelCorp.20.29.40.7304..701ͲTAͲ403and731ͲTAͲ895Ͳ96(Final).29.at748Ͳ52(affirmingtheCommission’sdeterminationdefining sixlikeproductsininvestigationswhereCommercefoundfiveclassesorkinds).41.30.60.29. 25 HosidenCorp.20.whetherseamlessorwelded.7304.10.29.50.7304.29.41.PureMagnesiumfromChinaandIsrael.Inc.34Fed.26  B.3dat1298n.3d1561.Cleo.AdvancedDisplayMfrs.80.7304.730(Fed.7304.29.Appx.29.30.e.50.Suppat748Ͳ49(holdingthattheCommission isnotlegallyrequiredtolimitthedomesticlikeproducttotheproductadvocatedbythepetitioner.865F.whether ornotthreadprotectorsareattached.25TheCommissionmay.”).whetherfinished(includinglimitedserviceOCTGproducts)or unfinished(includinggreentubesandlimitedserviceOCTGproducts). 492U.20.10.7304.includingoilwellcasingandtubing.31.10.7304.688F.).1996)(theCommissionmay findasinglelikeproductcorrespondingtoseveraldifferentclassesorkindsdefinedbyCommerce).20.7304.7304.7304.v.40.7304. ProductDescription Initsnoticesofinitiation.g. Themerchandisesubjecttotheinvestigationsiscurrentlyclassifiedinthe HarmonizedTariffScheduleoftheUnitedStates(“HTSUS”)underitemnumbers: 7304.29.2001).3467at8n. UnitedStates.29.7304.Commercedefinedtheimportedmerchandisewithinthe scopeoftheseinvestigationsasfollows:  Themerchandisecoveredbytheinvestigationsiscertainoilcountry tubulargoods(“OCTG”).1568(Fed.29..29.Torrington.34(Nov.Int’lTrade1988).80.Supp.Cir.whicharehollowsteelproductsofcircularcrossͲ section. 26 See.20.Nos.31.40.50.7304.29.denied.60.1(“Commerce’s{scope}findingdoesnotcontroltheCommission’s{likeproduct} determination.v.cert.e.20.USEC.Supp.3d240(Fed. 7  .31.60.Torrington.29.andunattachedthreadprotectors.29.20.29.regardlessofendfinish (e...v.29.7304.7304.29.g. 7304.725.10.7304.unattached couplings.29. 7304.7304.639.20.7304.10.  24 See.29.85F.Thescopeoftheinvestigationsalso coversOCTGcouplingstock.20.20.747F. includedomesticarticlesinthedomesticlikeproductinadditiontothosedescribedinthe scope.aff’d.30.ofiron(otherthancastiron)orsteel (bothcarbonandalloy).20.2002)(“TheITCmaynot modifytheclassorkindofimportedmerchandiseexaminedbyCommerce.g.644(Ct.drillpipe.  and/orsoldatlessthanfairvalue. USITCPub.29.29.41.

31. 29 CRatIͲ18.sand.7304.29.00.60.7304.70.7304.00.80.50.24.7304.areunthreadedtubeblanks usedtomakeindividualcouplings.Casingprovidesafirmfoundationforthedrill stringbysupportingthewallsoftheholetopreventcavinginorwallcollapsebothduring drillingandafterthewelliscompleted.theRepublicofKorea.29.PRatIͲ17.28Casingisacircularpipethatservesasastructuralretainerforthewallsofthe well. 7304.39.29.39.2013).7306.50.30.59.7304.59.5inchesO.39.00.15.50.7306.7304.29.7304.80.80.00.61.00.50.7304.00.29.00.050–4.41.80.61.40.33  27 CertainOilCountryTubularGoodsfromIndia.eitherthrough naturalfloworthroughpumping.Ittypicallyhasanoutsidediameter(“O.andcouplingstockofcarbonandalloysteelusedinoil andgaswells. 30 CRatIͲ20.7304.20.29Casingalsoservesasasurfacepipedesignedto preventcontaminationoftherecoverableoilandgasbysurfacewater.20.50.20.7306. 28 CRatIͲ15.45512(July 29.60.7304.7304.29.00.5inchesto20inchesanda lengthtypicallyrangingfrom34feetto48feet.7304.39.90.PRatIͲ17.seamlesstubularproduct usedtomanufacturecouplingblanks. 7304.60.50.00. 7306.50.29.72.00.30.2013).40.80.7306.PRatIͲ15.59.7305. and7306.PRatIͲ17.59.50.29.81.10.80.39.80.39.39.25.50.90.7306.tubing.7304.”)rangingfrom4. and7306.)installedinside thelargerͲdiametercasingthatisusedtoconducttheoilorgastothesurface.60.30.7304.50.59.00.80.39.29.7304.7306.CertainOilCountryTubularGoodsfromIndiaandTurkey:InitiationofCountervailingDuty Investigations.32Casingandtubingareusually producedinaccordancewithspecificationspromulgatedbytheAPI. 8  .PRatIͲ13.31CouplingstockisathickͲwalled.50.CouplingsarethickͲwalledandinternallythreadedseamless cylindersthatareusedtojointwolengthsofthreadedOCTG.00. 33 CRatIͲ20.00.81.45.Thailand.andtheSocialist RepublicofVietnam:InitiationofAntidumpingDutyInvestigations.00.20.theRepublicofthe Philippines.78Fed.36.7304.62.48.20.theRepublicofTurkey.7304.80.40.Reg.35.50.10.7305. 7304.15. 7305. 7304.60.20.78Fed.30.00. 7304.7305.Ukraine.41.20.59.41.29.55.Reg.7304.39. 7304. 32 CRatIͲ21.29.7304.  7304.gas.or limestone.10.7306.45. 7305.75.32.00.29.75.7306.39.00.80.29.7304.80.15.39.30.29.inturn.Couplingblanks.59.50.00.90.7305.D.45505.61.29.27  OCTGincludescasing.29.80.45.28.00.60.59.7304.7304.50.29.10.45505(July29.52.7304.60.56.29.29.7304.7304.80.30.44.29.50.80.7304.61.00.00.7304. 7304.55.29.65.7304.59.31.60.7306.29.59.45502.00. 31 CRatIͲ20.7304.50.61.80.59.68.PRatIͲ15. Themerchandisesubjecttotheinvestigationsmayalsoenterunderthe followingHTSUSitemnumbers:7304.41.59.59.Taiwan.80.D.70.30TubingisasmallerͲdiameterpipe(between1.80.7304.60.59.7304.40.39.7304.39.SaudiArabia.39.31.7306.76.00.

(ii)finishedwelded OCTG. n.44Althoughtheinitialproduction processesaredifferentforweldedandseamlessOCTG.”ILJINPostconferenceBrief at11.32.35ILJINarguesthattheCommission shouldfindthatthefollowingfourproductsareseparatedomesticlikeproducts(ratherthan proposingalternativelikeproductdefinitions):(i)finishedseamlessOCTG.andJoint Petitioners’PostconferenceBriefat2Ͳ3.PRatIͲ18. 44 Tr.1.  C.and244Ͳ245(Blomberg).PRatIͲ24. 39 CRatIͲ30.pp.244(Khandelwal).theprocessesforheattreating(tothe extentthatthepipesareheattreated)andfinishingarethesame.PRatIIͲ21Ͳ22.PRatIͲ17.S.S.”Id..25Ͳ27.40 ManufacturingFacilities.PRatIͲ23Ͳ24.S. WhetheraClearLineDividesSeamlessOCTGandWeldedOCTG PhysicalCharacteristicsandUses. 36 ILJINdefines“greentubes”as“semifinishedOCTGthatis. 42 CRatIͲ31.and(iv)weldedgreentubes.41Whilesomedomesticproducers makebothproducts.3637 1.39BothweldedandseamlessOCTGareusedforthesame purpose.SeamlessandweldedOCTGbotharegenerally producedinaccordancewithspecificationspromulgatedbytheAPIandareusedindrillingfor oilornaturalgas.PRatIͲ24.mostmakeonlyone...42SeamlessOCTGisproducedfromabilletthatis eitherpiercedorextrudedtoformahollowshellthatissubsequentlyrolled.. 35 JointPostconferenceBriefonBehalfofRespondentsfromKorea.SeamlessOCTGiseitherrequiredorpreferredincertaindrilling conditions.processedbyheattreatingaswellas byotherprocesses. 40 CRatIIͲ26.foroilandgaswells.andTurkeyat7and ResponsetoStaffQuestionsat14.millsproduce weldedandseamlessOCTGonseparateproductionlines.andConferenceTranscript(“Tr.ProductionProcessesandEmployees.beforebeingsoldintheU. 9  .38TheweldlineinweldedOCTGrepresentsadistinctphysicalcharacteristic notpresentinseamlessOCTG.SteelPostconferenceBriefatExh. 37 ILJINPostconferenceBriefat16Ͳ27.  34 U.merchantOCTGmarket.Steelusesasimilardefinitionof“greentubes.at14(Schagrin).43SeamlessOCTGproductionfacilitiesareconsiderablymore expensivetobuildthanweldedOCTGproductionlines.at12.WeldedOCTGis producedfromsteelsheetincoilformthatisrolledandwhoseedgesareheatedandwelded togethertoformahollowshell. 41 CRatIͲ31.MaverickPostconferenceBriefat2Ͳ3. 38 CRatIͲ20.(iii)seamlessgreentubes.U.”)at241Ͳ243(Cameron).S.ILJINexpressesdoubtastowhetherU. 43 CRatIͲ22Ͳ23. ArgumentsandAnalysis PetitionersarguethattheCommissionshouldfindonelikeproductthatiscoextensive withthescopeoftheseinvestigations.34TheJointRespondentsGroupagreeswiththe domesticlikeproductdefinitionproposedbyPetitioners.Taiwan.

WeldedandseamlessOCTGareinterchangeabletoalargeextent.AlmostallfinishedweldedOCTGandfinishedseamlessOCTG aresoldtodistributors.Theyaremadeindifferentmanufacturing facilities.asnotedbelow.017.weldedandseamlessOCTGare producedonseparateproductionlines.Theyshareidenticalchannelsofdistribution. butnotcompletely.althoughweldedOCTGcannotbeusedincertain demandingapplications. 48 Tr.49 Price.we donotfindthatseamlessandweldedOCTGareseparatelikeproducts.46AwitnessforpetitionersestimatedthatweldedOCTGcouldbe usedfor70percentofseamlessapplications.at109(Matthews)and261(Brewer).Asnotedabove.  ChannelsofDistribution.Finally. Theirgeneralusesinoilandgaswellsarethesame.shipmentsshowthatfinished seamlessOCTGwassellingatasubstantialpremiumtofinishedweldedOCTGbetweenJanuary 2010andMarch2013. seamlessOCTGsellsatasubstantialpremiumtotheweldedproduct.Distinctionsinthewaysinwhichtheseproductsaremadeandpriced willinfluencecustomerandproducerperceptionsoftheseproducts. CRatIͲ30andIIͲ26Ͳ27.S.andawitnessforrespondentsnotedthattheyare interchangeable“ahighpercentageofthetime. 50 CR/PRatTableIͲ2.CertainhighͲstressapplications.inlightoftheidenticalchannelsofdistribution.thepricepremium forseamlessOCTGissubstantial.in2012theaverage unitvalueforseamlessOCTGwas$2. 47 Tr.Thereisalargedegreeof interchangeabilitybetweenthetwoproducts.requireseamlessOCTG.48 ProducerandCustomerPerceptions. Onbalance.usingdifferentprocesses.andtheseamlessproductmayalsobepreferredinsome applicationstoreducerisk.AlthoughseamlessOCTGcanbeusedinanyweldedOCTGapplication.AverageannualunitvaluesofU.producers’U.the reverseisnottrue.andthelargedegreeofinterchangeabilitybetweentheproducts.Forexample.usingdifferentprocesses. 46 10  .whiletheaverageunitvalueforweldedOCTGwas $1.50 Conclusion.  45 CRatIͲ33.WeldedOCTGandseamlessOCTGsharebasicphysicalcharacteristics.commonbasicphysical characteristicsanduses.and.45 Interchangeability.512.S.counselfortheJointRespondent GrouptestifiedthatthedegreeofoverlapbetweenseamlessandweldedOCTGthatexists todayisgreaterthanwhentheCommissionfirstdecidedtotreatthetwoasasinglelike productalmost20yearsago.theperiodofinvestigation(“POI”).PRatIͲ23Ͳ24andIIͲ21Ͳ22.at241(Cameron).PRatIͲ25.”47Moreover.suchashigherͲsulfur“sourservice” applications.PRatIIͲ21Ͳ22.SeamlessOCTGis requiredinsomehighͲstressapplicationsandisregardedasbeingsafertouseinothers.buttheyaresubjecttothesameheattreatmentand finishing. 49 CRatIIͲ26.

PRatIͲ22.g.greentubessoldtoprocessorsarefrequentlysoldtodistributorsafterheat treatment.e. 54 CRatIͲ33andIͲ36..Greentubesareunusablewithoutbeingatleastendfinished. See.56Thus.wallthickness.e.Greentubesneednotalwaysbeheattreatedbeforefinaluse.Insomecases.PRatIͲ24.CRatIͲ28.PRatIͲ25andIͲ27.  2.USITCPub.Heattreatmentdoesnotchangethe physicalappearanceofthetubes.PRatIͲ21Ͳ22.PRatIͲ22.55 DifferencesinPhysicalCharacteristicsandFunctionsoftheUpstreamandDownstream Articles.e.creatinga thickerwallattheendofthepipe.tensile strength.52 DedicationforUse. 52 11  .SeeCRatIͲ28.However.53 SeparateMarkets.. 57 CRatIͲ27.threaded andcoupled).ifrequired.57Thefinishingprocess(upsettingpipeends58andthreadingthem)does changethephysicalcharacteristicsofthepipestosomeextent.inothercases.oncetheyhavebeenfinished(i. 55 CRatIͲ36.Somegreentubesaresoldto distributorswhothenarrangeforthegreentubestobeheattreatedand/orfinished.Inv.701ͲTAͲ474and731ͲTAͲ1176 (Preliminary).Therecordindicatesthatallgreentubesarededicatedtothe productionoffinishedOCTG. upgradeablegreentubesthatmeettheminimumspecificationsforlowerͲgradeAPI5CTcasing andtubing(i. 56 CRatIͲ31.Nos.butitdoeschangethemicrostructureandmechanical propertiesofpipes.thiswillrequireheattreatment.ourcurrent understandingofthedefinitionof“greentubes”isthattheseareunfinishedtubulargoodsthat mayrequireheattreatmentorfurtherprocessingtomeettheAPIspecificationsforcasingand tubing.andlength).PRatIͲ27.Endfinishingreferstotheprocessofthreadingtheendofatubeorcasing andaddingacoupling.PRatIͲ15.2010).forexample.54 Moreover.Themachinepushesthehotmetalback.butrendersthemusablein  51 CRatIͲ20Ͳ21.GreentubesintendedforaspecificOCTGapplicationaretypicallyproducedtomeet thespecificationsforthatapplication(involving.PRatIͲ17.Insomecases.heattreatmentwillsometimesallowsuchtubestomeetminimum specificationsforhigherͲgradecasingandtubing.51 Becausethequestionofwhethergreentubesshouldbetreatedasaseparatelike productfromfinishedOCTGinvolvesacomparisonofarticlesatdifferentstagesofprocessing.specificchemistries.4127at7(Mar.and theninsertedendwiseintoanupsettingmachine. itisappropriatetoanalyzethislikeproductissueusingthesemiͲfinishedproductanalysis. 58 “Upsetting”referstoaprocessinwhichtheendofapipeisheatedtoforgingtemperature.DrillPipeandDrillCollarsfromChina.H40andJ55)canbecertifiedtothosegradesandusedinapplicationsnot requiringadditionalheattreatment. 53 CRatIͲ32Ͳ33. WhetheraClearLineDividesGreenTubesfromFinishedOCTG Basedontherecordofthesepreliminaryphaseinvestigations..ILJIN’sassertionthattherearecompletelyseparatemarketsfor greentubesandfinishedOCTG–withtheformerbeingsoldtoprocessorsandthelattersoldto distributors–isnotfullysupportedbythecurrentrecord.it willrequireonlyendͲfinishing.thespecificcharacteristicsofthegreentube impartessentialcharacteristicstothefinishedOCTG.

theprocessesusedtotransformthe greentubesaresubstantial. greentubesaccountforanotinsubstantialpartofthefinalcostoffinishedOCTG.Insomecases.greentubesandfinishedOCTGsharesome physicalcharacteristics.Whiletheavailablerecordinformationonthisissueatthepreliminary phaseoftheseinvestigationsismixed.S.The Commissionintendstoreconsiderthisissueinanyfinalphaseoftheseinvestigations.there issomeoverlapinthatsomegreentubesmaybesoldtodistributors. Conclusion. theyusedthetermtoencompassnotonlypipethatrequiresheattreatment.59Insum.S. 64 CRatIͲ28Ͳ29.Tr.Theirfunctionsaredifferent.Onbalance.green tubeshavenofunctionotherthanbeingprocessedintofinishedOCTG.62 ExtentofProcessesUsedtoTransformUpstreamProductintoDownstreamProduct. 63 CRatIͲ26Ͳ28.65  59 CRatIͲ28.To theextentthatgreentubesareheattreatedandfinished.theprocessusedtotransformgreentubesintothedownstream productisnotassubstantial.61However.butaredifferentinotherrespects.andexaminethe extenttowhichgreentubesandfinishedOCTGaresoldinseparatemarkets.at266Ͳ67(Cameron.shipmentsof finishedOCTG).millshipmentsofgreen tubeintendedforOCTGapplicationstooneprocessorhadanaverageunitvalueof***in2012.at222(Cameron). CRatIͲ37.forpurposesofthesepreliminary determinations.60 DifferencesinValue.shipmentsoffinishedOCTG.63Asdiscussedbelow. 61 CRatIͲ37.Thecurrentrecordshowsthatpricesforgreentubesare substantiallylowerthanpricesforfinishedOCTG. 65 Wenotethatsomeofthepartiestothepreliminaryphaseoftheseinvestigationsmayhavebeen usingtheterm“greentube”tomeandifferentthings. 62 SeeCR/PRatTableIͲ3(showingunitvaluesforpurchasesofunfinishedOCTGandU.64TheCommissionhasinpastinvestigationsinvolvingOCTGfound thatthreadersdonotengageinsufficientproductionͲrelatedactivitytoqualifyasdomestic producersofOCTG.Forexample.Althoughthetwoproductsappearlargelytobesoldindifferentmarkets.butalsoproductthatcan beusedwithoutheattreatmentonceitisendͲfinished.PRatIͲ21Ͳ22.butnotothers.S.PRatIͲ22.PRatIͲ27Ͳ28.theCommissionhasinpastinvestigations involvingOCTGfoundthatprocessorsthatperformheattreatmentengageinsufficient productionͲrelatedactivitytoqualifyasdomesticproducersofOCTG.at266(Treat).Tr.U.andwedonotfindthattheyareseparatelikeproducts. Greentubesareanintermediateproductthatcannotbeusedinawell.theyreferredto aproductthatrequiresheattreatmentbeforeitcanbeused.PRatIͲ22Ͳ23.Greentubesandfinished OCTGsharesomebasicphysicalcharacteristics.However.theredoesnotappeartobeacleardividinglinebetweengreentubesand finishedOCTG. ThereisasignificantdifferenceinthevalueofgreentubesandfinishedOCTG.allgreentubesarededicatedtotheproductionof finishedOCTG.PRatIͲ28.Tr.Totheextentthatgreen tubesareonlyendͲfinished.Partiesareremindedthat (Continued…) 60 12  .Cunningham).  theirintendedenduseapplication. incomparisontoanaverageunitvalueof***forU.Theextentof theprocessesinvolvedintransforminggreentubeintofinishedOCTGvariesdependingon whetherheattreatmentisinvolved.Inothercases.

andMexico. Processors’employmentwassubstantialinrelationtothatofmills.butdoincludecouplingstock.R.SouthAfrica.orthoseproducerswhosecollectiveoutputofadomesticlikeproductconstitutes amajorproportionofthetotaldomesticproductionoftheproduct. theCommissiongenerallyanalyzestheoverallnatureofafirm’sU.Nos.India.S.USITCPub.NosinglefactorisdeterminativeandtheCommissionmayconsideranyotherfactorsitdeems relevantinlightofthespecificfactsofanyinvestigation.Ukraine.§1677(4)(A).Thescopeoftheseinvestigations(andthe2010Chinainvestigations)differsfromprior investigationsinthattheseinvestigationsdonotincludedrillpipe.Inv.whethertollͲproduced.3511at5(May2002).Additionally. and(6)anyothercostsandactivitiesintheUnitedStatesdirectlyleadingtoproductionofthelike product. DomesticIndustry Thedomesticindustryisdefinedasthedomestic“producersasawholeofadomestic likeproduct.731ͲTAͲ992Ͳ994and996Ͳ1005(Preliminary). 67 TheCommissiongenerallyconsiderssixfactors:(1)sourceandextentofthefirm’scapital investment.pursuantto19C.tubing. A.anddrillpipe)68includedprocessors.section207.butdidnotincludefirmsthat performbasicthreadingandcouplingoperations(“threaders”).701ͲTAͲ428. SufficientProductionͲRelatedActivities Indecidingwhetherafirmqualifiesasadomesticproducerofthedomesticlikeproduct.SeeCertainOil CountryTubularGoodsfromChina.3923at7(June2007).Inv.France.(5)quantityandtypeofpartssourcedintheUnitedStates.theCommissionfoundthatthedomesticindustries (producingcasing.captivelyconsumed.Germany.DiamondSawbladesandPartsThereoffrom ChinaandKorea.Indonesia.67 InpriorOCTGinvestigations.TheCommissionfoundthatthe heattreatmentperformedatprocessingfacilitiesaltersthemicrostructureormechanical propertiesofthepipe. 13  .andstate withprecisionthelikeproductdefinitionsthattheypropose.althoughproductionͲrelatedactivityatminimumlevelscouldbeinsufficientto constitutedomesticproduction.701ͲTAͲ463(Final).China.andCertainOilCountryTubular GoodsfromAustria.F.productionactivities.Inv.theCommission’sgeneralpracticehasbeentoincludeintheindustryproducersofall domesticproductionofthelikeproduct.Romania.Korea.Brazil.C.processing  (…Continued) iftheywanttheCommissiontocollectadditionaldatainanyfinalphaseinvestigations.20(b).Inv.andVenezuela.731ͲTAͲ1092Ͳ93(Final).”66Indefiningthedomestic industry.Italy.orsoldin thedomesticmerchantmarket.  IV. requirededicatedequipmentandsignificantlevelsofmetallurgicalandengineeringexpertise. 66 19U.Spain.No.(4)employmentlevels.4124at5(Jan. 68 Thescopeoftheseinvestigationsisessentiallythesameasthescopeoftheinvestigationinthe Commission’srecent2010investigationofcertainoilcountrytubulargoodsfromChina.Moreover.2010)(“2010 OCTG”). Turkey. USITCPub.3862at8Ͳ11(July2006).theyshouldso indicateinwrittencommentstodraftquestionnaires.See CertainOilCountryTubularGoodsfromArgentina.S.particularlyconcerningdrillpipe.USITCPub.Japan.731ͲTAͲ711 and713ͲTAͲ716(SecondReview).S.Nos.(3)valueaddedtotheproduct intheUnitedStates.Nos.(2)technicalexpertiseinvolvedinU.USITCPub.productionͲrelated activities.processingoperations.

v..S.1.S.Cir.MaverickPostconference BriefatExh.1322.1168(Ct.EmpirePlowCo.Supp.Japan.790F.Inv.SandvikABv.72ExclusionofsuchaproduceriswithintheCommission’s discretionbaseduponthefactspresentedineachinvestigation.for heattreatmentintheUnitedStates.UnitedStates.Int’lTrade1992).1348..productionoperationsandhenceisnotdispositivefortheCommission’sanalysis ofwhetherU.g.This provisionallowstheCommission.itprovidesnobasisfortreatingprocessorsandthreadersdifferently thaninpriorOCTGinvestigations.and (Continued…) 14  .Int’lTrade1989).Mexico..1995).Korea.721F.inlightofaMay2013preliminaryscopedeterminationinwhichCommerceruled that“green”tubesthatareproducedinChinaandheattreated.2d46(Fed.USITCPub.904F. 73 TheprimaryfactorstheCommissionhasexaminedindecidingwhetherappropriatecircumstances existtoexcludearelatedpartyincludethefollowing: (1)thepercentageofdomesticproductionattributabletotheimportingproducer.Cir. aff’dmem.Weincludeprocessorsbutdonotincludethreadersinthe domesticindustry.citedbyMaverick.71 B.Austria.i. segregateddataonOCTGimportedintotheUnitedStates(fromsubjectandnonsubjectsources).toexcludefromthe domesticindustryproducersthatarerelatedtoanexporterorimporterofsubjectmerchandise orwhicharethemselvesimporters.14Ͳ15.69 Therecordinthesepreliminaryphaseinvestigationsdoesnotindicateanychangesin thenatureoftheactivitiesperformedbyprocessorsandthreaderssincethepriorOCTG investigations.701ͲTAͲ363Ͳ364.Ifanypartywantstoraisethisissueinanyfinalphaseinvestigations.675F.S.UnitedStates.ifappropriatecircumstancesexist.and employmentassociatedwiththreadingandcouplingoperationsweremorelimited.70Thus. whetherthefirmbenefitsfromtheLTFVsalesorsubsidiesorwhetherthefirmmustimportinorderto enableittocontinueproductionandcompeteintheU.threaded.1990). 71 Toproperlyanalyzethisissue. 70 Noneofthepartiestothepreliminaryphaseoftheseinvestigationsadvocatedtreatingprocessors andthreadersdifferentlythaninpriorOCTGinvestigations.991 F. doesnotconcernU..Italy.andSpain.  operationswerecapitalintensive.producerhasdecidedtoimporttheproductsubjecttoinvestigation.2911atIͲ3Ͳ4(Aug. RelatedParties Wemustdeterminewhetheranyproducerofthedomesticlikeproductshouldbe excludedfromthedomesticindustrypursuanttoSection771(4)(B)oftheTariffAct.73  69 E.technicalexpertise.interalia.v. 72 SeeTorringtonCo. (2)thereasontheU.market.aff’dmem.1993).1161.andcoupledinathird countrybeforebeingshippedtotheUnitedStatesremainaproductofChina.Commerce’sMay2013preliminaryscopedetermination.S.UnitedStates.processorsengageinsufficientproductionͲrelatedactivitytobeconsidereddomestic producers.2d809(Fed.1331Ͳ32(Ct.itshouldmake appropriatecommentsatthequestionnairedraftingstagetoensureappropriatedatacollection.pp.Supp.thecapitalinvestments. Nos.OilCountryTubularGoodsfromArgentina.731ͲTAͲ711Ͳ717(Final). Int’lTrade1987).e.1352(Ct.exceptthatMavericksuggestedthatthe CommissionmightreconsideritspriorpracticeoftreatingprocessorsthatheattreatunfinishedOCTGas domesticproducers.Bycontrast.Supp.inanyfinalphaseoftheseinvestigationswewillseek.

See.shedetermineswhethertoexcludea relatedpartybasedprincipallyonitsratioofsubjectimportstodomesticproductionandwhetherits primaryinterestslieindomesticproductionorimportation. 77 CR/PRatTableIIIͲ1Note..3449at8Ͳ 9(Sept.Rather.018.790F. ***imported***.***.v.i. 74 CR/PRatTableIIIͲ8.Thepurchasesofthe importersfromwhich***werenotsubstantial. 15  . 79 CR/PRatTableIIIͲ1.79Thecompany’soperatingincomeratiowas***thanthatofany otherdomesticproducerininterim2013.whichreflectadomesticproducer’sfinancial operationsrelatedtoproductionofthedomesticlikeproduct.asopposedtoimportationofthesubjectmerchandise.g. 78 CR/PRatTableIIIͲ8.g.Inv.2001).  Onedomesticproducer.***.77Itsimportsaccountedfor***percentofits domesticproductioninthatperiod.CommissionerPinkertdoesnotrely upon***financialperformanceindeterminingwhetherthereareappropriatecircumstancestoexclude itfromthedomesticindustry.808182Wedonotfinditappropriatetoexclude*** fromthedomesticindustry.purchasedsubjectmerchandise.CommissionerAranoffdoesnotrely onindividualͲcompanyoperatingincomemargins.83  (…Continued) (3)thepositionoftherelatedproducervisͲaͲvistherestoftheindustry. 80 CR/PRatTableVIͲ2.***.Intheyearinwhichitspurchasesofimportsfrom***.e.USITCPub.e. 76 CR/PRatTableIIIͲ8.asitisa***.inassessingwhetherarelatedpartyhas benefittedfromimportationofsubjectmerchandise.at1168.CR/PRatTableIIIͲ3.330shorttonsproducedbythedomesticindustryin interim2013. UnitedStates.74Itisthereforearelatedpartyasdefinedbythestatute.e. 83 Forexample.wedonottreat***asarelatedparty.See.Supp.731ͲTAͲ891(Final).***purchasesofOCTGfrom***.No. 75 Anotherdomesticproducer. 81 Consistentwithherpracticeinpastinvestigationsandreviews.and***withrespect toothersubjectcountries. 82 Forpurposesofthepreliminaryphaseoftheseinvestigations.78suggestingitsprimaryinterestisnotindomestic production.TheCommissionhasfoundsuchcontroltoexistwhenthedomestic producerwasresponsibleforapredominantproportionofanimporter’spurchasesandthesepurchases weresubstantial..S.FoundryCokefromChina.whetherinclusionor exclusionoftherelatedpartywillskewthedatafortherestoftheindustry.itproduced***ofthe1.The Commissionhaspreviouslyconcludedthatapurchasermaybetreatedasarelatedpartyifitcontrols largevolumesofsubjectimports.TorringtonCo.***.importedOCTGdirectlyfromoneofthesubjectcountries duringthePOI.ItspurchasesofOCTGfrom***. Accordingly.CR/PRatTableIIIͲ8..76Thecompany***.75Wefindthat appropriatecircumstancesdonotexisttoexclude***fromthedomesticindustry.operationstoanyspecificbenefititderivesfromits relatedpartystatus.thepresentrecordisnotsufficienttolinktheproducer’s financialperformancewithrespecttoitsU.Inhisview.

andspecificimportdata for***.1.seealso15C.84The statutefurtherprovidesthatsubjectimportsfromasinglecountrythataccountforlessthan3 percentofsuchtotalimportsoftheproductmaynotbeconsiderednegligibleifthereare severalcountriessubjecttoinvestigationwithnegligibleimportsandthesumofsuchimports fromallsuchcountriesaccountsformorethan7percentofallsuchmerchandiseimportedinto theUnitedStates.n.§1677(24)(B).Thailand.SaudiArabia(***percent).Seealso.§2013.R.1673b(a).n.No.Thispractice wasaffirmedinCoͲSteelRaritan.R.dataforcouplingstockobtainedfromimporters.S. 88 CR/PRatTableIVͲ4.C.USITCPub.USITCPub.Inv.19 U. NegligibleImports PursuanttoSection771(24)oftheTariffAct.Russiaand Ukraine.SheetandStripfromBrazil.Nos.S.37(Oct.UreaAmmoniumNitrateSolutionfromBelarus. Therearefourcountrieswhoseimportswerebelowtheapplicable3percentstatutory threshold:87Taiwan(2.2percent).UnitedStates.Nos.68(Nov.1 (identifyingcertaindevelopingcountriesforpurposesof19U.and Thailand(0.China.731ͲTAͲ1006Ͳ1009(Preliminary). HydraulicMagneticCircuitBreakersfromSouthAfrica.1677(24)(B).§2013.Nos.importsfromasubjectcountryof merchandisecorrespondingtoadomesticlikeproductthataccountforlessthan3percentof allsuchmerchandiseimportedintotheUnitedStatesduringthemostrecent12monthsfor whichdataareavailableprecedingthefilingofthepetitionshallbedeemednegligible.Cir.CR/PRatTableIVͲ4.Indiaisamongthecountriesclassifiedas “developingcountries”under15C.sothenegligibilitythresholdforthecountervailing dutyinvestigationofsubjectimportsfromIndiais4percent. PolyethyleneTerephthalateFilm.Inc.85 TheCommissionhasfoundinpriorinvestigationsthatthe12Ͳmonthperiodpreceding thefilingofthepetitionends“withthelastfullmonthpriortothemonthinwhichthepetition isfiled.88Theaggregatevolumeofimportsfromthesecountriesis***  84 19U.701ͲTAͲ417Ͳ421 (Preliminary)and731ͲTAͲ953Ͳ963(Preliminary).F.andVenezuela.Mexico.19U.Int’lTrade2002).v.CoͲSteelRaritan.244F. Moldova.themostrecent12monthsforwhichdataare availableprecedingthefilingofthepetitionareJuly2012throughJune2013.8percent).thePhilippines(2.Germany.2004).andtheUnitedArab Emirates.Inv. vacatedonothergrounds.68. 85 19U.Thethresholdis9percentfordesignateddevelopingcountries.C.§1677(36)forwhichtherelevant negligibilitythresholdisdifferentincountervailingdutyinvestigations).1677(24)(A)(i).  V.C.357F.Inv.Ukraine.2001. 16  . 3600at9.v.g.Subjectimports fromIndia(at***percent)areabovethatthreshold.theCommissioncalculatedtheimportdataforthisperiodusingofficialimportstatistics forcasingandtubing.§1677(24)(A)(ii).9percent).anddataareavailableforJune2013.”86AsthepetitionsintheseinvestigationswerefiledonJuly 2.2013.Egypt.3517at9.1294(Fed.2007)at12.S.Indonesia. 86 CarbonandCertainAlloySteelWireRodfromBrazil.731ͲTAͲ1131Ͳ1134(Preliminary).Inc.n.F.UnitedStates.USITCPub.Inv.SouthAfrica.S.C..Supp.S.§1677(24)(B).TrinidadandTobago.§§1671b(a).51(June2002).USITCPub.Asdiscussed above. 87 Forpurposesofcountervailingdutyinvestigations.3d.Canada.e.3456at8.43(June2003).2d1349(Ct.C.Turkey.3962at12n.Lithuania.ifthosedataareavailable.731ͲTAͲ1033(Preliminary).n.

Vol.e.2d915(Fed.2d1082. expresslystatesthat“thenewsectionwillnotaffectcurrentCommissionpracticeunderwhichthe statutoryrequirementissatisfiedifthereisareasonableoverlapofcompetition.S.859F.aff’d.718F.SteelPostconferenceBriefat12Ͳ14. 91 See. includingconsiderationofspecificcustomerrequirementsandother qualityͲrelatedquestions.theRepublicofKorea.678F.Int’lTrade1998)(“cumulationdoesnotrequiretwoproductstobe highlyfungible”).orat  89 CRatIVͲ8. 93 U.90 Whilenosinglefactorisnecessarilydeterminative. (2) thepresenceofsalesorofferstosellinthesamegeographicmarketsof subjectimportsfromdifferentcountriesandthedomesticlikeproduct.ifsuch importscompetewitheachotherandwiththedomesticlikeproductintheU.United States.  percent.market.USITCPub.Supp.and (4) whetherthesubjectimportsaresimultaneouslypresentinthemarket.”).UnitedStates.AG.FundicaoTupy.thesefactorsareintendedtoprovidetheCommissionwithaframeworkfor determiningwhetherthesubjectimportscompetewitheachotherandwiththedomesticlike product.1988).50(Ct..g.No.v.Supp.89Becausethisexceedsthestatutorythresholdof7percent.93USTPL/OCTLargues thatimportsfromIndiashouldnotbecumulatedwiththosefromothersubjectcountries.Supp.theCommissiongenerallyhasconsideredfourfactors:  (1) thedegreeoffungibilitybetweensubjectimportsfromdifferent countriesandbetweensubjectimportsandthedomesticlikeproduct.Cir. SeeCertainCastͲIronPipeFittingsfromBrazil.678F.WielandWerke.Int’lTrade).103Ͳ 316.Inc.section771(7)(G)(i)ofthe TariffActrequirestheCommissiontocumulatesubjectimportsfromallcountriesastowhich petitionswerefiledand/orinvestigationsselfͲinitiatedbyCommerceonthesameday.at902).Int’lTrade1989)..33F.andTaiwan.92 Petitionersarguethatallsubjectimportsshouldbecumulated.Iat848(1994)(citingFundicaoTupy.Rep.v.at52(“Completelyoverlappingmarketsarenot required.731ͲTAͲ 278Ͳ80(Final).718F. Cumulation Forpurposesofevaluatingthevolumeandpriceeffectsforadeterminationof reasonableindicationofmaterialinjurybyreasonofsubjectimports.898 (Ct.R.Nos.1087(Ct.andthelistoffactorsisnot exclusive.S.PRatIVͲ7.UnitedStates.91Onlya“reasonableoverlap”ofcompetitionisrequired.aff’d.seeGossGraphicSys.Supp. VI.WielandWerke.wedonotfindthat importsfromanyofthesubjectcountriesarenegligible.A.Supp.S.1845(May1986).AGv. 90 17  . 92 TheStatementofAdministrativeAction(“SAA”)totheUruguayRoundAgreementsAct(URAA). (3) theexistenceofcommonorsimilarchannelsofdistributionforsubject importsfromdifferentcountriesandthedomesticlikeproduct.Inv.In assessingwhethersubjectimportscompetewitheachotherandwiththedomesticlike product.”H.

Inaddition.butotherresponsesweresplit between“always.Asdiscussedbelow. 100 CR/PRatTableIIͲ6.wefindareasonableoverlapofcompetitionamongsubject importsfromallninecountriesandbetweensubjectimportsfromeachsourceandthe domesticlikeproduct.thegreatmajorityofdomesticproducers responded“sometimes”or“never.96TheUkraineRespondentsrequestedthatimportsfromUkrainenot becumulatedwiththosefromothersubjectcountriesbutdidnotspecifyabasisfortheir argument. 103 CR/PRatTableIIͲ7.regardlessofsource. 99 CRatIIͲ26.  leastnotwithimportsfromcountriesthatexportmostlysemifinishedOCTGtotheUnited States. othersubjectcountries. 96 SaudiRespondentsPostconferenceBriefat27Ͳ28.100 Nodomesticproducersorimportersreportedthatsubjectimportsare“never”used interchangeablywitheachotherandwiththedomesticlikeproduct.”and“never.noneofthestatutoryexceptionstocumulation applies.95TheSaudi RespondentsarguethatimportsfromSaudiArabiashouldnotbecumulatedwiththosefrom othersubjectcountriesbecausecompetitionisattenuatedamongimportsfromSaudiArabia.2013. Fungibility.July2.First.”“frequently.S.Importsfromthesubjectcountriestendedtobe  94 USTPL/OCTLPostconferenceBriefat2Ͳ7.”103 Werecognizethatthereareseveralfactorsthatlimitthefungibilitybetweenandamong subjectimportsfromeachsourceandthedomesticlikeproduct.aregenerallyproducedin accordancewithAPIstandards.andthedomesticlikeproductbecausetheproductfromSaudiArabiais highͲendseamlessOCTG.94ILJINarguesthatimportsfromcountriesthatshipmostlysemifinishedOCTGshould notbecumulatedwiththosefromcountriesthatshipmostlyfinishedOCTG. 101 CR/PRatTableIIͲ6.A pluralityofimportersreportedtherewere“sometimes”differencesotherthanpricebetween domesticandsubjectimportsandbetweensubjectcountries.97HRParguesthatimportsfromVietnamshouldnotbecumulatedbecausesuch importsareaninsignificantfactorintheU.98 ThethresholdrequirementforcumulationissatisfiedbecausePetitionersfiledthe antidumpingdutyandcountervailingdutypetitionswithrespecttotheninesubjectcountries onthesameday.99Mostrespondingdomesticproducersandamajorityof importersreportedthatsubjectimportsfromthesubjectcountriesare“always”or “frequently”usedinterchangeablywitheachotherandwiththedomesticlikeproduct. 97 UkraineRespondentsPostconferenceBriefat8.101 Whenaskedwhetherdifferencesotherthanpriceareeversignificantintheirsalesin choosingbetweenOCTGfromdifferentsources.PRatIIͲ22. 102 CR/PRatTableIIͲ7. 98 HRPPostconferenceBriefat4Ͳ7.”102Importersweremoredividedonthisquestion.Casingandtubingproducts. 95 18  .The remainingdomesticproducersandimportersindicatedthatOCTGfromthesubjectcountries are“sometimes”usedinterchangeablywitheachotherandwiththedomesticlikeproduct.weldedandseamless OCTGarenotcompletelyinterchangeable. ILJINPostconferenceBriefat28Ͳ29.marketandarenotlikelytogrowsignificantly.

110ThedomesticindustrysellsbothunfinishedandfinishedOCTG.S.”“finishedOCTG.Thetwoformscouldnot beusedinterchangeably.andgreentubesinanyfinalphaseofthese investigations.SteelPostconferenceBriefatExh.CertainLightweightThermalPaperfromChinaandGermany.Nos.USITCPub. andVietnamwerealmostexclusivelyweldedOCTG.thattotheextentthatanysubjectcountryexportsan appreciableamountofbothtypesofOCTG. 109 Partiesareencouragedtospecifydefinitionsfor“unfinishedOCTG.PRatIIͲ22Ͳ23.4043at12(Nov. 110 ThefactshereareclearlydistinguishablefromthoseintheLightweightThermalPaper investigation. 107 CRatIIͲ27Ͳ28.however.importsfromSaudiArabia.CertainhighͲstressapplicationsrequireseamlessOCTG.Thailand.and UkrainewereexclusivelyseamlessOCTG.therecordsuggestsotherwise. 108 USTPL/OCTLPostconferenceBriefat2Ͳ3.thatUSTPL/OCTLhasnotprovidedanydatatosupportitsclaimthatimports fromparticularcountriesarepredominantlyfinishedorunfinishedOCTG.Forexample.701ͲTAͲ451 and731ͲTAͲ1126Ͳ1127(Final).Weintendtogather shipmentdataonfinishedOCTG.p.107Anotherfactorthatmaylimitfungibility somewhatistheextenttowhichsubjectcountriesandthedomesticindustryshipunfinishedor finishedOCTG.105Awitnessforpetitioners estimatedthatweldedOCTGcouldbeusedfor70percentofseamlessapplicationsanda witnessforrespondentsnotedthattheyareinterchangeableinmanycasesfroman engineeringperspective.onwhichUSTPL/OCTLandILJINrely.thePhilippines.”and“green tubes”sothataccurateshipmentdatacanbegatheredfortheseproducts.allimportsfromonesubjectcountry werejumborolls.PRatIIͲ21Ͳ22. 111 Tr.Taiwan.2008).unfinishedOCTG.pp.19.whilealmostallimportsfromothersubject countriesconsistofunfinishedOCTGsuchasgreentubesthathavenotbeenheattreatedor threaded.1. 106 CRatIIͲ26.Turkey.USTPL/OCTLcontendsthat“themajority”ofimportsfromIndiaandsome othersubjectcountriesarefinishedOCTG.at87Ͳ88(Thompson)andU.PRatIIͲ21.104AlthoughseamlessOCTGcanbeusedinanyweldedOCTGapplication. CRatIIͲ26.109Wenotehowever.andtheCommissionfoundnoreasonableoverlapofcompetitionbasedon lackoffungibility.ContrarytoILJIN’scontention.andplainͲendpipethatgenerallyhasbeenheattreatedbutnotthreaded.the Commissiondidnotpurporttocreateany“rule”concerningcumulationofunfinishedandfinished articles.andtheseamlessproduct mayalsobepreferredinsomeapplicationstoreducerisk.andallimportsfromtheothersubjectcountrywereslitrolls. 112 SeeU. 105 19  .106Fungibilitymayalsobesomewhatlimitedbyrequirementsfor premiumconnectionsorforalloyOCTGgrades.thissupportsafindingofareasonableoverlapof competition.adistributormayweigh whethertobuyplainͲendpipe(anunfinishedproduct)andhaveitthreadedand/orcoupledby afinisherratherthanbuyingafinishedOCTGproduct.  concentratedinoneproductortheother:importsfromKorea.andimportsfromIndiawerepredominantlyseamless OCTG.19Ͳ20.Inv.SteelPostconferenceBriefatExh.1.112  104 CR/PRatTableIVͲ5.thereverseis nottrue.111Asforthe undocumentedcontentionsofUSTPL/OCTLandILJINthatunfinishedandfinishedOCTGdonot competewitheachother.S.Inthatcase.108We note.

 SimultaneousPresenceinMarket.Subjectimportsfromeachsubjectsourcewere presentintheUnitedStatesineachyearofthePOIandininterim2013.Turkey.PRatIIͲ3. 118 19U.becausetherelevantantidumpingandcountervailingdutypetitions werefiledonthesameday.andVietnamforpurposesofouranalysisofwhetherthereisareasonableindication ofmaterialinjury.Thailand.Korea.118Inmakingthisdetermination.§§1671b(a). 114 20  .andtherecordindicatesthatthereisareasonableoverlapof competitionbetweenandamongsubjectimportsandthedomesticlikeproduct.C.therecordindicatesasubstantialdegreeofsubstitutabilitybetweenand amongsubjectimportsfromeachsourceandthedomesticlikeproduct. LegalStandard Inthepreliminaryphaseofantidumpingandcountervailingdutyinvestigations.exceptthattherewere noimportsfromthePhilippinesorThailandin2010.DuringthePOI.production  113 CRatIIͲ1.S.115AllrespondingU.andnineof14reportedmakingsalestothe PacificCoastregion.exceptforimportsfromthe Philippines(whichwerepresentin17months)andimportsfromThailand(whichwerepresent in19months).thegreatmajorityofdomesticallyproducedand importedOCTGfromeachsubjectsourcewereshippedtodistributors.1673b(a). CRatIIͲ3.theCommissionmustconsiderthevolumeof subjectimports.thePhilippines.producers reportedmakingsalestotheCentralSouthwest.andCR/PRatTableIIͲ2. ChannelsofDistribution.113 GeographicOverlap.PRatIIͲ1.SaudiArabia.the CommissiondetermineswhetherthereisareasonableindicationthatanindustryintheUnited Statesismateriallyinjuredorthreatenedwithmaterialinjurybyreasonoftheimportsunder investigation.wecumulate subjectimportsfromIndia.theireffectonpricesforthedomesticlikeproduct.notwithstandingthe factorsthatlimitfungibility.Insum. Ukraine.117 Conclusion.butonlyinthecontextofU. 115 CRatIIͲ3.  Onbalance. 116 CR/PRatTableIVͲ2. VII. ReasonableIndicationofMaterialInjurybyReasonofSubjectImports  A.S.S.116Subjectimportsfromeachsubject sourcewerepresentinthemajorityofthe39monthsofthePOI.Taiwan. 117 CR/PRatTableIVͲ6.Subjectimportsandthedomesticlikeproductsharedthe samechannelsofdistribution.andtheirimpacton domesticproducersofthedomesticlikeproduct.114ThePacificCoastreceivedthesecondgreatestshare ofsubjectimports.withsubjectimportsfrom***thatregion.PRatIIͲ3.andCR/PRatTableIIͲ2.Themajorityofimportsfromeachsubjectsourceare concentratedintheCentralSouthwest.

UnitedStates.1673b(a).the Commissionexaminesthefactsofrecordthatrelatetothesignificanceofthevolumeandprice effectsofthesubjectimportsandanyimpactofthoseimportsontheconditionofthedomestic industry.thereby inflatinganotherwisetangentialcauseofinjuryintoonethatsatisfiesthestatutorymaterial  119 19U.Supp.v. 122 19U.Inc.. Int’lTrade1996).ortrivial.§1677(7)(A).competition amongdomesticproducers.”).UnitedStates.S. 121 19U.3d867.weconsiderallrelevant economicfactorsthatbearonthestateoftheindustryintheUnitedStates.andallrelevantfactorsareconsidered“withinthecontextofthebusinesscycle andconditionsofcompetitionthataredistinctivetotheaffectedindustry. 2008).3d1339.ifany.§1677(7)(B).tangential.ormanagementdecisionsbydomesticproducers.orconsumertastes.119Thestatutedefines“materialinjury”as“harmwhichisnotinconsequential.S.C.3d1478.Thisevaluationunderthe“byreasonof”standardmustensurethatsubjectimports aremorethanaminimalortangentialcauseofinjuryandthatthereisasufficientcausal.Cir.C.2001).S.TheCommission“mayconsidersuchothereconomicfactorsasare relevanttothedetermination”butshall“identifyeach{such}factor.C. 124 AngusChemicalCo. 120 19U.changesintechnology.{a}ndexplaininfullitsrelevance tothedetermination.Thelegislative historyexplainsthattheCommissionmustexaminefactorsotherthansubjectimportsto ensurethatitisnotattributinginjuryfromotherfactorstothesubjectimports.aff’g944F.TaiwanSemiconductorIndustryAss’nv.”122 AlthoughthestatuterequirestheCommissiontodeterminewhetherthereisa reasonableindicationthatthedomesticindustryis“materiallyinjuredbyreasonof”unfairly tradedimports.345F.UnitedStates.1384(Fed. 2006).1357(Fed.Cir.not merelyatemporal..”NipponSteelCorp. 123 19U.§1677(7)(C)(iii).C.USITC.121Nosinglefactor isdispositive.3d1345.hasobservedthat“{a}s longasitseffectsarenotmerelyincidental.140F.thereareothereconomicfactorsatwork.inaddressingthecausationstandardofthestatute.v.722(Fed.124Inidentifying acausallink.v.v. 125 TheFederalCircuit.USITC.S.458F.3d716.Cir.demand.theforeignproductsoldatlessthan fairvaluemeetsthecausationrequirement.”19U. Cir.§§1671b(a).orunimportant.C.1484Ͳ85(Fed.1998)(“{T}hestatutedoes not‘compelthecommissioners’toemploy{aparticularmethodology}. 2003).notbyreasonofaminimalortangentialcontributiontomaterialharm causedbyLTFVgoods.”indicatingthatthisaspectofthe injuryanalysisislefttotheCommission’sreasonableexerciseofitsdiscretion.ThiswasreͲaffirmedinMittalSteelPointLisasLtd.951(Ct.someorallofwhich mayalsobehavingadverseeffectsonthedomesticindustry.542F.266F.§1677(7)(C)(iii).Cir.quotingGeraldMetals. immaterial.943.”120Inassessingwhetherthereisareasonableindicationthatthe domesticindustryismateriallyinjuredbyreasonofsubjectimports.§1677(7)(B).132F.Sucheconomicfactorsmight includenonsubjectimports.123itdoesnotdefinethephrase“byreasonof. 21  .S.S.statedthat“thiscourtrequiresevidenceintherecord‘toshowthattheharmoccurred“by reasonof”theLTFVimports.nexusbetweensubjectimportsandmaterialinjury.3d1379.1345(Fed.C.inwhichtheFederalCircuit.Cir.betweensubjectimportsandmaterialinjurytothedomesticindustry.125 Inmanyinvestigations.v.873(Fed.  operations.’”SeealsoNipponSteelCorp.UnitedStates.1997).

96Ͳ249at75 (1979)(theCommission“willconsiderinformationwhichindicatesthatharmiscausedbyfactorsother thanlessͲthanͲfairͲvalueimports.the Commissionmustexamineotherfactorstoensurethatitisnotattributinginjuryfromothersourcesto thesubjectimports. developmentsintechnologyandtheexportperformanceandproductivityofthedomesticindustry”).AsociaciondeProductoresdeSalmonyTruchadeChileAG v.96Ͳ317at47(1979)(“inexaminingtheoverallinjurybeing experiencedbyadomesticindustry.”).3dat877..”).Int’lTrade2002)(“{t}heCommissionisnotrequiredto isolatetheeffectsofsubjectimportsfromotherfactorscontributingtoinjury”ormake“brightͲline distinctions”betweentheeffectsofsubjectimportsandothercauses.Vol.3dat1381(“anaffirmativematerialͲinjurydeterminationunderthestatute requiresnomorethanasubstantialͲfactorshowing.266F.3dat1345.Supp.citingGeraldMetals.S.3658at100Ͳ01(Dec.H. 128 S.Rep.TaiwanSemiconductorIndustryAss’n.96Ͳ317at47.R.seealsoSoftwoodLumberfrom Canada.contractionindemandorchangesinpatternsofconsumption.theITCwilltakeintoaccountevidencepresentedtoitwhich demonstratesthattheharmattributedbythepetitionertothesubsidizedordumpedimportsis attributabletosuchotherfactors.Rep.e.Inv.however.542F.3dat722(thestatute “doesnotsuggestthatanimporterofLTFVgoodscanescapecountervailingdutiesbyfindingsome tangentialorminorcauseunrelatedtotheLTFVgoodsthatcontributedtotheharmfuleffectson domesticmarketprices.”).2003) (Commissionrecognizedthat“{i}fanallegedotherfactorisfoundnottohaveorthreatentohave injuriouseffectstothedomesticindustry.”(emphasisinoriginal)).Thatis.USITCPub..Rep. accordMittalSteel.Rep.Iat851Ͳ52(1994)(“{T}heCommissionmustexamineotherfactorsto ensurethatitisnotattributinginjuryfromothersourcestothesubjectimports.).127Nordoes the“byreasonof”standardrequirethatunfairlytradedimportsbethe“principal”causeof injuryorcontemplatethatinjuryfromunfairlytradedimportsbeweighedagainstotherfactors.129 Assessmentofwhethermaterialinjurytothedomesticindustryis“byreasonof”subject imports“doesnotrequiretheCommissiontoaddressthecausationissueinanyparticularway” aslongas“theinjurytothedomesticindustrycanreasonablybeattributedtothesubject imports”andtheCommission“ensure{s}thatitisnotattributinginjuryfromothersourcesto  126 SAA..itisnotan‘othercausalfactor.128Itis clearthattheexistenceofinjurycausedbyotherfactorsdoesnotcompelanegative determination..R.theCommissionneednotisolate theinjurycausedbyotherfactorsfrominjurycausedbyunfairlytradedimports. traderestrictivepracticesofandcompetitionbetweentheforeignanddomesticproducers. 127 SAAat851Ͳ52(“{T}heCommissionneednotisolatetheinjurycausedbyotherfactorsfrominjury causedbyunfairimports.the‘dumping’neednotbethesoleor principalcauseofinjury.’thenthereisnothingto furtherexamineregardingattributiontoinjury”).R.Nos.H.126Inperformingitsexamination.i.701ͲTAͲ414and731ͲTAͲ928(Remand).(“{T}heCommission neednotisolatetheinjurycausedbyotherfactorsfrominjurycausedbyunfairimports. 22  .103Ͳ316.180F.345F.Rather.1375(Ct. suchasnonsubjectimports.whichmaybecontributingtooverallinjurytoanindustry.2d1360.UnitedStates.  injurythreshold. 129 SeeNippon.”).96Ͳ249at74Ͳ75.”).Rep.”thosefactorsinclude“thevolumeandpricesofnonsubsidized importsorimportssoldatfairvalue.132F.H.

seealsoMittalSteel.at873(“WhiletheCommissionmaynotenteran affirmativedeterminationunlessitfindsthatadomesticindustryismateriallyinjured‘byreasonof’ subjectimports.inBratsk.133Theadditional “replacement/benefit”testlookedatwhethernonsubjectimportsmighthavereplacedsubject importswithoutanybenefittotheU.albeitwithoutrelianceuponpresumptionsorrigidformulas. 23  .Bratsk.542 F.toundertakeaparticular kindofanalysisofnonsubjectimports.542F.TheCommissioninterpretedtheFederal Circuit’sguidanceinBratskasrequiringittoapplyaparticularadditionalmethodology followingitsfindingofmaterialinjuryincasesinvolvingcommodityproductsandasignificant marketpresenceofpriceͲcompetitivenonsubjectimports.includingtheCarbonandCertainAlloySteelWireRodfrom TrinidadandTobagodeterminationthatunderliestheMittalSteellitigation.96Ͳ249at75. 133 MittalSteel.S.  thesubjectimports.96F.1341(Fed.”).3dat877Ͳ78.3d1352.incertaincircumstanceswhenconsideringpresentmaterialinjury.2005).heldthattheCommissionis required. 131 CommissionerPinkertdoesnotjointhisparagraphorthefollowingthreeparagraphs.”)citingUnited StatesSteelGroupv.seealsoid. 444F.anditrequirestheCommissiontoprovideanexplanationof itsconclusionwithrespecttothatfactor.andMittalSteel.thecourtrequirestheCommissiontohave “evidenceintherecord‘toshowthattheharmoccurred‘byreasonof’theLTFVimports. MittalSteelclarifiesthattheCommission’sinterpretationofBratskwastoorigidand makesclearthattheFederalCircuitdoesnotrequiretheCommissiontoapplyanadditional testnoranyonespecificmethodology.Hepoints outthattheFederalCircuit.. priceͲcompetitive.1996)andS.Underthosecircumstances.3d1369.UnitedStates.’”and requiresthattheCommissionnotattributeinjuryfromnonsubjectimportsorotherfactorsto  130 MittalSteel.theCommissionisnotrequiredtofollowasinglemethodologyformakingthat determination.Rep.theFederalCircuithasexaminedandaffirmedvarious Commissionmethodologiesandhasdisavowed“rigidadherencetoaspecificformula.  542F..414F.nonͲsubjectimportsareinthemarket.542F.3dat878.Cir.”132 TheFederalCircuit’sdecisionsinGeraldMetals.3dat879(“BratskdidnotreadintotheantidumpingstatuteaProcrusteanformulafordetermining whetheradomesticinjurywas‘byreason’ofsubjectimports.3d1331.{andhas}broaddiscretionwithrespecttoitschoiceofmethodology.444F.TheCommissionappliedthatspecific additionaltestinsubsequentcases.instead.”theCommissionwouldnot fulfillitsobligationtoconsideranimportantaspectoftheproblemifitfailedtoconsider whethernonsubjectornonͲLTFVimportswouldhavereplacedLTFVsubjectimports duringtheperiodofinvestigationwithoutacontinuingbenefittothedomesticindustry.Cir.industry. 132 NucorCorp. MittalSteelexplainsasfollows:  WhatBratskheldisthat“wherecommodityproductsareatissueandfairlytraded.3dat1369.”130131Indeed.BratskrequirestheCommissionto considerwhetherreplacementoftheLTFVsubjectimportsmighthaveoccurredduring theperiodofinvestigation.1336.v.andMittalSteelallinvolved casesinwhichtherelevant“otherfactor”wasthepresenceinthemarketofsignificant volumesofpriceͲcompetitivenonsubjectimports.1362(Fed.3dat875Ͳ79.UnitedStates.

theserequeststypicallyseekinformationon capacity.Inordertoprovideamore completerecordfortheCommission’scausationanalysis.wedonotconsiderourselvesrequiredtoapplythe replacement/benefittestthatwasincludedinCommissionopinionssubsequenttoBratsk.”).S.875Ͳ79&n..96Ͳ249at75(“ThedeterminationoftheITCwithrespecttocausationis.andimpactafullanalysisof otherfactorsallegedtohavecausedanymaterialinjuryexperiencedbythedomesticindustry.3d at1357.specificallyinthe oilandgasexplorationandproductionsectors. 135 Tothatend.3dat873.economy.subjecttoreviewunderthesubstantial evidencestandard.4124at12.3dat873(quotingfromGeraldMetals.SteelGroup.542F.andMittalSteelclarifiesthat. 136 Weprovideinourrespectivediscussionsofvolume.139Thedemandfor OCTGiscloselyassociatedwiththenumberofrigsandtotalfootageofwellsdrilledinthe UnitedStates.138Becauseoilandnaturalgaspricespartly influencedrillingactivity.S.140  134 MittalSteel.137 B. DemandConditions AstheCommissionhasfoundinpriorOCTGinvestigationsandreviews.542F.complexand difficult.USITCPub.citingU.demandfor OCTGiscyclicalandlargelydrivenbythelevelofactivityintheU.2 (recognizingtheCommission’salternativeinterpretationofBratskasaremindertoconductanonͲ attributionanalysis).S.135 Thequestionofwhetherthematerialinjurythresholdforsubjectimportsissatisfied notwithstandinganyinjuryfromotherfactorsisfactual. TheprogressionofGeraldMetals.132F.infact.incases involvingcommodityproductswherepriceͲcompetitivenonsubjectimportsareasignificant factorintheU.134Accordingly.S.production. 139 CRatIIͲ12.136CongresshasdelegatedthisfactualfindingtotheCommissionbecause oftheagency’sinstitutionalexpertiseinresolvinginjuryissues..3dat1350.PRatIIͲ11.market.priceeffects. 137 MittalSteel.458F. 1.aftertheFederalCircuitissueditsdecisioninBratsk.S.3dat722).andshipmentsoftheproductunderinvestigationinthemajorsourcecountries thatexporttotheUnitedStates.thesepricesalsodrivethedemandforOCTG.with adequateexplanation.andisamatterforthejudgmentoftheITC.tononͲattributionissueswhenitperformsitscausationanalysis.CRatIIͲ12.PRatIIͲ11.NipponSteelCorp.TheCommissionplanstocontinueutilizingpublishedorrequested informationinfinalphaseinvestigationsinwhichtherearesubstantiallevelsofnonsubjectimports.importsofsubject merchandise(if.therewerelargenonsubjectimportsuppliers).theCommissionbeganto presentpublishedinformationorsendoutinformationrequestsinfinalphaseinvestigationsto producersinnonsubjectcountriesthataccountedforsubstantialsharesofU. 24  .Rep.96F.theCourtwillrequiretheCommissiontogivefullconsideration.  subjectimports. ConditionsofCompetitionandtheBusinessCycle Thefollowingconditionsofcompetitioninformouranalysisofwhetherthereisa reasonableindicationofmaterialinjurybyreasonofcumulatedsubjectimports. 140 CRatIIͲ1. 138 2010OCTG.Bratsk..PRatIIͲ1.

whichtrackOCTGusedbywelloperators.700inearly2011.roseabove300millionfeetin2011.andpeakedatslightlygreaterthan2.Slate. 145 CRatIIͲ19.Skadden.PRatIIͲ16.S. 148 CRatIIͲ1.thefootageofOCTGused whenfrackingand/orhorizontaldrillingisgreateronaperwellbasisthanthefootageusedin traditionalverticalwells.KoreanRespondentGroupPostconferenceBriefat16(incorporatedby referencebyTaiwanandthePhilippineRespondents. 147 CRatIIͲ19. 151 ExhibitstoTestimonyofMr.142Specifically.7millionshorttons. 25  .S.USTPL/OCTL.marketaredomesticshipments.theJindalGroup.Arps.145  U.ThenumberofrigsintheUnitedStateswasaround1.000inlate 2011beforebeginningtodeclineslowlythroughthefirsthalfof2012andmorerapidlyinthesecond halfofthatyear.148Becausebothtechniquesallowwellstoreachfurther.importsof subjectmerchandiseandimportsfromnonsubjectcountries.PRatIIͲ1. Çayirova/Tosçelik. 144 CR/PRatFigureIIͲ3.rosetoaround1.2million shorttonsin2012.144Somerespondingproducersand importersnotedthatdemandhasnotincreasedinrecentmonths.MeagherandFlomLLC.Rigcounthashoveredaround1.andHRP).PRatIIͲ22.1millionshorttonsin2011and7.S.143 Operatorconsumptionfigures.150 2.Tr.anddropped slightly.PRatIͲ14Ͳ15andIIͲ1.750throughouttheinterim2013period. 142 CR/PRatFiguresIIͲ3.151  141 CR/PRatTableIVͲ7.200atthe beginningof2010.thendeclinedslightlyin2012. 143 CR/PRatFiguresIIͲ4andIIͲ5.Hecht.0millionshorttonsin2010to6.Borusan.  OCTGdemandroseconsiderablyduringthePOI.9millionshorttonsininterim2012.slightly lowerthanthe1. SupplyConditions  ThethreesourcesofOCTGsupplyintheU.consumptionofOCTG increasedfrom5.OCTGimportsfromChinahaveall butdisappearedfromtheU.increasedsteadily from2010to2012beforedeclininginthefirsthalfof2013.146Thisislargelyduetoincreaseduseofhydraulicfracturing(alsoknownas “fracking”)andhorizontaldrillingandincreaseddrillingspurredbyhigheroilprices.147Since January2010.PRatIIͲ16.S.Apparentconsumptionforinterim2013was1. 146 CRatIIͲ18.141MeasuresofOCTGdemandincreasedsharplybetweenJanuary2010and November2011beforebeginningasmallandirregulardecline.producersandrespondentsgenerallyagreethatdemandforOCTGhasrisensharply sinceJanuary2010.Total footagedrilledwasaround240millionfeetin2010. 149 CRatIͲ17Ͳ18andIIͲ1.Appendixat 2.149Thisincreasehasalsoledtogreaterdemandforpremiumand semiͲpremiumconnectionsandthreadsforthesehighͲstressapplications.marketafterantidumpingandcountervailingdutyorderswere imposedonOCTGfromChinain2010.ApparentU. 150 CRatIIͲ27.PRatIIͲ16.horizontaldrillingandfrackinghaveplayedanincreasingroleinoilandgas exploration.butremainedover300millionfeetin2012.andIIͲ5.rigcountand totalfootagedrilledincreasedbetween2010and2011.IIͲ4.

7millionshort tonsin2011and6. PRatIIIͲ4.1millionin2011anddecreasingto$616. Respondingproducers/exportersfromVietnamaccountedforonly***percentofimportsofOCTGfrom Vietnamin2012.158Contributingtothisincreasedsubjectcapacityarenewproductionfacilitiesinthe PhilippinesandThailandthatpetitionersallegewereestablishedbyfirmsaffiliatedwith producersinChinanowsubjecttoU. 157 CR/PRatTableVIIͲ19.153Capacityutilizationincreasedfrom52.30.PRatVIIͲ3.7percentin2011and63.2millionshorttonsin2012.4percentin interim2013.BigRiverSteel announcedaproposedmillwithanannualcapacityof1.changesinproductioncapacity.0percentin2011and69.6millionshorttonsininterim2013.and/orcurtailemployment.PRatVIIͲ19.S.8percentin 2012.0millionin2010to$711.upgradedequipment.7. 158 CR/PRatTableVIIͲ19.7 percentininterim2013. BorusanandMannesmanbrokegroundonamillinTexasthatisexpectedtobeginproductionofOCTG in2015.17.Subjectcapacityutilizationwas70.PRatVIIͲ14.showingcapitalexpendituresincreasingfrom $269.9.2millionshorttonsin 2010to3.0millionshorttonsin2011and3.7percentininterim2012and65.22.14.SeealsoCR/PRTableVIͲ4.0millionshorttonsin2012.curtailproduction.13. 155 CR/PRatTableIIIͲ2.PRatIIIͲ1.34.157Subjectcapacity utilizationalsorose.ThePhilippineRespondent’scapacity increasedfromnonein2010to***shorttonsin2011.  The13domesticproducersthatrespondedtotheCommission’sU.7millionshorttons. WeldedTubehasbegunconstructionofamillinNewYorkthatisexpectedtobeginproductionin2013.16.Thedomesticindustry’scapacitywas1.6percentin2010to66.antidumpingandcountervailingdutyorders.152The domesticindustry’scapacityincreasedfrom5.InThailand.producershave plannedfurtherexpansionsandadditionalplantopeningsinthecurrentandfollowingyears. 159 SeeCRatVIIͲ13. For2013andbeyond.and/orcommissionednewmills.13.9.156Subjectcapacityrosefrom2.155  The32subjectproducers/exportersofOCTGthatrespondedtotheCommission’s questionnairesaccountedforallorvirtuallyallimportsofOCTGin2012ineightofthenine subjectcountriesintheseinvestigations.producers’ questionnaireaccountedforthevastmajorityofOCTGproducedintheUnitedStates.Capacity utilizationinthePhilippinesincreasedfrom***percentin2011to***percentin2012.900shorttonsininterim2012and817.andTexasSteelConversion has***.and19.Subjectcapacitywas802.5millionshorttonsininterim2012 and1.17.Severalproducersalsoreportedhavingtoshutdown facilitiestemporarilyduetolackoforders. CR/PRatTableIIIͲ3.5millionshorttonsin2010to5.159  152 CRatIIIͲ1.TableIIIͲ2liststhevariousinvestments.5 percentin2010to60.154U.CRatVIIͲ38.S.CRatVIIͲ26.andshutdownsinthedomesticindustrysince2010. acquisitions/mergers.800short tonsininterim2013.VallourecexpectstobeginheattreatmentandfinishingoperationsinanewmillinOhio.Capacityutilizationwas69.and38. OMKcommissionedamillinTexasthatisexpectedtoreachfullcapacitybymidͲ2013.from58.CRatIIIͲ5Ͳ6.TenarisannounceditsintentiontobuildanewseamlessmillinTexasby2016.S.PRatVIIͲ9.5percentininterim2012and67. (Continued…) 153 26  .0percentin2012.andincreased***percentin2012. 154 CR/PRatTableIIͲ3.CR/PRatTableIIIͲ2.added productionlines.Thetablelists20instances whereproducershaveannouncedconstructionofadditionalfacilities. 156 CRatVIIͲ4.11.9millionin2012.26.

declinedfrom14.includinghowtheimportedproductscompetewithproducts manufactureddomestically.andArgentina.PRatIͲ12. Argentina.nonsubjectsources consistsofOCTGproductsthatarefurtherprocessedintheUnitedStates.suchasgreentubes thatmaynothavebeenheattreatedorthreaded. 160 3.inventoriesof domesticproductwereattheirlowestin2010andpeakedinabsolutetermsinMarch2012.Germany.shipments.aswellasplainͲendpipethatmayhavebeen heattreatedbutnotthreaded.S.PRatIIIͲ8.marketthroughoutthe POI. 165 CR/PRatTableCͲ1.927shorttonsin 2010.088shorttonsin2012.164Cumulated inventoriesofsubjectimportsintheUnitedStateshaveincreasedfrom143.includingtheAPI.Mexico.SteelPostconferenceBriefat49(citingPetitionVol.S. InventoriesofU.Japan.and***shorttonsin2012.I.tosomedegree.Austria. Substitutability OCTGisproducedaccordingtostandardsandspecificationspublishedbyanumberof organizations.7percentin2012.Wewillseekmoreinformationinanyfinalphaseofthese investigationsregardingthenatureandextentofcompetitionamongOCTGproductsatthe variousstagesofprocessing.162 Asizeableportionofimportsfromsubjectand. 167 Tr.4percentin2011and10.165Wewillseek furtherinformationinanyfinalphaseinvestigationsregardingfactorswhichmightaffect inventorylevelsandseekparties’commentsontypicalinventorylevelsinthisindustry.at120(Miller).Mexico.Colombia.S. 27  . 161 CR/PRatTableIVͲ3.Japan.to190.  ImportsfromnonsubjectcountrieswerepresentintheU.U.S.730shorttonsin2011.8percentininterim 2012and12.Brazil.Capacity utilizationwas***percentinthefirstyearofproductionandincreasedto***percentin2012.ͲproducedOCTGandOCTGfromsubjectcountriesbothintheUnited Statesandinthesubjectcountriesarealsoasourceofcurrentsupply.Thelargestsourcesof nonsubjectimportsduringthePOIwereCanada. 166 CRatIͲ15.Russia.163 PetitionersassertthatthecurrentinventoriesofOCTGfromallsourcesrepresent approximatelya5monthsupplyandthatthis“inventoryoverhang”istoohigh.includingCanada.161 SeveraldomesticproducershaveaffiliatesthatproduceOCTGinnonsubjectcountriessuchas ***.Whileotherorganizationsandstandardsexist. 160 CR/PRatTableIVͲ2.0 percentin2010to12.167OCTGisusuallyproducedinaccordancewith  (…Continued) capacityincreasedfromnonein2010to***shorttonsin2011.Germany.ExhibitIͲ53).andSpain. itmaybeginmarketingitsOCTGasAPIgrade.Romania. 163 CRatIIIͲ14.166OnceamillpassesinspectionandobtainsAPIcertification.however.forthepurposesofthese investigations.wewillidentifydifferentgradesofOCTGusingAPIstandardsandspecifications.InventoriesasapercentofU. 164 U. 162 CR/PRatTableIIIͲ1. Theyoriginatedfromavarietyofcountries.S.andreached323.0percentininterim2013.Theywere11.

Programsales.169Mostproducersandimportersindicatedthat subjectimportsanddomesticallyproducedOCTGare“always”or“frequently” interchangeable.168OCTGis alsoproducedintwoforms:seamlessorwelded.premium.we’llgiveyouadifferentanswer.22.thereisa lackofclarityintherecordintheseinvestigationsastothedefinitionsofcommodity. 172 Tr.n.at135Ͳ36(Thompson)(“{Thedifferencebetweencommodity.Tr.  APIspecification5CT.  PetitionersassertthatthePOIwascharacterizedbyanincreasingpresenceof “commoditygrade”OCTG.andcommodityOCTG.thedefinitionofpremiumOCTG.standard.at29(Matthews)..thenatureofthethreadingorendfinishing. semiͲpremium.whethercouplingstockcanbemanufacturedin premiumstandards.arenonͲcontractualobligationsamongmills.standard.distributorsallreportedsellingaportionoftheirOCTGstocktoendusersthrough programsales.asdiscussedabove.171However.170AfewimportersindicatedthatdomesticandsubjectcountryOCTGare only“sometimes”interchangeable. ThereisahighdegreeofsubstitutabilitybetweenU.andendusers.PRatIͲ17.PRatIIͲ19.andpremiumOCTG.S.respectively.22.Wealsointendtoexploretheextenttowhichsuchdesignationsaffectpricesof thevariousOCTGproducts.asopposedtopremiumorproprietaryOCTG.173The remainingtwosubjectcountries.119(Schagrin).Approximately 99percentofOCTGproducedintheUnitedStatesandatleast***percentofOCTGimported fromsevenoftheninesubjectcountrieswassoldtoadistributorduringthePOI.e.and  168 CRatIͲ20n.andwhatpercentofthemarketisoccupiedbyproprietary.and/oralsoapply tocouplingstock.”) 173 CRatIIͲ1..Weinvitepartycommentsontheappropriate definitionsinthecommentsonthedraftquestionnairesforthefinalphaseofthese investigations.whichencompasses22separategradesofcasingandtubing.of theirOCTGtodistributors..SaudiArabiaandUkraine. market.S.standard. 175 CRatIIͲ28.whenitwillbedelivered. semiͲpremium..and120(Thompson).sold***percent.ͲproducedOCTGandimported OCTGthatisofthesameAPIgradeandtype.Ithinkifyouaskallofus. 174 CRatIIͲ1. CRatIIͲ22.Wewillseekfurtherinformationinanyfinalphaseinvestigations.PRatIIͲ18. 169 28  .PRatIIͲ23.PRatIIͲ1. 170 CRatIIͲ25. 171 See.PRatIIͲ1.CR/PRatTableIIͲ1.175Program salesarrangementslayoutwhichtypeofOCTGistobesupplied.172Nordoestherecordprovideanyclearexplanationof howproprietarygradesofOCTGfitintoand/oroverlapthesecategoriesandwhetherthese designationsapplytojustpipe.S.semiͲpremiumand premiumOCTG}isalittlebitconfusing.g.whichreportedlyrepresentasizeableportionoftheU.including butnotlimitedto.  4.howspecificAPIgradesmightcorrelate withcommodityorpremiumgradeOCTG.distributors. OtherConditionsofCompetition OCTGintheUnitedStatesisvirtuallyalwayssoldthroughadistributor.174 U.

8millionshorttonsin2012.C.witnesses attheconferencereportedthatallsubjectimportsexceptforthosefromKoreawereexcludedfrom programsales. 182 CR/PRatTableCͲ1.increasingby22.176Themajorityoftherespondentsarguedthattheyarelockedoutofprogram sales.Joint RespondentGroupPostconferenceBriefat15.”178ItisunclearwhetherexistinginventoriesintheU.Khandelwal.marketenableasupplierto participateinprogramsales.andreached1.Id.consumptionininterim2013was11.HRPPostconferenceBriefat5.eitherin absolutetermsorrelativetoproductionorconsumptionintheUnitedStates.USTPL/OCTLtoa“limiteddegree”andKoreanRespondentsasa“supplemental supplier.Tr.”179 CumulatedsubjectimportshaveheldasubstantialpresenceintheU.000shorttonsininterim2013.WhileILJIN.§1677(7)(C)(i).S.3203(Jan.increasingby  176 CRatIIͲ28. 179 19U.S. CertainOilCountryTubularGoodsFromthePeople’sRepublicofChina:AmendedFinalDeterminationof SalesatLessThanFairValueandAntidumpingDutyOrder.at194(“Ingeneral.Indianproducersparticipate onlytoalimiteddegreeinprogramsalesandhighͲvolumeprocurementbidswithU.182Thevolumeofcumulatedsubjectimportsrosefaster.S.PRatIIͲ23.includingtowhatextentotherproductscanbesubstitutedwithinaprogramsale agreement. 181 CertainOilCountryTubularGoodsFromthePeople’sRepublicofChina:AmendedFinalAffirmative CountervailingDutyDeterminationandCountervailingDutyOrder. C. 177 29  .177OnlyKoreanRespondentsandUSTPL/OCTLreportedparticipatingin programsales. SaudiArabiaPostconferenceBriefat21.180Theabsolute volumeofcumulatedsubjectimportsincreasedsharplysince2010.S.800shorttonsininterim2012and 440.andThaiRespondentsdidnotbriefthisissue.28551(May21.3millionshorttonsin2011. 178 USTPL/OCTLPostconferenceBriefat10.KoreaRespondentsat10Ͳ11.75Fed.citingTr.3percentbetween2010 and2011andby16. apparentU.whenCommerceissued antidumpingandcountervailingdutyordersonOCTGfromChina.75Fed.8percentbetween2011and2012foranoverallincreaseof42.CayirovaPostconference Briefat7.oranyincreaseinthatvolume.theyareunabletomeetshortdeadlinesorguarantee timelydelivery.Echevaria.and Simon).181Asexplainedabove.20.specificallywhatshareoftheU.issignificant. 180 CR/PRatTableIVͲ2.S.howthey operate.andhowpricesforOCTGnotsoldinprogramsalesaffectprogramsaleprices.andPhilippineRespondent PostconferenceBriefat13.2percentlowerthanin interim2012.Cameron.McConnell.Cumulatedsubjectimportsincreasedfrom850.Reg.  atwhatprice.duetogeographicboundaries.2010).SeAH.at253Ͳ259(Brewer.UkrainePostconferenceBriefat21.consumptionroseduring2010Ͳ2012.ApparentU.000shorttonsin2010to 1.Cumulatedsubjectimportswere476.S.2010). VolumeofSubjectImports Section771(7)(C)(i)oftheTariffActprovidesthatthe“Commissionshallconsider whetherthevolumeofimportsofthemerchandise.markettheycover.Fowler.Reg.market throughoutthePOI.Wewillseekfurtherinformationinanyfinalphaseinvestigations regardingprogramsales.endusers”).S.8percent between2010and2012.

 188 19U.5percentin2010to37.6percentagepointsfrom 29.Thevolumeofcumulatedsubjectimportsininterim2013was7.186 CumulatedsubjectimportsofOCTGwerealsosignificantrelativetodomestic production.184Thisgaininmarketshare cameattheexpenseofboththedomesticindustryandnonsubjectimports.4percentofU.§1677(7)(C)(ii).  55.6percentagepoints lowerbyquantity.S.2percentininterim2013.marketshareininterim 2012and26.foran overallincreaseof112.187 Forpurposesofthesepreliminarydeterminations.5percentininterim2012and 55.Id.189  183 CR/PRatTableCͲ1.and4.8percentin2011andto47.Cumulatedsubjectimportsheld25.6percentin2011and50. 30  .Id.Id.7percentin2012.7percent lowerthanininterim2012.2percentbetween2011and2012.inevaluatingthepriceeffectsof subjectimports.andtheincreaseinthatvolume.9percentin2011and24.Theratioofcumulatedsubjectimportstodomesticproductionincreasedfrom 29.183 Themarketshare(byquantity)ofcumulatedsubjectimportsincreasedfrom17.Thedomestic industry’smarketsharedecreasedfrom53.5percentin2011and25. 186 CR/PRatTablesIVͲ8andCͲ1.3percentin2010to24. 185 CR/PRatTableIVͲ8.Thedomesticindustry’smarketsharewas50.1percentbetween2010and2011andby37. 189 CR/PRatTablesIIͲ6andIIͲ7.Id. PriceEffectsoftheSubjectImports Section771(7)(C)(ii)oftheTariffActprovidesthat.wefindthatthecumulatedvolume ofsubjectimports.Theratiowas45.C.9percentin2012.toasignificantdegree.S. which otherwisewouldhaveoccurred.1percentininterim2013.theCommissionshallconsiderwhether– (I) there has been significant price underselling by the imported merchandise as compared with the price of domestic like productsoftheUnitedStates.and (II)theeffectofimportsofsuchmerchandiseotherwisedepresses prices to a significant degree or prevents price increases. D.188 Therecordinthesepreliminaryphaseinvestigationsindicatesthatsubjectimportsand domesticallyproducedOCTGmadetothesamespecificationsarehighlysubstitutableandthat priceisanimportantfactorinpurchasingdecisions.7percentin2010to53.issignificantbothinabsolutetermsand relativetoconsumptionandproductionintheUnitedStates.U. Id.8percentbetween2010and2012.importsfromnonsubjectcountrieswere5.0 percentin2010to21. 187 CR/PRatTableIVͲ9.S.0 percentin2012.185Nonsubjectimports’marketsharedecreasedby4.ininterim2013thanininterim2012. 184 CR/PRatTableIVͲ8.3percentagepointslowerbyvalue.3percentininterim2012and43.3percentin2012.4percentofmarketshareininterim2013.

D.OverthePOI.4.190ElevenU.threadedand coupled..PRatVͲ6.Product5ͲͲCasing.85/8"O.S.Product2ͲͲTubing.Theincreaseinpriceswasnotsteady.PRatVͲ17.pricesincreasedduring2010and2011.17.wefindtheundersellingtobe significant.range3.0.8percentofshipments ofimportedproductfromTaiwan.  TheCommissioncollectedquarterlypricingdataonsixOCTGproducts.range2.PRatVͲ6./ft.and6.23/8"O.D.95/8"O.bothintermsofpricechangesbetweenthefirstandlastyearoftheperiod.themagnitudeof thatpremium.0percent.In general.10.andalsoforliabilityreasons.193Themarginsofundersellingrangedupto45.Pricingdataforimporterswas morevaried.GradePͲ110.GradeJͲ55./ft.5½"O./ft.D. 191 CRatVͲ10.2percentofshipmentsofimportedproductfromSaudiArabia.andoversoldthedomesticlikeproductintheremaining39 instances.range2.0lbs.6percentofshipmentsofimportedproductfromThailand. 196 CRatVͲ23.Wewillexplorethisissuefurtherinanyfinalphaseoftheseinvestigations.CRatVͲ10.andif..greaterflexibility.D.0lbs.PRatVͲ7.andtheaveragemarginof undersellingwas9. producersand19importersprovidedusablepricingdataforsalesoftherequestedproducts.so./ft.andthat.7lbs.0lbs.threadedandcoupled.range 3.6.andProduct6ͲͲCasing.threadedand coupled.PRatVͲ6Ͳ7.2.7percent.2percentofshipmentsofimportedproductfromthe Philippines.0lbs.and2.CRatVͲ9Ͳ10.36.and withrespecttowhenthehighestorlowestvalueswereobserved.pricesforthedomesticlikeproductbetweenthefirstandthelastquarterofthe POIincreasedbybetween0.194Giventhehighfrequencyofundersellingandthefactthat priceisanimportantconsiderationinpurchasingdecisions.GradeJͲ55.Product4ͲͲCasing.threadedandcoupled..threadedandcoupled.5percentofU... 194 CRatVͲ27. customersrequireadiscountwhenpurchasingfromimportsources.thedomesticindustry’sratioofcostofgoodssold  190 Thepricingproductswere:Product1ͲͲTubing. 192 CRatVͲ10.E.1and6... 195 Respondentsarguethatthereisastrongpreferenceamongpurchasersforthedomesticproduct duetoshorterleadtimes.S.GradeJͲ55.PRatVͲ17.191192 Thepricingdatashowthatthesubjectimportsundersoldthedomesticlikeproductin 153of192possiblecomparisons.1 percentofshipmentsofimportedproductfromTurkey.32.5percent.seamless. althoughnotallfirmsreportedpricingforallproductsandallquarters..GradeLͲ80.Domesticpriceswerelowestforeachofthe6productsinthefirstquarterof 2010andhighestinthesecondhalfof2011orfirsthalfof2012. welded.3percentofshipmentsofimportedproduct fromUkraine.5.anddecreasedduring2012andinthefirst quarterof2013.S.threadedandcoupled.range3..5½"O..D.8percentof shipmentsofimportedproductfromKorea.D.8percentofshipmentsofimportedproductfromIndia.welded. range3. welded.195 Overall.3.17.Thereisnotenoughinformationontherecordofthepreliminaryphaseoftheseinvestigations forustoassesswhetherthedomesticproductcommandsapricepremium.196 Thereisevidencethatsubjectimportshadpricesuppressingeffectsonthedomestic likeproductduringthePOI.3.PRatVͲ14.g.JointRespondentsBriefat14 and25.27/8"O. 31  .3.5lbs.CR/PRatTablesVͲ4toVͲ9.forthesereasons.seamless.welded.Reportedpricingproductsrepresented10.Product3ͲͲCasing../ft.shipmentsof U./ft.Ͳproducedproducts.GradeJͲ55. Weinvitethepartiesintheircommentsonthedraftquestionnairesforthefinalphaseofthese investigationstocommentontheproposedpricingproducts. 193 CRatVͲ27..9percentofshipmentsofimportedproductfromVietnam..

44percentto70.696in2011.47percentforimportsfromVietnam.producershadtoreduce theirpricestocompetewithOCTGfromthesubjectcountries.729in2012.247 in2010.andfactors affectingdomesticprices.32percentforimports fromThailand.productivity.CRatIͲ12Ͳ 13. 201 Inthenoticeinitiatingitsantidumpingdutyinvestigations.we findthepriceundersellingbythesubjectimportstobesignificantandevidencethattheprice ofsubjectimportspreventeddomesticpriceincreaseswhichotherwisewouldhaveoccurredto asignificantdegree.67percentto239.53percentforimports fromKorea.$1.$1.six of15respondingproducersreportedswitchingtosubjectimports. 198 Unitnetsalesvalueswere$1.increasesinannualnetsalesrevenuewerenotenoughtocoverincreasesin costs.198 Thereisfurthersupportforourfindingofevidenceofpricesuppressionintherecord informationonthelostsalesandlostrevenueexperiencedbythedomesticindustry.PRatVͲ21.53.PRatVͲ20.200 Accordingly.Intotal.75percentto30.JointRespondentGroupPostconferenceBriefat29Ͳ30.25.TheratioofCOGStonetsaleswas77.615in2010.suggestingthatthedomesticindustrywasexperiencingacost/pricesqueeze.Commerceestimatedantidumpingduty marginsof12.98percentforimportsfromTaiwan.8percentin2012.6percentininterim2012and86.S.sales.52percentto47.199Additionally. 200 CRatVͲ36.Wethusfindforthepurposesofthesepreliminarydeterminations evidencethatsubjectimportshadanadverseeffectonpricesofthedomesticlikeproduct. Petitionersmade74lostsalesallegationstotaling$267millionandinvolving155.34percentforimports fromSaudiArabia.46.6percentin2011and 82.20percentforimportsfromTurkey.2percent ininterim2013.905shorttonsoflostrevenueaccountingfor$935.S.Nosinglefactorisdispositiveandallrelevantfactorsareconsidered  197 TheratioofCOGStonetsalesincreasedfrom77.returnoninvestment.PRatIͲ11.marketshare.basedontherecordinthepreliminaryphaseoftheseinvestigations.1millionandinvolving12.04percentto56.cash flow.356. consumption.66.“shallevaluateallrelevanteconomic factorswhichhaveabearingonthestateoftheindustry.and11of14respondingimportersreportedU.44.$1.940shorttonsoflostsales. CR/PRatTableCͲ1.wages.$1.$1. 199 CRatVͲ30Ͳ31.19percentto158.38percentforimportsfromthePhilippines.8 million.384in2011.witheachreportingdoingso forpricereasons. ImpactoftheSubjectImports201 Section771(7)(C)(iii)oftheTariffActprovidesthattheCommission.  (“COGS”)tonetsalesincreasedeachyear.Weintendtoexplorethisissueinany finalphaseoftheseinvestigations.abilitytoraisecapital.351.3percentin2010to81.64forimportsfromIndia. 32  .197DespiteanoverallincreaseinapparentU. purchasersagreedwithallegationstotaling32.accountingfor$53.aswellas9.employment.and103.372shorttons.and$1.68.408shorttons and13lostrevenueallegationstotaling$1.82ininterim2013.43percentto111.  E.”Thesefactorsincludeoutput.CR/PRatTableCͲ1.79ininterim2012.profits. inventories.118.76percent forimportsfromUkraine.researchanddevelopment.UnitCOGSwere$1.inexaminingthe impactofthesubjectimportsonthedomesticindustry.287.capacityutilization.432in2012.TheJointRespondentGrouparguesthatanyincreaseinthisratio isduetoanincreaseinthedomesticindustry’sfactorycostsassociatedwithnewentrantsinthe market.

$5.1millioninbothinterim2012andinterim2013.7in interim2012.Wagespaidandproductivity.Ofthe$639.5millionin2010.209Wagespaidwere $345.453in2012.and7.205Endinginventoryquantitieswere376.$281.202Thedomesticindustry’s productioncapacitywas5.Thedomesticindustry’stotalnetsaleswere$1. Productivity(inshorttonsper1.however.6millionshorttonsin 2012.5millionshorttons.shipmentswere947. 205 CR/PRatTableIIIͲ5.Theindustry’sU.5millionin2010to$645.thanin interim2012.215shorttonsininterim2012and 918.and6.Id.9billionin2011. 203 CR/PRatTableIIIͲ3.4percentin interim2013.  “withinthecontextofthebusinesscycleandconditionsofcompetitionthataredistinctiveto theaffectedindustry. 204 CR/PRatTableIIIͲ3.604shorttonsin 2011.7 percentin2011and63.14.Id.and$6.6billionin2010.000hours)was227.203Capacityutilizationimprovedfrom52.1in2012.9in2011.0millioninoperatingincomerecordedin2012.Endinginventorieswerelowerininterim2013.and382.5.shipmentsincreased from2.” Thedomesticindustry’sproductionincreasedfrom2.6.450shorttons.Id.0percentin2012.Hoursworkedwere4.5 millionshorttonsin2011and3.Productionof1.thanininterim 2012.5percentin2010to60.206 Theindustry’semploymentindicatorsimprovedthroughout2010Ͳ2012.Capacitywashigher.1 millionshorttonsininterim2012.002in2010.259.0millionwas  202 CR/PRatTableIIIͲ3.208Hoursworked totaled12.210 Thedomesticindustry’stotalnetsalesroseinthe2010Ͳ2012period.Capacityutilizationwas69.911shorttonsin2010.5ininterim2013.731in2011.Id. 207 CR/PRatTableIIIͲ9.5billionininterim2013.1million2011.9millionshorttonsin2010to3.8millionshorttonsin2012.and248. 206 CR/PRatTableIIIͲ7.Id.wereslightlylowerininterim2013 thanininterim2012.1millionin2012.0 millionshorttonsin2012.4millionin2011.5billionin2012.Id.5millionshorttonsin2010.8billionininterim2012and $1.at439.7millionshorttonsin2011.Id.S.whentheywere448.Wagespaidwere$120.7millionshorttonsin2010to3.4millionin2012.0millionshorttonsininterim2013waslowerthan1.S.at1.164shorttonsininterim2013.8millionininterim2012and$120.234. 211 CR/PRatTableVIͲ1.314productionworkersininterim2012and7.Id.whenitwas1.0 millionin2012.6millionshorttonsininterim2013.406.792shorttons. 33  .$392.Therewere7.butthendeclinedto$639.718shorttonsin2012.3millionin2011. 209 CR/PRatTableIIIͲ9. 208 CR/PRatTableIIIͲ9.207Thenumber ofproductionworkerswas6.211Totalnetsales were$4.243. 212 CR/PRatTableVIͲ1.204Thedomesticindustry’sU.and16.8in2010.212Operatingincome increasedfrom$620.Id.Id. 210 CR/PRatTableIIIͲ9.7percentininterim2012and65.7millionin2010.and$469.3millionshorttonsin2011and3.1ininterim2013.460production workersininterim2013.

CR/PRatTableIVͲ3.S.Id.thelargestsourceofnonsubjectimports.$1.Capitalexpenditureswere$130.and$1. $3.S.  recordedinthefirstquarterofthatyear.8in2012.216 Respondentsarguethattheseinvestmentsareasignofthedomesticindustry’shealth.1millionininterim2012. 219 Basedontheavailableevidenceinthesepreliminaryinvestigations.217We invitefurthercommentonthisissueinanyfinalphaseoftheseinvestigations.4millionin interim2013.becauseoftheneedtoearnareasonablereturnontheseinvestments. 217 E. 215 CR/PRatTableVIͲ5. whichwouldhavebenefitedthedomesticindustry.1millionininterim2013wassharplylower thanthe$281.Theaverageunitvaluesofthenonsubjectimportswereconsistentlyhigherthan thoseofthesubjectimports.1millionin2011.nonsubjectimportswouldnothavereplaced thesubjectimportswithoutbenefittothedomesticindustryhadthesubjectimportsexitedthemarket duringtheperiod.CR/PRatTableIVͲ2.6percentto50.Thus.any replacementofthesubjectimportsbynonsubjectimportswouldgenerallyhavebeenathigherprices.U. CR/PRatTableVIͲ1.218Anumberofthedomesticindustry’seconomicindicatorswerelowerin interim2013thanininterim2012.and9.wefind.consumptionrosefrom6.and$616.4millionin2012.wehavefoundthecumulatedvolumeofsubjectimportsandthe marketshareofthoseimportstohavebeensignificantoverthePOI.CR/PRatTableCͲ1.Operatingincomeof$89.213Operatingincomemarginsdeclinedthroughoutthe POI.werehigherthanthepricesforsubjectimportsin70 outof109possibleinstancesandlowerin39outof109. Id.Theoperatingmarginwas5.Petitionerscontendthattheseinvestmentsinnew plantandequipmentmakethedomesticindustryespeciallyvulnerabletotheeffectsofsubject imports.despitearobustincreaseindemandandavailablecapacity overthatperiod..0 millionin2010.0millionoperatingincomeininterim2012.wehavealsoconsideredtheroleofnonsubject importssoasnottoattributeinjuryfromthemtosubjectimports.Thedomesticindustry’soperatingincomeandmarket sharedeclinedfrom2011to2012.2millionshorttonsin2012.forpurposesofthepreliminary phaseoftheseinvestigations. 216 E.$711.SteelPostconferenceBriefat1Ͳ2.11. 218 Thedomesticindustry’soperatingincomefellfrom$645.0percentin2011.JointRespondents’PostconferenceBriefat33Ͳ34.8millionininterim2013.pricesfornonsubjectimportsfrom Canada. Inconductingourimpactanalysis.DͲ3.Theywere13.9millionin2012.0percent.0percentlevelininterim2012.1millionin2010.sharplylowerthanthe 16.g.1 millionshorttonsin2011to7.S.Thedomesticindustry’sresearchanddevelopmentexpenseswere$2.219Thevolumeofnonsubject  213 CR/PRatTableVIͲ1.214 ThedomesticindustrymadesignificantcapitalexpendituresduringthePOIͲͲ$269.Healsofinds.anditsmarketsharefellfrom53.andthatthereisevidenceofprice suppressionbythesubjectimports.1millionin2011to$639.Moreover.5millionin2011.thattheseimports undersoldthedomesticlikeproducttoasignificantdegree.thatthereisareasonableindicationthatthelargeandincreasing volumeofsubjectimportshadamaterialadverseimpactonthedomesticindustry.. 214 34  .marketforoilcountry tubulargoodsduringtheperiodofinvestigation.8percentininterim2013.thatregardlessofwhetheroil countrytubulargoodsconstituteacommodityproduct.however.g.whileU.$6.0millionin 2012.Consequently. Asdiscussedabove.6percentin2010.215Thepartiesweredivided astothesignificanceoftheseexpenditures.CommissionerPinkertfinds thatpriceͲcompetitivenonsubjectimportswereasignificantfactorintheU.7millionininterim2012and$88.

at307.5percent.Thailand.3percentin2010.  220 CR/PRatTablesIVͲ2andIVͲ8.was29.  importsincreasedinthe2010Ͳ2012period.221 VIII.Ukraine.atthesametime asthemarketshareofsubjectimportsincreased.Thevolumeofnonsubjectimportswas1.Turkey.measuredbyquantity.9 percentin2011.47 millionshorttonsin2010. 35  . Themarketshareoftheseimports. Conclusion Forthereasonsstatedabove.and1.53millionshorttonsin2011.1percent.279shorttonsand24.whentheywere 451.Id.7percentin2012.1.24.220Theaverageunitvalueofnonsubjectimportswas substantiallyhigherthantheaverageunitvalueofsubjectimportsthroughoutthePOI.thanininterim2012.Boththevolumeandmarketshareofnonsubjectimportswere lowerininterim2013. 221 CR/PRatTableIVͲ2.and24.thePhilippines.457shorttonsand18.77millionshorttonsin2012.andVietnamthat areallegedlysoldintheUnitedStatesatlessthanfairvalueandthatareallegedlysubsidizedby theGovernmentsofIndiaandTurkey.Werecognizethataverageunitvaluesareoflimitedvaluebecausetheymay reflectdifferencesinproductmixratherthandifferencesinprice.SaudiArabia.Taiwan.wedeterminethatthereisareasonableindicationthatan industryintheUnitedStatesismateriallyinjuredbyreasonofsubjectimportsofOCTGfrom India.Korea.buttheirmarketsharedeclined.

 .

 2 MaverickandVallourectakenopositionwithregardtothepetitionoftheimpositionof antidumpingdutiesonOCTGfromSaudiArabia. 2013 Action Petition filed with Commerce and the Commission.MO.Houston..Philippines.Ukraine.TX. Lackawanna.Chesterfield. andVietnam. 2013 July 29.NorthwestPipeCompany(“Northwest”).Bofthisreport. July 29.DepartmentofCommerce (“Commerce”)andtheU.TX.P.TMKIPSCO.(“Tejas”).BoomerangTubeLLC(“Boomerang”). IͲ1 .TX.gov).Korea.EnergeX.andlessͲthanͲfairͲvalue(“LTFV”) importsofOCTGfromIndia.Steel”).2Thefollowingtabulationprovidesinformationrelatingtothebackgroundof theseinvestigations.Houston.A.TejasTubularProductsInc.SaudiArabia. 2013 August 16. 2013 August 23. 2013 August 16.IL.PA.onJuly2.S.Pittsburgh.2013.Houston.Houston.andWeldedTubeUSA(“Welded”).TX.Chicago.S.MaverickTubeCorporation (“Maverick”)..Turkey.  PARTI: INTRODUCTION BACKGROUND TheseinvestigationsresultfromapetitionfiledwiththeU. 2013 July 23. Vancouver. 4 Alistofwitnessesappearingattheconferenceispresentedinapp.usitc.allegingthatanindustryintheUnitedStatesismaterially injuredandthreatenedwithmaterialinjurybyreasonofsubsidizedimportsofcertainoil countrytubulargoods(“OCTG”)1fromIndiaandTurkey. July 10.Thailand.andmaybefoundattheCommission’s website(www.34  Effective date July 2. VallourecStar(“Vallourec”). institution of Commission investigation (78 FR 41421. 2013) Commission’s vote Commission’s determination Commission’s views    1 Seethesectionentitled“TheSubjectMerchandise”inPartIofthisreportforacomplete descriptionofthemerchandisesubjecttotheseinvestigations.L. 2013) Commission’s conference Commerce’s notice of initiation of countervailing duty and antidumping duty investigations (78 FR 45502 and 45505. 3 PertinentFederalRegisternoticesarereferencedinapp.S.InternationalTradeCommission(“USITC”or“Commission”)by UnitedStatesSteelCorporation(“U.Taiwan.Inc.WA.a divisionofJMCSteelGroup(“EnergeX”).NY.

.C..eitherinabsolutetermsorrelativetoproduction orconsumptionintheUnitedStatesissignificant.theCommissionshallevaluate(withinthecontextofthe businesscycleandconditionsofcompetitionthataredistinctivetothe affectedindustry)allrelevanteconomicfactorswhichhaveabearingon thestateoftheindustryintheUnitedStates..(IV)actualandpotentialnegativeeffectsonthe existingdevelopmentandproductioneffortsofthedomesticindustry.growth.abilitytoraise capital.. productivity..and.profits. Inexaminingtheimpactrequiredtobeconsideredundersubparagraph (B)(i)(III)..and(III)theimpactofimportsofsuch merchandiseondomesticproducersofdomesticlikeproducts.toa significantdegree. mayconsidersuchothereconomicfactorsasarerelevanttothe determinationregardingwhetherthereismaterialinjurybyreasonof imports.§1677(7)(C))furtherprovidesthatͲͲ Inevaluatingthevolumeofimportsofmerchandise. Inevaluatingtheeffectofimportsofsuchmerchandiseonprices.sales.andutilizationofcapacity.andinvestment.theCommissionshall considerwhetherthevolumeofimportsofthemerchandise.S..(II)the effectofimportsofthatmerchandiseonpricesintheUnitedStatesfor domesticlikeproducts.§1677(7)(B))provides thatinmakingitsdeterminationsofinjurytoanindustryintheUnitedStates..whichotherwisewouldhaveoccurred.butnotlimitedto .employment.wages. .inventories. Section771(7)(C)oftheAct(19U.S.butonlyin thecontextofproductionoperationswithintheUnitedStates.. ..including.C.and(II)theeffectofimports ofsuchmerchandiseotherwisedepressespricestoasignificantdegreeor preventspriceincreases.(II)factors affectingdomesticprices.theCommissionͲͲ shallconsider(I)thevolumeofimportsofthesubjectmerchandise.(I)actualandpotentialdeclineinoutput.orany increaseinthatvolume.the Commissionshallconsiderwhether.(III)actualandpotentialnegativeeffectson cashflow.  STATUTORYCRITERIAANDORGANIZATIONOFTHEREPORT Statutorycriteria Section771(7)(B)oftheTariffActof1930(the“Act”)(19U. includingeffortstodevelopaderivativeormoreadvancedversionofthe IͲ2 .marketshare.(I)therehasbeensignificantprice undersellingbytheimportedmerchandiseascomparedwiththepriceof domesticlikeproductsoftheUnitedStates.returnoninvestments.

6   5 DufercoisthesoleimporterofOCTGfromSaudiArabiaandInterpipeimportsvirtuallyallOCTG fromUkraine.importersͲaswellasproductionandexplorationcompaniesthatpurchasefromthe distributors. Tenaris.Canada.mills andU.production.SteelandTMKIPSCO.anddomesticlikeproduct. IͲ3 .shipmentsofOCTGtotaled3.shipments.respectively.Japan.S.andVallourecinCanada.S.facilitiesandmanufacturebothseamlessandweldedOCTG.Germany.purchasersofOCTGincludedistributorsͲwhichtypicallypurchasedirectlyfromU.HLDClarkofPhilippines.consumptionofOCTGtotaledapproximately7. U.TheleadingU.S.PartIIIpresentsinformationon theconditionoftheU.andemployment.S.PartVIpresentsinformationonthefinancial experienceofU.the magnitudeofthemarginofdumping.Evraz. MARKETSUMMARY OCTGgenerallyisusedinoilandgaswells.S.bothofwhichproduceOCTG inmultipleU.S.InterpipeofUkraine.producers’U.S.Nippon SteelSumitomoMetals(NSSM).industry.TensionSteelIndustries(“TensionSteel”)ofTaiwan. LeadingproducersofOCTGinnonsubjectcountriesincludethefollowing:TenarisinArgentina.PartIIofthisreportpresentsinformationon conditionsofcompetitionandotherrelevanteconomicfactors.S.JaubailEnergyServicesCompany (“JESCO”)ofSaudiArabia.PartVIIpresentsthestatutoryrequirementsandinformation obtainedforuseintheCommission’sconsiderationofthequestionofthreatofmaterialinjury aswellasinformationregardingnonsubjectcountries.PartsIVandVpresentthevolumeofsubjectimportsandpricing ofdomesticandimportedproducts.S.andSeAHSteelVinaofVietnam.ThirteenfirmsaccountingforthelargemajorityofU.  domesticlikeproduct.5LeadingimportersofOCTGfrom nonsubjectcountries(primarilyArgentina.WSPPipe (“WSP”)ofThailand.U.NoothersingleU.Theleading producersofOCTGinsubjectcountriesincludeMaharashtraofIndia(“Maharashtra”).S. inventories.productionresponded totheCommission’srequestfordata.S.Hyundai HYSCOandAJUBesteelofKorea.importersofOCTGfromsubjectcountriesare ***.producers. ApparentU.producersofOCTGareU. andTenarisTAMSAinMexico.S.VallourecandBentelerSteel/TubeinGermany.2millionshorttons($11 billion)in2012.BorusanofTurkey. TheleadingU.TenarisNKKTubes.includingdataoncapacity.JFESteel.andconsistsprimarilyofcasingandtubing.importerofOCTGfromsubjectcountriesaccountedformorethansix percentofthequantityofimportedsubjectOCTGin2012.andMaruichiSteelTubeinJapan.and(V)in{anantidumpinginvestigation}.  Organizationofreport PartIofthisreportpresentsinformationonthesubjectmerchandise.andMexico)include***.S.S.allegeddumping marginsandsubsidies.

2billion)in2012.importsfromsubjectsourcestotaled 1.S.Exceptasnoted. Table I-1 OCTG: Previous and related investigations.S.8millionshorttons($2.6percentbyvalue. IͲ4 .importsfromnonsubjectsources totaled1.andaccountedfor50.0percentofapparentU.S.3percentofapparentU.tablesCͲ 1throughCͲ4. consumptionbyquantityand54.S.Alistingofthese investigationsispresentedintableIͲ1.S.Partialdata submittedbyatollprocessorappearsseparatelyinappendixC.5percentbyvalue.7percentofapparent U.  millionshorttons($6.U.importsarebasedon officialCommercestatisticsexceptasnoted. 1984-2010 Original investigation Date Number Country Commission reviews Outcome Dates 1 Current status Outcomes 1984 701-TA-215 Brazil Affirmative - - ITA revoked 8/21/85 1984 701-TA-216 Korea Negative - - - 1984 701-TA-217 Spain Affirmative - - ITA revoked 7/31/85 1984 731-TA-191 Argentina Negative - - - 1984 731-TA-192 Brazil Affirmative 2 - - Petition withdrawn - - Petition withdrawn - - Petition withdrawn - - ITA revoked 6/30/85 1984 731-TA-193 Korea Affirmative 2 1984 731-TA-194 Mexico Affirmative 2 1984 731-TA-195 Spain Affirmative Tablecontinuedonnextpage.8millionshorttons($3.productionofOCTGduring2012.consumptionbyquantityand27.U.Additionalinformationregardingnonbsubject pricedataappearsinappendixD.U.0billion)in2012andaccountedfor25.S. consumptionbyquantityand17.industrydataarebasedonquestionnaireresponsesof13 firmsthataccountedforthevastmajorityofU.S.S. SUMMARYDATAANDDATASOURCES AsummaryofdatacollectedintheseinvestigationsispresentedinappendixC.U.1billion)in2012andaccountedfor24. PREVIOUSANDRELATEDINVESTIGATIONS Antidumpingandcountervailingdutyinvestigations OCTGhasbeenthesubjectofseveralCommissioninvestigations.9percentbyvalue.

  Table I-1--Continued OCTG: Previous and related investigations. IͲ5 Petition withdrawn Petition withdrawn Terminated Revoked Revoked ITA revoked 3/1/93 ITA revoked 7/27/99 ITA revoked 12/26/06 Revoked Revoked Revoked Revoked Revoked - . 1984-2010 Original investigation Date 1985 Number 701-TA-240 Country Austria Commission reviews Outcome Dates 1 Current status Outcomes Affirmative 2 - - Petition withdrawn 2 - - Petition withdrawn - - ITA revoked 7/10/91 - 1985 701-TA-241 Venezuela Affirmative 1985 701-TA-255 Canada Affirmative 1985 701-TA-256 Taiwan Negative - - - - 1985 731-TA-249 Austria Affirmative 2 1985 731-TA-251 Venezuela Affirmative 2 - - 1985 731-TA-275 Argentina Affirmative 2 - - 1985 731-TA-276 Canada Affirmative 1999 / - Negative / - 1985 731-TA-277 Taiwan Affirmative 1999 / - Negative / - 1986 701-TA-271 Israel Affirmative - - 1986 731-TA-318 Israel Affirmative - - 1995 701-TA-363 Austria Negative - - 1995 701-TA-364 Italy Affirmative 2001 / - Affirmative / - 1995 731-TA-711 Argentina Affirmative 2001 / 2006 Affirmative/Negative 1995 731-TA-712 Austria Negative - - 1995 731-TA-713 Italy Affirmative 2001 / 2006 Affirmative/Negative 1995 731-TA-714 Japan Affirmative 2001 / 2006 Affirmative/Negative 1995 731-TA-715 Korea Affirmative 2001 / 2006 Affirmative/Negative 1995 731-TA-716 Mexico Affirmative 2001 / 2006 Affirmative/Negative 1995 731-TA-717 Spain Negative - - Tablecontinuedonnextpage.

aswellasseamlessdrillpipe. the Commission discontinued its investigation No.§2252.S.MillerandJenniferA.C.Steel.werefoundtobeasingle “likeordirectlycompetitive”productbyChairmanStephenKoplan... 3 Following the withdrawal of the petition on Colombia and Commerce’s decision not to institute an investigation on OCTG from that country. Safeguardinvestigations FollowingreceiptofarequestfromtheOfficeoftheUnitedStatesTradeRepresentative (“USTR”)onJune22.TAͲ201Ͳ73. andCommissionersMarciaE.ViceChairmanDeannaTannerOkun.Hillman. 731-TA-995 (OCTG from Colombia).2001. or second review was instituted by the Commission. first review.) 7 IͲ6 .Braggand (continued. 1984-2010 Original investigation Date 2002 Number 701-TA-428 Country Austria Commission reviews Outcome Dates 1 Current status Outcomes Negative 2 - - - - - - 2002 731-TA-992 Austria Negative 2 2002 731-TA-993 Brazil Negative 2 - - - Negative 2 - - - - - - 2002 731-TA-994 China 2002 731-TA-995 Colombia 2002 731-TA-996 France 3 () Negative 2 - - - - - - 2002 731-TA-997 Germany Negative 2 2002 731-TA-998 India Negative 2 - - - - - - 2002 731-TA-999 Indonesia Negative 2 2002 731-TA-1000 Romania Negative 2 - - - Negative 2 - - - - - - 2002 731-TA-1001 South Africa 2002 731-TA-1002 Spain Negative 2 2002 731-TA-1003 Turkey Negative 2 - - - - - - - - 2002 731-TA-1004 Ukraine Negative 2 2002 731-TA-1005 Venezuela Negative 2 2010 701-TA-463 China Affirmative - - 2010 731-TA-1159 China Affirmative - - Order in place Order in place 1 “Date” or “Dates” refers to the year in which the investigation.whileCommissionersLynnM.  Table I-1--Continued OCTG: Previous and related investigations.theCommissioninstitutedinvestigationNo.7werebeingimportedintotheUnitedStatesinsuchincreased   6 19U. Source: Compiled from Commission determinations published in the Federal Register.under section202oftheTradeActof19746todeterminewhethercertainsteelproducts. Seamlessandweldedcasingandtubing. 2 Preliminary determination.including seamlessandweldedOCTG.

I.July29.§2251.theCommissionreceivedaresolutionadoptedbytheCommitteeonFinanceoftheU.DevaneyfoundseamlessandweldedOCTGtobepartofbroaderproductgroupingsincluding allseamlesscarbonandalloysteeltubularproductsandallweldedcarbonandalloysteeltubular products.78FR45502.December28. IͲ7 .66FR67304.Steel.TheCommissionmadeanegativedeterminationwithrespecttoOCTG.2001.10OnDecember20.8OnJuly26. 13 CertainOilCountryTubularGoodsFromIndiaandTurkey:InitiationofCountervailingDuty Investigations.tothedomestic industriesproducingarticleslikeordirectlycompetitivewiththeimportedarticle.9Consistentwith theSenateFinanceCommittee’sresolution.and318Ͳ319. 10 ConsolidationofSenateFinanceCommitteeResolutionRequestingaSection201Investigationwith theInvestigationRequestedbytheUnitedStatesTradeRepresentativeonJune22.2001.  quantitiesastobeasubstantialcauseofseriousinjury. 12 Ibid.11 TheCommissionalsomadeanegativedeterminationwithrespecttoseamlesstubularproducts otherthanOCTG.CommercepublishedanoticeintheFederalRegisteroftheinitiation ofitscountervailingdutyinvestigationonOCTGfromIndiaandTurkey.2001. AdvanceAuthorizationProgram(AAP) 3.orthethreatthereof.Vol. Senate(“SenateFinanceCommittee”or“Committee”)requestingthattheCommission investigatecertainsteelimportsundersection201oftheTradeActof1974.152Ͳ154.66FR35267.13. AdvanceLicenseProgram(ALP) 2.respectively.VolumeI:DeterminationsandViewsof Commissioners.theCommissionconsolidatedtheinvestigation requestedbytheCommitteewiththeCommission’spreviouslyinstitutedinvestigationNo.2013.tobeasingle“likeordirectlycompetitiveproduct.17Ͳ18.TAͲ201Ͳ73.2001.ChairmanKoplan. 9 19U.p. 2252)(theAct). August22.SeeUSITCPublication3479. 8 InstitutionandSchedulingofanInvestigationunderSection202oftheTradeActof1974(19U.See.TAͲ 201Ͳ73.C.66FR44158.havingmade affirmativedeterminationswithrespectallseamlesscarbonandalloysteeltubularproductsandall weldedcarbonandalloysteeltubularproducts.whileCommissionersBraggandDevaneydissented.C.S.ImportInvestigations.pp.July3.Vice ChairmanOkun.12 NATUREANDEXTENTOFALLEGEDSUBSIDIESANDSALESATLTFV Allegedsubsidies OnJuly29.andCommissionersMillerandHillmanfoundseamlessandweldedcasingandtubing.Inv. 2001.g.e.Thisproductincludescouplingstock.theCommissionissueditsdeterminationsandremedy recommendations.. DutyExemption/RemissionSchemes 1.S.13Thefollowing programsinIndiaareincluded: I.Specifically.USITCPublication3479. aswellasseamlessdrillpipe.”andmadeanegative determinationwithrespecttoOCTG.S.December2001.No. DutyFreeImportAuthorizationScheme(DFIAScheme)  (…continued) DennisM. 11 Steel.2013.2001.274Ͳ275.

IncomeTaxExemptionProgramUnderSection80ͲIBoftheIncomeTax Act 9. DutyDrawbackonFuelProcuredfromDomesticOilCompanies 4. TargetPlusScheme SubsidiesforProducersandExportersLocatedinSpecialEconomicZones 1. MarketDevelopmentAssistance(MDA)Scheme 4. ExportPromotionCapitalGoodsScheme 2. ExemptionfromPaymentofCSTonPurchasesofCapitalGoodsandRaw Materials. 0. ProvisionofHighͲGradeIronOreforLessThanAdequateRemuneration SubsidiesUndertheSGAPIndustrialInvestmentPromotionPolicy 1. ProvisionofHotͲRolledSteelbytheSteelAuthorityofIndiaforLessThan AdequateRemuneration 8. III.ComponentsConsumables. GrantUndertheSGAPIIPP:25PercentReimbursementoftheCostof LandinIndustrialEstatesandDevelopmentAreas 2.Intermediates. DutyEntitlementPassbookScheme(DEPS)andSuccessorPrograms SubsidiesforExportOrientedUnits 1. ExemptionfromElectricityDutyandCessonElectricitySuppliedtoaSEZ Unit 4. V. ReimbursementofCentralSalesTax(CST)PaidonGoodsManufactured inIndia 3. ProvisionofCaptiveMiningRightsforCoal 10. DutyͲFreeImportationofCapitalGoodsandRawMaterials. PreͲShipmentandPostͲShipmentExportFinancing 3. DutyͲFreeImportofGoods. SEZServiceTaxExemption 6. MarketAccessInitiative 5.SparePartsand PackingMaterial 3. SEZIncomeTaxExemption 5.IncludingCapitalGoodsandRawMaterials 2.Intermediates. StatusCertificateProgram 8. GrantUndertheSGAPIIPP:50PercentSubsidyonExpensesIncurredin PatentRegistration IͲ8 . FocusProductScheme 6. GrantUndertheSGAPIIPP:50PercentSubsidyforExpenseIncurredfor QualityCertification 4. GovernmentofIndiaLoanGuarantees 7. ProvisionofCaptiveMiningRightsforIronOre 9. SteelDevelopmentFund 7.Components Consumables. ExemptionfromPaymentofCentralExciseDutyonGoodsManufactured inIndiaandProcuredfromaDomesticTariffArea(DTA) OtherCountervailableSubsidiesProvidedbytheGOI 1. GrantUndertheSGAPIIPP:ReimbursementofPowerattheRateofRs.  II.SparePartsandPackingMaterial 2.75perUnit 3. 4. IV.

ExemptionfromElectricityDutyforUpto15Years IͲ9 .  VI. ProvisionofGoodsandServicesforLessthanAdequateRemuneration UndertheSGAPIIPP:GuaranteedStablePricesandReservationof MunicipalWater 11. InfrastructureMegaProjectsUndertheMaharashtraIndustrialPolicy 2006 28. TheAPIIC’sAllotmentofLandforLessthanAdequateRemuneration 12. GrantUndertheSGAPIIPP:25PercentSubsidyonCleanerProduction Measures 6. TaxIncentivesUndertheSGAPIIPP:100PercentReimbursementof StampDutyandTransferDutyPaidforthePurchaseofLandand BuildingsandtheObtainingofFinancialDeedsandMortgages 7. ProvisionofGoodsandServicesforLessthanAdequateRemuneration UndertheSGAPIIPP:ProvisionofInfrastructureforIndustriesLocated Morethan10KilometersfromExistingIndustrialEstatesorDevelopment Areas 10. TheSGOG’sSchemeforAssistancetoIndustrialParks/IndustrialEstates SetUpbyPrivateInstitutions 18. ElectricityDutyExemptionsUnderthePackageSchemeIncentives1993 23. OctroiLoanGuarantees 25.2006 15. WaivingofLoanInterestbySICOM 26. TaxIncentivesUndertheSGAPIIPP:ExemptionfromtheSGAP NonagriculturalLandAssessment 9. InvestmentSubsidies 27. ProvisionofLandUseRightsforLessthanAdequateRemunerationunder theGujaratIndustrialDevelopmentCorporationEstateScheme 16. SubsidiesforMegaProjectsUnderthePackageSchemeofIncentives 2007 2. TheSGOG’sCriticalInfrastructureProjectScheme 17. TaxIncentivesUndertheSGAPIIPP:25PercentReimbursementonValue AddedTax.CST. TheSGOG’sExemptionsandDeferralsonSalesTaxforPurchasesof Goods 14. 5. SGOGSEZAct:ExemptionsfromPaymentofSalesTax. ProvisionofLandforLessThanAdequateRemuneration AllegedSubsidiesUnderthePackageSchemeofIncentives2007 1. VATRefundsUndertheSGOMPackageSchemeofIncentives 22. RefundsofOctroiUnderthePackageSchemeofIncentives1993(Octroi RefundScheme) 24. GujaratIndustrialInvestmentCorporationFinancing 19. TheAPIIC’sProvisionofInfrastructure 13.StampDutyand RegistrationFees 20. TheSGOG’sVATRemissionSchemeEstablishedonApril1. SGOMSalesTaxProgram 21.andStateGoodsandServicesTax 8.

TaxBreaks 2. LandAllocation IX. ProductDevelopmentR&DSupportͲUFT XI. WithholdingofIncomeTaxonWagesandSalaries XIV. TaxReductions 3. ExportInsuranceProvidedbyTurkEximbank VII. VATandCustomsDutyExemptions 2. IncentivesforResearch&Development(“R&D”)Activities 1. StrategicInvestmentIncentives 1. PreferentialTaxBenefitsforTurkishOCTGProducersLocatedinFreeZones AllegedsalesatLTFV OnJuly29. IncomeTaxWithholding 4.SaudiArabia. SocialSecurityandInterestSupport 5. ProvisionofElectricityforLessThanAdequateRemuneration XIII. ShortͲtermExportCreditDiscountProgram VI. LargeScaleInvestmentIncentives 1. ProvisionofLandforLessthanAdequateRemuneration XII. LandandInfrastructureProvidedinHSIIDCIndustrialEstatesforLessthan AdequateRemuneration  ThefollowingprogramsinTurkeyareincluded:  I. ReducedVATRatesforInputsandRawMaterials 5.  3. TurkEximbank’sPreͲExportCreditsProgram V. ExemptionfromPropertyTax XV. PreͲShipmentExportCreditsfromTurkEximbank III.Philippines. Employers’ShareinInsurancePremiumsProgram XVI. IncomeTaxWithholding 4. IͲ10 . LargeScaleInvestmentIncentives–TaxReductions 3.2013. SocialSecurityandInterestSupport 5. DeductionsfromTaxableIncomeforExportRevenue X. LandAllocation VIII. ValueAddedTax(“VAT”)andCustomsDutyExemptions 2. TurkEximbank'sForeignTradeCompany(“FTC”)ExportLoans IV. ExemptionfromStampDuty 4.CommercepublishedanoticeintheFederalRegisteroftheinitiation ofitsantidumpingdutyinvestigationsonOCTGfromIndia.Korea. ProvisionofHotͲRolledSteelforLessthanAdequateRemuneration II.

40.20.43percentto111.29.80.30.10.whetherseamlessorwelded.25.threaded.68.118.whetherornotthreadprotectorsareattached.Thescopeof theinvestigationsalsocoversOCTGcouplingstock..10.31.) IͲ11 .20.7304.Ukraine.theRepublicofKorea.andtheSocialistRepublicof Vietnam:InitiationofAntidumpingDutyInvestigations.44 percentto70.30.20.Taiwan.80.29.31.38percentforOCTGfromPhilippines.75 percentto30.10.7304.7304.20.30.98percentforOCTGfromTaiwan.Turkey. 7304.7304.19percentto158.10.7304.7304.31.7304.31.29.40.unattachedcouplings.2013.67percentto239.50.29.20.7304.50.53. 7304.29.g.7304.29.whetherornotplainend.10.July29.7304.47percentfor OCTGfromVietnam.7304.60.whicharehollowsteelproductsofcircularcrossͲsection.andVietnam.29.64percentfor OCTGfromIndia.10.orthreadedandcoupled) whetherornotconformingtoAmericanPetroleumInstitute(‘‘API’’)or nonͲAPIspecifications.16TheHTSUSstatistical   14 CertainOilCountryTubularGoodsFromIndia.10. 16 ThemerchandisesubjecttotheinvestigationsiscurrentlyclassifiedintheHTSUSunderthe followingstatisticalreportingnumbers:7304.78FR45505.29.29.5percent ormorebyweightofchromium.regardlessofendfinish (e.78FR45502.10.Thailand.7304.7304.66.7304.29.14Commercehasinitiatedantidumpingduty investigationsbasedonestimateddumpingmarginsof12.Excludedfromthe scopeoftheinvestigationsare:casingortubingcontaining10.10.29.20.41.29.31.and unattachedthreadprotectors.53percentforOCTGfromKorea. 7304.76percentforOCTGfromUkraine.10.29.20.7305.theRepublicofTurkey.29.whetherfinished(includinglimitedserviceOCTG products)orunfinished(includinggreentubesandlimitedserviceOCTG products).20.15 Tarifftreatment TheimportedOCTGsubjecttotheseinvestigationsareclassifiedinthe2013 HarmonizedTariffScheduleoftheUnitedStates(“HTSUS”)insubheadings7304.40.04percentto 56.29.casingandtubingofakindusedindrillingforoilandgas.29.29.32percentforOCTGfromThailand.7304.Thailand.July29.29.31.50.Ukraine.10. THESUBJECTMERCHANDISE Commerce’sscope Commercehasdefinedthescopeoftheseinvestigationsasfollows: OCTG.and103.60.ofiron(otherthancastiron)orsteel(both carbonandalloy).29.46. 15 IbidandCertainOilCountryTubularGoodsFromIndiaandTurkey:InitiationofCountervailingDuty Investigations.29. and7306.  Taiwan.2013.29.29.60.7304.7304. (continued.including oilwellcasingandtubing.20.29.drillpipe.SaudiArabia..theRepublicofthe Philippines.34percentforOCTGfromSaudiArabia.80.20.7304.20.31.29..

 7304.althoughonlysmallamountsofseamlesspipeareusedinstructural applications.59.41.39.7304.80.7305.29.7304.7305.20.70.7304.40.41.00.29.20.10.56.45.62.60.30.20.60.7306.29.80.80.29.29.29.90.59.30.60.29.40.40.59.  reportingnumbersareprovidedforconvenienceandcustomspurposesonly.15.50.35.7304.80. 17 Exceptasnoted.7304.29.80.90.10.32.45.50.75.39.80.7306.00.OCTGaresteelpipesandtubesusedinthe drillingofoilandgaswellsandintheconveyingofoilandgasfromwithinthewelltogroundlevel.7304.701ͲTAͲ463 (Final).59.80.00.55.24.7304.29.50.00.31.29.41.50.00.50.andoilcountry tubulargoods(OCTG).00.7306.30.rectangular.60.line.59.thewritten descriptionofthescopeoftheseinvestigationsisdispositive.steelpipeandtubecanbefurthercategorizedbyendͲuse.29.59.00.60. 7304.20.7304.January2010. ThemerchandisesubjecttotheinvestigationsmayalsoenterunderthefollowingHTSUSstatistical reportingnumbers:7304.7304.00.80.50.29.80.39.StructuralpipeandtubingisusedforloadͲbearing purposesandconstruction.00.7304.7304.80.20.29.00.Steelpipeandtube manufacturedbyeitherprocesscanbecategorizedbythecarbonandalloygradesusedinsteel production.7306.28.50.7304.7304.  (…continued) 7304.60.59.39. 7305.31.72.61.60.7304.7304.30.50.50.00.80.InvestigationNo. 18 Standard.andare generallymanufacturedbyeithertheweldedorseamlessprocess.andRussia.59.7306.80.00.50.36.59.59.39.7304.10.7306.55.7304.60.41.50.7306.29.applicabletoproducts subjecttotheinvestigations.41.50.Japan.7304.Thecolumn1Ͳgeneral(mostͲ favoredͲnation)rateofdutyforthesestatisticalreportingnumbers.50.80.48.7304.00.65.informationpresentedinthe“DescriptionandApplications”and“Manufacturing Processes”isdrawnfromCertainOilCountryTubularGoodsfromChina.00.15.pressuretubing.7305.andtheAmerican PetroleumInstitute(API).39.39.29.52.7304. linepipe.7304.29.60.00.00.7306.7304.mechanicaltubing.29.00.andpressurepipeisgenerallyintendedtoconveyliquidsandistypicallytestedand ratedforitsabilitytowithstandhydrostaticpressure.and7306. 7305.7304.40.7305.USITCPublication4124.7304.61. IͲ12 .50.7304. 7304.80.80.29.70.20.00.44.59.29.39.00.25.7306.50.00.75.7304. 7304.29.orothercrosssections.7304.Inaddition.00.31.61.29.39.7304.76.7306.41.29.61.59.39.7304.39. andothercountriesalsohavedevelopedstandardspecificationsforsteelpipesandtubes.29.10.theAmericanSocietyofMechanicalEngineers(ASME).20.00.18 Steelpipesandtubesaregenerallyproducedaccordingtostandardsandspecifications publishedbyanumberoforganizations.7304.59.7304.30.7304.81.61.50.39.45.40.includingtheAmericanSocietyforTestingand Materials(ASTM).SeamlessmechanicaltubingistypicallyacustomͲdesignedproductemployedwithinthe automotiveindustryandbyequipmentmanufacturers.20.59.ComparableorganizationsintheUnitedKingdom.00.80.29.80.isfree.The AmericanIronandSteelInstitute(AISI)hasdefinedsixsuchendͲusecategories:standardpipe.29.7304.68.41.90.30. 7304.81.7304.7304.30.and7306. 7304.39.39. THEPRODUCT17 Overview Steelpipeandtubesaremadeincircular. 7306.7304.structuralpipeandtubing.15.

June 1996. 11. FigureIͲ1showsasimplifiedschematicarrangementofatypicalwellwithasystemofcasing andtubing.  IͲ13 .FigureIͲ2presentsamoredetailedrepresentationofanoilorgaswell. Figure I-1 Casing and tubing: Simplified diagrammatic representation of a well showing the casing strings and production tubing  Source: Introduction to Oil and Gas Production.including descriptionsofdifferenttypesofcasingbydepthandfunction.  Descriptionandapplications OCTGincludescasingandtubingofcarbonandalloysteelusedinoilandgaswells. p. American Petroleum Institute. Fifth Edition.

“Gas Facts: Gas Well Life Cycle. (Durango.org/gas-well-life-cycle. Inc.  IͲ14 . including descriptions of different types of casing by depth and function   Source: La Plata County Energy Council.  Figure I-2 Casing and tubing: Subsurface components of an oil or gas well. 2013. retrieved July 30.energycouncil.” found at http://www. CO).

AmericanPetroleum Institute(API). IͲ15 .andthedrill bit. Casingisacircularpipethatservesasastructuralretainerforthewallsofthewell.2013.Afterthecasingissetinthewellhole.Moreoiland naturalgascanbeproducedfromfewerwellswithlesssurfacedisturbance.Becausetheamountofopenholethatcanbedrilledatanyonetimeis limited.BakerHughesInternationalInc.org/oilͲandͲnaturalͲgasͲ overview/explorationͲandͲproduction/naturalͲgas/advancedͲdrilling.gas. while16percent(287rigs)employeddirectionaldrilling.Casingcanbethreadedatbothendsandconnectedwithothercasingpieceswith couplingsorconnectors.60percentofactiverotaryrigs(1.thusincreasingoilandgasproductionand recoverablereserves. Casingtypicallyhasanoutsidediameter(OD)rangingfrom4.2013.Casingmustbesufficiently strongtocarryitsownweight..”foundathttp://www.067rigs)intheUnitedStatesemployedhorizontaldrilling.AsofJuly 26.includingadvanced horizontaldrilling19andhydraulicfracturing(figureIͲ3). 20 Hydraulicfracturing(commonlyreferredtoas“fracking”)requiresthehighͲpressureinjectionofa mixtureofwater.  Recentadvancementsinoilandgasexplorationtechnologies.api.theapplicationof newtechnologiesalsopermitsmorewellsperacre.Casingprovidesafirmfoundationforthedrillstring21 bysupportingthewallsoftheholetopreventcavinginorwallcollapsebothduringdrillingand afterthewelliscompleted.Thefracturesallowmoreoilandnaturalgastoenter throughperforationsmadeinthecasingandtubing.andchemicalsthroughthewellandintothesurroundingshalerockformations.“AdvancedDrillingTechniques.2013.drillcollars.concreteisusuallypumped downthroughthecasingtothebottomofthewellandthenuptheannulus(thespacebetween thewellwallandthecasing)untiltheannulusisfilled. Casingalsoservesasasurfacepipedesignedtopreventcontaminationofthe recoverableoilandgasbysurfacewater.withthelargersizes setatthetopofthewell.5inchesto20inchesandalength typicallyrangingfrom34feetto48feet.Inaddition.“North AmericanRotaryRigCount.orlimestone.andthesmallersizessettowardthebottom.    19 Horizontaldrillingisavariantofdirectionaldrillinginwhichverticaldrillingwithinawellturns horizontalwiththereservoirrocktoexposemoreofthewellboretotheoilornaturalgas. Severalsizesofcasingmaybesetinsidethewellafterithasbeendrilled.aswellastoresistbothexternalpressureandpressurewithin thewell.sand.20haveenabledoilandgaswellsto reachlocationsthatwerepreviouslydeemedcostͲprohibitive.sand.”July26.largerwellsrequireastringofconcentriclayersofcasingratherthanasinglecasing. creatinganetworkofnarrowfracturesintherock. 21 Thedrillstringconsistsofthreedifferentnonsubjectproducts:drillpipe.retrievedJuly29.

“The Facts About Hydraulic Fracturing and Seismic Activity.   Figure I-3 Casing and tubing: Horizontal drilling and hydraulic fracturing  Source: American Petroleum Institute (API).” 2013.    IͲ16 .

Substancessuchaslubricantsarealsopumpedintothewell throughthetubingforwelltreatment.T.andP110dorequireheattreatment.g.J55.L. 25 API5CTgradesH40.Steelpostconferencebrief.K55.exh.Insomecases.Thus.22 Greentubereferstounfinishedtubulargoodsthatmayrequireheattreatmentor furtherprocessingtomeettheAPI5CTspecificationsforcasingandtubing..andother engineeringspecifications..testingprocedures. C.producedbytheseamlessmanufacturingprocess.dependingoncustomers’requirements.likecasing.222–223(Fowler).050–4.andcoupled.Forexample.dependingonitssteel compositionandwallthickness.e. CouplingsarethickͲwalledandinternallythreadedseamlesscylindersthatareusedforjoining twolengthsofthreadedOCTG.seamlesstubularproductusedtomanufacturecoupling blanks. CouplingstockisathickͲwalled.U.thatoftheoilorgas.1.N.includingthreading.dimension.threaded.andQ.GradeL80. Tubing.H.M.and betemperedandquenched.Maverickpostconference brief.1.eitherthrough naturalfloworthroughpumping.H40andJ55)canbesubsequentlyheattreatedto increaseyieldandtensilestrengthsinordertomeettheminimumspecificationsforhigherͲ gradeAPI5CTcasingandtubing(e.P.inturn.Inaddition.000ksi(J55andK55differwithrespecttominimumtensile strengths).with“H”beingtheweakestand“Q”beingthestrongest)andanumber(minimumyield strengthinthousandsofpoundspersquareinch. FinishingoperationsaredescribedintheManufacturingProcessessectionofPartI.  TubingisasmallerͲdiameterpipe(between1.andcertainN80gradesdonotrequireheattreatment.greentubethatmeetscertainnonͲheattreatablegradesofthe APIspecificationforcasingandtubing(e.Couplingtypicallyaccountsfor2Ͳ3percent oftheweightofendͲfinishedtubingorcasing.18–19.K.gradeJ55orK55stipulatesthatthe pipehaveminimumyieldstrengthsof55. 24 Conferencetranscript. 23 Greentubecertifiedtothesegradesundergofurtherfinishingoperations.Gradesaregenerally classifiedandrankedbytheirminimumyieldstrength.e.S.tested..H40andJ55)canbecertifiedtothosegradesandusedinapplications notrequiringadditionalheattreatment.andareidentifiedbyaletter(i.2425Finishedcasingandtubingtypicallyrefersto productthathasbeenheattreated.Tubingmustbestrongenoughtosupportitsown weight.g.methodof production(i.L80. “upgradeable”greentubethatmeetstheminimumspecificationsforlowerͲgradeAPI5CT casingandtubing(i.or“ksi”).seamlessorwelded).e..usuallyisproducedinaccordancewithAPIspecification5CT.   22 TheAPIspecification5CTdesignates22separategradesofcasingandtubing.pp.P110).Thesepipesaregenerallyconsideredalloygrades.10..J.tofinishthepipe.heattreatment.thesegradesaregenerallyconsideredthecarbongrades.followedbythreadingand coupling.Accordingto industryrepresentatives.Couplingblanks.type9Cr mustcontain8Ͳ10percentchromiumbyweight.5inchesOD)installedinsidethe largerͲdiametercasingthatisusedtoconducttheoilorgastothesurface.exh.p.23Inotherinstances.CouplingsareproducedandcertifiedtothesameAPIgradeand typeastheOCTGtowhichthecouplingsarejoined. IͲ17 .anAPIgrademaybefurtherdelineatedbychemicalcomposition.CertainOCTGmustbeheattreatedtoachieveparticularphysical characteristics.pp.areunthreadedtubeblanksusedtomakeindividualcouplings.andthatofanypumpingequipmentsuspendedonthestring.OtherAPIgrades suchascertainN80grades.

formingabeadofmetalontheinsideandoutsideofthetube.namely.Theweldingpressurecausessomeofthemetaltobesqueezedfrom theweldingjoint. SeamlessOCTGismanufacturedbyeitheroftwohighͲtemperaturemethodstoforma centralcavityinasolidsteelbillet.     IͲ18 .Theedges arethenheatedbyelectricresistanceandweldedtogetherbyheatandpressure.whichcausethebillettorotateandadvanceoverapiercerpoint.maytakeplaceatthemillorataprocessingorthreadingfacility.The hollowshellproducedbyeithermethodisthenrolledwithafixedplugorwithacontinuous mandrelinsidetheshelltoreducethewallthicknessandincreasetheshell’slength.by contrast.millsmanufacturecouplingstockforOCTG couplingsexclusivelythroughtheseamlessprocess.theheatingbilletis grippedbyangledrolls. formingaholethoughthelengthofthebillet.Thisbead.  Manufacturingprocesses Themanufacturingprocessforcasingandtubingincludesformingandfinishingphases.Bycontrast.therotarypiercingmethodandthehotextrusion method.the shellisrolledinasizingmillorastretchͲreducingmillwhereitisformedtosize.thebilletishotpunchͲ piercedandthenextrudedaxiallythroughadieandoveramandrel. dependingontheservicerequirements.Roundorsquarebilletsserveastheinputforseamlesstubing(figureIͲ4).whichtransformedthebilletfrom squaretoroundforthepiercingoperation.Intheextrusionmethod.isusuallytrimmedfromboththeoutsideandtheinsidesurfaces.alowerͲcostmethodthantheseamlessprocess.formingahollowshell.  Formingphase  OCTGmillsmanufacturecasingandtubingeitherbytheseamlessprocessorbythe electricͲresistanceͲwelding(“ERW”)process. Theformingphasetakesplaceentirelyatthemanufacturingfacilityormill.or weldingflash.withoutthe additionoffillermetal.Finishing.Intherotarypiercingmethod.Theslitsheetpasses throughaseriesofrollerswhileatambienttemperatureandformsatubularshape. WeldedOCTGismanufacturedfromsteelsheetincoilform(figureIͲ5).itisfirstforcedthroughacircularrollpass.Finally.Thesteelsheet isslittothewidththatcorrespondstothedesireddiameteroftube.Ifasquare billetisused.

   Figure I-4 Casing and tubing: Seamless manufacturing process  Source: JFE Steel Corporation. OCTG (Product Catalog).  IͲ19 .

 IͲ20 . OCTG (Product Catalog).  Figure I-5 Casing and tubing: ERW manufacturing process   Source: JFE Steel Corporation.

p. AccordingtoanindustrysourceinapriorCommissioninvestigation.hydrostatictesting.Discussionofindependent threadersislimitedinthisreport.Thisapproachprovidesdistributorswiththeflexibilityto processandthreadtheproductincompliancewithavarietyofspecifications.andareheattreated.S.Annealingrelievesinternalresidualstressesorhardnessinduced bywelding.APIͲspecificheattreatmentprocessesintheproductionof casingandtubingincludingannealing.specificengineeringcharacteristicsandmechanical propertiesofthesteelcanbeachievedthroughtheapplicationofdifferentheattreatments.andcooledata predeterminedrateorcycle.p.26Threadersarecapableof threadingandcoupling.upset.thepipeisheatedaboveaspecifictemperature.knownasprocessorsorthreaders.Forweldedpipe.theterm“processor”inthisandother sectionsofthisreportismeanttoincludeprocessorswhoarealsothreaders.p.Japan.pipemills typicallyareequippedwiththefacilitiesnecessarytoperformtheseprocesses.Normalizingrefinesthesteelgrainsize   26 Mostprocessorstypicallyperformthreadingoperations.27  Heattreatment  Inthesteelmanufacturingprocess.althoughmanythreadersdonotperform processingoperationslikeheattreatment.Korea.InvestigationNo.OilCountryTubularGoods fromArgentina.there arevariousnonͲpipeproducers. Heattreatingmayinvolveoneormoreheatingcyclesineitheracontinuousorbatchfurnace.InvestigationNos.processorsandthreaders mainlyserveimportssinceOCTGareoftenimportedasplainends.andthreaded.bycoldworking.731ͲTAͲ711and713Ͳ716(Second Review).CertainOilCountryTubularGoodsfromChina.IͲ18.APIstandardsspecifyadocumentedprocedureforevery particulargradeandtypeofpipe.Forthisreason.andquenchandtempering. InvestigationNo.701ͲTAͲ463(Final).Independentprocessorsoperatefacilitiesthatarecapable offullͲbodyheattreatment.Italy.andmeasuringthelengthofOCTGproducts.Thesteelisheatedtoatemperatureinornearaspecificrange. orthefullcrossͲsectionofthepipe.IͲ18.Some processorsandthreadersmayalsomanufacturingcouplingsthatbecomepartoffinishedOCTG.thusallowing themtoserveavarietyofconsumerneeds.June2007.andthenairͲcooled.upset.701ͲTAͲ463(Final).heldatthis temperatureforaspecifiedtime.USITCPublication3923.aswellasupsettingpipeends.U.January2010.andMexico.Specificheattreatingrequirementsdependonthegradeof steelbeingprocessed. withcontrolledratesofcooling.whichcanperformcertain aspectsofthefinishingoperations.astheCommissioninrecentOCTGinvestigationshasnotdeemed threaderstobepartofthedomesticindustryproducingcasingandtubing. 27 CertainOilCountryTubularGoodsfromChina.  Finishingphase  Aftertheformingphase.thepipeisheatͲtreated.9.However.orbymachining. andthreadedintheUnitedStates.January2010.USITC Publication4124.theheattreatmentmaycovertheweldedseamonly. Inthenormalizingprocess. IͲ21 .normalizing.USITCPublication4124. Annealingisasingleheattreatmentprocessthatpreparesthesteelforfabricationor service.

registered.andtheninsertedendwiseintoanupsettingmachine.thepipeismountedona latheandthreadsarecutbyusingsharpsteelcuttingtools(calledchasers).ThreadingcanbemadetomeetAPIstandards.OCTGproducersmay marketproprietary“semiͲpremium”or“premium”threadedconnectionsthatprovidehigher torsionalloads.oil.suchasnormalizingandtempering.producingtherequiredspiralcutontheinneroroutersurfaceof thepipe.andprotectedbypatentsorotherintellectualpropertyrights mechanismandthatarenotspecifiedbyAPIstandards.Themachine pushesthehotmetalback.whicharemixedinwiththeoil/gasduringextraction.andthen “quenched”inacoolingmediumsuchaswater.Thisprocessiscalled“tempering.theendofthepipeisheatedto forgingtemperature.bendingresistance.It mustalsobesubjecttothesameheattreatmentaspipe. Theseimpuritiescorrodeorcausecrackinginsteel.Typically.sizingrollsshapethetubetoaccurate diametertolerances.Afterquenching.andoxygen.  andobtainsacarbidesizeanddistributionthatismoresuitableforfutureheattreatmentthan theasͲrolledstructure.Theupsettingmaybe controlledtodisplacetheextrathicknesstotheinsideortheoutsideofthepipe.exceptwherespecifiedbythe purchaser.or quenchingandtempering.dependingonthethicknessofthe pipe.ormadetoproprietarystandardsthat aredesigned.APIstandardsmayspecifyasingleheattreatment processorcombinationofprocessesforthepipe.  Upsettingandthreading  Casingandtubingarefinishedbythreadingandtheattachmentofasuitablecouplingto oneendofeachlength.Forinstance.albeit.Forsomecasingortubingthatissubjecttosevereorsourservice.Asthepipeisturnedonthelathe.”Thepipemustundergoaspecified processofquenchingandtemperinginordertoqualifyforcertainAPIgrades.theendsofthepipe areupsetbeforethreadsarecut.hydrogensulfide.withoutanyobservablechangeinappearance priortofailure.andforthisreason.Theproductiscooledandthencuttolengthattheendofthetubemill.thesteelisverybrittleandmustbereheatedandthencooledunder specificconditions. Casingandtubingcanbejoineddirectlyusingmale(outer)andfemale(inner)threading.orair.creatingathickerwallattheendofthepipe.  Dependingonthepipedesign.28itis necessarytoprovideadditionalstrengthinthejoint.Afterheattreatment. orbyusingcouplingswithfemalethreadsoneachend. IͲ22 . carbondioxide. Couplingstockismadetothesamegradeandtypespecificationsascasingandtubing.orgreatersealabilityforcasinginchallengingdrilling   28 Sourcrudeoilorsourgasisdefinedasanoil/gascontainingcommonimpuritiessuchaswater.thethreadingdie movedalongthepipe’saxis.Intheupsettingprocess.whicharemounted onathreadingdiesurroundingthepipe. Quenchingandtemperingisasequentialprocessinwhichthepipeisheatedtoa specifictemperatureforaspecifiedtimeperiodtomodifythesteel’smicrostructure.

 

environments.29Afterthreading,athreadprotectorisappliedtothethreadedpipeendsduring
handling,transportation,orstorage.30
DOMESTICLIKEPRODUCTISSUES
TheCommission’sdecisionregardingtheappropriatedomesticproductsthatare“like”
thesubjectimportedproductisbasedonanumberoffactorsincluding:(1)physical
characteristicsanduses;(2)commonmanufacturingfacilitiesandproductionemployees;(3)
interchangeability;(4)customerandproducerperceptions;(5)channelsofdistribution;and(6)
price.Informationregardingthesefactorsisdiscussedbelow,followedbyadiscussionof
intermediateproductsinthefollowingsection.
ThepetitionintheseinvestigationsexplicitlyincludesseamlessandweldedOCTG
regardlessofendfinish,aswellasunfinishedOCTG,includinggreentubesthatrequirefurther
processingsuchasheattreatment.PetitionerscontendthattheCommissionshouldfindone
domesticlikeproductcoextensivewithCommerce’sscope.31Petitionersarguethatthe
Commissionshouldcontinueitspracticeofincludinggreentubesandsemifinishedproductsin
thelikeproduct.32Moreover,PetitionerscontendthatseamlessandweldedOCTGshouldnot
beregardedasseparatelikeproductsbecausetheCommissionhasconcludedthatseamless
andweldedOCTGarepartofthesamelikeproductinpastinvestigations.33
RespondentILJINSteelCorporation(Korea)(“ILJIN”)arguesthatsemifinishedseamless
andweldedgreentubeintendedforOCTGshouldeachconstituteaseparatelikeproduct.ILJIN
alsoarguestheCommissionshouldreconsidertheissueofwhetherfinishedseamlessand
weldedOCTGbelonginthesamelikeproduct.34
Physicalcharacteristicsanduses
Asdiscussedearlierinthischapter,OCTGprimarilyconsistsofcasingandtubingof
carbonandalloysteelusedinoilandgaswells.Casingprovidesstructuralsupportforwells
whiletubingconductsliquidsandgasesupanddownthewells.Seamlessandweldedcasing
andtubingaregenerallyproducedinaccordancewithAPIspecification5CTand,asdiscussed
previously,areusedindrillingforoilornaturalgas.TheweldlineformedbytheERW  

29 

Forinstance,U.S.SteelandTenarisbothproduceandmarketvarioussemiͲpremiumandpremium
threadedconnections.
30 
Threadingcanbeperformedaftertransportationtoavoiddamagecausedbymovement,water,or
weather.Damagedthreadscancauseexpensiverupturesofthepipestringincasingandtubing
applicationswherepipesareconnectedtooneanotherbythreadedjoints.
31 
Petition,p.20.
32 
PetitionerU.S.Steel’spostconferencebrief,p.9Ͳ10.
33 
PetitionerU.S.Steel’spostconferencebrief,p.9.
34 
ILJINSteelCorporation(Korea)(“ILJIN”)’spostconferencebrief,pp.16and19.

IͲ23

 

productionprocessrepresentsadistinctphysicalcharacteristicnotpresentinseamlessOCTG.
Asaresult,weldedOCTGisnotacceptableincertaindrillingconditions.35
GreentubeintendedforOCTGreferstounfinishedtubulargoodsthatrequireheat
treatmentorfurtherprocessingtomeettheAPI5CTspecificationsforcasingandtubing.Green
tubingintendedforanOCTGapplicationistypicallyproducedtomeetthespecificationsfor
thatparticularapplication,andnotforotherapplications,suchasdrillpipe.Assuch,agreen
tubeproducedforanOCTGapplicationgenerallycannotbefurtherprocessedtobecome
alternativeproductssuchasdrillpipe.36
Manufacturingfacilitiesandproductionemployees
OCTGcasingandtubingisproducedeitherbytheseamlessprocessorbytheERW
process,dependingontheservicerequirements.TheAPIspecification5CTdesignates19
separategradesofcasingandtubingbymanufacturingprocessandheattreatment,13of
whichcanbeproducedbyeithertheseamlessorERWprocess.SeamlessOCTGisproduced
fromabilletthatiseitherpiercedorextrudedtoformahollowshellthatissubsequentlyrolled.
WeldedOCTGisproducedfromsteelsheetincoilformthatisrolledandwhoseedgesare
heatedandweldedtogethertoformahollowshell.Greentubingisalsoproducedbyeither
process.
U.S.millsproduceweldedandseamlessOCTGonseparateproductionlines.U.S.
producerssuchasU.S.SteelandTMKIPSCO,however,manufacturebothseamlessandwelded
pipe.Thesetwomillsaloneaccountedformorethan***ofU.S.OCTGproductionin2012.U.S.
processorsalsoheattreatbothunfinishedweldedOCTGandunfinishedseamlessOCTG.37
RespondentILJINdoesnotdisputethefactthatmostAPIgradesspecifythatcasingand
tubingcanbemadebyeithertheseamlessorweldedprocess.38However,thisRespondent
arguesthatwithinagivenAPIgrade,therewillbesomeapplicationsforwhicheitherseamless
orweldedOCTGsuffice,andotherapplicationswherethegreaterreliabilityofseamlessOCTG
isnecessary.39  

35 

OnewitnessforU.S.SteelindicatedthatseamlessOCTGcouldbesuppliedforallweldedOCTG
application,andthatweldedOCTGcouldbesuppliedforapproximately70percentofseamless
applications,butnotforsuchapplicationsassourservice.Conferencetranscript,p.109(Matthews).
36 
***,stafftelephoneinterview,July31,2013.Seealsoconferencetranscript,p.88(Clark).Mr.
ClarkspecifiedthatVallourec’ssmallamountofgreentubesisspecifictocasingtotubing,ratherthan
drillpipe.
37 
QuestionnaireresponsesofU.S.Steel,TMKIPSCO,andTejas.
38 
ILJIN’spostconferencebrief,July26,2013,p.25.
39 
ILJIN’spostconferencebrief,July26,2013,p.25.

IͲ24

 

Interchangeabilityandcustomerandproducerperceptions
RespondentILJINarguesthatseamlessOCTGismoresuitablethanweldedOCTGfor
applicationsrequiringgreaterstrengthandreliability,andthereforethetwoproductsarenot
completelyinterchangeable.40Asdiscussedabove,U.S.producersalsoidentifycertain
conditionsorapplicationsforwhichweldedcasingandtubingarenotinterchangeablefor
seamlesscasingandtubing.Nonetheless,U.S.producersgenerallyconsideredthetwoformsof
OCTGtobe“interchangeable”(U.S.Steel),“almostinterchangeable”forthe“vastmajorityof
themarket”(Maverick),orincompetitionwiththeexceptionof“theveryhighendsourservice
market”(Vallourec).41
Greentubeforcasingandtubingrequiresheattreatmenttoachievethefinalgrade.
Thus,greentube,likeallunfinishedformsofOCTG,requiresadditionalprocessingstepstobe
consideredreadyfordownholeapplications.TheU.S.industryisnotbelievedtofocuson
“upgradeable”OCTG(carbonͲgradecasingandtubingthat,afterheattreatment,certifiedto
higherAPIgrades).Nonetheless,someU.S.millsarebelievedtoproducesuchproducts.42
Channelsofdistribution
AlthoughtheCommissiondidnotcollectseparatedataspecifictoU.S.producers’
shipmentsofweldedOCTGandseamlessOCTG,U.S.producerssellvirtuallyalloftheirU.S.Ͳ
producedcasingandtubingtodistributors.AsdiscussedinPartIIofthisreport,morethan98
percentofallsuchshipmentsaretodistributors.
BecausemostmillsmaintaintheirownheatͲtreatmentoperations,U.S.Ͳproducedgreen
tubeisbelievedtobesoldinverylimitedquantities.43U.S.Steel,believedtobeoneofthe
largermillssellinggreentube,reportedshipping***percentofitsgreentubetoprocessorsin
2010,***percentin2011,and***percentin2012.Conversely,U.S.Steelshipped***percent
ofitsgreentubetodistributorsin2012,***percentin2011,and***percentin2012.44  

40 

ILJIN’spostconferencebrief,July26,2013,p.24. 
Conferencetranscript,pp.99–100(Matthews,Lowe,Clark).
42 
See,e.g.,pressreleasefromNorthwestPipeannouncingtheexpansionintotubing“withphysical
propertiesforheattreating.”NorthwestPipeCompany’sTubularProductsGrouptoUpgradeMillin
Houston,Texas,February8,2011.Seealsoconferencetranscript,pp.222(Fowler).Mr.Fowlertestified
thatupgradingwasarelativelyrecentdevelopmentthatpermittedsupplierstoservemultiplemarket
sectors.Mr.Fowlerfurtherindicatedthatthepracticewas“popular”withimporters,butnotedalso
that“somedomesticmills”were“takingadvantage”oftheprocess.
43 
Conferencetranscript,p.88(Clark,Mahoney,andThompson),withfurtherelaborationonbehalf
ofU.S.Steelregardingshipmentsofgreentubeinrecentyears.U.S.Steel’spostconferencebrief,exh.1,
p.19.
44 
Correspondencefrom***,August6,2013.U.S.Steel***.
41

IͲ25

 

Price
RespondentILJINarguesthatseamlessOCTGsellsatapremiumoverweldedOCTG.45
ThisRespondentarguesthatseamlessOCTGcommandsapremiumof$200–$400pershortton
morethanweldedOCTGwithinthesamesizeandthesameindustrialspecification.This
Respondentfurtherarguesthatsuchalargepricedifferentialcallsintoquestiontheproposition
thatseamlessandweldedOCTGareinterchangeableinalmostallapplications.46
Table I-2
OCTG: Unit values of U.S. producers’ U.S. shipments of welded OCTG and seamless OCTG, 201012, January-March 2012, and January-March 2013 

Calendaryear
JanuaryͲMarch
2011
2012
2012
2013
Unitvalue(dollarspershortton) 
1,382 
1,500 
1,512 
1,558 
1,389 
1,852 
1,926 
2,017 
1,997 
1,821 
1,607 
1,690 
1,727 
1,744 
1,569

Item

2010 

Welded
Seamless
AllOCTG

Source: Compiled from data submitted in response to Commission questionnaires.

BecauseofthelimitedvolumeofsalesofU.S.Ͳproducedgreentubes,directcomparisons
tofinishedOCTGarelimited.TableIͲ3presentsacomparisonof***purchasesofunfinished
OCTGanditssalesoffinishedOCTG.
Table I-3
OCTG: Unit values of U.S. producer *** purchases of unfinished OCTG and U.S. shipments of
finished OCTG, 2010-12, January-March 2012, and January-March 2013
*

*

*

*

*

*

*

INTERMEDIATEPRODUCTS
Asdiscussedabove,unfinished(or“green”ifnotheatͲtreated)OCTGisaprecursorto
finishedOCTG.Therefore,inaddressingwhetherunfinishedOCTGandfinishedOCTGconstitute
asingledomesticlikeproduct,theCommissionmayapplyitssemifinishedproductanalysis.
Uses
“Greentube”isatermthatcanapplytounfinished,nonͲheatͲtreatedtubebodies
intendedforcasingandtubingorfordrillpipe.Thescopeoftheseinvestigations,however,  

45 

ILJIN’spostconferencebrief,July26,2013,p.17. 
ILJIN’spostconferencebrief,July26,2013,p.25.

46

IͲ26

importedseamlessgreentubeand finishedseamlessOCTGaresoldintodifferentchannelsofdistribution.threading.Stafftelephoneinterviewwith***.greentubeintendedforanOCTGapplicationis typicallyproducedtomeetthespecificationsforthatparticularapplication.andtolerances.  focusesontheformerformofgreentube.andthuscannotfunctionasacomponentofeitheracasingortubingstringforuseinoil andgasdrilling.greentubecannotbeconnectedtootherfinishedOCTGtoformacasingortubing string.2013.ILJINarguesthattheneedforheattreatmentdetermines intowhattypesofmarketsseamlessgreentubesaresoldandtothetypeofcustomersthat purchaseseamlessgreentubes. 52 Questionnaireresponseof***.2013. 49 Stafftelephoneinterviewwith***.U.Seequestionnaireresponseof***. however.July31.outsidediameter.Ͳproducedgreentubeinclude***.greentubeintendedforOCTGapplicationsisproducedtothe chemistryanddimensionalspecificationsthatpermitprocessorstoundertakefinishing operationssuchasheatͲtreatment.51Greentubesoldto processors.however.AccordingtoRespondents.2013.upsetting.S.Thisprocessor***.length.49 Markets RespondentILJINarguesthatthechannelsofdistributiondifferbetweenseamlessgreen tubeandfinishedseamlessOCTG.52 Characteristicsandfunctions Asdiscussedabove.andqualitytesting)beforebeingsoldin theU.17.merchantOCTGmarket.48 Aspreviouslynotedinthissection.S.suchasdrillpipe.ThisRespondentcontendsthatcustomersforimported seamlessgreentubeswouldbeprocessorswithavailablefacilitiestoheatͲtreatandotherwise finishtheimportedproduct.frequentlyissoldtodistributorsafterheattreatment.whichsellsgreen tubefrom***todistributors.upsetting. 50 ILJIN’spostconferencebrief.Assuch.andnotforother applications.andcoupling. ILJIN’spostconferencebrief.greentubesreferto semifinishedseamlessandweldedOCTGthatisprocessedbyheattreating.p.Accordingto***. 48 IͲ27 .p.July26.S.aswellasbyother processes(suchasthreadingandcoupling.July26.aspreviouslynoted.Independent processorsknowntopurchaseU.Moreover.***’scustomeris***.greentubeisproducedtocustomer specificationsintermsofchemistry. 2013.ILJINarguesthatsimpledistributorsthatpurchase finishedOCTGlackheatͲtreatingcapabilities.50 Withrespecttodomesticallyproducedgreentube.However.17.Steel reportedsellinggreentubetoprocessorsandtodistributors***.11.47TheheatͲtreatmentimpartsthenecessarymechanicaland structuralpropertiesthatenabletheseamlessgreentubetobeusedinanOCTGapplication.p.July26.insomecasesgreentubingthatmeetstheminimumspecifications   47 ILJIN’spostconferencebrief.August8.2013.PriortoheatͲtreatment. 51 Importersalsosellgreentubetodistributors.

forcertain finished.17.however.therebypreventingthemfrombeinginterchangeableforanyuse.S.e.greentubethatmeetscertainnonͲheattreatablegradesofthe APIspecificationforcasingandtubingsuchasJ55canbesubsequentlyheatͲtreatedtoimprove itsyieldandtensilestrengthsinordertomeettheminimumspecificationsforhigherͲgradeAPI 5CTcasingandtubingsuchasP110.Dependingonitssteel compositionandwallthickness. Transformationprocess RespondentILJINarguesthatbecauseofthenecessityofheatͲtreatment. Value UnfinishedOCTGinitsgreenstageisproducedbybothseamlessandweldedpipemills.p.53ILJINarguesthatseamlessgreentubesthathavenot undergoneheatͲtreatmentasimporteddifferintheirphysicalandstructurepropertiesfrom finishedseamlessOCTG.2013.thesegreentubescanalsobesoldasJ55tubing orcasing.  forlowerͲgradeAPI5CTcasingandtubing(i.p. AsshownintableIͲ3.purchasesbyprocessor***ofgreentubeintendedforOCTGapplications hadanaverageunitvalueof***in2012.July26.S.ͲproducedweldedthreadedandcoupledJ55 tubingreportedasproduct2intheCommission’spricedatahadanaveragepriceof$***in 2012.nonͲheatͲtreatedOCTGproducts.millshipmentsoffinishedOCTG hadanaverageunitvalueof$***in2012.ͲproducedweldedthreadedandcoupledJ55casingreportedasproduct6inthe Commission’spricedatahadanaveragepriceof$***in2012.Incomparison. Ibid.U.H40andJ55)canbecertifiedtothosegrades andusedinapplicationsnotrequiringadditionalheatͲtreatment(followingthreadingand coupling).Thedifferentialisnarrower. 55 Conferencetranscript..greentubeintendedforOCTGapplicationsisproducedby eithertheseamlessorweldedprocess.S.seamless greentubesthathavenotundergoneheattreatmentasimportedarenotinterchangeablewith otherfinishedOCTGproducts.222–223(Fowler). 54 IͲ28 .17.p.54 Asdiscussedpreviously.55   53 ILJIN’spostconferencebrief.GreentubestypicallyundergoaheatͲtreatmentprocess toimpartthenecessaryphysicalcharacteristicsoffinishedOCTG.U.However.OneindustryrepresentativeattheCommission’sstaffconferencenotedthatgreen tubethatis“upgradable”tovarioushigherͲstrengthAPI5CTgradescouldthereforeservetwo tothreedifferentsectorsofthemarket.U.

8percentofOCTGimportedfromnonsubjectsources todistributorsbetweenJanuary2010andMarch2013.  Channelsofdistribution DomesticallyproducedandimportedOCTGaresoldmainlythroughdistributors(table IIͲ1).OCTGcanbemanufacturedusingeitherseamlessorweldedtechniques.the useoffrackinghasincreased.*** percentoftheirsales.S.producersshippedapproximately99percentof theirOCTGtodistributors.S.weremadetodistributorsduringtheperiodof investigation.ashasthenumberofrigsandtotalfootageofwellsdrilled. 1 Conferencetranscript.U.respectively.The amountofOCTGusedinfrackingcanbegreaterthanthatusedintraditionalverticalwells.p.thedemandforOCTGiscloselyassociatedwiththeamountofacitivityinthese sectors.1As aresult.SinceJanuary2010.MARKETCHARACTERISTICS OCTGincludescasingandtubingforuseinoilandnaturalgasexplorationand production.importersshipped92.Bothtraditionalverticaldrillingandhorizontaldrillingsuchashydraulingfracturing employcasingforstructuralintegrityandtubingforliquidandgasflow. IIͲ1 .DuringJanuary2010ͲMarch2013.PARTII: SUPPLYANDDEMANDINFORMATION U.U.S.SaudiArabiaandUkraine.U.185(Brewer).ForOCTGimportedfromtheothertwocountries.importersshippedatleast***percentoftheirsubjectimported OCTGfromsevenoftheninesubjectcountriestodistributorsineachoftheyearsunder investigation.S.

shipments of OCTG from Ukraine to: *** *** *** Distributors *** *** *** End users U. importers’ U.S.S. importers’ U. shipments by sources and channels of distribution.7 Distributors 7. importers’ U. importers’ U.S.S.9 1. importers’ U.6 98.S.1 .S.4 99.1 Distributors 0.S.7 *** *** *** *** *** *** *** *** 91. importers’ U.6 1.9 1.S.4 End users U. shipments of OCTG from all other countries to: 92.7 94.6 3.8 98. importers’ U.S. shipments of OCTG from the Philippines to: *** *** *** Distributors *** *** *** End users U.2 6.S.9 1. shipments of OCTG from Korea to: 97.3 End users U.0 96.3 Distributors 8.S.S.0 because of rounding.Table II-1 OCTG: U.--Numbers may not add to 100.9 End users U. shipments of OCTG from India to: 99. producers’ U.S.S. shipments of OCTG from Saudi Arabia to: *** *** *** Distributors *** *** *** End users U.0 3.8 93.S.4 1.2 1.9 8. shipments of OCTG fromTurkey to: *** *** *** Distributors *** *** *** End users U. producers’ and U. shipments (percent) U.S.7 End users Note.S.S. shipments of OCTG to: 98.6 Distributors 2.S.1 96.4 98.S.3 3. shipments of OCTG from Vietnam to: *** *** *** Distributors *** *** *** End users U. shipments of OCTG from Thailand to: *** *** Distributors -*** *** End users -U.S.S.-March 2013 98. importers’ U. IIͲ2 Jan.8 3.S. importers’ U.2 96. importers’ U.0 92.S. and January-March 2013 Period 2010 2011 2012 Item Share of U. Source: Compiled from data submitted in response to Commission questionnaires.4 End users U. importers’ U.S.6 0.3 6. 2010-12.1 98.4 98.S.0 7.1 *** *** *** *** 96.6 Distributors 1. shipments of OCTG from Taiwan to: 92.

PR. markets. among others.ultimately.OnlyimportersofOCTGfrom UkrainereportedservingtheentireUnitedStates.withimportsfrom***servingthatregion.Consequently. including AK.SevenU.Themajorityofsubjectimportsare concentratedintheCentralSouthwest.and9intheSoutheast.tooiland naturalgasexplorationandproductionfirms. VI.TableIIͲ2presentsgeographicmarketareasservedbyproducers andimporters.12reportedsalesinthe Mountainregion.salesareconcentratedinmajoroilͲ andgasͲproducingregions.  IIͲ3 .14U.producers reportedsalesofOCTGintheCentralSouthwest.producerssupplyOCTGnationally.two producers(***)reportedmakingsalesinAlaska.Also.S.  Table II-2 OCTG: Geographic market areas in the United States served by U.S.S.9inthePacificCoast.Geographicdistribution OCTGissoldthroughouttheUnitedStatestodistributorsand.11intheMidwest. producers and importers.Intotal.S.S. Source: Compiled from data submitted in response to Commission questionnaires. by number of responding firms Central Pacific Region Southwest Midwest Mountains Northeast Coast Southeast Other1 14 11 12 11 9 9 2 U.andimportsfromeachsubjectcountrywereshippedto thatregionbyatleast***importers. HI.11intheNortheast.ThePacificCoastreceivedthatsecondͲgreatestcoverage bysubjectimports. producers 10 1 1 0 4 1 0 India 14 4 4 2 2 0 0 Korea 9 1 2 0 1 0 0 Philippines *** *** *** *** *** *** *** Saudi Arabia 8 0 0 0 2 0 0 Taiwan 5 0 0 0 2 0 0 Thailand 4 1 1 0 1 0 1 Turkey 4 1 1 1 1 1 1 Ukraine 13 2 2 1 3 0 0 Vietnam 1 All other U.

S.S.5millionshorttonsin2010to6.000 miles Over 1.andithascontinuedtoincreasein2013.comparedwith69.Ingeneral.Despitean8. producers and importers Item 0 to 100 miles 101-1.5 0.9percentincreaseincapacity between2010and2012.000 miles U.9 8.8 Korea 75. 3 IIͲ4 .producersshippedtheirOCTGlongerdistancesthandidimportersof OCTGfromsubjectcountries.and46.ShipmentsbycountryandbydistancearepresentedintableIIͲ3.7 21.  Industrycapacity U.7 23.3Thisrelativelymoderatelevelofutilizationsuggeststhat U. producers 10.5percentin2010to 63.5 0.7 Ukraine 77.U.9 43.S.thecapacityutilizationrateincreasedfrom52.5 0.0 0.S.0 46.000miles. 2 SeePartIIIofthisreportforfurtherdetail.producers’capacityincreasedfrom5. Table II-3 OCTG: Shipments by country and by distance reported by U.5 0.0 0.9percentwithin 100milesoftheirproductionfacility.market.Themajorityofproducersreportedselling10.4percentinJanuarytoMarch2013.0millionin 2012.0 Saudi Arabia *** *** *** Taiwan1 ---Thailand1 ---Turkey 48.S.2Basedonavailableinformation.Themaincontributingfactorstothisdegreeofresponsivenessof supplyaresubstantialexcesscapacity.andtheabilitytoswitch toandfromproducingotherproductsonthesameequipmentandmachinery. PartIIIcontainsspecificinformationregardingthesizeandtimingoftheseplantopenings.7 percentinJanuarytoMarch2012.0percentin2012.producershavetheabilitytorespond tochangesindemandwithmoderatechangesinthequantityofshipmentsofU.S.Continuingandadditionalplantopeningsandexpansionsare plannedinthenearfutureaswell.3 0.8 Vietnam 99.0percentbetween100and1.43.8 Philippines 100.S.000miles.1 India 77.1 percentover1.someabilitytouseinventories.andwas65. SUPPLYANDDEMANDCONSIDERATIONS Supply Domesticproduction ThemajorityofU.9 21.producersmayhavesubstantialandgrowingcapacitytoproduceOCTGinresponseto increasesinprice.OCTGproductionfacilitiesarelocatedrelativelyclosetosourcesof oilandnaturalgas.0 1 No data were reported for imports from Taiwan and Thailand.4 42.S.U.S.Ͳproduced OCTGtotheU. Source: Compiled from data submitted in response to Commission questionnaires.

8percentofsharedweldedproductionin2010was usedtomanufactureOCTGand23.comparedwith11.ThenonͲOCTGsharedecreasedto20.5percentin2012.increasedfrom4.6 percentin2012.producers’ratioofinventoriestototalshipmentsdecreasedfrom13.1percentbytheendof2012. Accordingtoquestionnaireresponses.1percentinMarch2012.Producerinventorylevels InventoriesaretypicallymoderateinthisindustrysinceOCTGisusuallyproducedͲtoͲ orderforspecificendusersbutshippedtoandinventoriedbydistributorstomeetdelivery scheduleneeds.S.andstandard/line/pressurepipeonthesameequipmentusedtoproduceOCTG.deliveringlessthanthequantitypromised.S. marketandothermarketsinresponsetopricechanges.9 percentinJanuaryͲMarch2012.***.  Productionalternatives U.Thisincreasedto21. Withrespecttosharedseamlesspipeandtubeproduction.S.More informationregardingmarketinventorylevelsispresentedlaterinPartII.8percentin2011.producerslikelyhavelittleabilitytoshiftshipmentsbetweentheU.asashareoftotalshipments.orfailingtomeet timelyshipmentcommitments.S.producers’exports.4percentof annualizedshipmentsinMarch2013.9percent.orwereunabletosupplyOCTG sinceJanuary1.producerswereaskediftheyrefused.andwas11.1percentin JanuaryͲMarch2013.producersmayhavesomeabilitytouseinventoriestorespond topricechanges.indicatingthatagreater proportionofsharedweldedproductionresourcesisbeingusedtomanufactureOCTG.mechanical tubing.butdecreasedto19.76.4Threeof14respondingproducersreportedthattheywereunableto supplyproductatsometimesince2010.declined.2percentwasusedfor nonͲOCTGproductionin2010.Baseduponrelativelylowexportvolumesandsmallvariations inrelativelevels.S.LargerinventoriesaremoretypicallyheldbydistributorsofOCTG.”decliningtoaccept customersorrenewexistingcustomers.Producer***statedthatitwascautiousinbringingin newcustomers***.  Supplyconstraints U.comparedwith5.4percentinJanuaryͲMarch2013.2010.  Alternativemarkets U.***.producersproduceweldedandseamlessoil/gaswellcasingandtubing.U.  4 Thisincludesplacingcustomersonallocationor“controlledorderentry.3 percentattheendof2010to10.andwas16.U. IIͲ5 .1percentwasusedtoproduceother(nonͲOCTG)welded products.butwere4.18.1percentoneyearearlier.S.0percentin2012.9percentin 2010to5.comparedwith24.Theselevels ofinventoriessuggestthatU.S.Theproportionremainedthesameininterim2012and2013at17.

4percentofapparentU.701ͲTAͲ463(Final).S.000shorttonsin2010to1.Thailandwasthesmallestsubjectsource(0.CountryͲbyͲcountrydatawereavailablefor productimportedintotheU.000shorttons).Taiwan.butaddedcapacityto manufactureseamlessOCTGbeginningin2012. KoreanandVietnameseproducershadweldedOCTGcapacityin2010.5AftertheplacementofADandCVDdutiesonChineseproduct.000shorttons)thanininterim2012 (478.S.asarearrangedimportsforbetweenAprilandDecember2013.January2010.Thailand.whereas theindustriesinSaudiArabia.TheindustriesinKorea. IIͲ6 . 6 Importsfromsubjectcountriestendedtobelargelyorexclusivelyweldedorexclusivelyseamless OCTG.theindustryinSaudiArabiaaddedcapacity tomanufactureweldedOCTGin2012. countervailingdutiesonOCTGimportedfromChinaenteredintoeffect.ThelargestsourceofOCTGimportsfrom subjectcountriesthroughoutthisperiodwasKorea.Thequantityoftheexportsvariedbycountry.6 Subjectimportsincreasedfrom17.8millionshorttonsin2012. subjectimportsincreasedfrom851.andantidumping dutiesfollowedinApril2010. However.subjectimportswerelowerininterim2013(440.InvestigationNo. 5 CertainOilCountryTubularGoodsfromChina.andTurkeyarrangedimportsofonlyweldedOCTGtotheUnitedStates.marketsforallsubjectcountries(tableIIͲ4).andUkrainearrangedimportsofonlyseamlessOCTG.whereasithadpreviouslyonlyhadseamlesscapacity.the Philippines.4percent)in 2012.0percentofthequantityofapparentU. consumptioninthefirstthreemonthsof2013.S.USITC Publication4124.3percentin2012.whichrepresented***percentof apparentU.S. consumptionin2010to25.consumptionin2012.Atthebeginningof2010.andrepresented26.The industriesinIndiaandVietnamarrangedimportsofbothtypesinAprilthroughDecemberof2013.Conversely.Subjectimports SubjectimportsofOCTGhaveincreasedsince2010.

0 2012 771.0 3. and inventory level increase their ability to 54.6 9.437 *** 77. market in the event of a price change.1 44.6 1.594 *** *** *** 2011 *** 96.7 0. 2013 *** 25.5 percent of U.3 imports in 2012. These factors indicate that Taiwan producers may have some ability to increase shipments to the U.2 2010 955. which may increase the ability to 94.6 shipments to the United States.7 2. it has the 96. market. Its low inventories and limited alternative markets reduce its ability to 96.S. Korea: Jan. capacity utilization.166 *** n/a *** *** 11. The *** of sales are exports to the United States.0 of OCTG since 2010. Philippines: The producer in the Philippines had the -.-Mar..S. Producers in Saudi Arabia have been adding capacity and *** project this to continue. total shipments to the U. imports from Taiwan.7 2012 1.9 1.2 42.273 *** 74. *** market. low capacity utilization. and overall capability to shift sales to the United States Year Sales to Total U. market.S.217 *** 37.7 47. market India: 2010 555.7 0.089. however. 2013 *** 70. . Inventories markets capacity imports1 Capacity to utilization shipments Home U.973 Table continued on the next page. capacity remained constant.6 5.157. inventories. sales to its home market and the U. *** *** *** India was the third-largest source of subject 60. Inventories held by *** Taiwan producers are relatively low.S. market. 2013 194.2 8. market.5 2012.4 supply the U.1 5. but are still *** moderately-sized.576 *** *** *** Jan.7 increase shipments to the U. 2013 Korea has been the largest source of imports 98.0 4.8 2010 0 0 -- -- -- 2011 *** 23.S.S.878 *** 66. *** inventories were *** reported. Indian production and capacity utilization was just greater than half of what it was in interim 47.4 28.354 *** 49. but *** of it its output was shipped to the United States in 2011-12.Table II-4 OCTG: Capacity. Short tons Percent Factors influencing supply responsiveness to changes in the U. but capacity utilization peaked in 2011.S.S.933 *** n/a *** 2012 Jan.7 Jan. These factors indicate a relatively low ability to increase shipments to the United *** States.-Mar.761 *** 62. Saudi Arabia: Saudi Arabia has a relatively large home *** market. In interim 2013.-Mar. the home market is small. thus increasing the ability to ship to the United States. Indian producers’ moderate 45. 2013 *** *** *** *** *** 2010 *** 56.0 294.9 4.8 2011 1.S.-Mar.376 *** 34. Ending inventories have been declining and were lowest in interim 2013.850 *** 49.-Mar.399 *** n/a *** 2010 *** *** *** *** *** 2011 *** *** *** *** *** 2012 *** *** *** *** *** Jan. *** high capacity utilization moderates this ability. and most production is *** shipped to the U.5 2011 748. increasing capacity.3 increase its supply the U.smallest capacity among subject producers and the highest capacity utilization in 2012 *** and interim 2013.S. India’s home market accounts for about half of its sales.S. Taiwan: IIͲ7 Based on foreign producers’ data covering *** 95.9 largest capacity to produce welded OCTG and Korean producers recently added seamless capacity.403 *** *** *** 2012 *** 106. However.

Vietnamese foreign producers responding to the questionnaires exported *** percent of Vietnam’s reported imports to the United States.sales of subject OCTG to the United States over 2010-12 and in 2012.S. Each of these factors decrease Turkish producers’ ability to increase shipments to the *** U. All of the Thai *** producer’s shipments were of seamless OCTG. One of the producers. market.561 *** *** *** The responding Thai producer had the fewest -.222 *** *** *** 2011 *** 140. but its *** capacity utilization increased in 2010-12.833 *** *** *** Jan. market and has maintained a high capacity utilization rate *** despite increasing capacity levels. 2013 *** 24. market Thailand: 2010 0 0 -- -- -- 2011 *** 6.S. *** however.S. with *** percent *** shipped to the United States since 2010.806 *** *** *** 2012 *** 152.135 *** *** *** 2012 *** 31.997 *** *** *** *** 37. For further information.-Mar. Utilization was lower in interim 2013. but inventories *** are low. ***. sales to various markets and overall capability to shift sales to the United States Year Sales to Total U. total shipments to the U. 8-9. market.–Foreign producer data for most subject countries cover the majority of imports into the United States in 2012: ***. Source: Compiled from data submitted in response to Commission questionnaires. *** capacity utilization and *** ending inventories increase Thai producer’s ability to shift shipments to the U. market *** may decrease the ability to increase supply to the U.S.-Mar. market.424 *** *** *** 2010 *** 85.217 *** *** *** 2010 *** *** *** *** *** 2011 *** *** *** *** *** 2012 *** *** *** *** *** Jan.S. Ending inventories were *** percent of total *** shipments in interim 2013.-Mar. pp. market. Respondent SeAH Vina’s postconference brief. Short tons Percent Factors influencing supply responsiveness to changes in the U. but still *** above *** percent. Inventories markets capacity imports1 Capacity to utilization shipments Home U.Table II-4--Continued OCTG: Capacity. *** quantities already sold to the U. The existence of large third-country markets indicate that producers in the Ukraine could increase shipments to the U. 2013 *** 3. imports are from official Commerce statistics. Turkey: Producers in Turkey shipped over *** percent of *** their OCTG to the U. *** though only *** more tons than in interim 2012. market.S.-Mar.444 *** *** *** Jan. This indicates producers in Ukraine have some ability to increase their *** shipments to the U. Vietnam: Producers in Vietnam had the largest increase *** in shipments to the United States between 2010 and 2012.S. see Part VII. capacity utilization. Vietnam does not have any *** developed hydro-carbon mining. Ending inventories were highest in interim 2013.   IIͲ8 .S. 2 This capacity figure does not include data for three producers in Vietnam which did not respond to the Commission’s questionnaire but were in operation and exporting during 2012. All other data are from the foreign producers’ questionnaires and reflect the coverage provided in the foreign producer questionnaires. so all production is exported.S.S. Note. 1 U.697 *** *** *** 20122 Jan. 2013 *** *** *** *** *** 2010 *** 145 *** *** *** 2011 *** 56. inventories. Ukraine: Ukrainian capacity did not change.S. 2013 *** 219. market.S.

distributors.DistributorswilltypicallystockOCTGfromproducersandimporters.InventoriesincreasedirregularlybetweenDecember2012andMarch2013.7percentin2012.afireintheproductionplant.theavailability/inabilitytosupplyofpremiumandsemiͲpremiumthreads.canceledordersduetodelayedshipmentsand decliningprices.lessOCTGwillberequiredfromproducersand importers.reachingover3.CanadaandJapanwerethe secondͲandthirdͲlargestsourcesofimportsofOCTGintotheUnitedStatesin2012. logisticalissues.Theother13importersattributedsupplyconstraintstoissuesincluding:an allocatedshareofproductioncapacitylimitingthenumberofcustomersthatoneimporteris abletoserve.Japan.January2010.3percentofapparentU.beingonallocationfromthemill.consumptionin2010.  7 CertainOilCountryTubularGoodsfromChina.consumption. anddecreasedto24.S.Supplyconstraints ThirtyͲoneof44respondingimportersstatedthattheyhadnothadanyconstraintson theirsupply.S.andtheneedforthe milltoorderbloomsspecificallyforOCTGorders.  Nonsubjectimports Nonsubjectimportsaccountedfor29.  Inventories Inventoriesarehelddomesticallybyproducers.S.inmillionsoftonsandthenumberofmonths ofinventoryonhand(basedonoperatorconsumption).although CanadaandArgentinawerethesecondͲandthirdͲlargestsourcesofimportsofOCTGintothe UnitedStatesinJanuary2010ͲMarch2013behindKorea.Inventorylevelsbothintermsof tonnageandmonthsonhandreachedatroughinJanuary2012.FigureIIͲ1andTableIIͲ2. IIͲ9 .Mexico.Overall.Eachofthesecountriesisrelated toatleastonedomesticproducerordistributorofOCTG.aninabilitytosource“P110regularandHCpipe.TheleadingnonsubjectsourcesforU.Germany.butthenincreaseduntil October2012.importers. Wheninventoriesareperceivedtogettoolarge.7andwascontinuingtodecreaseatthestartof2010.andtry tomaintaininventorylevelsthatareneithertoosmall(riskingmisseddeliverytimeframesor lostsales)ortoolarge(riskingpricefluctuationsthataffectthevaluationofanyheldstock).Thenumberofmonthsofinventoryon handhadreachedapeakpriorto2010.andendusersin theUnitedStates.andArgentina.InvestigationNo.InJanuaryͲMarch2013.USITC Publication4124.5percentofapparentU.701ͲTAͲ463(Final).anexclusivecontract.soitinfluencesbothsupplyanddemandofOCTG. FigureIIͲ1presentstheinventoryonhand.8milliontons(16months)inearly 2009.nonsubjectimportsaccounted for18.”lackofheattreatingfacilities intheUnitedStates.imports ofOCTGareCanada.

p.asthhenumbero ofstoragefacilitieshave increased d.USITCPublicatio on4124.especiallyyoutsideofTTexas.itisllikelythatchhangesinthepricelevellofOCTGwiill resultinasmallchan ngeinthequ uantityofOC CTGdemandded.IIIͲ4.pp.8Atthesstaffconfereence.S.91(Kaplaan). January 20 010-March 20 013 Source: Prreston Publishin ng Co. IIͲ10 .Figure II-1 OCTG: U.bassed onincreaasedsupplychainefficie enciesandadecreaseinthevariety ofOCTGuseedinextractting shaleoilandgas. 9 Confe erencetransccript. inventory y levels and months’ m sup pply on hand d.aandthreem monthsofinvventoryisprreferred.  Demand D U.petitionerstestifieedthatfive monthso ofinventoryispresentlyytoomuch.dem mand Basedonavailableinform mation.701ͲTAͲ4663(Final).ittwasnotedtthatmarkettparticipantsprefertossee inventoriiesatorbelo owsixmontths.39Ͳ4 40(Lowe)and dp.S.Janu uary 2010. In nthepreviou usOCTGcassein2010.  8 OilCo ountryTubula arGoodsfrom mChina.Themaaincontributtingfactorstto thesmalldegreeofrresponsivene essarethelackofsubsttituteproducctsforOCTG GandthatOCTG represen ntsasmallto omoderateccostsharefo ormostofittsendͲuseproducts.9Re espondentsd disagreedw withthisasseessmentandtestifiedthaatthepreferred levelofin nventorieso onhandisarroundfivem months.InvN No.

 Atthebeginn A ningoftheperiodofinve estigation.S.FFurtherUpwaardMomentu umLimited. Then numberofrrigshasfollowed asimilarpattern(figu ureIIͲ4).GDPin ncreasedineeachquarterbeginninginJulyͲ Septemb ber2009..July10.aandisderiveed fromthedemandforrhydrocarbo on(oilandn naturalgas)eexplorationanddrilling.economy. Accordingto A datafromP PrestonPublishing. U. 11 IIͲ11 .. 12 “Jun neOCTGPrice esPostSurprisingUptick.byratesbetwe een0.thefo ootagedrilleedincreased dbetween2010and201 11.2 2013.BlueChipEEconomic IndicatorrsforecaststthatrealGDPwillgrowb by***perceentforfullͲyyear2013(in ncluding**** percentiinthethirdq quarterand***percenttinthefourtthquarter)aand***percentin2014 4.1and4 4.1percent(figureIIͲ2).bythe epriceofoillandnaturalgas.ameasureeof tonnageofOCTGuse ed.OCTG Goperatorcconsumption n.”SSteelMarket Intelligencce.Theamoun ntof drillingissinfluenced. January 2 2009March 20 013 6 Percentagechange 4 2 0 Ͳ2 2 Ͳ4 4 Ͳ6 6 2009 2010 0 2011 2012 2013 GDP Source: Bu ureau of Econo omic Analysis.11 Sincethaattime. butdeclinedin2012(figureIIͲ5).thetotalprroductionof naturalggasandoilhaasincreased daswell(figu ureIIͲ6). 10 BlueeChipEconom micIndicatorss.201 13.U. Shad dinginthefigguresidentifie esperiodsoutsidetheJan uary2010ͲMarch2013tim meframe.operratorconsum mptionhasb beendecrea singirregulaarly.S.S.increased dbetweenJanuary20100andNovem mber2011(ffigureIIͲ3).OCTGconsumption nhas 12 decrease edapproximately14perrcentintheffirsthalfof22013.atleastparrtially.t heUnitedSttateswasreecoveringfro om therecen ntrecession(figureIIͲ1). 13 Base edondatafro omtheEnergyInformation nAdministrattionandestim matesfromO OilandGasJournal.June27.Sim milarly.13Asthenu umberofrigssincreased. by quarterrs. U Departme ent of Commercce.Demanddeterminan nts DemandforO D OCTGisdrive enbythelevvelofactivittyintheU..10 Figure II-2 OCTG: Pe ercent chang ges in real grross domesttic product (G GDP) growth h.

Janu uary 2009-Ma arch 2013 Source: Prreston Publishin ng Co.. w Janu uary 5. various s issues. monthly. weekly.Figure II-3 OCTG: Operator O cons sumption. 2007-J July 12. 2011--2013. IIͲ12 . 2013 3 Source: Ba aker-Hughes North America Rotary R Rig Cou unt. Figure II-4 OCTG: Baker-Hughes s rig count.

2007-12 2 Source: En nergy Information Adminstration. 2012 a and Jan.Figure II-5 OCTG: To otal feet drillled. Jan. and Oil and d Gas Journal. yearly. 7. monthly y. 9 90 8 80 7 70 6 60 5 50 4 40 3 30 2 20 1 10 0 0 200 09 2010 2011 2012 Crude e oil production 2013 201 13 E** 2014 E* D Dry natural gas prroduction Source: En nergy Information Administrattion. January 20 009-June 201 13. 201 13 (2011-12 da ata). estimated d July 2013 3-December 2014 . 9.  IIͲ13 Billion cubic feet per day Million barrels per day Figure II-6 OCTG: Crude oil and dry natural gas g production.

p. 16 Confferencetransscript. January y 2009-June 2 2013.althoughccontinuedprriceincreaseeswill likelybelimitedasm morecapacityycomesonlineinNorthhAmerica.176(Dougan).e.ass somelen ngthsofhorizontalwellscanreach2 2miles.andtheprroportionisnow approxim mately80percentoilrigssand20perrcentnatura lgasrigs(figgureIIͲ8). Althoughope A eratorconsu umptionhasbeenfallinggsincelate22011.Marketpartticipantsattthestaffcon nferencenottedthatthe increased duseofhorizontaldrillin ngonshaleplayshasleddtoanincreeasedneedfforOCTG. Figure II-7 OCTG: Crude oil (WT TI) and natura al gas (Henry y Hub spot) p prices.fro om20perceentoftotalrrigs 14 Confferencetransscript.p. montthly.”SSteelMarket Intelligencce.8percentin2014.thenumberrandproporrtionofrigsd devotedtoo oilproductio on increased d(figureIIͲ7 7).morethhan80perceentofrigsin ntheUnited Stateswe eregasrigs. “Jun neOCTGPrice esPostSurprisingUptick.andby2.3percentinthesecond d halfof20 013. responde entstestified dthattheriggcountisexxpectedtoinncreaseby44.FFurtherUpwaardMomentu umLimited.thequantityofOCTTGusedinoiilandnaturaalgasexplorrationand extractio onisdetermiinedbythenumberofrigsthatareoperatingasswellastheelengthand depthofthewellsbe eingdrilled.horizontal..ord directional).A Asshownin nthisfigure.263(Fowler).16FiigureIIͲ9dissplaystheprroportionofrigs bydrillingtype(i.Thenumbero ofrigstypicaallyrespondstothepricceofnaturalgasandoil.2 2013.somessignshave pointedttoincreased dconsumptio onintheseccondhalfof2013. estimated d July 2013-D December 20 014 Source: En nergy Information Administrattion.Attheestaffconfeerence.Thischange eisseenstarrtingin20099.14O Oneindustryypublication nnotedthatJuneOCTG pricesexxperiencedth heirfirstincreasesinceMarch20122.Between2002and20 009.Asthepriceeof oilincreaasedbeginningin2009.June27.theproporttion ofrigsthatemployh horizontaldrrillinghasinccreasedsubsstantially. 15 IIͲ14 .vvertical.155 Asnotedearl A lier.

by y drilling type e.reaching65pe ercentinFeb bruary2013beforebeginningtodeeclineslightlyy. rigs.  Figure II-8 OCTG: Proportion of U. rigs dev voted to natu ural gas and d oil mining. Figure II-9 OCTG: Proportion of U. Jaun nary 2009-Ju uly 2013 Source: Ba aker-Hughes North America Rotary R Rig Cou unt.Th heproportio oncontinued dto climb.horizontaldrilllingaccountedfor60pe ercentofdom mesticdrillin ng.atthebe eginningof2 2007.S. January 20 007-July 201 13 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1/5/2007 1/5//2008 1/5 5/2009 1/5/2010 1 Directionall 1/5/2011 Horizontaal Source: Ba aker-Hughes North America Rotary R Rig Cou unt.to48p percentatth hebeginninggof2010. w weekly.S. IIͲ15 Vertical 1/5/2012 1/5/2013 .AsofJuly 2013.

theremaybesomeseasonality 17 ***producerquestionnaireresponse.whenexplorationbudgetshavebeenexhaustedandfirmsseektoreduce taxexposureoninventorieslocatedinHouston.consumption waslowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012(1.0millionshorttonsin2010to7.S.demandforOCTG washigherorlowerduringanyparticularseason.Amongthosefirmsthatreportedthatdemandhad fluctuated.producers(11of14)andimporters (26of44)reportedthattherearebusinesscyclesorseasonalityinOCTGdemand.S. producers Importers Source: Compiled from data submitted in response to Commission questionnaires. IIͲ16 .Producer***described2010to2012as“probably thebestthreeͲyearperiodforOCTGdemandinthiscountrysincethe1980s.themajorityofrespondingproducers(9of11)andimporters(26of45)reportedthat demandforOCTGhasincreased(tableIIͲ5).consumptionofOCTGincreased from5.Someproducersandimportersnotedthatdemand hasnotincreasedinrecentmonths.S. Table II-5 OCTG: U.reasonscitedincludedchangingrigcounts.Inparticular.7millionshorttons.9millionshorttons). producer and importer responses regarding the demand for OCTG in and outside the United States since 2010 Number of firms reporting Item Increase No Change Decrease Fluctuate Demand in the United States: U.S.Incontrast.apparentU. comparedwith1.  Demandperceptions WhenaskedhowdemandforOCTGhaschangedwithintheUnitedStatessinceJanuary 2010.thereisadecreaseinOCTGdemandat theendoftheyear.”17Reasons providedbyproducersandimportersmostlyfocusedonincreasedhydraulicfracturingand increaseddrillingduetoincreasedoilprices.Apparentconsumption Similartothetrendsinconstruction.and increasedoil/decreasedgasexploration.  Seasonalityandbusinesscycles MarketparticipantsatthestaffconferencewereaskedwhetherU. producers 9 0 2 3 26 3 3 12 8 0 1 4 16 6 1 8 Importers Demand outside the United States: U.S.MostU.***reportedthatitestimatesthatdemandintheUnited Stateswillincreaseby2percentin2012Ͳ14.Some seasonalitywasnotedintheUnitedStates.S.2millionshorttonsin2012.S.ApparentU.fluctuatingrawmaterialcosts.

  DemandoutsidetheUnitedStates MostU.andtheGulf CooperationCouncilcountries.Importer*** stated.Importers***reportedthatOCTGaccountsfor10percentofthecostof oil/gaswells.markethasincreasedsinceJanuary2010.andincreasedoilandgasexplorationactivity.whileJanuaryandFebruaryaretypicallybusy.S.Producer***statedthatOCTGaccounts for15percentofthecost.S.OnepossiblesubstituteforOCTGiscoiledtubing.thatthiswasverylimitedandwouldnotlikelyhaveanyeffectontheOCTG market.fiveproducersand21importersreportedthatOCTGaccountsfor100percentofthe endͲuseproductinwhichitisused.*** 18 Conferencetranscript. increasedglobaloilandgasdrilling.asnotedby***.and***statedthatOCTGaccountsfor85percentofthecostofoil andgasdrilling.p.globaldemandisprojectedtoincreaseslightlyfrom2012to2014.247(Brewer)and***producerquestionnaireresponses.SaudiArabia.  Substituteproducts Thirteenof14U. ***stated.andworkoversofbothnewandoldwells.20Producers***notedthatOCTGaccountsfor7to 8percentofthecostofoilandgasdrilling/extraction.Reasonsforincreasingdemand reportedbyproducersandimportersincluded:moreefficientdrillingtechniques.18 Themajorityoffirmsnotingtheexistenceofseasonalityorbusinesscyclesreferredto theenergycycleanddemandfactorscitedearliersuchasoilandgaspricesandrigcounts.19 Importer***statedthatlinepipecouldbeusedassurfacecasinginshallowwellswithlittle pressureandimporter***statedthatexpandablecasingcouldbeusedinlinerandcasing. Producer***reportedthatthedegreeofwetweatherinthespringcandecreasedemandin thenorthernUnitedStates.withrespecttoincreaseddrillinginthewinterinCanadawheniceallowstransittomore remotelocations.  Costshare OCTGaccountsforasmallshareofthecostoftheendͲuseproductsinwhichitisused.Importer***statedthatOCTGaccountsfor25percentofthecostofoilandgas exploration.producers(8of13)andmostimporters(16of31)reportedthatdemand outsidetheU. Industryfirmsgavehighlyvaryinganswers.“Demandhasgenerallyincreasedincertainmarketsandithasdecreasedinothers.S.Chinese.Brazil.Importer***statedthatNovemberandDecemberare typicallyslow.however.however.andRussianwellsdrilled. 19 IIͲ17 .increased horizontalwelldrilling.whichcouldbeusedin wellinterventions.Iraq.additionaldemandinAustralia. 20 Inaddition.Importer***alsoindicateda slowdownattheendoftheyear.producersand38of40importersreportedthatthereareno substitutesforOCTG.Importers***notedthatthereisincreasedactivityduringthe summerandlessduringthewinter.increasedCanadian. Overall.completions.

3percent)ismadeonaproducedͲtoͲ orderbasis..8percentacrossallsubjectcountries) werealsomadeonaproducedͲtoͲorderbasis.p.itcanbecertifiedtousetheAPIstamponitsproducts.Infact.).availability.etc.  Factorsaffectingpurchasingdecisions Anumberoffactorsinfluencepurchasers’decisionsregardingthesourceoftheOCTG theybuy.21  Suppliercertification Domesticproducersnotedatthestaffconferencethatsuppliersdonotneedtoget certifiedbyindividualpurchasers. Amajorityofimporters’shipmentsofOCTG(61.estimatesthatOCTGdemandwillincreasebyaboutlessthan10percent.g.22Rather..g.theaverageleadtimeincreasestonearly***days.ͲproducedOCTGandthatimportedfrom subjectcountries.ReceivingAPI 21 Datafor***arenotincludedinthesedata.andconditionsofsale(e.Onlyimportsfrom***weresoldfrom importers’inventoriesamajorityofthetime(***percent).  Leadtimes ThemajorityofdomesticproductionofOCTG(88.andaveraged13½daysacross10respondingimporters.OCTGmustmeettherequiredAPIspecificationfortheproject.etc..productservices.Itreportedleadtimesfromitsinventoriesof***. Forsalesfrominventory.SomeprojectsrequiretheOCTGbeproducedbyacertain process(i.seamless).leadtimesrangedbetween1and30days.thecasingandtubingunderconsiderationmust meetthegradestandards. 22 Conferencetranscript.With thesedataincluded.Basedonavailabledata.physicalcharacteristics.Aslongasamill’sorprocessor’sfacilitymeetstheAPI’s specifications. IIͲ18 .consistency.andmustbeofan acceptablequalitytothepurchaser.120(MillerandSchagrin).leadtimesforproducedͲtoͲorderOCTGrangedfrom2to6monthsandaveraged4 months.quality(e.staffbelievesthat thereisahighdegreeofsubstitutabilitybetweenU.).Domesticleadtimesfor producedͲtoͲorderOCTGrangedbetween1and4months.withanaverageofalmost2months.e.tubingandcasing typeandgrade.Importsfrom***werealsothe onlyimportsthathadaportion***.Muchofthisincrease.ImportedOCTGfrom***werelessoftensoldona producedͲtoͲorderbasis(***percent)thanthosefrom***(***percent).Leadtimesandavailabilitywerealsonotedasimportantfactors determiningpuchasers’sourcingdecisions. however.willbeinmarketsthesubjectimportscannotserve.Forthoseshippedfromimporters’inventories.reliabilityofsupply.averaging12days.S.leadtimerangedbetween2daysand1 month.payment terms.Acrossallsubject countries.”  SUBSTITUTABILITYISSUES ThedegreeofsubstitutionbetweendomesticandimportedOCTGdependsuponsuch factorsasrelativeprices.pricediscounts/rebates.allsalesofOCTGby***areproducedͲtoͲorder.

  23 Conferencetranscript.dependingontheprocessforwhich certificationissought(e.” “sometimes.certificationtypicallyrequiresfourtoninemonths.S.S. producersandimporterswereaskedwhethertheproductscan“always.alsoreportedthatU.purchaserapprovalandimportslessacceptedatlargecompanies(2 importerseach).threading.g.seamlessOCTG(notedby8importers).butbetweenfiveandnineimportersalsoindicatedthat subjectimportsanddomesticproductionwere“sometimes”or“frequently”interchangeable.23  Comparisonsofdomesticproducts.ͲproducedOCTGcangenerallybeusedinthesame applicationsasimportsfromtheninesubjectcountriesaswellasothercountries.248(Brewer). Factorscitedbyimportersaslimitinginterchangeabilityincluded:issueswithrespecttowelded vs.oneimporter(***)statedthata producer’scontinuedmaintainanceofanAPIcertificationisanindicationthatproductsshould beofsimilarquality.”or“never”beusedinterchangeably.heattreatment.A pluralityofimporters.qualityissues(7importers).”“frequently.subjectimports.S.sizesand connections(3importers).grades.andimportedproductwas“always” interchangeablewithdomesticOCTG.Inaddition. IIͲ19 .U.andprogramsales(1importer)..andnonsubjectimports Interchangeability TodeterminewhetherU.p.AsshownintableIIͲ6.mostproducers reportedthatproductfromallcountrypairswas“always”or“frequently”interchangeable.ormanufacturing).

Turkey 8 0 0 0 9 5 7 Korea vs. Philippines 10 1 1 0 13 5 6 U. vs. Taiwan 8 0 0 0 8 6 5 Saudi Arabia vs. Thailand 8 0 0 0 9 4 6 Korea vs.S.S. Ukraine 8 0 0 0 8 5 6 Philippines vs. Ukraine 8 0 0 0 8 6 5 India vs.S.Table II-6 OCTG: Perceived interchangeability between product produced in the United States and in other countries. vs. Thailand 8 0 0 0 9 4 5 India vs. Taiwan 8 0 0 0 8 6 7 Korea vs. Vietnam 8 0 0 0 9 6 6 Saudi Arabia vs.S.S. vs. Taiwan 10 1 0 0 12 5 7 U. subject countries: India vs. Vietnam 8 0 0 0 9 6 7 Philippines vs.S. Saudi Arabia 8 0 0 0 9 4 5 India vs. Ukraine 8 0 0 0 8 7 5 Table continued on next page. IIͲ20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .S. India 11 2 0 0 14 5 8 U. Turkey 8 0 0 0 9 5 6 Philippines vs. by country pairs Number of U. Philippines 8 0 0 0 10 5 5 India vs.S. vs. vs. subject countries: U. vs. vs. Turkey 10 2 0 0 13 5 7 U. Thailand 8 0 0 0 8 4 5 Saudi Arabia vs. Saudi Arabia 8 0 0 0 8 4 6 Korea vs. vs. vs. importers reporting reporting Country pair A F S N A F S N U. Vietnam 8 0 0 0 9 5 6 Korea vs. Turkey 8 0 0 0 9 5 6 Saudi Arabia vs. Korea 10 2 0 0 14 7 9 U. Ukraine 8 0 0 0 8 5 7 Korea vs. Thailand 8 0 0 0 9 4 5 Philippines vs. producers Number of U.S. Taiwan 8 0 0 0 8 6 5 Philippines vs. Saudi Arabia 10 1 0 0 13 5 5 U. Korea 8 0 0 0 9 4 6 India vs. Philippines 8 0 0 0 10 6 6 Korea vs.S. Thailand 10 1 0 0 13 5 5 U. Taiwan 8 0 0 0 8 5 5 India vs. Turkey 8 0 0 0 10 6 5 India vs. Ukraine 10 1 1 0 11 7 6 U. Vietnam 10 1 1 0 12 6 8 Subject vs. vs.S. Saudi Arabia 8 0 0 0 8 4 5 Philippines vs.S.

109(Matthews)and261(Brewer).seamlessOCTG TherearecertainapplicationsinwhichweldedandseamlessOCTGcannotbeused interchangeably. Vietnam 8 0 0 0 8 7 5 Thailand vs.S. Vietnam 8 0 0 0 8 5 6 Taiwan vs.whichcouldaccountforanestimated10percentofthemarket.the projectengineers’preferencecanbeadecidingfactor. importers reporting reporting Country pair A F S N A F S N Subject vs.highstressapplicationssuchassour service.Ataminimum. Vietnam Turkey vs. Ukraine Turkey vs.Witnessesforrespondentsnotedthat 24 Conferencetranscript. nonsubject Ukraine vs. nonsubject Turkey vs. nonsubject Thailand vs. nonsubject Vietnam vs. nonsubject countries: Combined India vs.Table II-6--Continued OCTG: Perceived interchangeability between product produced in the United States and in other countries.25Petitionersfurtherstatedthatbeyondthat. Source: Compiled from data submitted in response to Commission questionnaires.Vietnam Subject vs. Vietnam Ukraine vs. F=Frequently.109(Matthews). N=Never.24Thesameisnottrueinreverse. by country pairs Number of U.  Weldedvs.SeamlessOCTGcouldbeusedinanyapplicationwhichrequiredwelded OCTG.pp. nonsubject Philippines vs. Turkey Thailand vs.AwitnessforpetitionersestimatedthatweldedOCTGcouldbeusedfor70percentof seamlessapplicationsandawitnessforrespondentsnotedthattheyareinterchangeablein manycasesfromanengineeringperspective. Ukraine 8 0 0 0 8 5 7 Taiwan vs.requireseamless OCTG. subject countries: Saudi Arabia vs. nonsubject Saudi Arabia vs. 25 IIͲ21 . Ukraine Thailand vs. nonsubject Taiwan vs.p. S=Sometimes.—A=Always.S. nonsubject 0 0 0 0 0 8 8 8 8 8 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9 8 9 8 9 8 5 5 5 5 5 6 6 6 6 7 7 6 0 0 0 0 0 0 8 6 6 6 6 6 6 6 6 6 2 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10 7 7 7 7 7 7 7 7 7 9 7 7 7 8 7 6 7 7 8 8 5 6 5 5 5 5 5 5 6 0 0 0 0 0 0 0 0 0 0 Note. Thailand 8 0 0 0 8 4 6 Taiwan vs. Conferencetranscript. nonsubject Korea vs. Turkey 8 0 0 0 8 5 7 Taiwan vs. producers Number of U.

 34 Conferencetranscript. 30 Conferencetranscript.asnotedby firmsuchasimporter***.119Ͳ120(Schagrin).pp.p.Qualitycanvarybymill.27 Asnotedearlier.highcompression. 27 IIͲ22 .andtheyhavevirtuallynocompetitionin fortheseproducts.”34Initsquestionnaireresponse.2013. Conferencetranscript. AnincreasingfocusofdomesticOCTGdemandhasbeenhigheralloygradesofOCTG suchasP110.APIcertificationconfirmsthatthepipemeetsspecifications.pp.263Ͳ264(BlombergandFowler). 33 Conferencetranscript.exceptforthoseat thetopendoftheproductrange.includingthatfromsubjectcountries.p.35Awitnessforrespondentsnotedthatalloygradesarenotimportedtothe 26 Conferencetranscript.Petitioners contendthatifapipemeetstheAPIspecificationthenitisinterchangeable.pp.165(Fowler)and188(Sumer).137(Snyder).136Ͳ137(Thompson).”MetalBulletinResearch.32Another witnesstestifiedthathisfirmhadlostasaleofOCTGwithsemiͲpremiumthreadingtoOCTG importedfromKorea.and“TheFiveYearOutlookforthe GlobalOCTGIndustry.  Premiumconnectionsandalloygrades AnincreasingproportionofdemandintheUnitedStatesreportedlyrequirespremium orsemiͲpremiumconnectionsorthreads.APIspecifications.28  Quality OCTGistypicallyproducedtomeet.p. 35 Conferencetranscript.26TherehasbeenanincreasedpreferenceforseamlessOCTGsinceincidentssuch astheBPMacondooilspillin2010.165Ͳ166(Fowler).pp.137(Thompson). 31 Conferencetranscript.p.incontrast.whichmaylimitsubstitutabilityamongsubjectcountries.S. 32 Conferencetranscript.marketplace.butdoes notimplyalevelofqualityoftheOCTG.seamlessproduction. importer***indicatedthatpremiumconnectionsarenotavailablefromKorea.since“noneofthesuppliersinthecountrieslistedinthepetitionimported proprietarypremiumconnectionstotheU.Awitnessforpetitionersestimatedthat80percentof threadsare“commoditytype.engineers’preferenceforahigherͲpricedseamlessproductmaybeduetoapreferenceto reducerisk.249(BrewerandCameron). 29 Conferencetranscript.263(Fowler).pp. 28 Formoreinformationregardingweldedvs.subjectcountrieshavetypicallyimportedeitheronetypeofOCTGor theother.29Awitnessforpetitionersestimatedthat90to95percentof OCTGisofa“commoditytype”gradefromapipebodystandpoint.ifnotexceed.”andthatsemiͲpremiumorpremiumthreadscanbeaddedto weldedorseamlesspipefromanysource.31Oneproducerandsevenimportersindicatedthat qualityissuesareasignificantfactorintheirsalesofOCTG.33 WitnessesforrespondentstestifiedthatpremiumandsemiͲpremiumthreadsandalloy gradesarebeingemphasizedbydomesticproducers.andbending.SemiͲpremiumandpremiumthreadsareusedin highͲstressapplicationssuchasoffshoreandinhorizontaldrillingandneedtowithstandhigh torque.seePartIII.30Awitnessforrespondents statedthat.

”and“never. 36 Conferencetranscript.pp.38  Differencesotherthanprice Producersandimporterswereaskedtoassesshowoftendifferencesotherthanprice weresignificantinsalesofOCTGfromtheUnitedStates.”“frequently.155Ͳ156(SchagrinandThompson).Echavaria. andSimon).Khandelwal.whenitwillbesupplied.McConnell.subject.domesticproducerwitnessestestifiedthatalargeproportionofsalesismade subjecttoprogramsales.36  Programsales ProgramsalesarenonͲcontractualobligationsbetweenmills.Programsalescanhelpminimizesupplychaindisruption.Atthestaff conference.p.butotherresponsesweresplitbetween“always.253Ͳ259(Brewer.” Importersprovidedsimilarresponseswhencomparingsubjecttononsubjectcountries’OCTG.withtheexceptionofsuppliersfrom Korea.morebasicupgradeableJ55pipeorgreentubes areimportedandthenheattreatedtoincreasethegradetoanalloygrade.withalargerincidence of“never”whencomparingsubjectcountrieswitheachother.Cameron.distributors.Apluralityofimportersreportedtherewere“sometimes” differencesotherthanpricebetweendomesticandsubjectimportsandbetweensubject countries.Importers’responseswere considerablymorevaried. 37 IIͲ23 .As seenintableIIͲ7.133(DuBois). Conferencetranscript.Fowler.andatwhat priceitwillbesupplied.Instead.nearlyallproducersreportedthattherewereeither“sometimes”or“never” differencesotherthanpriceforproductfromeachofthecountrypairs.andnonsubjectcountries.pp.UnitedStatesbythesubjectcountries.andendusers whichencompasswhattypeofOCTGistobesupplied. 38 Conferencetranscript.themajoritydonotparticipateinprogramsalesduetodifficultieswithbeingableto ensureonͲtimedeliveryinanindustrythatisincreasinglyneedingjustͲinͲtimedelivery.37Respondentsindicatedthat.

S. subject countries: India vs.S. Turkey 0 0 1 6 2 3 5 6 Philippines vs. Thailand 0 0 1 6 1 3 6 4 India vs. Vietnam Subject vs. Turkey 0 0 1 6 1 4 8 5 Korea vs. Taiwan 0 0 5 6 3 3 9 5 U. India Number of U. Turkey 0 0 6 6 3 4 12 4 U. Taiwan 0 0 1 6 2 3 6 6 Korea vs. vs. Ukraine 0 0 1 6 1 3 6 4 Philippines vs. Philippines 0 0 1 6 3 3 6 6 Korea vs. vs. Vietnam 0 0 1 6 2 3 6 6 Philippines vs. by country pair Country pair U. 0 0 1 6 1 4 5 5 IIͲ24 . subject countries: U. Saudi Arabia 0 0 1 6 2 2 5 4 India vs. Saudi Arabia 0 0 5 6 3 5 8 4 U. Thailand 0 0 1 6 1 3 6 4 Saudi Arabia vs. Korea 0 0 5 7 6 8 11 4 U.S. Philippines 0 0 6 6 3 5 8 5 U. Vietnam 0 0 1 6 1 3 5 7 Saudi Arabia vs. vs.S. Saudi Arabia 0 0 1 6 2 3 5 4 Korea vs. vs. Philippines 0 0 1 6 1 3 6 5 India vs.S.S. Thailand 0 0 5 6 3 4 9 4 U. vs. Thailand 0 0 1 6 2 4 6 4 Korea vs. Saudi Arabia 0 0 1 6 1 2 5 4 Philippines vs. vs.S. Taiwan 0 0 1 6 1 2 6 5 India vs. vs. Taiwan 0 0 1 6 1 2 6 4 Saudi Arabia vs.S. producers reporting A F S N Number of U. Thailand 0 0 1 6 1 3 5 5 Philippines vs. Korea 0 0 1 6 1 5 6 5 India vs. vs. Ukraine 0 0 1 6 3 3 6 4 Korea vs.S.S.S. vs. Turkey 0 0 1 6 2 3 6 4 Saudi Arabia vs. Ukraine Table continued on next page. Vietnam 0 0 1 6 1 3 6 5 Korea vs. vs. Ukraine 0 0 6 6 3 5 9 4 0 0 6 6 3 5 10 5 U. importers reporting A F S N 1 0 6 6 5 7 9 4 U.S. Turkey 0 0 1 6 2 3 6 5 India vs.Table II-7 OCTG: Significance of differences other than price between OCTG produced in the United States and in other countries. Ukraine 0 0 1 6 1 3 5 5 India vs. Taiwan 0 0 1 6 1 2 5 7 Philippines vs.

Turkey 0 0 1 6 2 4 5 6 Taiwan vs. F=Frequently. Vietnam 0 0 1 6 1 3 5 5 Turkey vs. nonsubject Philippines vs. subject countries: Saudi Arabia vs. IIͲ25 .Vietnam Subject vs. N=Never.S. nonsubject 0 0 2 4 1 2 6 4 Thailand vs. Turkey 0 0 1 6 2 3 5 5 Thailand vs. Ukraine 0 0 1 6 1 3 6 4 Thailand vs. by country pair Country pair Number of U. nonsubject 0 0 Note. nonsubject 0 0 0 0 2 2 4 4 1 2 2 2 6 6 3 3 Ukraine vs. Vietnam 0 0 1 6 1 4 6 4 Taiwan vs. Source: Compiled from data submitted in response to Commission questionnaires. Vietnam 0 0 1 6 2 4 5 6 0 0 1 6 1 4 7 4 0 0 7 4 2 5 12 4 Ukraine vs. S=Sometimes. Ukraine 0 0 1 6 1 4 6 4 Taiwan vs. producers reporting A F S Number of U. Ukraine 0 0 1 6 2 4 6 4 Turkey vs. nonsubject 0 0 2 4 1 3 6 3 Korea vs. nonsubject 0 0 2 4 1 3 6 3 2 4 1 3 6 4 Vietnam vs. importers reporting N A F S N Subject vs. nonsubject Turkey vs.--A=Always. Vietnam 0 0 1 6 1 3 5 7 Thailand vs. nonsubject countries: Combined India vs.Table II-7--Continued OCTG: Significance of differences other than price between OCTG produced in the United States and in other countries. nonsubject 0 0 2 4 1 3 6 3 Taiwan vs.S. nonsubject 0 0 0 0 2 2 4 4 3 1 2 2 6 6 4 4 Saudi Arabia vs.

 .

productionofOCTG.§§1677(7)(B)and1677(7)(C)).***.1Thirteenfirmsprovideduseable. TX N/A *** Drill Pipe International LLC *** New Hope.S.S.PRODUCERS TheCommissionsentU.SHIPMENTS.S. producers of OCTG.PARTIII: U. AL Pueblo.C. AL N/A *** *** Firm Mill locations Processing locations Share of production (percent) Position on orders Support Petitioner Table continued on next page. PA. U.andsharesoftotalproduction.PRODUCERS’PRODUCTION. CO Thomasville.S.petitionerWeldedTubedidnotproduceOCTGduringtheperiodforwhichdatawere requested.S. TableIIIͲ1listsU. related and/or affiliated firms and shares of reported production. Table III-1 OCTG: U.completedata ontheirproductiveoperations.InformationonallegedsubsidieswaspresentedinPartI ofthisreportandinformationonthevolumeandpricingofimportsofthesubjectmerchandise ispresentedinPartIVandPartV.Informationontheotherfactorsspecifiedispresentedinthis sectionand/orPartVIand(exceptasnoted)isbasedonthequestionnaireresponsesof13 firmsthataccountedforthevastmajorityofU.relatedfirms.producersofOCTG.AND EMPLOYMENT TheCommissionanalyzesanumberoffactorsinmakinginjurydeterminations(see19 U.thefirmanticipatescommencingproductioninAugust2013.   1 SixfirmsrespondedthattheydidnotproduceOCTG. type and location of production. however. MN New Hope.S. ***didnotprovideusabledata.***providedpartialdata.S.productionofOCTGduring2012. 2 IIIͲ1  . Inaddition. LLC Liberty.producerquestionnairestothe13firmsidentifiedinthe petitionandadditional22U. 2012 Boomerang Tube.2Staffbelievesthattheseresponsesrepresentthevastmajority ofU.typeandlocationofproduction.firmsthatmaintainAPIcertificationtomanufactureorprocess productsinaccordancewithspecification5CT.Thecompany.S.positionsonthe petition. OH.***arepresentedseparatelyattableCͲ2. MN *** EnergeX Tube1 EVRAZ Rocky Mountain Steel2 Support Petitioner *** Sharon.***.S. Warren. Finally. their positions on the petition. Thomasville.

10 Total 1 ***. OK Tejas Tubular Products. Houston. Conroe. TX Houston. 2 ***. OH. Inc. 5 ***. TX. Koppel. Lorain.-. Camanche. 4 ***. 2012 Mill locations N/A Processing locations Houston. type and location of production. 3 ***. AR. Texas Tubular Products *** *** N/A Lone Star. Support Petitioner *** *** Support Petitioner Stephenville. Baytown. NY N/A Source: Compiled from data submitted in response to Commission questionnaires. Inc. TX Muskogee. Ambridge. TX Support all. 9 ***. 7 ***.***. Inc. OH. Houston. excluding Saudi Arabia (no position) Petitioner TMK IPSCO7 Support Petitioner United States Steel Corporation8 Support Petitioner Vallourec Star. Bryan. Blytheville. related and/or affiliated firms and shares of reported production. excluding Saudi Arabia (no position) Petitioner Support Petitioner *** 6 *** *** Houston. Lone Star. their positions on the petition. TX. Houston. OK Note. LP9 Welded Tube USA. Inc. IIIͲ2 *** 5 *** 100. 10 ***. 6 ***.  *** Blytheville. Port Place. Catoosa. 8 ***. TX *** Bossier City. TX. AL. Wilder. OK *** Lackawanna. Position on orders *** Support all. AR.Table III-1--Continued OCTG: U. IA. KY Fairfield. PA. TX Texas Steel Conversion. Conroe. Muskogee. PA. OK N/A Houston. TX Share of production (percent) *** Hickman.S. Bellville. TX Sapulpa. TX . TX Hickman. TX Houston. OH Youngstown. TX Houston.0 . TX *** Youngstown. AR. TX. AR. LA. producers of OCTG. TX N/A Firm Laguna Tubular Products Corp.3 Maverick Tube Corporation4 Northwest Pipe Company OMK Paragon Industries.

Capacity increase: TMK IPSCO announces plans to build an OCTG threading facility at its 570.000 tpy rolling mill located in Bossier City.3 TableIIIͲ2summarizesindustryeventsregardingchangesinproductioncapabilityand investments. bankruptcy. TX ($1 billion investment). TMK IPSCO (Houston. IntheCommission’squestionnaire. Capacity increase: ***.asdiscussedingreaterdetailbelow.AsindicatedintableIIIͲ1.***subjectmerchandiseand ***thesubjectmerchandisefromU.acquisitions/mergers. up from 4-7 inches OD.S.orrevisedlaboragreementssinceJanuary1. Capacity increase: Tejas Tubular commissions a new welded OCTG rolling mill in Stephenville.JanuaryͲMarch 2013. Acquisition: OMK acquires Tubular Solutions.producerisrelatedtoaU. Capacity increase: Boomerang Tube begins commercial production of OCTG at its new 400. LA. MO) Northwest Pipe Co.U.S. OH.000 tpy seamless OCTG mill in Gregory.000 short tons-per-year (tpy) welded tubular products mill in Liberty. Capacity increase: ***. as well as threading and coupling stations. facility.plantclosings. The facility produces OCTG. Laguna U. The mill also produces limited quantities of welded line pipe. Capacity increase: U.importerofthesubject merchandise.      3 Certaincapacityexpansionsarenotreflectedinthetradedatareportedinthissectionofthereport becausetheyhavenotyetoccurredasofthelatestperiodforwhichdatawerecollected. line pipe.2010.S.acquisitions. Table III-2 OCTG: Important industry events. The second line allows the Brookfield facility to thread OCTG up to 13 inches in outside diameter (OD). change in production or capacity level. facility.expansions. TX. since 2010 Year 2010 2011 Company Northwest Pipe Co.prolonged shutdownsorproductioncurtailments. IIIͲ3  .producerswereaskediftheyexperiencedany plantopenings. TX.producer(***)isrelatedtoaforeignproducerofthe subjectmerchandiseandnoU. shutdown. TX) TMP IPSCO (Houston. followed by the construction of a rolling mill and electric arc furnace (EAF) steel-making facility.S. and standard pipe. rolling mill.) Capacity increase: Northwest Pipe begins producing OCTG at its Houston.S. etc. Steel Boomerang Tube (Chesterfield. The $*** investment added *** short tons of new heat treating capacity to the facility. Capacity increase: TMK IPSCO commissions a second 40. a processing and finishing facility.andshutdownssince2010.000 tpy welded rolling mill in Wilder.000 tpy OCTG threading line at its Brookfield. Capacity increase: Northwest Pipe ramps up production of OCTG and line pipe at its 150.S. ***.Inaddition. Description of event (merger. at its Lorain. TX) Tianjin Pipe Corp (China) Tejas Tubular Maverick OMK Table continued on next page. TX ($*** investment). OH. Steel completes the construction of an additional quench and temper line. Capacity increase: Tianjin Pipe Group Corp (TPCA) breaks ground on a 500. KY. Finishing and threading operations are expected to be completed by 2013.Descriptionsofotherevents follow.relocations.importers.consolidations.oneU.S.

 IIIͲ4  . bankruptcy. OH. change in production or capacity level. Table III-2--Continued OCTG: Important industry events. TX.***.1 billion project to produce OCTG. NY ($50 million investment). The $17 million investment will expand threading capacity for premium connections on OCTG with 2–13 inches OD. a subsidiary of Canada-based pipe and tube producer Welded Tube of Canada. and will source hot-rolled coil feedstock primarily from local producers. OH.***. Capacity increase: Borusan and Mannesmann breaks ground on a 300. is expected to begin production of OCTG in 2015.***. and electrical steels in Osceola. EnergeX casing and tubing is produced in Thomasville. in Caddo. Capacity increase: Benteler Steel/Tube announces plans to build a seamless OCTG facility. since 2010 Year Company 2012 U. AL. Shutdown: JMC Steel Group ***. Consolidation: TMK IPSCO ***. Ontario.) Joint venture: U.***. Capacity increase: TMK IPSCO breaks ground on a new threading facility at is operations in Odessa. Capacity increase: Tejas Tubular ***.***. shutdown.000 tpy with heat treatment and premium threading facilities. Steel JMC Steel Group (parent company of Wheatland) JMC Steel Group TMK IPSCO Benteler Steel/Tube (Germany) 2013 TMK IPSCO Tejas Tubular Tenaris (Luxembourg) Borusan and Mannesmann (Turkey) Vallourec Welded Tube USA OMK (Russia) Big River Steel (Arkansas) Texas Steel Conversion (Houston) Description of event (merger. TX ($100 million investment). The mill. Ontario. with completion of the seamless OCTG facility slated for 2015. Canada. etc. Canada) with its own tubular assets to form a new division called EnergeX Tube. Acquisition/merger: JMC Steel Group acquires and merges Canadian OCTG producer Lakeside Steel (Welland. Source: Metal Bulletin. Heat treatment and finishing operations begin in 2013. Capacity increase: Welded Tube USA. TX.000 tpy seamless rolling mill in Youngstown. AK. including a hot-rolling mill and finishing lines.7 million short tons for all products. but no melting capacity. Capacity increase: Texas Steel Conversion ***.000 tpy welded OCTG mill in Baytown.***.production curtailments.000 tpy ERW OCTG mill in Houston. LA ($900 million investment).75–7 inches. begins construction of a *** tpy welded OCTG rolling mill in Lackawanna.***. TX ($150 million investment). Capacity increase: Vallourec starts commercial production of seamless OCTG at its new 350. The plant is expected to reach full capacity by mid-2013. AL.S. The proposed mill would have an annual capacity of 1. The plant will have an OCTG capacity of 600. and Corpus Christi.S. expected to be completed by mid-2016. Steel and Buth Gilliam Enterprises form a new joint venture. Severalfirmsreportedchangestotheiroperationsrelatedtoshutdowns. responses to the Commission questionnaire.oremployment.S. various articles. Warren.***. Production of OCTG is expected to begin in mid-2013. Capacity increase: Tenaris announces its intention to build a new seamless OCTG mill in Bay City.-based facilities are located in Thomasville. and Welland. Lakeside’s U. Capacity increase: United Metallurgical Company (OMK) commissions a 200. which will employ 250 workers. TX.) to provide OCTG threading and repair services. coiled products. A second phase of the mill will include the completion of an EAF mill. Groundbreaking at the facility is expected in 2013. Capacity increase: Big River Steel announces a proposed $1. The rolling mill will produce OCTG in outside diameters ranging from 2. Patriot Premium Threading Services (Midland. TX.

7percent.productionof seamlessOCTGinJanuaryͲMarch2013was21.994shorttons(2.000tonsfrom2010to 2011.FiveU.capacityofOCTGincreased.S.237 1.8percent)andproductionofseamlessOCTG increasedby253.9percent).Capacitywasapproximately47.247 3.S.S.4Boomerang’scapacity increasedby***.capacity. ***.totalcapacityincreasedfrom 2010to2012byapproximately489.comparedto JanuaryͲMarch2012. and capacity utilization.Capacitydataincludescapacityfor***.5percent).7 63.producers’production.5 60.CapacityutilizationwaslowerinJanuaryͲMarch2013thanin JanuaryͲMarch2012.6percent)lowerthaninJanuaryͲ March2012. capacity.953 3.373tons(18.FourU.000 tonsgreaterinJanuaryͲMarch2013thaninJanuaryͲMarch2012.productionof weldedOCTGincreasedby634. 2010-12.0 69.530 1.4 Source: Compiled from data submitted in response to Commission questionnaires.022tons(4. 6 TableIIIͲ4presentsU.0percent)lowerthaninJanuaryͲMarch2012.byapproximately246.030 1. January-March 2012.reportedareductionof***shorttons.7 65.andbyapproximately243.andcapacityutilizationofweldedand seamlesstubularproducts.andcapacity utilization.885.S.butwas3.PRODUCTION.498.producersaccountedforthenetincreaseincapacityin JanuaryͲMarch2013relativetoJanuaryͲMarch2012.Northwest’s capacityincreased***.456 5.018.InJanuaryͲMarch2013.052.058 5.Maverick’scapacity***.ANDCAPACITYUTILIZATION TableIIIͲ3presentsdataregardingU.U.EnergeX’scapacityincreasedby***. 5 IIIͲ5  .CAPACITY.484.744.producers’production.5***.120tons(41.000tons(8. TherateofcapacityutilizationincreasedalongsidetheyearͲtoͲyearincreasesincapacity andproductionduring2010Ͳ12.6From2010to2012.reflectingbothhigherlevelsofcapacityandlowerlevelsofproduction volume.ProductionofweldedandseamlessOCTGareprovidedseparatelyinthis table. and January-March 2013 Calendar year January-March Item 2010 2011 2012 2012 2013 Capacity 5. producers’ production.330 Capacity utilization (percent) 52.987.772.Likewise.600 Production 2.capacity.ProductionofweldedOCTGinJanuaryͲMarch2013 was11. TotalOCTGproductionincreasedfrom2010to2012by30.***.S.TotalU. Table III-3 OCTG: U.000tonsfrom2011to2012.827 1.S.Mostoftheincreasein productionwasduetoincreasedweldedOCTGproduction.2 percentlowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012.   4 ***.510.producers accountedfortheincreaseinindustrycapacityfrom2010to2012.S.557.

987 40.096 398.382.Lagunareported***.081 1.192 Total welded & seamless 3.758.493.Vallourec reportedthat***.968.085 2.287 1.Paragonreported***.369 2.151.770 525.DPIreported***.688.407 1.656 455.667.969 189.5 68.798 53.Northwestreported***.TexasTubularreported***.980 144.8 63.516.427 Seamless Oil/gas well casing 1. January-March 2012.Boomerangreported***.8 73.209 118.WeldedTube. EnergeXreported***.4 74. Producerswereaskedtodescribetheconstraint(s)thatsetthelimit(s)onabilitytoshift productioncapacitybetweenproducts.Tejasreported***.654 4. 2010-12.150.569 Total 6.715.Vallourecreportedthat***. and January-March 2013 Calendar year January-March Item 2010 2011 2012 2012 2013 Capacity (short tons) Welded tubular products 3.461 1.777 195.Paragon reportedthat***. IIIͲ6  .724.938 697. NorthwestPipereported***.3 75.072 1.517 Oil/gas well tubing 171.954 2.2 Average 57. producers’ production.1 66.332 Other seamless products 303.425 395.341.478 4.273 785.896.S.254 65.973.908 215.Texas Tubularreported***. capacity.506 2. Producerswereaskedtodescribetheconstraint(s)thatsetthelimit(s)oftheir productionability.884 584.715.3 Seamless tubular products 61.763 16.283 1.017.171 Welded OCTG subtotal 1.870 4.771 722.Tejasreported***andthat***.317.630 519.416 555. and capacity utilization of welded and seamless tubular products.951.539 6.134 529.1 64.S.8 69.TMKIPSCOreported***.402 407.705.whichisslatedtostart productioninAugust2013.860 All seamless products 1.Table III-4 Tubular products: U.035.045.184 1.645.U.972 2.Steelreportedthat***.666.Evraz reported***.DrillPipereported***.230 1.304 596.6 71.760 99.085 2.226.804 Seamless OCTG subtotal 1.505 1.Evrazreported***.739 6.516.689 1.reported***.633 422.357.715.603 537.Maverickreported***.428.938.2 77.Maverickreported***.619 Capacity utilization (percent) Welded tubular products 53.Boomerangreported***.890 Other welded products 457.EnergeXreported***.916 1.780 94.058 1.WeldedTubereported***.454 3.Lagunareported***.432.145 1.054 112.719 Oil/gas well tubing 158.621.Steelreportedthat***.368.3 81.2 67.036 5.S.8 Source: Compiled from data submitted in response to Commission questionnaires.935.787 Seamless tubular products 2.537 All welded products 1.653 1.671.797 40.354 434.916 21.441 152.095 478.356 Production (short tons) Welded Oil/gas well casing 1.011 OCTG coupling stock 44.085 678. U.772.181.TMKIPSCOreported***.

6 Export shipments 4.080 Unit value (dollars per short ton) U.7AverageunitvaluesofU.producers’U.andtotal shipments.1 94. producers’ U.exportshipmentswereconsistentlylessthansixpercentoftotal shipments.942 209.164 Export shipments 138. Source: Compiled from data submitted in response to Commission questionnaires.006.462.440.749 1.573.828 1.0 Note.S.–Because of rounding.butwere10.182. shipments 2. Table III-5 OCTG: U.S.ThequantityofU.021 1. and total shipments.0 percentlowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012.674 Total shipments 1.bytypeofOCTG.511.651.694 1.S.andquantitiesscheduledtobe producedbasedonordersforJulythroughDecember.475 Value (1.S.SHIPMENTSANDEXPORTS TableIIIͲ5presentsU.May.690 1.1percentlowerinJanuaryͲMarch2013thaninJanuaryͲMarch 2012.727 1.615 1.355 3.088.atIIͲ9.076 3.789.  ORDERBOOKS TableIIIͲ6presentsU.768 1.899shorttonsͲͲa6.573 Share of quantity (percent) U.607 1.9 4. shipments 1.8TotalproductionofOCTGinAprilͲJune 2013was1.S.802 360.S.5 5.327.S.000 dollars) U. producedin2013duringthemonthsofApril. export shipments.9percent from2010to2012butwas3. JanuaryMarch 2012.175 42.S.S. shipments 4.S.383 59.”QuestionnaireresponseofTMKIPSCO.5 94.543.018 3.9 5.693.S.727 1.S.774 1.exportshipments.832.4 Total shipments 100.552.654 6.448 312.S.0 100.shipmentsofOCTGincreasedby32.895 1.473 5.724 1. shipments. 8 TMKIPSCOnotesthat***.0 100.1 95. figures may not add to the totals shown.U.0 100.569 Export shipments 1.390 960.838 Total shipments 4.producers’U.1 5. 2010-12.9percentincreaseoverOCTGproductioninJanuaryͲ   7 Whileninefirmsreportedexports.shipments.285. and January-March 2013 Calendar year January-March Item 2010 2011 2012 2012 2013 Quantity (short tons) U.242 Export shipments 246.producers’reportedquantityofOCTG.760.744 1.989 108.076 947.shipmentsincreasedsteadilyduring2010Ͳ12.459 1.921 5.215 918.S.471 3.087 1. shipments 95.PRODUCERS’U.884 176.192 70.580. IIIͲ7  .9 94.311 Total shipments 2.865.032 1.0 100.andJune.852 6.

and January-March 2013 * * * * IIIͲ8  * * * .7 10.1 11.8 Ratio to U. imports and purchases.producers’endͲofͲperiodinventoriesandtheratioofthese inventoriestoU. producers’ U.andtotalshipments.producers’production.S.970 370. 2010-12.S.S.Producers’inventoriesin2010. production.7 10.626 171.718 448.862 209.940 Source: Compiled from data submitted in response to Commission questionnaires U.3 11.0 12. January-March 2012.PRODUCERS’IMPORTSANDPURCHASES U.S.  U.940shorttons.450 Ratio to production (percent) 13.4 Source: Compiled from data submitted in response to Commission questionnaires.S. April-December 2013 2013 Production Item Welded Seamless Total April May 206.206 195.604 382.552 89.S.U.7 10.however.434 285.March2013. producers’ end-of-period inventories.017 361.689 324.763 141.808 113. Table III-8 OCTG: U. shipments (percent) 14.4 10.7 11.004 Orders June July August Quantity (short tons) 206.S.265 520.492 357.andtotalshipmentsovertheperiod forwhichdatawerecollected.1 10.S. Table III-6 OCTG: Production and orders for OCTG.792 439.714 150.PRODUCERS’INVENTORIES TableIIIͲ7presentsU.shipments.911 406.OrdersforJulyͲSeptemberwere819.820 September OctoberDecember 119.987 165.S. January-March 2012.8 12.1 11.coincidewith thehighestlevelofratiosofinventoriestoproduction. and JanuaryMarch 2013 Calendar year January-March Item 2010 2011 2012 2012 2013 Inventories (short tons) 376.414 264.Producers’inventoriespeakedinabsolutetermsinMarch2012 andwereattheirlowestlevelsin2010.850 163.0 Ratio to total shipments (percent) 13.1 11.668shorttonsandforOctoberͲDecember were520.U.926 182.S. 2010-12.675 256.producers’importsandpurchasesofOCTGarepresentedintableIIIͲ8.S.shipments. Table III-7 OCTG: U.

IIIͲ9  . and unit labor costs.162 554 549 Wages paid ($1.473 392.664 14.122 2. ledby***.087 Hourly wages (dollars) 27. 2010-12.000) 345.producersreportedanincreaseinthenumberof productionandrelatedworkersfrom2010to2012.18 114.30 Productivity (short tons per 1. and January-March 2013 Calendar year January-March Item 2010 2011 2012 2012 2013 PRWs (number) 6.314 7.805 120.***reportedadeclineinproductionand relatedworkersduringthisperiod.000 hours) 227.93 Source: Compiled from data submitted in response to Commission questionnaires.Intheaggregate.398 120.Sixproducersaccountedfortheincrease. productivity.producers’employmentͲrelateddataduringtheperiodforwhich datawerecollected.731 7.ANDPRODUCTIVITY TableIIIͲ9showsU.28 27.000 hours) 12.EMPLOYMENT. wages paid to such employees.7 248.however.110 2.WAGES.447 468.81 117.82 29.286 16.S.002 6.U.051 4.S. hourly wages. January-March 2012. hours worked.S. Table III-9 OCTG: Average number of production and related workers.***.098 Hours worked per PRW (hours) 2.Thenumberofproductionandrelatedworkerswashigher inJanuaryͲMarch2013thaninJanuaryͲMarch2012.61 124.453 7.U.8 243.cumulativelyreported***fewerproductionand relatedworkersinJanuaryͲMarch2013thaninJanuaryͲMarch2012.460 Total hours worked (1.07 29.Sixproducers.1 259.9 234.5 Unit labor costs (per short ton) 119.47 29.74 112.115 4.

 .

1Usablequestionnaireresponseswere receivedfrom46companies.S. TX Houston.theirU. and shares of imports.S.S.2percentoftotalimportsfromallothersourcesunderrelevantHTS statisticalreportingnumbers.9percentoftotalimportsfromTaiwan. NJ Torrance.7percentoftotalimportsfromthePhilippines.headquarters. headquarters.S. PARTIV: U.S.CONSUMPTION. 2 TherelevantstatisticalreportingnumbersappearinPartIofthisreport. TX Teaneck. Commercial Metals Coutinho & Ferrostaal Daewoo International (America) Dongbu USA Drill Pipe International DSL Corp.S. Table IV-1 OCTG: U.andtheirsharesofU.2TableIVͲ1listsallrespondingU.were believedtoimportOCTG.S. TX Matawan.S.alongwithfirms that.82.allimportsfromUkraine.asadjusted. source(s) of imports.4 percentoftotalimportsfromTurkey.importersof OCTGfromtheninesubjectsourcesandothersources.6percentoftotalimportsfromIndia. 35. TX Houston.and85.S. IL Gainesville. TX Houston. NJ Chicago.91.CustomsandBorderProtection(“Customs”).IMPORTERS TheCommissionissuedimporterquestionnairesto54firmsbelievedtobeimportersof subjectOCTG.theirsourcesof importssince2010.basedonareviewofdataprovidedbyU. IVͲ1 Total *** *** *** *** *** *** *** *** *** *** *** *** *** *** .3percentoftotalimports fromVietnam.importsin2012.allimports fromKorea.S.APPARENTU. 2012 Firm Amerjin ArcelorMittal International America Bell Supply Company Benteler Steel & Tube Borusan Mannesmann Pipe U. TX Chicago. importers.79.S. CA New Hope. IL Source(s) of imports *** *** *** *** *** *** *** *** *** *** *** *** *** *** Share of imports (percent) Subject *** *** *** *** *** *** *** *** *** *** *** *** *** *** Nonsubject *** *** *** *** *** *** *** *** *** *** *** *** *** *** Tablecontinuedonnextpage. TX Irving. Duferco Steel Energex Tube Evraz Inc.3percentoftotalimportsfromThailand.allimportsfromSaudiArabia.ANDMARKET SHARES U. MN Houston.producersofOCTG.aswellastoallU.representing53.90. IL Chicago.IMPORTS.OfficialCommerce statisticswereadjustedtoinclude***andknownimportsofcouplingstockenteredunderHTS statisticalreportingnumbersotherthanthosespecifiedforcasingandtubing. 1 TheCommissionissuedquestionnairestothosefirmsidentifiedinthepetition. NA Canada Headquarters Houston. U.

U. TX Houston.0 Okaya (U. CA *** *** *** *** *** *** *** *** Houston. TX *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Houston.) Oxbow Steel International Salzgitter Mannesmann International (U.A. TX Houston. TX Houston. Laguna Tubular Products Marubeni-Itochu Tubulars America Nexteel America North American Interpipe Corona del Mar. CA *** *** *** *** Nashik. TX Southfield.S. TX Concord. TX Ridgefield Park.A.0 *** *** 100. NY Missouri City. TX *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Schaumburg.A. CA Houston.S. ON. KY Houston. IL *** *** *** *** Schaumburg. Hyundai Hysco U. India Orange.) Samsung C&T America SDB Trade International Seah Steel America Standard Tube Company Stemcor U. MI Houston. Canada Houston. and shares of imports. TX *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 100. CA Houston. Total Source: Compiled from data submitted in response to Commission questionnaires.S.S.A.S. MH. TX New York. importers. IMCO International Headquarters New York.0 *** *** 100. NJ Pasadena.A.S. TX Houston. TX Santa Fe Spring. TX Houston. Sumitomo Corporation Of America Tata Steel International (Americas) Tata Steel International (North America) Tenaris Global/Maverick Thyssenkrupp Material TMK IPSCO Toyota Tsusho America Vallourec Voest-Alpine Tubular Welded Tube Of Canada WSP Houston OCTG Inc. TX *** *** *** *** International Pipe Trading Company Jindal Saw Limited (Seamless Tubes Division) Kumkang Kind U. 2012 Firm Fremark Industries Houston Steel & Pipe International Husteel U. headquarters. TX Burlington. TX Georgetown.S. IVͲ2 . NY Houston. ON. IL Houston.S. TX Houston. TX Pleasant Hill. Table IV-1--Continued OCTG: U. Canada Source(s) of imports *** *** *** *** Share of imports (percent) Subject *** *** *** *** Nonsubject *** *** *** *** Total *** *** *** *** *** *** *** *** Indian Seamless Houston. source(s) of imports.A.

620 928.975 1.thePhilippines.769 4.113 98.905 55.067 1.900 11.S.Taiwan. IVͲ3 .andallothersources.S.580.403 106.046 All others 2.662 476.S.976.480 Ukraine *** *** *** *** *** Vietnam 169 53.S.525.697 219.593 Turkey 76.806 152.664 25.Vietnam.815 3.166 17. SaudiArabia.974 Total U.Ukraine.087 747.581 20.084 971.997 59.808 440.424 Turkey 85.626 133.Turkey.000 dollars)ͳ India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0 21.222 140.087.217 Ukraine *** *** *** *** *** Vietnam 145 56.594 96.542 64.053 43.124 32.036 All others 1.511 1.973 16.822 Subtotal.325 3.469.318.300. U.511.698 145. subject 850.319.399 Saudi Arabia *** *** *** *** *** Taiwan 56.457 Total U.Thailand.088.883 448.importsofOCTGfromIndia.973 Thailand 0 6.659 37.475.771.992 9. subject 871.923 201.109 766.959 451.662 3.748 1.833 2.206 1. 2010-12.201 522.987.135 31.923 22.638 533. Table IV-2 OCTG: U.386 30.IMPORTS TableIVͲ2presentsdataforU.844. imports 3.397 2.629 3. imports 2.337 1. January-March 2012.444 49.S. imports by source.112.808.697 90.313 3.561 Subtotal.933 70.223 Saudi Arabia *** *** *** *** *** Taiwan 47.139 5.481 24.273 2.153 48.643 Thailand 0 8.279 307.020 Tablecontinuedonnextpage.215.576 33. and January-March 2013 Item Calendar year January-March 2010 2011 2012 2012 2013 Quantity (short tons) India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0 23.927 1.Korea.493 Value (1.

8 41.0 0. duty-paid.018 All others 1.3 3. and January-March 2013 Item Calendar year January-March 2010 2011 2012 2012 2013 Unit value (dollars per short ton) India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0 900 926 949 809 Saudi Arabia *** *** *** *** *** Taiwan 843 935 921 968 795 Thailand 0 1. Note.0 Subtotal.0 0.147 1.0 2.9 0.0 4.026 1.—Because of rounding.5 Turkey 3.0 100.2 0.0 100.0 100. imports 100.3 0.S.9 2.5 Turkey 2.4 5.0 6.0 100.1 Total U.0 Share of value (percent) India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0.5 1.S.2 Subtotal.9 0. January-March 2012.376 1.1 6.299 Share of quantity (percent) India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0. imports 100.3 Ukraine *** *** *** *** *** Vietnam 0.3 5.7 46.698 1.9 53.163 951 918 928 821 Average.421 1.402 1.9 Total U. figures may not add to the totals shown.416 1.5 3.4 4.0 0.5 51.3 3.0 100.313 1.4 3.1 All others 71.5 Thailand 0.401 1.0 100.1 Thailand 0.9 All others 63.0 3.4 58.8 62.   IVͲ4 . Table IV-2--Continued OCTG: U.5 2.S.8 2.6 3.331 1.1 46. Source: Compiled from data submitted in response to Commission questionnaires and official Commerce Statistics.093 1.5 48.4 3.9 Saudi Arabia *** *** *** *** *** Taiwan 1.3 50.7 5.2 Ukraine *** *** *** *** *** Vietnam 0. subject 36.9 38.701 Average.622 1.0 100.6 41.3 1.0 1.756 1.2 37.9 3.2 0. subject 28.0 1. total imports 1.3 1.2 58.4 2.5 2.1 61. subject 1.0 ͳLanded.3 0.508 1.3 53.0 100.7 49.8 2.341 Turkey 899 950 952 989 928 Ukraine *** *** *** *** *** Vietnam 1.3 0.9 1.120 1. imports by source.0 4.5 Saudi Arabia *** *** *** *** *** Taiwan 2.0 0. 2010-12.

612 12.067 192.827 522.343 30.350 6.215.180 152.279 307.040 766.349 2.560 289.381 102.561 494.475.073 57.557 179.202 55.205 42.844 6.554 11. January-March 2012.693 43.037 44.009 82.236 93.775 205.508 153.615 63.800 Argentina 81. TableIVͲ3presentsdataforU.192 88.112.325 849 Romania 56.479 630.218 60. IVͲ5 165.914 1.056 299.968 217.241 83.319 17.839 12.100 130.387 30.992 11.632 5.362 138.582 33.692 Austria 94.572 108.824 Germany 120.176 333.966 221.669 110.344 54.632 68.812 227.052 All others (nonsubject) 165.291 83.247 111.206 1.182 77.010 65.985 42.808 119.772 317.591 50.791 46. imports from leading nonsubject sources.392 Total (nonsubject) 1.092 188.147 21.857 40.457 Canada Japan Germany Mexico Argentina Austria Russia Romania Colombia Brazil Spain All others (nonsubject) Coupling stock adjustment Total (nonsubject) 573.522 409.591 21.000 32.974 .714 8.889 66.597 18.981 76.815 69. Table IV-3 OCTG: U.897 108.597 Mexico 148.123 4.944 107.S.964 409.570 87.523 24.426 Brazil 37.429 45.214 19.552 9.000 dollars)ͳ 551.260 118.525.713 Japan 160.importsofOCTGfrommajornonsubjectsources.847 25.164 212.381 6.048 57.938 157.609 271.632 163.059 148.629 3.155 203.958 52.777 49.863 197.901 9.811 2.956 47.512 250.349 83.368 296.309 Spain 32.933 36.959 451.254 35.714 Coupling stock adjustment 40.140 19.397 Value (1.554 50.399 39.450 212.007 56.978 57.088 Russia 78.729 72.702 102.394 354.S.281 57.199 39.000 Colombia 39.374 39.109 Tablecontinuedonnextpage.975 1.201 122.797 24. and JanuaryMarch 2013 Item Calendar year January-March 2010 2011 2012 2012 2013 Quantity (short tons) Canada 414. 2010-12.524 59.771.967 35.413 6.508 4.646 44.469.220 84.222 57.

579 1.699 1.754 1.601 1.343 1.872 1.314 1.433 1.§§1671b(a)(1).613 1.241 1.S.169 1.537 1.750 1.064 1.450 1.068 1.649 1.asimportsfromacountry ofmerchandisecorrespondingtoadomesticlikeproductwheresuchimportsaccountforless than3percentofthevolumeofallsuchmerchandiseimportedintotheUnitedStatesinthe mostrecent12Ͳmonthperiodforwhichdataareavailablethatprecedesthefilingofthe petitionortheinitiationoftheinvestigation.andifthe importsfromthosecountriescollectivelyaccountformorethan7percentofthevolumeofall suchmerchandiseimportedintotheUnitedStatesduringtheapplicable12Ͳmonthperiod.165 1.669 1.384 1.517 1.531 1. 1671d(b)(1).796 1.705(b)(1).976 1.733(a)(1).500 2.820 1.S.528 1.538 2.782 1.However.866 1. Table IV-3--Continued OCTG: U.563 2.3Negligible importsaregenerallydefinedintheTariffActof1930.789 1.213 1.120 1.781 1. January-March 2012.513 1.971 1.810 1.951 1. duty-paid.ifthereareimportsofsuchmerchandise fromanumberofcountriessubjecttoinvestigationsinitiatedonthesamedaythatindividually accountforlessthan3percentofthetotalvolumeofthesubjectmerchandise.790 1. 4 Section771(24)oftheAct(19U.749 1.asamended.828 2.045 1. imports from leading nonsubject sources.4TableIVͲ4presentsdatafor 3 Sections703(a)(1).451 1.and735(b)(1)oftheAct(19U.C§1677(24)).508 1.680 1.C.345 2.699 1.701 Source: Compiled from data submitted in response to Commission questionnaires and official Commerce Statistics.918 1.S.635 1.634 1.652 1. IVͲ6 .1673b(a)(1).622 1.454 1.656 1.580 1. NEGLIGIBILITY Thestatuterequiresthataninvestigationbeterminatedwithoutaninjury determinationifimportsofthesubjectmerchandisearefoundtobenegligible.756 1.747 1.613 1. 2010-12. 1.and1673d(b)(1)).then importsfromsuchcountriesaredeemednottobenegligible.533 1.612 1.829 1.784 1.449 1.157 1.367 1.459 1. and JanuaryMarch 2013 Item Calendar year January-March 2010 2011 2012 2012 2013 Unit value (dollars per short ton) Canada Japan Germany Mexico Argentina Austria Russia Romania Colombia Brazil Spain All others (nonsubject) Coupling stock adjustment Total (nonsubject) 1 Landed.698 1.620 1.

173.andThailand(0.137 130.030.141 *** 92.557 3.298 1.June 2013 Adjusted Official Commerce data official Commerce data Quantity (short tons) 132.S.136 *** 868.importsofOCTGandthesameCommerce dataadjustedtoaccountforsubjectimports***andknownimportsofcouplingstockentered underHTSstatisticalreportingnumbersotherthanthosespecifiedforcasingandtubing.900 92.532 59.1percent).5AdjustedofficialCommerce datashowthatsharesofimportsfromfoursubjectcountriesindividuallyaccountforlessthan 3percentofthevolumeoftotalimportsofOCTG–Philippines(2.137 26.900 26. July 2012-June 2013 Country India Korea Philippines Saudi Arabia Taiwan Thailand Turkey Ukraine Vietnam Subject.Data arepresentedforofficialCommercedataforU.532 68.383.422 130.470.646. 5 Becauseofrounding. imports by source and share of imports. Table IV-4 OCTG: U.8percent)–andcombinedmorethan7percent ofthevolumeoftotalimportsofOCTG–(***percent).098 *** 68.694 1. subtotal All other sources Total July 2012 .2percent).S.411 3.9percent)–andcombinedlessthan7 percentofthevolumeoftotalimportsofOCTG–(5.242 Tablecontinuedonnextpage.864 1.831 1.thecombinedshareisnotthesameasthesumofindividuallyreported shares. IVͲ7 .422 96.298 173.702.Taiwan(2.SaudiArabia(2.SaudiArabia(*** percent).200 *** 173. importsduringJuly2012ͲJune2013foreachsubjectcountryanditsshareoftotalimports.9percent).3percent).1percent). OfficialCommercedataaloneshowthatsharesofimportsfromthreesubjectcountries individuallyaccountforlessthan3percentofthevolumeoftotalimportsofOCTG–Philippines (2.andThailand(0.

 bysource.1 2.Additionalinformationconcerning fungibility.1 Ukraine 3.4 *** Korea 28. subtotal 54.Issuesconcerningchannelsof distributionareaddressedonPartIIofthisreport.S.producers’ratiosofU.3 4.S. Fungibility TableIVͲ5presentsdataforU.June 2013 Country Adjusted Official Commerce data official Commerce data Share of quantity (percent) India 4.2 *** Vietnam 5. IVͲ8 .7 46.3 2.S. July 2012-June 2013 July 2012 .andsubjectimports’ratiosofimportsofseamlessOCTGandweldedOCTG.0 *** Taiwan 3.3 Total 100.(3)commonorsimilarchannelsof distribution.9 0. imports by source and share of imports. Table IV-4--Continued OCTG: U.shipmentsofseamlessOCTG andweldedOCTG.0 100.8 Turkey 4. Cumulationconsiderations Inassessingwhetherimportsshouldbecumulated.3 53.geographicalmarkets.0 Source: Compiled from data submitted in response to Commission questionnaires and official Commerce Statistics.theCommissiondetermines whetherU.S.5 Subject.7 All other sources 45.9 Thailand 0.6 *** Philippines 2.2 Saudi Arabia 2.(2)presenceof salesorofferstosellinthesamegeographicalmarkets.andsimultaneouspresenceinthemarketispresentedbelow.and(4)simultaneouspresenceinthemarket.7 5.importsfromthesubjectcountriescompetewitheachotherandwiththe domesticlikeproductandhasgenerallyconsideredfourfactors:(1)fungibility.

0 Turkey 0.S. producers' shipments 42.0 100.0 0.10monthsin2012.andtwomonthsduringJanuaryͲMarch2013.0 Saudi Arabia 100.Imports fromSaudiArabiawerepresentforthreemonthsin2010.andforall monthsduringJanuary2012ͲMarch2013.presentfor fivemonthsin2011.6 57.0 Thailand 100.ImportsfromTaiwanwerepresentfor ninemonthsin2010.0 Ukraine 100.Importsfrom Turkeywerepresentfortenmonthsin2010andallbuttwomonthsduringJanuary2011Ͳ March2013. Table IV-5 OCTG: Shares of seamless OCTG and welded OCTG.0 97.0 100.sevenmonthsfor2011.importswereusedtoevaluatesubjectimportpresence inthemarket. Presenceinthemarket OfficialCommercedataforU.0 0.S.ImportsfromthePhilippineswerenotpresentin2010.0 0.ImportsfromIndiaandKoreawerepresentineverymonthduring January2010ͲMarch2013.0 Taiwan 3.eightmonthsin2011.eightmonths in2012.andallmonthsduringJanuary2012ͲMarch2013. imports from-India *** *** Korea *** *** Philippines 0.ImportsfromUkrainewerepresentforeightmonthsin2010andallbutfour monthsduringJanuary2011ͲMarch2013.andtwomonthsduringJanuaryͲMarch2013.tenmonthsin2011.andallbutonemonthduringJanuary2012ͲMarch2013.0 Vietnam 1. 2012 Item Seamless OCTG Welded OCTG Share (percent) U.6 98.4 Source: Compiled from data submitted in response to Commission questionnaires and official Commerce Statistics.ImportsfromVietnamwerepresentfortwomonths duringin2010(duringthefourthquarteroftheyear).4 U.TableIVͲ6summarizesthenumberofmonthsinwhichimportswerepresent fromeachsubjectsource. IVͲ9 .presentforfivemonthsin2011(allduringthe secondhalfoftheyear). by source. ImportsfromThailandwerenotpresentin2010.S.

2010-12 and January-March 2013 Calendar year January-March Source 2010 2011 2012 2013 Number of months of import entries India 12 12 12 3 Korea 12 12 12 3 Philippines 0 5 10 2 Saudi Arabia 3 8 8 2 Taiwan 9 10 12 3 Thailand 0 5 11 3 Turkey 10 11 12 2 Ukraine 8 10 11 2 Vietnam 2 7 12 3 Total 39 39 17 21 34 19 35 31 24 Source: Compiled from official Commerce statistics.Taiwan.S.ForeightoftheninesubjectsourcesͲͲIndia. IVͲ10 .Korea.SaudiArabia.CAcustomsdistrict(37percent).approximately97percentofU.TXcustomsdistrict.Importsofcasingandtubingfrom ThailandenteredthroughboththeHoustonͲGalveston. Geographicalmarkets OfficialCommercestatisticsshowthatin2012. importsofcasingandtubingfromsubjectcountriesenteredtheUnitedStatesthroughthe HoustonͲGalveston.andVietnam–thevastmajorityofsuchimports enteredthroughtheHoustonͲGalveston. Table IV-6 OCTG: Number of months of presence of imports.Ukraine.TXcustomsdistrict(63percent)andthe LosAngeles.TXcustomsdistrict. Philippines.

927 1.222 140.664 25.273 2. and apparent U.223 Saudi Arabia *** *** *** *** *** Taiwan 47. IVͲ11 .139 5.580.629 3. imports.consumptionandU.164 U.S.815 3.580.561 Subtotal. and January-March 2013 Calendar year January-March Item 2010 2011 2012 2012 2013 Quantity (short tons) U. producers' shipments 4.012.215 918.153 48. 201012.386 30.973 Thailand 0 6.923 201. January-March 2012.593 Turkey 76.973 16.852 6.480 Ukraine *** *** *** *** *** Vietnam 169 53.399 Saudi Arabia *** *** *** *** *** Taiwan 56. subject 850.822 Subtotal.748 1.992 9.215.552.976.659 37.053 43.S.182.397 2. subject 871.905 55.CONSUMPTION TableIVͲ7presentsdataonapparentU.481 24.696 1.875.581 20.542 64.  Table IV-7 OCTG: U.469.475.262 Source: Compiled from data submitted in response to Commission questionnaires and official Commerce Statistics.032 1.744 6. imports from-India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0 23.279 307.300.389 7.493 Apparent consumption 5.285.997 59.087.S.771. APPARENTU.979 2.S.806 152.974 Total imports 3.651.923 22.900 11.895 1. U.088.697 219.084 971.325 3.444 49.576 33.327.129.337 1.113 98.798 9.414.665.780 2.620 928.975 1.987.769 4.471 3. imports from-India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0 21.112.697 90.693.160.883 448.S.698 145.109 766.319.087 747.S.S.657 Value ($1.808 440.000) U.411.440.844.991 11. shipments of domestic product.135 31.951.933 70.076 3.046 All other sources 2.525.662 3.833 2.217 Ukraine *** *** *** *** *** Vietnam 145 56.S.201 522.302 1.662 476. producers' shipments 2.270.424 Turkey 85.020 Apparent consumption 7.S.076 947.206 1.318.067 1.242 U.036 All other sources 1. consumption.626 133.959 451.638 533.594 96.S.643 Thailand 0 8.539.473 5.403 106.511.124 32.marketsharesfor OCTGovertheperiodforwhichdatawerecollected.808.511 1.313 3.457 Total imports 2.166 17.

9 24.0 27.4 0.9 0.4 All other sources 29.1 0.0 21.S.1 3.8 45.979 2.4 0.6 41.5 18.9 Share of value (percent) U.2 Turkey 1.S.5 Ukraine *** *** *** *** *** Vietnam 0.4 1. imports from-India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0.MARKETSHARES U.2 2.7 Total imports 41.1 18.6 50.5 44. producers' shipments 58.0 49.7 2.1 2.0 59.6 0.951. consumption 7.875.414.3 Subtotal.S. January-March 2012.6 26. and January-March 2013 Calendar year January-March Item 2010 2011 2012 2012 2013 Quantity (short tons) Apparent U.8 1.6 1.7 U.7 Saudi Arabia *** *** *** *** *** Taiwan 1.0 21.5 25.3 1. producers' shipments 53. consumption 5.4 Saudi Arabia *** *** *** *** *** Taiwan 0.4 26. consumption and market shares.2 Turkey 1.665.marketsharedataarepresentedintableIVͲ8. IVͲ12 .780 2.0 0.9 Thailand 0.3 46.S.S.991 11.6 1.9 Ukraine *** *** *** *** *** Vietnam 0.0 1.S.696 1. Table IV-8 OCTG: U.6 0. imports from-India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0.2 54.302 1.S.7 0.0 0.9 56.4 50.8 17.3 25.6 All other sources 29.2 0. subject 17.0 40.9 3.0 50.744 6.3 24.9 1.6 Thailand 0.3 2.129.539.798 9.S.3 Source: Compiled from data submitted in response to Commission questionnaires and official Commerce Statistics.7 24.4 1. subject 11.411.657 Value ($1. 2010-12.270.000) Apparent U.0 0.9 26.1 0.7 53.1 1.1 44.1 0.4 58.5 55.9 1.1 0.8 1.160.3 Subtotal.012.0 0.1 0.1 18.5 1.6 0.1 U.262 Share of quantity (percent) U.5 Total imports 46.8 15.0 1.0 0.0 0.6 1.389 7.S.0 0. U.

0 4.959 451.9 30.0 0.067 1.8 3.580.9 1.973 Thailand 0 6.8 0.8 5.2 All others 50.0 42. RATIOOFIMPORTSTOU.135 31.9 88.6 Thailand 0.975 1.166 17.2 2.273 2.318. and January-March 2013 Calendar year January-March Item 2010 2011 2012 2012 2013 Quantity (short tons) U.279 307.4 81.1 Saudi Arabia *** *** *** *** *** Taiwan 2.444 49.885.337 1.808 440.771.S.7 3.997 59.403 106.3 43.3 0.620 928.6 94. imports from-India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0 23.052.664 25. IVͲ13 . January-March 2012.330 U.0 0.833 2. production 2. 2010-12.087 747.S.S.production.8 47.457 Total 2.662 476.662 3.0 4.469.0 4.237 1.4 Source: Compiled from data submitted in response to Commission questionnaires and official Commerce Statistics.399 Saudi Arabia *** *** *** *** *** Taiwan 56.8 47.217 Ukraine *** *** *** *** *** Vietnam 145 56.313 3.525.953 3.319.0 2.S.806 152.7 1.8 2.importstoU.2 0.493 Ratio of imports to production (percent) U.659 37.7 Subject sources 29. imports from-India *** *** *** *** *** Korea *** *** *** *** *** Philippines 0.7 2.484.S.772.933 70.5 37.900 11.PRODUCTION TableIVͲ9presentsdataontheratioofU.247 3.6 5.9 43.7 1.844.481 24. production.9 45.030 1. Table IV-9 OCTG: Ratio of U.2 Total 80.018.S.206 1.594 96.S.561 Subject sources 850.2 73.222 140.036 All others 1.576 33. imports to U.0 1.4 Ukraine *** *** *** *** *** Vietnam 0.697 219.3 Turkey 3.808.424 Turkey 85.S.

 .

 Figure V--1 OCTG: Average cons sumer ferrous scrap price es (No.primarilyhotͲrolledstteel(orbilleetsandinputtssuchasco oke.FiggureVͲ3pressentspricesofhotͲrolledbillets.AlthoughU. PARTV:: PRICING GDATA FACTORSA AFFECTINGP PRICES  Rawm materialcossts  Rawmaterials. VͲ1 .Averaage costsofh hotͲrolledstteelsheetussedtomakeweldedOCTTGandscrap pusedtomaakehotͲrolleed billetsussedinthemaanufactureo ofseamlessOCTGduringgJanuary20010throughMarch2013 3are presente edinfigureV VͲ1.Im mportersrepportedthatscrapandho otͲrolledcoiilare themosttimportantrrawmaterialsinthepro oductionofO OCTG.prodducersmostoftennoted dafluctuatin ng trendinttheirrawmaaterialcostssince2010. M   1 Dataarepresente edforsquarecrossͲsection nedbillets.threenoteddadownwardtrendand dthreerepo orted thatinpu utcostshave ebeenstartingtorise.2 2percentinJJanuaryͲMarch2013.. 1 hea avy melt.and dhotͲbriquettediron).pig iron.Raw wmaterialsaasa shareofcostofgood dssoldfordo omesticproducersofOC CTGdecreassedfrom61.andamajorityreportedthat pricesforrawmaterialshaveeitherbeende ecliningorfluuctuatingsin nceJanuary2010. Chicago) and h hot-rolled ste eel sheet pric ces (Midwes st).S.TThesedataarrebelievedto from***.an ndwere59.speecificallyJanuary2006ͲJu une 1 2013.7perccentinJanuaaryͲMarch2 2012.EͲm mail sections.accountforth hemajorityoofthecostofOCTG..asopposedtob billetswithro oundcrossͲ obethebestavailabledattaregardingh hotͲrolledbilletprices.6percentin n 58.scrap. monthly.co omparedwitth 2010to5 60. January 2010-March 201 13  Source: Am merican Metal Market.2percenttin2012.FigureV VͲ2presentslongerͲterm mtrends.

monthly. Chicago) and h hot-rolled ste eel sheet pric ces (Midwes st). montthly.Thepricesofe electricityan ndironorere emainedrelativelystead dy. FOB. Pricesofsteelscraphavebeenle essvolatiletthanthoseoofhotͲrolledcoilovertheperiodand d stayedju ustabove$4 400pershortttonthrougghtheendoff2011. January 200 06-June 2013 3  Source: Am merican Metal Market. M  Figure V--3 OCTG: Hot-rolled billet prices (Black Sea export.The pricesofnaturalgasdeclinedbetween2010 0and2012. Figure V--2 OCTG: Average cons sumer ferrous scrap price es (No.Thoughthe priceofn naturalgash helpsdrived demandforO OCTG. sq uares).energy(main nlynaturalgaasandelectricity)accou untsforapo ortionofthecost ofproducingOCTG. In naddition. VͲ2 .bbutincreaseedinthefirsttquarterof 2013.aalbeitaconssiderablysm mallerproporrtionthanraawmaterialss. January y 2010-July 2 2013  * * * * ** * *  PricesofhotͲͲrolledsheettincoilsand dscrapincreasedbetweenJanuary2 2010andthee 2 springoff2011.    2 ThisiincreaseisaccontinuationoftheincreasethatbegannatinmidͲ20009(thebotto omofthereccent recession).Afterreachingth heirperiodp peak inJanuarry2012.scraappriceshavvealsobeen ndecreasingslightly. 1 hea avy melt.itisa lsoacostfactorinitsm manufacture. HotͲͲrolledsteelsheetpricesshavebeengraduallydeecliningsinccethatpointt.changingglessthan2 percento overthetwo oyears(tableVͲ1).

importsenterthroughtheportofHoustonͲ Galveston.ͲͲAn“e”afteranumberindicatesthatdatafortheentireperiodisunavailable. http://www.-Mar.2to5.sothepresenteddataareestimates.4Sixproducers reportedarrangingtransportationforpurchasers.0percentof totaldeliveredcosts. yearly.44 $5.usgs.S. and2reportedusingpricelists(tableVͲ2).Oneproducer(***)andoneimporter(***)reported   3 Twoproducersadditionallyreportedtransportationcostsaseitherabove50percentoraszero.79 $99.8 6.shipments.5reportedsellingviacontracts.8 Iron ore (per metric ton) $98.producersreportedthat theysetpricesforOCTGonatransactionͲbyͲtransactionbasis.inlandtransportationcosts SevenU. http://www.000miles(43. industrial sector.with14ofthe16reporting transportationcoststhataveragedlessthan2percentandrangedfrom0.as19of28importersshipped 90to100percentoftheirOCTG100milesorless.Amajorityofimportersalsoreportedsettingprices onatransactionͲbyͲtransactionbasis.whereassevenreportedthatpurchasers arrangeitthemselves. 6 AsdiscussedinPartIV.gov.gov/forecasts/steo/tables/?tableNumber=8#. Thesedatawerenotused. cents per kwh) 6.5Lowtransportationcostswereexpected.transportationcosts.asubstantialportionofU.thoughalargemajorityin2012wasshippedbetween 101and1.S. 2013 $4.1percent).S.  Sources: Energy Information Administration. Table V-1 OCTG: Prices of inputs.transportationcosts.6TwentyͲnineof34respondingimporters reportedthatpurchasersarrangetransportation. VͲ3 .0percent)ormorethan1. 2010-12 and January .doe.Ͳproduced OCTGisshippedavarietyofdistances.  PRICINGPRACTICES  Pricingmethods  Pricingbasis MostfirmsreportedsellingOCTGonaspotbasis.S.eia.March 2013 Item 2010 2011 Natural gas price (end-use.3U.gov/minerals/pubs/commodity/iron_ore/mcs-2013-feore.45 2012 $3.TwelveU.7 $101. per mmBTU) $5.000miles(46. SixteenimportersreportedusableU.Texas.82 6.averaging7percentand rangingfrom4to12percentofthetotaldeliveredcostoftheirU. 5 Transportationcostsreportedbyimporters***werereportedtobe10percent.producersprovidedusableU.S.00e Jan.S. U.eia.S.8e n/a Note. and http://minerals. 4 SeePartIIforfurtherdetailregardingshipmentdistances.pdf.11 Electricity (industrial.56 6.S.

domesticproducersindicatedthat60. producers’ and importers’ reported use of contracts and spot sales.p.132(Miller).S.S. producers’ and importers’ reported price setting methods.allprogramsalesmaynotbeaccountedforin contractpercentagedata.Eightof12respondingproducersreportedthatatleast50percentoftheir2012 OCTGsaleswereviashortͲorlongͲtermcontracts.and63. 2012 Type of sale U. 8 Conferencetranscript.  Table V-2 OCTG: U.  DomesticsalesaresomewhatdividedbetweenshortͲtermcontractsalesandspotsales (tableVͲ3).Fourteenimporters soldsubjectOCTGviashortͲtermcontracts.***was   7 Thesefirmsare***.S.”whicharemorelike priceagreementsthancontracts. producers Importers Long-term contracts 2 1 Short-term contracts 10 15 Spot sales 12 25 Source: Compiled from data submitted in response to Commission questionnaires. by type of sale. by number of responding firms1 Method U. WhenaskedwhatproportionoftheirsalesaresubjecttoshortͲtermandlongͲterm contracts(asopposedtooneͲtimespotmarketsales).contractsalesaccountedforapproximately60percentofdomestic producersalesofOCTGin2012.S. Fourteenofthe24importersofsubjectOCTGsoldexclusivelyonaspotbasis.andeight otherssoldatleast50percentoftheirOCTGonthespotmarketin2012.1 percentoftheirOCTGshipmentsweremadepursuanttocontracts.Therefore.7Atthestaffconference.Inall.withthreedoingsoexclusively(***)reported sellingOCTGonalongͲtermbasis.5percentof reportedshipmentsofimportsweremadepursuanttoshortͲorlongͲtermcontracts.anindustry representativestatedthatmanysalesareconsidered“programsales.Oneotherproducer(***)notedthatmostofitssalesare programsales(discussedingreaterdetailbelow).8  Table V-3 OCTG: U. Source: Compiled from data submitted in response to Commission questionnaires. usingcurrentcompetitiveoffersforallofitssaleswhetheronthespotmarketorsubjectto shortͲorlongͲtermcontracts.longͲtermcontractsaccountedforallofitssalesofOCTG. VͲ4 . producers Importers Transaction-by-transaction 12 41 Contract 5 10 Set price list 2 3 Other 2 1 1 The sum of responses down will not add up to the total number of responding firms as each firm was instructed to check all applicable price setting methods employed.

 12 Conferencetranscript.6typicallyhadrenegotiable priceswhereas4didnot.thoughtheyallowedpricerenegotiation.253Ͳ259(Brewer.pp.S.10Termsoftheprogramvaryfrom agreementtoagreement. 10 Conferencetranscript.o.11Respondentsindicatedthat.Fowler.andTaiwan weresoldpursuanttoshortͲtermcontracts.Themajorityofproducersshippingonanf.   9 NotallproducerswhichindicatedthattheyusedshortͲtermcontractsrespondedtoallportionsof thisquestion.producers***reportedselling***percentoftheir2012salesofOCTGon alongͲtermcontractbasis.***.12  Salestermsanddiscounts Elevenof14respondingproducers13and22of28respondingimportersreportedthat themajorityoftheirsaleswereonanf.andatthepriceatwhich itwillbesupplied.typicallyfixedbothpriceandquantity.whereas3 did.b.S.andVietnamweresoldonthespotmarket.Termsalsovary:3respondingproducers’shortͲterm contractsfixedonlyprice.Echavaria. 13 Oneproducernotedtypicallyshippingonbothadeliveredandanf.andTurkey(***).aswerealargemajorityofthose importedfromthePhilippines.Onedomesticindustryparticipantestimatedthatprogramsales encompassasmuchas80to85percentofthemarketforOCTG.b. Amajorityof2012shipmentsofOCTGimportedfromKorea.3producersand8importersreportedthat mostoftheirsaleswereonadeliveredbasis.Khandelwal. VͲ5 .  Contractterms ElevenU. 11 Conferencetranscript.and didnothavemeetͲorͲreleaseprovisions.andendusers thatspecifythetypeofOCTGtobesupplied.SaudiArabia.o. theonlyimporterreportinglongͲtermcontractsales.whereas4fixedpriceandquantity.Cameron.themajoritydonotparticipateinprogramsales duetodifficultieswithbeingabletoensureonͲtimedelivery.basis.pp.9 Importers’shortͲtermcontractsrangedbetweenfor2and8months(averaging4 months).Ukraine.  Programsales ProgramsalesarenonͲcontractualobligationsbetweenmills.U.b.Aslightmajorityof2012OCTGshipmentsfrom India.basis.andindicatedallitssalesaresubjectto thesecontracts.Itmayprovideestimatedconsumptionandaframeworkforpricing.o.p.producers’shortͲtermcontractswerereportedtobebetween1½and12 monthslong(averaging5½months).130Ͳ133(DuBoisandMiller).McConnell.whenitwillbesupplied.Thailand.which mayberenegotiatedduringthetermoftheprogram.distributors.133(DuBois). withtheexceptionofsuppliersfromKorea.and7typicallydidnotcontainmeetͲorͲreleaseclauses. andSimon).

 seamless  Product5.85/8"O. VͲ6 .23/8"O. welded. seamless  Product2.producers(includingprocessors)andU.GradeJͲ55.range3...Salesaretypicallymadeonanet30payment basis..D.S.0lbs.S.market.Texas.ͲͲCasing.D.Theproductsforwhichpricingdatawererequestedareasfollows: Product1.0lbs.17.basis(12)doso fromHouston.QuarterlydatawererequestedfortheperiodJanuary 2010–March2013.sixothersnotedsellingfromtheportofentryordock. statedthatitsstandardpaymenttermsarenet180days.whereasthreeofferquantityorannualvolume discounts(***).threadedandcoupled.Theindustrystandardpaymenttermsproducersofferedare2%10/net30 days..range3. basisdosofromtheirmill../ft.7lbs.0lbs./ft.GradeJͲ55.D.whileanotherthreeoffernet30termsand threeoffersomethingdifferent.14ThirtyͲfourimportersoffernodiscounts.GradeLͲ80.GradeJͲ55. welded..ͲͲTubing.5½"O.  PRICEDATA TheCommissionrequestedU.ͲͲCasing.range3. whereasthree(***)offerquantityortotalvolumediscounts.     14 Eightof14respondingproducersoffertheseterms../ft.b.importersof OCTGtoprovidequarterlydataforthetotalquantityandvalueofOCTGthatwasshippedto unrelatedcustomersintheU.o.4.range3.5½"O.range2./ft.ͲͲCasing.ͲͲCasing.95/8"O..welded  Product3.5lbs.Oneimporter.17.D.***.threadedandcoupled.D.27/8"O...32.ͲͲTubing.welded  Product4.threadedandcoupled.36.threadedandcoupled.threadedandcoupled.S.and  Product6.GradePͲ110.. Morethanhalf(9of14)ofrespondingproducersdonotofferdiscountstopurchasersof OCTGexceptforearlypaymentdiscounts.D.althoughfourrespondingimportersreportednet60paymentterms.Eightimportersofferadiscount otherthanquantitydiscounts:fouroffera2percentearlypaymentdiscountandfouroffer discountsonatransactionͲbyͲtransactionbasis./ft.6.GradeJͲ55.although***offerstermsof2%25/net60../ft.0lbs.range2.whileamajorityofimportersshippingonanf.threadedandcoupled.

 ElevenU.althoughnotallfirmsreportedpricesforallproductsandall quarters.Consequently.16 Inaddition.S.2.Ͳ producedproducts.3.9percentofshipmentsofimportedproductfromVietnam.producers(millsandprocessors)15and19importersprovidedusableprice dataforsalesofthesixproducts.Pricedataarepresentedintables VͲ4toVͲ9andfiguresVͲ4toVͲ9.10.5percentofU.butthe CommissionreceiveddataforsalesofimportsfromCanada.3.2 percentofshipmentsofimportedproductfromthePhilippines.thesepercentagesare expectedlysmall.Amongsubjectimports.3percentofshipmentsofimportedproduct fromUkraine. VͲ7 .8percentofshipmentsofimportedproductfrom Taiwan.processors***.millsbutalsoincludedatareportedby U. 16 TherearealargevarietyofgradesandsizesofcasingandtubingintheOCTGmarket.Alldataarereportedinshorttonsanddollarspershortton.S.8percentofshipmentsofimportedproductfromKorea.1percentof shipmentsofimportedproductfromTurkey.2percentofshipmentsof importedproductfromSaudiArabia.3.S.S.pricedataconsistprimarilyofdatareportedbyU.0.Theselected productsarerepresentativeofthoseusedinthemarket.    15 U.6percentofshipmentsofimportedproductfromThailand.theyrepresent2.S.5.8percentofshipmentsof importedproductfromIndia.Reportedpricingproductsrepresented10.S.thesamedatawererequestedforimportsfromnonsubjectcountries CanadaandJapan.and6.shipmentsofU.NopricingdatawerereceivedforsalesofimportsfromJapan.

Source: Compiled from data submitted in response to Commission questionnaires.-Mar. range 2.513 6. *** *** *** *** *** *** *** 2013: -0 -*** *** *** *** Jan.-Mar.-Dec.486 -*** *** *** 0 *** *** *** *** *** *** *** -*** -*** 0 *** 0 *** -*** -*** 7.-Jun. -0 -*** *** *** -Jul. -0 -*** *** *** -2011: -0 -*** *** *** -Jan.-Mar.-Jun. United States Price (dollars Quantity per ton) (tons) India Price (dollars per ton) Korea Quantity (tons) Margin Price (dollars per ton) Quantity (tons) Margin *** *** 1.-Sept. -0 -*** *** *** -Jul.-Dec.-Dec.1 and margins of underselling/(overselling).--In addition to these quarterly data.-. 1 Product 1. Margin 0 0 0 0 ----- 0 0 0 0 ----- 0 0 0 *** ---*** *** *** Note.541 *** ---- *** 0 0 0 *** ---- ----- 0 0 0 0 ----- 2. Oct. -0 -*** *** *** -Oct.-Sept.-Dec. 2 7/8" O.D.-Mar.811 1..878 1.-Mar. 2011: Jan. 6.  VͲ8 .-Sept. Jul. Apr.866 10. January 2010-March 2013 Period 2010: Jan.773 1. Jul./ft. Apr. Jul.945 12..448 7.-Jun.Tubing. Table V-4 OCTG: Weighted-average f.-Mar.850 5.-Dec.5 lbs. Grade L-80.-Sept. -0 -*** *** *** -Oct.-Mar.-Jun.584 6. there was one quarter in which imported product 1 from the Philippines was sold: in Jul.813 1. 2012: Jan. Oct. Apr. yielding an underselling margin of *** percent. Apr.-Sept.-Sept.o. threaded and coupled. 2013: Jan.981 *** *** 5.931 4.-Mar.042 5. *** *** *** *** *** *** -Oct.833 -*** *** -- 0 *** *** 0 -*** *** -- ----- 0 0 0 0 ----- 1.993 2.071 2. -0 -*** *** *** -2012: -0 -*** *** *** -Jan. Apr.-Sept. by quarter.b.-Jun. Apr. *** short tons were sold at a price of $*** per short ton.872 5. 2012.-Jun.009 *** *** *** *** *** *** 1.-Dec. seamless.752 Thailand Price (dollars per ton) Quantity (tons) Ukraine Margin Price (dollars per ton) Quantity (tons) Vietnam Margin Price (dollars per ton) Quantity (tons) 2010: -0 --0 --Jan. Oct.013 1. prices and quantities of domestic and imported product 1. *** *** *** *** *** *** -Jul.

Apr. Table V-5 OCTG: Weighted-average f. 2011: Jan.481 *** *** *** 12.D.Tubing.923 ----- 0 0 0 0 ----- *** *** *** 1. prices and quantities of domestic and imported product 2.540 1.872 5.648 *** *** *** 9.1 and margins of underselling/(overselling). Source: Compiled from data submitted in response to Commission questionnaires.-Dec.-Mar.-Jun.-Dec. Oct. -0 -*** *** *** -2012: -0 -*** *** *** -Jan. 2013: Jan.078 6.-Mar.-Sept. welded. Grade J-55. Oct.-Dec.-. Apr.-Dec. Jul.. 2 3/8" O./ft. United States Price (dollars Quantity per ton) (tons) India Price (dollars per ton) Korea Quantity (tons) Price (dollars per ton) Margin Quantity (tons) Margin *** *** *** 1.-Mar. Jul. threaded and coupled. Apr.b..-Dec.  VͲ9 Quantity (tons) Margin 0 0 0 0 ----- 0 0 0 0 ----- 0 0 0 *** ---*** *** *** .-Mar. Oct. -0 -*** *** *** -Jul. January 2010-March 2013 Period 2010: Jan. -0 -*** *** *** -Jul.256 12.-Sept. *** *** *** *** *** *** *** 2013: *** *** *** *** *** *** *** Jan.-Jun.478 1. range 2.566 1.-Mar. -0 --0 --Oct. Apr.258 *** *** *** *** *** *** Philippines Price (dollars per ton) Quantity (tons) Turkey Margin Price (dollars per ton) Quantity (tons) Vietnam Margin Price (dollars per ton) 2010: -0 -*** *** *** -Jan.409 ----- 0 0 0 0 ----- *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1. Jul.-Sept.-Mar.-Jun. -0 -*** *** *** -2011: -0 -*** *** *** -Jan.234 *** *** *** 1. 1 Product 2. Apr.-Jun.470 ----- 0 0 0 0 ----- *** *** *** *** *** *** *** *** *** *** *** *** 1.-Sept. -0 -*** *** *** -Jul. -0 -*** *** *** -Oct.-Jun.o.568 *** *** 10.448 1. -0 -*** *** *** -Oct.-Mar.-Jun.-Dec.-Mar.-Sept.6 1. 4.7 lbs.393 7. by quarter. Apr.482 10.364 8. 2012: Jan.-Sept.

-Dec.-.360 *** *** *** *** *** *** 1.576 11. Jul.-Mar. 2013: Jan.-Sept. range 3.-Dec.536 *** *** *** *** *** *** *** *** *** *** *** *** ----- 0 0 0 0 ----- 1. -0 -*** *** *** -Jul. Apr. Table V-6 OCTG: Weighted-average f.-Jun.-Sept.180 10.197 1. Source: Compiled from data submitted in response to Commission questionnaires. Apr.259 1.-Jun.198 1. 5 ½" O.367 11.-Sept. Apr.-Sept. -0 -*** *** *** *** 2012: -0 -*** *** *** *** Jan.b.-Mar. by quarter.-Mar. Apr.310 1.117 Taiwan Price (dollars per ton) Quantity (tons) Turkey Margin Price (dollars per ton) Quantity (tons) Vietnam Margin Price (dollars per ton) 2010: -0 --0 --Jan.583 12.180 *** *** *** *** *** *** *** *** *** *** *** *** -*** -*** 0 *** 0 *** -*** -*** 8. -0 -*** *** *** *** 2013: -0 -*** *** *** *** Jan. -0 --0 --Jul.097 1./ft. Oct.-Dec. 1 Product 3. Apr. -0 --0 --2011: -0 --0 -*** Jan.050 9.-Jun.787 15.-Mar. threaded and coupled. United States Price (dollars Quantity per ton) (tons) Korea Price (dollars per ton) Philippines Quantity (tons) Margin Price (dollars per ton) Quantity (tons) Margin 1.-Dec. Jul.-Mar.  VͲ10 Quantity (tons) Margin 0 0 0 0 ----- *** 0 *** *** *** -*** *** *** *** *** *** *** *** *** *** *** *** .283 1.334 11. 2011: Jan. *** *** *** *** *** *** *** Oct. 2012: Jan.Casing. Oct.o.1 and margins of underselling/(overselling).295 13.-Jun.-Mar. 17..0 lbs.-Sept. -0 -*** *** *** *** Oct.. welded.274 1.187 11.-Jun.-Mar.-Jun. *** *** *** *** *** *** *** Jul.-Dec.207 1. January 2010-March 2013 Period 2010: Jan.-Mar.-Dec.836 11.373 13.D. Oct. prices and quantities of domestic and imported product 3.266 1. Grade J-55. Apr.-Sept. Jul. -0 --0 --Oct.876 *** *** *** *** *** *** *** *** *** *** *** *** ----- 0 0 0 0 ----- 1.821 13.

-Mar. -0 -*** *** *** Jul.-Mar.-Sept.-Dec. Jul. Table V-7 OCTG: Weighted-average f.-Sept.627 Thailand Price (dollars per ton) Quantity (tons) Ukraine Margin Price (dollars per ton) Quantity (tons) Margin 2010: -0 --0 -Jan.-Jun. January 2010-March 2013 Period 2010: Jan.-Dec.-Dec.-Jun.-Jun. Oct.927 1. Grade P-110.-Sept.006 *** *** *** *** *** *** 1. Oct.-Jun. prices and quantities of domestic and imported product 4.b.1 and margins of underselling/(overselling).Casing.D. -0 -*** *** *** Jul.798 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 9.-Sept.o.-Sept.-Sept. range 3. Apr.-Mar.-Jun. 17. threaded and coupled. 2011: Jan. 5 ½" O. seamless. Source: Compiled from data submitted in response to Commission questionnaires. -0 -*** *** *** Jul. United States Price (dollars Quantity per ton) (tons) India Price (dollars per ton) Quantity (tons) Saudi Arabia Margin Price (dollars per ton) Quantity (tons) Margin *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ----- 0 0 0 0 ----- 1. Jul. -0 -*** *** *** Oct.-Dec.-Mar.801 *** 5. Jul./ft. -0 --0 -Oct. 2012: Jan. Apr. -0 --0 -Oct.698 203 *** *** -*** *** *** 0 *** *** *** -*** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1. Apr. by quarter.  VͲ11 .-Jun.-Dec.-Dec. Apr.390 *** 3. Apr. Oct.818 *** *** 1. 2013: Jan.. 1 Product 4. -0 -*** *** *** 2012: *** *** *** *** *** *** Jan. -0 -*** *** *** 2011: -0 -*** *** *** Jan.-Mar.-..-Mar. *** *** *** *** *** *** 2013: -0 --0 -Jan.-Mar. Apr.-Mar.929 *** 1.0 lbs.

*** short tons were sold at a price of $*** per short ton.726 13. Apr.538 6.1 and margins of underselling/(overselling). Table V-8 OCTG: Weighted-average f.  VͲ12 . there was one quarter in which imported product 1 from the Philippines was sold: in Jan. welded.-Jun..-Dec.-Mar. prices and quantities of domestic and imported product 5. 2013: Jan.b. January 2010-March 2013 Period 2010: Jan.428 8.329 25.131 ---*** 0 0 0 *** ---*** *** *** *** *** *** *** *** *** *** *** *** *** 1. yielding an underselling margin of *** percent. -0 --0 --2011: -0 -*** *** *** -Jan.-Mar. threaded and coupled.024 ---*** 0 0 0 *** ---*** *** -*** *** *** 0 *** *** *** -*** *** 23.-.-Sept. 2012.-Sept.-Jun. -0 -*** *** *** -Jul. *** *** *** *** *** *** *** Oct.751 5. Apr.-Mar. -0 --0 --Oct. Oct. Source: Compiled from data submitted in response to Commission questionnaires.751 *** *** *** *** *** *** 1.301 17. Jul.-Jun. 1 Product 5. Margin 0 0 0 0 ----- 0 0 0 0 ----- *** *** *** *** *** *** *** *** *** *** Note.D. Apr.195 22. 8 5/8" O.0 lbs.112 Taiwan Price (dollars per ton) Quantity (tons) Turkey Margin Price (dollars per ton) Quantity (tons) Vietnam Margin Price (dollars per ton) Quantity (tons) 2010: -0 --0 --Jan.042 1.-Jun.018 9. Oct. Oct.-Dec. by quarter.--In addition to these quarterly data.-Sept. Apr.133 1. -0 -*** *** *** *** Jul.. -0 -*** *** *** -2012: -0 -*** *** *** *** Jan.333 *** -*** *** *** 0 *** *** *** -*** *** *** *** *** *** *** *** *** *** *** *** *** *** 1.-Mar.-Sept.261 1.283 1. *** *** *** *** *** *** *** 2013: -0 -*** *** *** *** Jan. Apr.-Jun. 2012: Jan. -0 --0 --Jul.-Dec.-Mar.223 1.244 1.-Mar.542 25. 32.144 7.-Dec.135 1. Jul.-Mar. -0 --0 --Oct.-Dec.-Dec. 2011: Jan.338 18. Grade J-55. Apr.-Sept.o. range 3./ft.-Sept.-Jun. Jul.Casing.212 1.-Mar.639 23.-Mar.274 1. United States Price (dollars Quantity per ton) (tons) India Price (dollars per ton) Quantity (tons) Korea Margin Price (dollars per ton) Quantity (tons) Margin 1.

Jul. *** *** *** *** *** *** -Oct. Apr.742 27. Source: Compiled from data submitted in response to Commission questionnaires. -0 -*** *** *** -Jul.228 1.283 24.0 lbs. 2011: Jan.507 34. Apr. threaded and coupled.-Mar./ft.-Mar.-Jun.-Dec. -0 -*** *** *** -2011: -0 -*** *** *** -Jan.-Jun..873 35. Jul.-Jun.-Sept. Jul. -0 -*** *** *** -Jul.151 1. welded. -0 -*** *** *** -Jul. Apr. 2012: Jan. 2013: Jan.-Mar.217 1. -0 -*** *** *** -Oct.-Sept.167 47.-Mar. Apr. 9 5/8" O.-Sept. prices and quantities of domestic and imported product 6.310 32.241 1.1 and margins of underselling/(overselling).183 18. Oct.430 43.-Mar.144 1. 1 Product 6.-Jun.753 -*** *** *** 0 *** *** *** -*** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 44.463 --*** *** 0 0 *** *** --*** *** *** *** *** *** *** *** *** *** *** *** *** *** 1.763 ----- 0 0 0 0 ----- *** *** *** *** *** *** *** *** *** *** *** *** 1. Grade J-55.-Mar. VͲ13 Margin 0 0 0 0 ----- 0 0 0 0 ----- 0 0 0 *** ---*** 0 -- ..-Sept.300 28.-Jun.-Mar.-Sept. 36.-Dec.-Dec.384 *** *** *** *** *** *** 1.-Dec.100 43.-Jun. Oct.298 1. United States Price (dollars Quantity per ton) (tons) India Price (dollars per ton) Korea Quantity (tons) Margin Price (dollars per ton) Quantity (tons) Margin 1. -0 -*** *** *** -2012: -0 -*** *** *** -Jan.555 30. -0 -*** *** *** -Oct.o.Casing. Apr.296 1.-Dec.D.276 1. by quarter.116 Taiwan Price (dollars per ton) Quantity (tons) Turkey Margin Price (dollars per ton) Quantity (tons) Vietnam Margin Price (dollars per ton) Quantity (tons) 2010: -0 --0 --Jan.-.b.068 1.-Sept. range 3. Apr. Table V-9 OCTG: Weighted-average f.419 43.-Dec.-Mar. Oct. January 2010-March 2013 Period 2010: Jan. -0 -*** *** *** *** 2013: *** *** *** *** *** *** -Jan.

by quarter.o. Asshowninthetable.pricesincreasedduring2010and2011.b.bycountryandbyproduct. January 2010-March 2013 * * * * * * * Pricetrends Ingeneral.o. prices and quantities of domestic and imported product 6.b. prices and quantities of domestic and imported product 4.o.7percent. January 2010-March 2013 * * * * * * * Figure V-6 OCTG: Weighted-average f.andwithrespecttowhenthehighestorlowestvalueswereobserved. January 2010-March 2013 * * * * * * * Figure V-7 OCTG: Weighted-average f.b.o.b.o. by quarter. prices and quantities of domestic and imported product 2.o.bothintermsofpricechangesbetweenthefirstandlastyearof theperiod. by quarter. Figure V-4 OCTG: Weighted-average f. prices and quantities of domestic and imported product 1. January 2010-March 2013 * * * * * * *  Figure V-8 OCTG: Weighted-average f.prices betweenthefirstandthelastquarterincreasedbybetween0.TableVͲ10summarizesthepricetrends.1and6. January 2010-March 2013 * * * * * * * Figure V-5 OCTG: Weighted-average f.b. by quarter. VͲ14 .Overall.domesticpriceswerelowestforeachofthe6productsinthefirst quarterof2010andhighestinthesecondhalfof2011orfirsthalfof2012.anddecreasedduring2012andin thefirstquarterof2013.Pricingdata forimporterswasmorevaried. prices and quantities of domestic and imported product 3. January 2010-March 2013 * * * * * * * Figure V-9 OCTG: Weighted-average f.Importer pricechangesrangedbetweenamorethan30percentdecreaseandapositive16percent increase. by quarter.b. by quarter. prices and quantities of domestic and imported product 5.

o. Changes are not reported for products for which data were not available in both the first and last year of the period.6) Taiwan 2 *** *** -Turkey 12 *** *** (16.5 India 1 *** *** -Korea 13 *** *** (30.8 Korea 13 *** *** 13. 13 $*** $*** 1.1 India 12 *** *** 16.3 Saudi Arabia 9 *** *** -Thailand 2 *** *** -Ukraine 9 *** *** *** Product 5 U. 13 $1.7 India 6 *** *** -Korea 12 *** *** (9.300 4.097 $1.S. VͲ15 .9 Philippines 3 *** *** -Taiwan 2 *** *** -Turkey 8 *** *** -Vietnam 8 *** *** -Product 4 U.S. 13 $*** $*** 0.5 India 6 *** *** (11.6) Vietnam 2 *** *** -Product 3 U.068 $1. Source: Compiled from data submitted in response to Commission questionnaires.S.7) Vietnam 1 *** *** -1 Percentage change is based on unrounded data.S.5) Philippines 2 *** *** -Turkey 12 *** *** (17.7 India 8 *** *** (20.310 1.2) Philippines 1 *** *** -Taiwan 2 *** *** -Turkey 8 *** *** -Vietnam 5 *** *** -Product 6 U.042 $1.9) Korea 3 *** *** -Philippines 1 *** *** -Thailand 3 *** *** -Ukraine 12 *** *** *** Vietnam 2 *** *** -Product 2 U. prices for products 1 through 6 from the United States and subject countries Number of Low price High price Change in Item quarters (per short ton) (per short ton) price1 (percent) Product 1 U. Table V-10 OCTG: Summary of weighted-average f. 13 $*** $*** 3.S.301 6.6) Korea 13 *** *** (8. 13 $1.S. 13 $1.b.

withtheexceptionofaoneͲquarterpriceincreaseinthefourthquarterof 2012.alsofollowedthesamepattern.3.Pricesofproduct5importedfrom Turkeyfluctuatedaround$***pershorttonbetweenthefirstquarterof2011(thefirstquarter   17 Importer***statedthatitwasfacingstiffcompetitionduringthatquarter.thendecreasedbymorethan***percentinthefirstquarterof2013.andVietnam wereonlyavailableinthefinaltwoquartersoftheperiod.”Stafftelephoneinterview with***.but decreasedirregularlythroughtheremainderoftheperiod.increaseduntilthethird quarterorfourthquarterof2011.itwouldhavebeen“sittingontheinventoryforyears.andhavedecreasedsincethenforallfive subjectcountriesforwhichtrenddataareavailable. VͲ16 .and6) movedinasimilarfashionovertheperiodofinvestigation. butonequarterlaterthanthoseforthefourweldedproducts.PricingdataforIndia.producedintheUnitedStates.aseamlessproduct. Pricesforproduct3importedfromKoreafollowedasimilartrendtothoseofthe domesticproduct3.17 Pricesforproduct4importedfromUkrainegenerallyincreasedfromthesecond quarterof2010untilthesecondquarterof2012andstayedclosetothosepricesinthethird andfourthquartersof2012(decreasing***percent). Pricesofproduct5importedfromKoreawerereportedin12of13possiblequarters.Pricesincreasedbetweenthefirst andthirdquartersof2010.product4.18increasedto over$***pershorttoninthethirdandfourthquartersof2012thendeclinedtojustover$*** pershorttoninthefirstquarterof2013.remainedatthose levelsuntilthesecondquarterof2012.generally increasedbetweenthefirstquarterof2010andthethirdquarterof2011.thePhilippines.Pricesfortheotherseamless productforwhichdatawerecollected.Pricesforproduct3importedfromVietnamincreasedfromthefirstquarterof2011(the firstquarterforwhichdatawereavailable)throughthefourthquarterof2011. Domesticallyproducedproduct1.Pricesforproduct3importedfromTurkeystayedrelativelylevel fromthesecondquarterof2011(thefirstquarterforwhichdatawereavailable)throughthe fourthquarterof2012.Itfeltthatifitdidnot bringitspricesdown.inparticularfrom importssuchasthosefromKorea.thePhilippines. Subjectimportedproduct2fromKoreaandTurkeywerepricedhighestin2010and havegenerallydeclinedsincethattime.weredepressedinthenexttwoquarters.Pricesforproduct4importedfromSaudi Arabiaincreasedfrom$***pershorttoninthefirstquarterof2011(thefirstquarterforwhich datawereavailable)to$***pertoninthethirdquarterof2011.andVietnamamongothers.reachingaperiodpeakinthefourthquarterof2010. 18 Thisdeclineisdueto***. PricesforthedomesticallyproducedweldedOCTGproducts(products2.buthavebeen decreasingsincethattime.Thesepricesremained between$***and$***pershorttonthroughthesecondquarterof2012beforedecreasingto $***pershortton(***percent)bythefirstquarterof2013.andhavebeengenerallydecreasingsincethattime.Pricesforproduct4imported fromIndiapricesgenerallyincreasedbetweenthefirstquarterof2010andthefourthquarter of2011.Thesepriceswerethenlowerinthefirstandsecondquartersof2012.buthavedecreasedineachsubsequentquarter. Thepricesincreasedin2010.5. Thepricesforproduct1importedfromIndiaandKoreagenerallyincreasedfromthe thirdquarterof2010tothesecondquarterof2012.

Ͳproducedproductin153of192possibleinstances.Intheremaining39instances.PricesforimportedTurkishproduct5haveincreased veryslightly(***percent)throughthefirstquarterof2013.4) (7.prices forOCTGfromtheninesubjectcountrieswerebetween0.buthavedeclinedsincetheirpeakinthefirstquarterof2011.2) (0.2) (9.7 (4.  Pricecomparisons AsshownintableVͲ11.1) (24.S.7) (0.5percentabovepricesfor thedomesticproduct.5 19.2) (14.6 17.PricesforIndianproduct5were sporadic.3) 8 13.0percent.3) (2.andVietnam.7percent.5) Total 153 39 9.beforedecreasingto$***per shorttoninthethirdquarterof2012.  Table V-11 OCTG: Instances of underselling/overselling and the range and average margins.OCTGfromthe Philippines.0 (7.andTaiwanundersoldU.Importerproduct5 fromVietnamwerevirtuallyidenticalinthefirstandsecondquarterof2012.9 38.5 0. January 2010-March 2013 Margins of underselling Product Number of quarters of underselling Number of quarters of (overselling) Average (percent) 1 26 2 2 22 3 Margins of (overselling) Range (percent) Range (percent) Min Max Average (percent) 17.Thecountrieswiththegreatestnumberof possiblecomparisonswereKorea.0 0.averaging9.pricesforOCTGimportedfromtheninesubjectcountrieswere belowthoseforU.marginsofunderselling rangedfrom0.Ukraine.4) 6 26 8 4.6 0.0 0.S. DatabycountryareprovidedintableVͲ12.6 21.ThailandundersoldtheU.7) 4 29 3 9. forwhichdatawereavailable)andthesecondquarterof2012.7 0.SaudiArabia.0 (7.butdecreasedineachquarter betweenthesecondquarterof2012andthefirstquarterof2013.5) (24.3) (5.4 (7. all subject countries combined.Turkey.productinfourquarters.   VͲ17 Min Max .1and24.1) (10.7percent.Afterthatpoint.3) (1.2) (18.6 0.1 (4.6 (9.9) (1.6 45.India.2) 26 8 6.Pricesforproduct6importedfromTurkey werehigherthananyotherpricesinthesecondquarterof2012throughthefirstquarterof 2012. Pricesofproduct6importedfromKoreaincreasedirregularlythroughthethirdquarter of2012anddecreasedineachquarterthereafter.5) Source: Compiled from data submitted in response to Commission questionnaires.averaging7.Pricesforproduct6fromIndiawereagainsporadic.OCTGineachofthequartersforwhich comparisonswerepossible.althougheachofthesecountrieshadlessthan10comparisons possible.4 (10.0 19.0) (0.theyfollowedthesamegeneraltrendasdomesticandKoreanproduct6 prices.andoversolditinone.2 0.0 45.0to45.S.butdecreasedin priceineveryquarterthroughthefirstquarterof2013.5) 5 24 10 7.

1) (9.6 15.    VͲ18 .6 25. January 2010-March 2013 Margins of underselling Product and country Number of quarters of underselling Number of quarters of (overselling) Average (percent) Min 1 *** *** *** 2 *** *** 4 *** 5 Margins of (overselling) Range (percent) Range (percent) Max Average (percent) Min Max *** *** *** *** *** *** *** *** -- -- -- *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 6 *** *** *** *** *** -- -- -- Total 28 4 8.0 0.2) (18.8 0.5 -- -- -- India Korea Philippines Saudi Arabia 4 Total 9 Table continued on next page.3 -- -- -- 9 0 *** *** *** -- -- -- 0 5.7 (7.4) 1 *** 0 *** *** *** -- -- -- 2 *** 0 *** *** *** -- -- -- 3 *** 0 *** *** *** -- -- -- 5 *** 0 *** *** *** -- -- -- Total 7 0 18.7 6.9 (5. Table V-12 OCTG: Instances of underselling/overselling and the range and average margin by country.6 0.9) (3.4) (0.0 32.3) 1 *** *** *** *** *** -- -- -- 2 *** *** *** *** *** *** *** *** 3 *** *** *** *** *** *** *** *** 5 *** *** *** *** *** *** *** *** 6 *** *** *** *** *** *** *** *** Total 35 19 6.0 44.


Table V-12--Continued
OCTG: Instances of underselling/overselling and the range and average margin by country,
January 2010-March 2013
Margins of underselling
Product
and
country

Number of
quarters of
underselling

Number of
quarters of
(overselling)

Average
(percent)

Min

3

***

0

***

5

***

0

6

***

Total

Margins of (overselling)

Range (percent)

Range (percent)

Max

Average
(percent)

Min

Max

***

***

--

--

--

***

***

***

--

--

--

0

***

***

***

--

--

--

6

0

7.5

2.3

21.6

--

--

--

1

***

***

***

***

***

--

--

--

4

***

***

***

***

***

***

***

***

Total

4

1

13.4

8.1

17.7

***

***

***

2

***

***

***

***

***

***

***

***

3

***

***

***

***

***

***

***

***

5

***

***

***

***

***

***

***

***

6

***

***

***

***

***

***

***

***

Total

27

13

6.8

0.8

19.1

(9.2)

(0.1)

(24.5)

1

***

***

***

***

***

--

--

--

4

***

***

***

***

***

***

***

***

Total

20

1

13.0

1.5

23.7

***

***

***

1

***

***

***

***

***

--

--

--

2

***

***

***

***

***

--

--

--

3

***

***

***

***

***

***

***

***

5

***

***

***

***

***

--

--

--

6

***

***

***

***

***

--

--

--

Total

17

1

14.9

0.7

45.0

***

***

***

Taiwan

Thailand

Turkey

Ukraine

Vietnam

Source: Compiled from data submitted in response to Commission questionnaires.

VͲ19


Products1and4areseamlessproducts.Amongtheseproducts,therewere55quarters
ofunderselling,comparedwith5quartersofoverselling.Forweldedproducts(products2,3,5,
and6)ingeneral,therewere98quartersofundersellingand34quartersofoverselling.
Whencomparingmarginsamongallsubjectcountries,theaveragemarginsof
undersellingrangedbetween5.0percent(SaudiArabia),and18.7percent(thePhilippines).The
countrieswiththelargestaveragemarginofundersellingwerethePhilippines(18.7percent),
Vietnam(14.9percent),Thailand(13.4percent),andUkraine(13.0percent).Thesefour
countrieswerealsofourofthefivewiththegreatestpercentageincreaseinsubjectimports
between2010and2012:thePhilippinesandThailand(infinitesincetherewerenoimportsin
2010);Vietnam(over150,000percent);Thailand(419percent);andUkraine(179percent). 

Averageoversellingmarginsrangedbetween***percent(Ukraine)and9.2percent
(Turkey).Nearlyhalfofthequartersofoverselling(19of39)wereaccountedforbyimports
fromKorea,althoughanadditional13ofthemwereattributabletoTurkey. 

LOSTSALESANDLOSTREVENUES 

TheCommissionrequestedU.S.producersofOCTGtoreportanyinstancesoflostsales
orrevenuetheyexperiencedduetocompetitionfromimportsofOCTGfromIndia,Korea,the
Philippines,SaudiArabia,Taiwan,Thailand,Turkey,Ukraine,andVietnamsinceJanuary2010.
Themajoritywereincludedinthepetition,although***addedthreeallegationsinits
questionnaireresponse.AllbutoneinvolveimportsfromKorea.Ofthe10respondingU.S.
producers,ninereportedthattheyhadtoeitherreducepricesorrollbackannouncedprice
increases.The74lostsalesallegationstotaled$267millionandinvolved155,408shorttons
andthe13lostrevenueallegationstotaled$1.1millionandinvolved12,372shorttons.Staff
contacted25purchasers;asummaryoftheinformationobtainedispresentedintablesVͲ13
andVͲ14alongwiththe16respondingpurchasers’replies.Intotal,purchasersagreedwith
allegationstotaling32,940shorttonsoflostsales,accountingfor$53.8million,aswellas9,905
shorttonsoflostrevenueaccountingfor$935,287.
Table V-13
OCTG: U.S. producers’ lost sales allegations

*

*

*

*

*

*

*

*

*

*

*

Table V-14
OCTG: U.S. producers’ lost revenue allegations

*

*

*

Themajorityofpurchasersalsogavefurthercommentsregardingtheallegations.***
statedthattheycouldnotrecallthespecificallegationsandwerethereforeunabletoprovide
verification.***statedthatithadinsufficientinformationtomakeanyconclusionsregarding
OCTGpricingbyU.S.producers.***furthernotedthatitpurchasesamixofproductsfrom
domesticandforeignproducers,butthatnoorderswere“pulled”fromU.S.producerssince

VͲ20


2010.ItaddedthatU.S.producershaveoccasionallyreducedtheirpriceonspecificquotesto
competewithforeignproducersofOCTG.
***agreedwiththeallegedpricedifferences,butdidnotpurchasetheimportedforeign
OCTGoutofsupportfordomesticmills.However,itstatedthatdomesticproducersofOCTG
havehadtolowertheirpricestocompetewiththeimportedproduct.Accordingtoits
response,“oursellingpricehasdecreased***%sellingdomesticproduct.”
***somewhatagreedwiththeallegations,addingthat“bidsareoftenawardedbased
onamultitudeoffactorsbeyondprice.Thesefactorsmayinclude,butarenotlimitedto,
quality,milldelivery,requirementdates,relationships,customerpreference,shortandlong
termpurchasingstrategies,etc.”Itfurthercommentedthat“domesticmillsarevery
competitiveandbothimportanddomesticOCTGmillsadjusttheirpricingupanddownbased
onavarietyoffactors.”
For***,pricedidinfluencethechoicetoshiftpurchasesawayfromdomestic
producers,but“availabilityofdomestictonsforspecificrequirementsalsoplaysabigpartin
theselectionoftubulars.”
***notedthatitdidnothavetoloweritsU.S.pricinginordertocompetewithimport
pricing.
***commentedthatitonlybeganfocusingondomesticmillsourcesin***,butnoted
thatdomesticproducershavereducedtheirpricessincelate2012asaresultofoversupplyand
morecompetitivemarketconditions.
***statedthatitsrejectionoftheoriginalquotefromU.S.producerswasnot
necessarilyinresponsetocompetingimportsfromthespecifiedsubjectcountry,butthat,in
general,domesticmillsareforcedtolowerpricestocompetewithimportedOCTGproduct
prices.
***notedthat“these{foreign}millswerealwaysbelowdomesticpricing,”andthat“to
selldomesticpipe,itrequiresanenduserthatprefersit,andiswillingtospendmoretohaveit.
Otherwise,thepricesaretoohigh.”Evenincaseswheredomesticproducersreducedtheir
prices,itstatedthatthecostofdomesticallyproducedOCTGwas“stillhigherthanthemills
mentionedinthistradecase.”
***addedthatpricesofOCTGfromthespecifiedsubjectcountryareroughly
$***/shorttonlessexpensivethandomesticgoods.Itfurthernotedthatitprefersdomestic
product,andthusoften***.
Inadditiontothedataregardingthespecificallegations,purchasersnamedinthe
allegationswereaskedtwoquestionsregardingtheOCTGmarket.Thefirstiswhetherthe
purchaserswitchedsuppliersfromaU.S.producertoimportsofsubjectproductsinceJanuary
2010,andifpricewasthereasonfortheswitch.TheywerealsoaskedifU.S.producershadto
decreasetheirpricesinordertocompetewiththepriceofOCTGfromsubjectsources.
ResponsesarepresentedintableVͲ15.Sixof15respondingpurchasersnotedswitchingto
subjectimports,witheachreportingthattheydidsoforpricereasons.Elevenof14responding
importersindicatedthatU.S.producershadtoreducetheirpricestocompetewithOCTGfrom
subjectcountries.  

VͲ21


Table V-15
OCTG: Purchasers’ responses regarding shifting supply and price reductions

*

*

*

* 

VͲ22

*

*

*

S.andVallourecStar.S.PARTVI: FINANCIALEXPERIENCEOFU.allbuttwoofthe firmsreportedafiscalyearendofDecember31.BoomerangandTejas.Tejas. DifferencesbetweenthetradeandfinancialsectionsoftheCommission’squestionnaireare accountedforbytimingdifferences.S.whiletableVIͲ2presentsselectedcompanyͲspecificfinancialdata.S.Northwest. TenofthefirmsreportedproducingweldedOCTGandsixreportedproducingseamless OCTG.***firmsprovideddataontheirindependenttollingoperationsonOCTG.producersreportedtheirfinancialresultsonthebasisofGAAP.S.2Theproduction ofbothseamlessandweldedOCTGrosefrom2010to2012andwaslowerinJanuaryͲMarch 2013thaninJanuaryͲMarch2012.SteelandTMKIPSCOmanufacturebothseamlessandweldedOCTG.Twofirmsadditionallyprovidedtollingdata(sectionVoftheCommission’squestionnaire):***.Unlessnotedotherwise.producersprovideduseablefinancialdataontheiroperationsonOCTG.13.eachfirmhasafiscalyearthatendsonorabout December31.1 ThesedataarebelievedtoaccountforthemajorityofU.producers’operationsonOCTGarepresentedintable VIͲ1.The increaseinaverageunitsalesvaluesbetween2010and2012andsubsequent 1 Thesefirmsare:***. MaverickandTMKIPSCOreportedtheirsonthebasisofInternationalFinancialReportingStandards (IFRS).PRODUCERS BACKGROUND ThirteenU.***.S.S.andbothwereprocessorsonlypreviously. includingBoomerang.Nofirm reportedinternalconsumptionortransfersinthefinancialsectionoftheCommission’s questionnaire.TexasSteelConversion(beganoperations onlyinMay2013). VIͲ1 .thesedata arenotpresentedseparatelyinthissectionofthereport.3ForsomethisinvolvedexpandingOCTGoperationsfrom heatͲtreatingandendingfinishingtotubeproduction.bothopenedamanufacturingfacility forweldedOCTGin2011. 3 Questionnaireresponses.andbecause***.largelyaccountedforby***.andTejas processesboth. OperationsonOCTG IncomeͲandͲlossdataforU.producersstartedproducingweldedOCTGduringthe2010Ͳ13period.p.Thesefirmstogetheraccountedfor about***percentoftheindustry’soperatingincomein2012.which wereequivalenttoapproximately***percentoftotalnetsalesbyvaluein2012. SeveralU.Asnotedbelow.Productionisconcentratedamongafewfirms:Overall.EnergeX.sectionIIͲ2a.forexample.U.differencesinrounding.SeeMaverick’s postconferencebrief. 2 SeparatetradedataonseamlessandweldedOCTGarepresentedinappendixC.ThemajorityofU.productionofOCTGin2012.Resultsofoperations onOCTGarebrieflydescribedhere:  x Totalnetsalesrosebyquantityandvaluebetween2010and2012butbothwere lowerinJanuaryͲMarch2013comparedwiththesameperiodin2012.

forexample.someofthisisaccountedforbythegreatervolumeof salesandsomeisaccountedforbystartͲupproblemsofU. whichaveragednearly60percentand31percentduringthefullyearlyperiods.  Totalcostofgoodssold(“COGS”)increasedbetweentheyearlyperiodsindollar termsby53.Asshowninthecostofsalessectionofthevarianceanalysis(table VIͲ3). respectively.Between2010and2012.Rampupofoperationsbyseveralofthenewerfirms andincreasedsalesbyestablishedfirms(***.principallyraw materialsandotherfactorycosts.playedasecondaryrole.producers. Totalrawmaterialcosts.S.AsthedataintableVIͲ2indicate.suchchangesdidvarybyfirm(tableVIͲ2).4 Betweentheinterimperiods.forexample)accountedformost oftheincreaseinsalesbetween2010and2012.totalrawmaterialcostswerelowerindollartermsandonaperͲunit basisbuthigherasaratiotototalsales. sectionIIIͲ9.theincreaseintotalCOGSisprimarilyattributabletoincreasedsales volumeswhiletheincreaseinunitcostsofthecomponents.x declinefromJanuaryͲMarch2012toJanuaryͲMarch2013ledtothegreater percentageincreaseanddecrease.betweenJanuaryͲMarch2012andJanuaryͲ March2013. VIͲ2 .directionalchangesin COGSwerethesameforeachfirm.6percent comparedwith3.The perͲunitvalueincreasewasaccountedforbyincreasesinthepriceorcostof hotͲrolledsheetandbilletusedasinputsforpipeͲmaking.3percent).Thepatternwasnotuniformor consistentthroughouttheperiodforallU.Betweentheinterim periods.2percent.COGSwaslowerinJanuaryͲMarch2013comparedto JanuaryͲMarch2012byasimilarproportionassalesvolume(3.respectivelyinsalesvaluecomparedwith salesvolume.directionalchangesinperiodͲtoͲ periodsalesweregenerallythesameforallfirms.thesinglelargestcostcomponentofOCTG.ThechangeintotalCOGS wasledbythecostcategoriesofrawmaterialcostsandotherfactorycosts.whichrepresentedagreaterincreasethanthatofeither salesvolumeorvalue. increasedindollartermsandasaratiotosaleswithincreasingsalesvolume.Questionnaireresponseof***.S.otherfactorycostsincreasedindollartermsas wellasaratiotototalsalesandonaperͲunitbasis.producers(tableVIͲ2).Italsoappearsthatchangesin averagesalesvalueswereduetochangesinunderlyingpricesasopposedto changesinproductmix.  OtherfactorycostsalsoincreasedindollartermsandonaperͲunitbasis duringtheyearlyperiods.  4 ***rampupcostsin2012andbothinterimperiods.

 VIͲ3 .AsaratiotosalesandonaperͲunitbasisSG&Aexpenses declinedbetween2010and2012.Operatingprofitasaratiotototalsalesdecreasedby3.x x x Totalselling.andadministrative(“SG&A”)expensesroseindollars betweentheyearlyperiodsandweregreaterinJanuaryͲMarch2013thanin JanuaryͲMarch2012.Therewaslargevariability betweenfirmsthatreflected.9million)weregreater thantheincreaseinotherincome(about$3.Generally.Theoperating incomeof***.general.thedirectionofchangebyfirm trackedtheindustrytotalandratiotonetsales.bothfollowed thechangeinoperatingincomeandincorporatedanincreaseinotherexpenses.butthatoperating incomewasmuchlowerinJanuaryͲMarch2013thaninthesameperiodone yearearlier.inpart.OperatingincomealsofellonaperͲ unitbasisfrom2010to2012andwasmuchlowerininterim2013thanininterim 2012.Asintheyearlyperiods.thestartupofoperations.2percentagepointsinJanuaryͲ March2013thaninJanuaryͲMarch2012.Thenumberoffirmsrecordingoperatinglossesdeclinedfrom5firmsin 2010to***firmsin2012.Both increasedbetween2010and2011butdecreasedin2012.Netincomebefore taxesandcashflowwerepositivebutweremuchlowerinJanuaryͲMarch2013 thaninthesameperiodoneyearearlier.4million)andledtothedecreasein netincomeandcashflowcomparedwithoperatingincome.  Totaloperatingincomewaspositiveineachperiodandtheindustrycollectively recordedhigheroperatingincomein2012thanin2010.8percentage pointsfrom2010to2012andwaslowerby10.butwashigherinJanuaryͲMarch2013at4firms comparedwith***firminthesameperiodoneyearearlier.7 millionhigherandotherexpensesalsoincreasedby$15.Anincreaseofinterest chargesandotherexpensesbetween2010and2012(interestwasabout$48.  Netincomebeforetaxesandcashflowalsowerepositiveineachperiod.butwerehigherinJanuaryͲMarch2013than inthesameperiodoneyearearlier.

770 121.429 292.8 77.778.994 1.6 10.963 223.301) (208.063 369.493 3.783.4 7.748 1.0 9.115 2.6 8.1 26.540.0 5.0 8. and January-March 2013 Item Fiscal years 2011 2010 Total net sales 2.334 397.568 Cost of goods sold: Raw materials Direct labor Other factory costs Total COGS Gross profit SG&A expenses Operating income 769 131 348 1.4 48.412 113.262 5 11 820 833 823 135 139 139 428 459 394 1.363 394.Table VI-1 OCTG: Results of operations of U.840 985.266 433.843 3.527.048 (150.396) 25.218 645.357 1.746 1.0 8.317.217 52.341 1.345 1.693 140.S.057 Cost of goods sold Raw materials Direct labor Other factory costs Total COGS Gross profit SG&A expenses Operating income Net income 2012 January-March 2012 2013 Quantity (short tons) 3.546 1.1 21.821 620.093 Cost of goods sold: Raw materials Direct labor Other factory costs Total COGS Gross profit SG&A expenses Operating income Total other income/(expense).5 22.097 5.559 397.490 Ratio to net sales (percent) 1.035 707.742 6.2 47.384 1.4 6.478. 47.1 9.4 17.0 25.8 8.832.360 467.729 1.397 1. producers. net1 Net income Depreciation/amortization Cash flow 2.452.1 8.2 26.4 11.5 77. fiscal years 2010-12.025 210.504) 473.4 6.6 82.2 13.735.849 1.072 (63.124.061 527.0 86.085) 494.3 22.2 13.179.816 430.075 Total net sales 48.3 974.347 419.696 1.069 139.415.117 638.144 4.022 234.8 16.528 485.6 13.739) (41.921 653.6 Average unit value (dollars per short ton) 1.967 829.6 18.040.247 367 148 219 801 143 408 1.399 85.526 (147.000) 5.413 Value ($1.2 22.105 223.761.152.007.490 3.527 717.1 8.856.212 239.575. January-March 2012.951 281.8 1. VIͲ4 51.352 216 125 91 Operating losses Data 1 Principally interest expense.432 1.732 Total net sales 4.7 4 12 .795 780.078.615 1.676 59.4 7.357 312 297 391 126 128 112 187 169 279 Number of firms reporting: 3 *** *** 12 11 11 Source: Compiled from data submitted in response to Commission questionnaires.6 81.645 1.833.698 89.7 9.366.534.

S.androsewiththeincreasingvolumeofsalesbetween2010and2012.Twofirmsreportedindependenttollingoperations. producers.Theterm “metalmargin”referstothemetalspreadasapercentageoftheproductprice.4percentin2010to51.9percentinJanuaryͲMarch 2013comparedto52. theyvarywithproduction.Raw materialcostsalsoareasubstantialshareofsalesandonaperͲunitbasis. reporteddataduringeachoftheperiodsforwhichdatawerecollected.Themetalspreadwidenedduringthefullyearlyperiods($2.primarilyhotͲrolledsheetorbillet.” definedasthedifferenceintotaldollarsorindollarspertonofproductbetweenthesalesprice andthecostofafirm’srawmaterialinputs.producers’questionnaire.revenueof$***but***.4 millionor$846pershorttonto$3.2percentinJanuaryͲMarch2013comparedwith60.5 Table VI-2 OCTG: Results of operations of U.orthatthe rawmaterials’costsaredecliningfasterthanafirm’ssalesprice.8percentin2012. and January-March 2013 * * * * * * * AsdepictedintablesVIͲ1andVIͲ2.Anincreasing metalspreadindicatesawideningbetweenafirm’ssalesvalueanditscostofrawmaterials.Theotherfirm.Oneofthesewas***.rawmaterialcosts werethelargestsinglecomponentofCOGS.6 5 Athirdfirm.andwaslowerat48.S. January-March 2012.000or$767pershortton).which reportedtollingdatafor2012onlyof***.4millionor$895pershortton)butnarrowedbetweenthe interimperiods($931. VIͲ5 .***.drivenbyrawmaterialandotherfactorycosts.6percentin2010to58.changesinthemetalmargin indicatesimilaraspectsofchangesintheunderlyingfactors.”Asvariablecosts.Themetalmargindeclinedfrom 52. by firm.2 percentin2012.for examplewhenafirm’ssalespriceisrisingfasterthanisthecostofitsrawmaterials.andonaperͲunitbasis.andwas59. 6 Energycostsarevariablecostsandaretypicallyclassifiedin“otherfactorycosts.***.Thesteelindustryoftenusestheterm“metalspread.Other factorycostsalsoincludechargessuchas***aswellasanincreasedallocatedshareoffactory overheadcostsastheshareofproductionofOCTGroserelativetootherpipeandtubeproducts. fiscal years 2010-12.9percentinJanuaryͲMarch2012.whereasadecreasingmetal spreadindicatestheopposite.Togethertheyreported tonstolledrangingfrom***.000or$925pershorttonto$747.alsoreporteddatainsectionVoftheCommission’sU.Likethemetalspread.totalCOGSincreasedindollarterms. butthedatawerenotusableandarenotincludedhereorintableCͲ2.asaratioto totalnetsales.whichisthe ratioofthemetalspreadtototalnetsales.***.anddeclinedfrom61.7percentin thesameperiodoneyearearlier.

Varianceanalysis ThevarianceanalysisshowingtheeffectsofpricesandvolumeonU.Summarizedatthebottomofthe table. 7 TheCommission’svarianceanalysisiscalculatedinthreeparts:Salesvariance.S.Theoverallvolumecomponentofthevarianceanalysisis generallysmall.The varianceanalysisforthereportingfirmstogetherindicatesthattheincreaseinoperating incomebetween2010and2012wasmainlyduetothecombinedeffectsoffavorablepriceand volumevariancesonsales(salesvolumeincreasedandunitsalesvaluesincreased)thatwere greaterthantheunfavorablenetcost/expensevariance(unitcostsincreased). VIͲ6 .andavolumevariance.andvolume.7The informationforthisvarianceanalysisisderivedfromtableVIͲ1.netcost/expense.andSG&Aexpensevariances.whilethevolumevarianceiscalculatedasthe changeinvolumetimestheoldunitpriceorperͲunitcost/expense.cost.Thesalesorcost/expensevarianceiscalculatedasthechangeinunit priceorperͲunitcost/expensetimesthenewvolume.Operating incomewaslowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012duetothecombined effectsofunfavorableprice.Thecompositionofnet operatingvarianceissummarizedatthebottomoftableVIͲ3.andSG&Aexpensevariance.respectively.thepricevarianceisfromsales.COGS.thecost/expensevarianceisthesumofthoseitemsfromCOGS andSG&Avariances.costofsales variance(COGSvariance).andvolumevariances.producers’net salesofOCTG.ispresentedintableVIͲ3.Eachpartconsistsofapricevariance(inthe caseofthesalesvariance)oracostorexpensevariance(inthecaseoftheCOGSandSG&Aexpense variance).andofcostsandvolumeontheirtotalexpenses.andthevolumevarianceisthesumofthevolumecomponentsofthe netsales.Thevarianceanalysisprovides anassessmentofchangesinprofitabilityasrelatedtochangesinpricing.

707) (51.095 77. Capitalexpendituresandresearchanddevelopmentexpenses TableVIͲ4presentscapitalexpendituresandresearchanddevelopment(“R&D”) expensesbyfirm.845 Volume variance (1.976) Summarized as: Price variance 432.686) (91.264 1.109 282.016 38.371 (175.TotalR&Dexpenses werehigherineachconsecutiveperiodfromJanuary2010throughMarch2013.281. producers.723) (471.533.371 (175.591) (13.-March Item 2012-13 Total net sales: Price variance 432.525) (771.652 122.965.Totalcapitalexpendituresroseirregularlybetween2010and2012butwere lowerduringJanuaryͲMarch2013thaninthesameperiodoneyearearlier.184.652 122.367) Volume variance 1.425 24. and January-March 2013 Value ($1. all others are favorable.897) 49.628) (393.831) (457.248) (1.Table VI-3 OCTG: Variance analysis on the operations of U.361) Net volume variance 207.997 561.243.979 Total cost variance (1.S. VIͲ7 .821 (9. The data are comparable to changes in operating income as presented in table VI-1.166) (191.496) SG&A expenses: Expense variance 75.670) (41.358) (7.248) Note.206) Volume variance (140.649 683.—Unfavorable variances are shown in parentheses.963 (10.109 282.298 45.881. January-March 2012.495 61.879) 44.351) (637.155 998.591 (6.340) (12.726 Total SG&A variance (65.953) Total net sales variance 1.480) Operating income variance 18.544) 3.557) (190.944 135.884) (8.320) Cost of sales: Cost variance (696.244 (57. Source: Compiled from data submitted in response to Commission questionnaires.000) Between fiscal years 2010-12 2010-11 2011-12 Jan.367) Net cost/expense variance (621.718 (183. fiscal years 2010-12.615 (233.018) 4.520) (180.824 Gross profit variance 84.

105 3.745 *** *** *** *** *** *** *** *** *** *** *** *** *** 88.067 *** *** *** *** *** *** *** *** *** *** *** *** *** 616. fiscal years 2010-12.900 *** *** *** *** *** *** *** *** *** *** *** *** *** 130.004 *** *** *** *** *** *** *** *** *** *** *** *** *** 711.S.130 *** *** *** *** *** *** *** 1.Table VI-4 OCTG: Capital expenditures and research and development expenses of U. and January-March 2013 Item Capital expenditures: Boomerang DPI EnergeX Evraz Laguna Maverick Northwest Paragon Tejas Texas Tubular TMK IPSCO U.000) January-March 2012 2013 *** *** *** *** *** *** *** *** *** *** *** *** *** 269.S. producers. *** *** *** *** *** *** *** 1.474 6. Steel *** *** *** Vallourec Star *** *** *** Total 2.413 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Northwest *** *** *** Paragon *** *** *** Tejas *** *** *** Texas Tubular *** *** *** TMK IPSCO *** *** *** U.422 Source: Compiled from data submitted in response to Commission questionnaires. Steel Vallourec Star Total R&D expenses: Boomerang DPI EnergeX Evraz Laguna Maverick Fiscal years 2011 2010 2012 Value ($1. January-March 2012.S.828 VIͲ8 .

10 x ***.9 x ***. x ***.***.S.andotherchangesintheirOCTGoperationsintheirquestionnaireresponses.     x Assetsandreturnoninvestment TableVIͲ5presentsdataontheU. 9 VIͲ9 .expansionof capacity. 10 ***.producers’totalassetsandtheirreturnon investment(“ROI”). 12 Ibid.presentedearlierinthisreport.OperatingincomewasdividedbytotalnetassetsresultinginROI. 11 ***. ***.includingopeningofplants.Firmscommentedontheirexpansionefforts.theratiodeclined.  ***.Becausetheincreaseindollarsof investmentwasgreaterthanthatofoperatingincome. x ***. x x ***. 8 SeealsotableIIIͲ2.8Their commentsprovideinformationregardingthecapitalexpendituresprogramsofindividualfirms andaresummarizedbelow.Additionally.Totalnet assetsincreasedbyabout25percentfrom2010to2012.12  ***.11***.

863 Ratio of operating income to total assets (percent) *** *** 1 1 () () (1) *** *** *** *** *** *** *** *** *** *** *** *** *** *** 1 () *** (1) *** *** *** *** *** *** 10. Capitalandinvestment TheCommissionrequestedU.SaudiArabia.S.551 ROI: Boomerang DPI EnergeX Evraz Laguna Maverick Northwest Paragon Tejas Texas Tubular TMK IPSCO U. VIͲ10 .developmentandproductionefforts.Taiwan.S.040.producersofOCTGtodescribeanyactualorpotential negativeeffectsofimportsofOCTGfromIndia.5 Source: Compiled from data submitted in response to Commission questionnaires. Steel *** *** Vallourec Star *** *** Total 6.andVietnamontheirfirms’growth. 2012 *** *** *** *** *** *** *** *** *** *** *** *** *** 7.3 9.orthescaleofcapitalinvestments.Korea.abilitytoraise capital.S.Philippines. Thailand.Ukraine.Table VI-5 OCTG: U.Turkey. fiscal years 2010-12 Item 2010 2011 Total assets: Value ($1.investment.769 6.000) Boomerang *** *** DPI *** *** EnergeX *** *** Evraz *** *** Laguna *** *** Maverick *** *** Northwest *** *** Paragon *** *** Tejas *** *** Texas Tubular *** *** TMK IPSCO *** *** U. producers’ total assets and return on investment.530.5 *** *** *** *** *** *** *** *** *** *** *** 8.Their responsesareshownonthefollowingpages.818. Steel Vallourec Star Average 1 Not applicable or not meaningful.S.

 ***.  Northwest:***.  EnergeX:***.  Evraz:***.  TexasTubular:***.  VallourecStar:***.S.  TMKIPSCO:***. VIͲ11 .  DPI:***.  Maverick:***.  Laguna:***.Actualnegativeeffects13 Boomerang:***.  ***.  Tejas:***.Steel:***.  Paragon:***.***.  U.  ***. 13 Whenaskedwhetherthefirm’sresponsedifferedbycountry.

***.  Laguna:***.  U.  EnergeX:***.  Maverick:***.  Paragon:***.  TexasTubular:***. 14 Whenaskedwhetherthefirm’sresponsedifferedbycountry.  Tejas:***.S.  ***.  DPI:***.Anticipatednegativeeffects14 Boomerang:***.  ***.Steel:***.  Evraz:***.  VIͲ12 .  TMKIPSCO:***.  Northwest:***.  VallourecStar:***.

amongother relevanteconomicfactors1ͲͲ  (I) ifacountervailablesubsidyisinvolved.suchinformationasmaybe presentedtoitbytheadministeringauthorityastothenatureof thesubsidy(particularlyastowhetherthecountervailablesubsidy isasubsidydescribedinArticle3or6..   1 Section771(7)(F)(ii)oftheAct(19U.S.  PARTVII: THREATCONSIDERATIONSANDINFORMATIONON NONSUBJECTCOUNTRIES Section771(7)(F)(i)oftheAct(19U.§1677(7)(F)(i))providesthat—  IndeterminingwhetheranindustryintheUnitedStatesisthreatened withmaterialinjurybyreasonofimports(orsalesforimportation)ofthe subjectmerchandise.substantial increaseinproductioncapacityintheexportingcountryindicating thelikelihoodofsubstantiallyincreasedimportsofthesubject merchandiseintotheUnitedStates.takingintoaccountthe availabilityofotherexportmarketstoabsorbanyadditional exports.andarelikelytoincreasedemandfor furtherimports.. (III) asignificantrateofincreaseofthevolumeormarketpenetrationof importsofthesubjectmerchandiseindicatingthelikelihoodof substantiallyincreasedimports.shallnotnecessarilygivedecisiveguidance withrespecttothedetermination.§1677(7)(F)(ii))providesthat“TheCommissionshall consider{thesefactors}.Thepresenceorabsenceof anyfactorwhichtheCommissionisrequiredtoconsider.Suchadeterminationmaynotbemadeonthebasisofmere conjectureorsupposition.1oftheSubsidies Agreement)...theCommissionshallconsider.C.” VIIͲ1 . (II) anyexistingunusedproductioncapacityorimminent.andwhetherimportsofthesubjectmerchandiseare likelytoincrease.asawholeinmakingadeterminationofwhetherfurtherdumpedor subsidizedimportsareimminentandwhethermaterialinjurybyreasonofimportswouldoccurunless anorderisissuedorasuspensionagreementisacceptedunderthistitle. (IV)whetherimportsofthesubjectmerchandiseareenteringatprices thatarelikelytohaveasignificantdepressingorsuppressing effectondomesticprices.S. (V) inventoriesofthesubjectmerchandise.C.

by reasonofproductshifting. producers’existingdevelopmentandproductioneffortsispresentedinPartVI. informationonthevolumeandpricingofimportsofthesubjectmerchandiseispresentedin PartsIVandV.” VIIͲ2 .2 Informationonthenatureoftheallegedsubsidieswaspresentedearlierinthisreport.   2 Section771(7)(F)(iii)oftheAct(19U.andinformationontheeffectsofimportsofthesubjectmerchandiseonU.§1677(7)(F)(iii))furtherprovidesthat.whichcanbeusedtoproducethesubjectmerchandise. includingeffortstodevelopaderivativeormoreadvancedversion ofthedomesticlikeproduct.theCommissionshallconsiderwhetherdumpinginthemarketsofforeigncountries (asevidencedbydumpingfindingsorantidumpingremediesinotherWTOmembermarketsagainstthe sameclassorkindofmerchandisemanufacturedorexportedbythesamepartyasunderinvestigation) suggestsathreatofmaterialinjurytothedomesticindustry.Alsopresentedinthissectionofthereportisinformationobtained forconsiderationbytheCommissiononnonsubjectcountries.includingthepotential for“productͲshifting.  (VI)thepotentialforproductͲshiftingifproductionfacilitiesintheforeign country.follows.inantidumping investigations.and (IX) anyotherdemonstrableadversetrendsthatindicatetheprobability thatthereislikelytobematerialinjurybyreasonofimports(or saleforimportation)ofthesubjectmerchandise(whetherornotit isactuallybeingimportedatthetime).andanydumpinginthirdͲ countrymarkets.“.”anyotherthreatindicators..ifthereisanaffirmativedetermination bytheCommissionundersection705(b)(1)or735(b)(1)with respecttoeithertherawagriculturalproductortheprocessed agriculturalproduct(butnotboth).foreignproducers’operations..C.ifapplicable.S. (VIII) theactualandpotentialnegativeeffectsontheexisting developmentandproductioneffortsofthedomesticindustry.Informationon inventoriesofthesubjectmerchandise. arecurrentlybeingusedtoproduceotherproducts. (VII) inanyinvestigationunderthistitlewhichinvolvesimportsofboth arawagriculturalproduct(withinthemeaningofparagraph (4)(E)(iv))andanyproductprocessedfromsuchrawagricultural product.thelikelihoodthattherewillbeincreasedimports.S.

OilCountry TubularLtd.6Severalfirmsreportedexperiencingplantexpansionsandinvestmentsin equipment.importsof OCTGfromIndia.***and***.andWelspunestimatedthatitsexportstotheUnitedStates accountedfor***percent.andWelspun Corp.IIͲ2a. 4 QuestionnaireresponsesofJindal(India).(“Welspun”).S.whileJindalSaw estimatedthatitexportstotheUnitedStatesaccountedforapproximately***percent.M/SUnitedSeamless Tubulaar(“UnitedSeamless”).GVNFuelsreportedthat***percentofitstotalsalesinthemostrecent fiscalyearweresalesofOCTG.5 ***.Welspunreportedthat***percentofitstotalsales inthemostrecentfiscalyearweresalesofOCTG.Questionnaireresponseof***.andcapacity.(“JindalSaw”).IIͲ8.***.ISMT.IIͲ2a.machinery.Indianrespondentsclaim thatIndiahasapproximately***tonsofOCTGproductioncapacity.OilCountryTubularestimatedthatitexportstotheUnitedStatesaccountedfor approximately***percent.Jindal(India)reportedthat***percentofitstotalsales inthemostrecentfiscalyearweresalesofOCTG.OilCountryTubularreportedthat***percentofitstotalsalesinthemost recentfiscalyearweresalesofOCTG.JindalSaw.SuryaGlobalSteelTubeLimited(“Surya”). 5 ThreeIndianproducers.Jindal(India). Jindal(India)estimatedthatitsOCTGexportstotheUnitedStatesaccountedfor approximately***percentofallsuchexportsofOCTGfromIndiain2012.andWelspun.exh.(“OilCountryTubular”).JindalPipes.United SeamlessestimatedthatitexportstotheUnitedStatesaccountedforapproximately*** percent.UnitedSeamless.UnitedSeamless reportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.Suryareportedthat***percentofitstotalsalesinthe mostrecentfiscalyearweresalesofOCTG.providedestimatesoftheirsharesofIndia’stotalproductionofOCTG. VIIͲ3 .IndianRespondents’ postconferencebriefat18.***.  THEINDUSTRYININDIA Thepetitionintheseinvestigationsidentified49producersand/orexportersofOCTGin India.7Twofirmsreportedinvestmentsforthe 3   3 Petition.ISMTreportedthat***percentofitstotalsalesinthemost recentfiscalyearweresalesofOCTG. Maharashtrareportedthat***percentofitstotalsalesinthemostrecentfiscalyearwere salesofOCTG.Questionnaireresponseof***.IIͲ2b. 6 ***.JindalSawLtd.MaharashtraSeamlessLimited(“Maharashtra”).4Acomparisonofthetenfirms’exportdatatoadjustedofficial Commerceimportstatisticsshowsthatin2012theyaccountedforvirtuallyallU.Lt.IͲ5A. cumulativelyaccountingforapproximately***percentofproductionin2012.JindalPipesreportedthat***percentofits totalsalesinthemostrecentfiscalyearweresalesofOCTGreportedJindalSawreportedthat ***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG. TheCommissionissuedforeignproducersquestionnairestothesefirmsandreceiveda completedresponsefromnineproducersandoneexporter:GVNFuelsLimited(“GVNFuels”) ***. 7 Questionnaireresponsesof***.

***and***.ReportedcapacityinIndiaincreasedby38.andwas34. VIIͲ4 . 9 Questionnaireresponsesof***.Questionnaire responsesofIndianproducers.ISMTreported***.7percentlowerinJanuaryͲMarch2013thaninJanuaryͲMarch 2012.10 In2012. Suryareported***.andWelspunreported***.and6.ExportsofOCTGfromIndiato theUnitedStatesincreasedby43.UnitedSeamlessreported***.0percentlowerin2013thanin2012and18.45.Productionisprojectedtobe1.JindalPipes reported***. 10 Withrespecttoproductionconstraints.6percentfrom2010to2012butwere40.0percentwereexportedtoothermarkets.6 percentin2012.7percent higherin2014than2012.Jindal(India)reported***.whichreflected***.9percentfrom 2010to2012andwasaboutthesameinJanuaryͲMarch2013relativetoJanuaryͲMarch2012.8Productioncurtailmentswere reportedbyonefirm.   8 Questionnaireresponsesof***.IIͲ4d.  purposeofimprovingthequalityoftheirproducts.6percentoftotalshipmentsofOCTGfromIndiawereexportedtothe UnitedStates.Capacityutilizationincreasedfrom37.Maharashtrareported***.6percentin2010to49. Reportedcapacityisprojectedtoincreaseby4.5 percenthigherin2014thanin2012.ReportedproductioninIndiaincreasedby83.0percentfrom2012to2013andtobe10.IIͲ2a.IIͲ2a.9 OperationsonOCTG TableVIIͲ1presentsinformationontheOCTGoperationsofthenineresponding producersandoneexporterinIndia.5percentlowerin JanuaryͲMarch2013thaninJanuaryͲMarch2012.7percentin JanuaryͲMarch2012.JindalSawreported***.2percentinJanuaryͲMarch2013comparedto61.4percent from2010to2012butwas44.OilCountryTubularreported***.***.

7 5.916 66.   Table VII-1 OCTG: Data for producers and exporter in India. 2010-12.2 4.198 193.2 0.0 47.1 0.228 486.6 53.9 2.7 0.3 57.074 66.2 3.666 18.440 378.UnitedSeamlessreported***.5 0. QuestionnaireresponsesofIndianproducers.3 55.406 852.2 48.354 194.779 Total shipments 197.8 10.6 45.Maharashtrareported***.729 22.3 13.420 End-of-period inventories 18. and projected 2013-14 Actual experience Projections Calendar year January-March Calendar year Item 2010 2011 2012 2012 2013 2013 2014 Quantity (short tons) Capacity 555.8 Exports to: United States 60.357 7.010 1.451 247.5 44.IIͲ4e.7 40.3 0.11   11 Withrespecttoconstraintsonproductshifting.3 47.9 8.9 5.406 Production 208.156 1.1 5.749 382.260 114.734 367.ISMTreported***.8 Inventories/shipments 9.2 2.390 375.121 46.469 171.1 5.OilCountryTubular reported***.525 471 194 2.6 50.6 59.850 771.0 6.851 170.706 21.998 204.7 Total exports 71.4 5.888 38.1 6.andWelspunreported***.Jindal(India)reported***.010 206.6 49.1 8.874 41. Alternativeproducts TableVIIͲ2presentsinformationonthetotalweldedandtotalseamlesstubularcapacity andproductionoftheninerespondingproducersinIndia.JindalSawreported***.3 42.394 21.376 802.614 67.805 Ratios and shares (percent) Capacity utilization 37.Suryareported***.863 All other markets 21.732 36.6 4.7 40.7 34.0 8.1 49.883 120.155 27. VIIͲ5 .666 16.5 50.514 66. January-March 2013.0 54.916 Total exports 140.904 454.767 237.688 366.455 194.113 406.2 53.3 Inventories/production 8.2 2.7 Share of total shipments: Internal consumption/ transfers 0. January-March 2012. JindalPipesreported***.909 197.915 Shipments: Internal consumption/ transfers 289 868 2.541 23.2 47.250 174.401 161.324 179.136 164.7 51.005 12.8 Source: Compiled from data submitted in response to Commission questionnaires.257 60.748 29.302 Exports to: United States 119.1 All other markets 11.724 Home market 56.217 748.4 0.9 48.6 35.6 61.4 Home market 28.

CapacityinKoreaincreasedby21. OneKoreanfirm.***.andSeAHSteelCorp.SeAH reportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.3percentfrom2010to2012andwas2.1percenthigherinJanuaryͲMarch2013thaninJanuaryͲMarch2012.IIͲ2b.. and January-March 2013 * * * * * * * THEINDUSTRYINKOREA Thepetitionintheseinvestigationsidentified10producersand/orexportersofOCTGin Korea. TheCommissionissuedforeignproducersquestionnairestothesefirmsandreceiveda completedresponsefromsevenfirms:AJUBesteelCo..Accordingto estimatesprovidedbytherespondingKoreanproducers.13Severalotherfirmsinvestedintheir OCTGoperationsandexperiencedexpansions.DaewooInternational Corp.Productionisprojectedtoincrease by3.ILJINreportedthat ***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.Ltd.theproductionofOCTGinKorea reportedbytherespondingproducersaccountsforvirtuallyallproductionofOCTGinKorea.4percent higherinJanuaryͲMarch2013thaninJanuaryͲMarch2012.0percenthigherin2014thanin2012.7percentfrom2012to2013andtobe4.establisheditsproductionfacilityin***. (Nexteel).1percentfrom2010to 2012andwas4.(“SeAH”).(“Daewoo”)(***). importsofOCTGfromKoreaovertheperiodforwhichdatawerecollected.Daewooreportedthat***percentofitstotalsales inthemostrecentfiscalyearweresalesofOCTG.Questionnaireresponseof***.AJUreportedthat***percentofitstotalsalesinthe mostrecentfiscalyearweresalesofOCTG.ILJIN.ProductioninKoreaincreasedby50.***.ILJIN.Capacity isprojectedtoincreaseby1.reportedaplantopening.***.Capacity   12 Petition.(“ILJIN”).IͲ5D. 2010-12. 12 OperationsonOCTG TableVIIͲ3presentsinformationontheOCTGoperationsofthesixresponding producersandexportersinKorea.(“AJU”).Nexteelreported that***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG. 13 Questionnaireresponsesof***.NexteelCo.IIͲ2a. Thesevenrespondingfirms’exportstotheUnitedStatesaccountedforvirtuallyallU. January-March 2012.S. production.exh.Husteelreportedthat***percentofitstotal salesinthemostrecentfiscalyearweresalesofOCTG.HyundaiHYSCOreportedthat*** percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.HyundaiHYSCO.thesoleproducerofseamless OCTGinKorea. and capacity utilization of welded and seamless tubular products.Ltd.7percentfrom2012to2013andnottochangefrom2013to 2014. VIIͲ6 .Husteel.  Table VII-2 OCTG: Indian capacity.ILJINSteelCorp.

January-March 2013.7 2.AJUreported***.ILJINreported***.9 Exports to: United States 98.090 1.4 0.7 4.8 2.826 726.Questionnaire responsesofKoreanproducers.381 4. 2010-12.187 58.501 923.9 98.327 210.608 730.722 294.6 5.4 1.andwas74.7 1.0 2.14 In2012.9 6.7 2.5 0. and projected 2013-14 Actual experience Projections Calendar year January-March Calendar year Item 2010 2011 2012 2012 2013 2013 2014 Quantity (short tons) Capacity 955. January-March 2012.4 All other markets 0.4 0.933 4.385 2.9 3.andSeAHreported***.0percentin2012.282 8.2percentinJanuaryͲMarch2012.090 Production 592.9 0.4 96.732 703.8 6.0 4.844 End-of-period inventories 21.761 1.652 4.9 78.HyundaiHYSCO reported***.9 93.426 40.767 Total shipments 588.6 5.2 Total exports 98.878 1.Husteelreported***.5 Home market 0.301 All other markets 5.256 196.273 1.403 902.5 95.9percentfrom2010to2012.2 74.  utilizationincreasedfrom62.7 Inventories/production 3.844 926.157.   14 Withrespecttoproductionconstraints.and1.8 3.861 7.IIͲ4d.9 0.3 Inventories/shipments 3.079 853.745 209.5 78.885 12.641 198.6 98.177.399 42.326 222.314 2.379 5.5 Share of total shipments: Internal consumption/ transfers 0.089 890. Table VII-3 OCTG: Data for producers in Korea.967 19.587 Shipments: Internal consumption/ transfers 2.7 77.381 Home market 4.3 96.9percentoftotalshipmentsofOCTGfromKoreawereexportedtothe UnitedStates.147 215.089.8 0.0percenthigherin JanuaryͲMarch2013thaninJanuaryͲMarch2012.984 891.7 2.9percentin JanuaryͲMarch2013comparedto76.96.8 0.andwere7.508 5.7 Source: Compiled from data submitted in response to Commission questionnaires.026 870.054 18.725 4.194 841.009 Ratios and shares (percent) Capacity utilization 62.3 98.ExportsofOCTGfromKoreato theUnitedStatesincreasedby45.870 53.073 7.6 1.7 4.Nexteelreported***.4 95.0 96.6 1.3 1.0 66.267 895.1 96.241 4.2 3.0percentin2010to77.466 Total exports 581.466 29.039 867.678 5.428 220.8 94.063 19.861 Exports to: United States 576.786 722.8 98.0 4.414 4. VIIͲ7 .0 76.979 214.4 1.509 908.801 866.4percentwereexportedtoothermarkets.177.437 282.9 2.798 25.

IIͲ4e. and capacity utilization of welded and seamless tubular products.ILJINreported***. 22 Petition.aChinesefirm.hldphpipe.IIͲ4 VIIͲ8 .2013.19A comparisonofHLDClark’sexportdatatoofficialCommerceimportstatisticsshowsthatin2012 itaccountedfor***U..IIͲ2 24 Ibid.IIͲ8 20 Ibid.Questionnaireresponseof***.IͲ5B.accessed onJuly18.IIͲ7 21 HLDClarkSteelPipeCo.S.“AboutUs.22HLDClarkadded***and begantoproduceOCTGin2011. 18 QuestionnaireresponseofHLDClark.20 HLDClarkwasestablishedin2009..Hyundai HYSCO***.”http://www.(“HLDClark”). production.HLDClarkreportedthat*** percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.IIͲ6 19 QuestionnaireresponseofHLDClark. 16 ***notedthattheapparentincreaseinitscapacityinJanuaryͲJune2013comparedtoJanuaryͲ June2012***.24   15 Withrespecttoconstraintsonproductshifting. 2010-12.Nexteel***.HLDClarkestimatesthatitaccountsfor allproductionofOCTGinthePhilippines.SimportsofOCTGfromthePhilippinesin2012.18 HLDClarkestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor approximately***percentofU. and January-March 2013 * * * * * * * THEINDUSTRYINTHEPHILIPPINES Thepetitionintheseinvestigationsidentifiedoneproducerand/orexporterofOCTG.IIͲ2b.Husteelreported***.1516 Table VII-4 Tubular products: Korean capacity..AJUreported***.Inc.importsfromthePhilippines... January-March 2012..23HLDClark***.exh.Inc.  Alternativeproducts TableVIIͲ4presentsinformationonthetotalweldedandtotalseamlesstubularcapacity andproductionoftherespondingproducersandexportersinKorea.exhIͲ8 23 QuestionnaireresponseofHLDClarkSteelPipeCo.Inc. 17 Petition..21Thisfirmisaweldedpipemanufacturing subsidiaryofHuludaoCitySteelPipeIndustrial. HLDClarkSteelPipeCo.17TheCommissionissuedaforeignproducer questionnairetoHLDClarkandreceivedacompletedresponse.com/Item/list.asp?id=1.Questionnaireresponsesof Koreanproducers.andSeAHreported***.

IIͲ4.IIͲ5.IIͲ4d. January-March 2012.HLDClarkidentified***. 2010-12.and***percentwereexportedtoothermarkets. 28 Withrespecttoconstraintsonproductshifting. and January-March 2013 * * * * * * *   25 Withrespecttoproductionconstraints.butwas***percent lowerinJanuaryͲMarch2013relativetoJanuaryͲMarch2012. Table VII-5 OCTG: Data for the producer in the Philippines. 2010-12.andwas***percenthigherinJanuaryͲMarch 2013thaninJanuaryͲMarch2012.Capacity utilizationincreasedfrom***percentin2011to***percentin2012. production.andwas***percentin JanuaryͲMarch2013comparedto***percentinJanuaryͲMarch2012. VIIͲ9 . January-March 2013.HLDClarkreportedthatit produces***onthesameequipmentusedtoproduceOCTG. 27 Ibid.2728 Table VII-6 Tubular products: Filipino capacity.***percentoftotalshipmentsofOCTGfromthePhilippineswereexportedto theUnitedStates. and capacity utilization of welded and seamless tubular products.QuestionnaireresponseofHLD Clark.Capacityisprojectedtodecrease by***percentfrom2012to2013andto***from2013to2014.25 In2012.ProductioninthePhilippines increasedby***percentfrom2011to2012.26 ExportsofOCTGfromthePhilippinestotheUnitedStatesincreasedby***percentfrom2011 to2012. 26 Ibid.  OperationsonOCTG TableVIIͲ5presentsinformationontheOCTGoperationsofthesoleproducerand exporterinthePhilippines.Productionisprojectedto***from2013to2014.IIͲ4e. and projected 2013-14 * * * * * * * Alternativeproducts TableVIIͲ6presentsinformationonthetotalweldedtubingcapacityandproductionof HLDClarkthesoleproducerandexporterinthePhilippines.HLDClarkreported***.Questionnaireresponseof HLDClark.predominantly***.andwere***percenthigherinJanuaryͲMarch2013thaninJanuaryͲMarch2012..CapacityinthePhilippinesincreasedfromnonein2010to*** shorttonsin2011..Capacityincreasedby***percentfrom2011to2012. January-March 2012.

 VIIͲ10 . SSP.IIͲ6.IͲ5C.Capacityis projectedtobe***percenthigherin2013comparedto2012and***percenthigherin2014 comparedto2012. 36 Withrespecttoproductionconstraints.IIͲ8.IIͲ2a.36   29 Petition. 35 QuestionnaireresponseofJESCO.JubailEnergyServicesCompany(“JESCO”)and SaudiSteelPipeCompany(“SSP”).JESCOreported***.the productionofOCTGinSaudiArabiareportedbytherespondingproducersaccountsfor approximately***percentofoverallproductionofOCTGinSaudiArabia.whileSSPreported***.  THEINDUSTRYINSAUDIARABIA Thepetitionintheseinvestigationsidentified13producersand/orexportersofOCTGin SaudiArabia.butreflectthestartͲupprocessofthemillasitslowlyincreasedcapacityand production. 31 QuestionnaireresponseofSSP.reportedthatit***.ReportedcapacityinSaudiArabiaincreasedby***percentfrom2010to2012 andwas***percenthigherinJanuaryͲMarch2013thaninJanuaryͲMarch2012.34JESCOnotedthatitscapacityincreasesarenottheresultofnew investments.31 JESCOestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor***percent ofallsuchexportsofOCTGfromSaudiArabia(***). Productionisprojectedtobe***percenthigherin2013comparedto2012and***percent higherin2014comparedto2012. QuestionnaireresponsesofSaudiArabianproducers.SSPreportedthatitsinvestment toproduceERW***OCTGwasinordertosupply***.IIͲ4d.reflectingtheincreasesincapacityandrampingupofproductionby JESCO.ReportedproductioninSaudiArabiaincreasedby***percentfrom2010to 2012andwas***percenthigherinJanuaryͲMarch2013thaninJanuaryͲMarch2012.IIͲ2a. 32 QuestionnaireresponseofJESCO.32Acomparisonof***exportdatato adjustedofficialCommercestatisticsshowsthatin2012***percentofimportsfromSaudi Arabia.JESCOreportedthat***percentofitstotalsalesinthemost recentfiscalyearweresalesofOCTG. 30 QuestionnaireresponseofJESCO.Capacityutilizationfluctuatedthroughtheperiodforwhich datawereprovided.35 OperationsonOCTG TableVIIͲ7presentsinformationontheOCTGoperationsoftherespondingproducersin SaudiArabia.33JESCO.IIͲ2b.IIͲ6. 34 QuestionnaireresponseofJESCO.29TheCommissionissuedforeignproducersquestionnairestothesefirmsand receivedacompletedresponsefromtwofirms.30SSPreportedthat***percentofitstotalsalesinthe mostrecentfiscalyearweresalesofOCTG.QuestionnaireresponseofJESCO.aproducerofseamlessOCTG.IIͲ2aandIIͲ2b. 33 QuestionnaireresponseofSSP.AccordingtoestimatesrequestedoftherespondingSaudiArabianproducers.exh.aproducerofweldedOCTG.JESCOalsoreportedthatittook***monthstofully commissionandaccepttheinstalledequipment. reportedthatitsmill***.

January-March 2012.42 KaoHsingreportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesof   37 QuestionnaireresponseofSSP. 2010-12.IIͲ4a. and projected 2013-14 * * * * * * * Alternativeproducts TableVIIͲ8presentsinformationonthetotalweldedandseamlesstubularcapacityand productionofthetworespondingproducersinSaudiArabia.IIͲ5a.QuestionnaireresponseofJESCO.. January-March 2012.KaoHsingChangeIron&SteelCorp.IIͲ6.predominantlyin***. 2010-12. production. and capacity utilization of welded and seamless tubular products. VIIͲ11 . 42 QuestionnaireresponseofFarEastMachinery.exh.  Table VII-7 OCTG: Data for producers in Saudi Arabia.40TheCommissionissuedforeignproducerquestionnairestothesefirmsand receivedacompletedresponsefromfourfirms:ChungHungSteelCorp.IIͲ6.(“FarEastMachinery”).SSPreported***onthesame equipmentandmachineryusedtoproduceweldedOCTG.IͲ5E. ExportsofOCTGfromSaudiArabiatotheUnitedStatesincreasedby***percentfrom2010to 2012. 41 QuestionnaireresponseofChungHung.IIͲ4a. and January-March 2013 * * * * * * * THEINDUSTRYINTAIWAN Thepetitionintheseinvestigationsidentifiedfiveproducersand/orexportersofOCTG inTaiwan.andTensionSteelIndustriesCo.(“ChungHung”).IIͲ4e.Ltd. 40 Petition.37JESCOreported***onthesame equipmentandmachineryusedtoproduceOCTG.***percentoftotalshipmentsofOCTGfromSaudiArabiawereexportedto theUnitedStates.and***percentwereexportedtoothermarkets.ChungHungreportedthat*** percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.Ltd.  In2012.JESCOreported***.(“TensionSteel”). 39 Withrespecttoproductshifting. January-March 2013.butwere***percentlowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012.3839 Table VII-8 Tubular products: Saudi capacity.QuestionnaireresponseofJESCO. 38 QuestionnaireresponseofJESCO.41FarEastMachinery reportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG. JESCOalsoreportedthat***.(“Kao Hsing”).Far EastMachineryCo.

 44 QuestionnaireresponseofTensionSteel.Capacity isprojectedtodeclineby***percentin2013comparedto2012andtodeclineanadditional ***percentin2014. and projected 2013-14 * * * * * * *   43 QuestionnaireresponseofKaoHsing.Chung Hungreportedthatthenewmill***. January-March 2013. 46 Withrespecttoproductionconstraints. OneTaiwanfirm.44 ChungHungestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor approximately***percentofallsuchexportsofOCTGfromTaiwanin2012.importsofOCTGfromTaiwan.***percentoftotalshipmentsofOCTGfromTaiwanweretotheUnitedStates and***percentwereexportedtoothermarkets.butwas***percentlessinJanuaryͲMarch2013thaninJanuaryͲMarch2012.FarEastMachinery estimatedthatitsexportstotheUnitedStatesaccountedforapproximately***percent. Thenewplantisslatedtobegintrialproductions***.IIͲ2a.  OCTG. January-March 2012.Production isexpectedtobe***percentlowerin2013thanin2012and***percentlowerin2014thanin 2012.45 OperationsonOCTG TableVIIͲ9presentsinformationontheOCTGoperationsofthefourresponding producersandexportersinTaiwan.ReportedproductioninTaiwanincreasedby***percentfrom2010to 2012.Capacityutilizationincreasedfrom***percentin2010to***percentin2012.ReportedcapacityinTaiwan***during2010Ͳ12.46 In2012.Thecurrentplant***.IIͲ4d.ChungHungreportedlyplans***.FarEastMachineryidentified ***. andTensionSteelestimatedthatitsexportstotheUnitedStatesaccountedforapproximately ***percent.IIͲ6.ExportsofOCTGfrom TaiwantotheUnitedStatesincreasedby***percentfrom2010to2012butwere***percent lowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012. Table VII-9 OCTG: Data for producers in Taiwan.43TensionSteelreportedthat***percentofitstotalsalesinthemostrecentfiscalyear weresalesofOCTG.ChungHung.reportedinvestinginanewplant. AccordingtoestimatesrequestedoftherespondingTaiwanproducers.IIͲ6.andTensionSteelidentified***.S.theproductionofOCTG inTaiwanreportedbytherespondingproducersaccountsforapproximately***percentof overallproductionofOCTGinTaiwan.QuestionnaireresponsesofTaiwan producers.andwas ***percentinJanuaryͲMarch2013comparedto***percentinJanuaryͲMarch2012.predominantly***.ChungHungidentified***.Acomparisonofthesefirms’exportdatatoofficialCommerceimportstatistics showsthatin2012theyaccountedforvirtuallyallofU. VIIͲ12 .KaoHsingidentified***.Kao HsingestimatedthatitsexportstotheUnitedStatesaccountedforapproximately***percent. 2010-12. 45 QuestionnaireresponseofChungHung.

WSPreportedthat***percent ofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.. 52 WSPPipeCo.“CompanyIntroduction.com/elxwm.IIͲ2.WSPPipeCo.Ltd.php/aboutͲus.56 48   47 Withrespecttoproductshifting.“ContactUs..IIͲ 4e. 56 Ibid. and capacity utilization of welded and seamless tubular products. 54 QuestionnaireresponseofWSPPipeCo.QuestionnaireresponsesofTaiwanproducers.2013. 55 Ibid.. and January-March 2013 * * * * * * * THEINDUSTRYINTHAILAND Thepetitionintheseinvestigationsidentifiedthreeproducersand/orexportersof OCTG..49WSPestimatedthatits exportstotheUnitedStatesaccountedforapproximately***percentofU. 2010-12.IIͲ4.accessedonJuly19..co.FarEastMachineryidentified***.Accordingto estimatesrequestedoftherespondingThaiproducer.Ltd.. 51 Ibid.beginningwitha singleproductionlineinAprilandexpandingtotwoproductionlinesinAugust.Ltd(“WSP”).Kao Hsingidentified***.asp.IͲ5F.  Alternativeproducts TableVIIͲ10presentsinformationonthetotalweldedtubularcapacityandproduction ofthefourrespondingproducersinTaiwan..exh.IIͲ7.Ltd. TheCommissionissuedforeignproducerquestionnairestothesefirmsandreceiveda completedresponsefromonefirm..IIͲ6.importsfromThailand..th/index. January-March 2012.theproductionofOCTGinThailand reportedinthispartofthereportaccountsforapproximately***percentofoverallproduction ofOCTGinThailand.50AcomparisonofWSPexportdatatoofficialCommerceimport statisticsshowsthatin2012WSPaccountedfor***U. 2013.51 WSPwasestablishedin2010andisthebranchenterpriseofWSPHoldingsLimited.47 Table VII-10 Tubular products: Taiwan capacity..55WSPonlyproducesseamlessOCTG.”http://wspp.wsphl.54WSPPipe reportedinvesting***.andTensionSteelidentified***.”http://www. VIIͲ13 .IIͲ8.53WSPopeneditsfirstplantin2011.52 WSPHoldingsLimitedisaChinesefirm. 48 Petition.SimportsofOCTG fromThailandin2012. 53 WSPHoldingsLimited.ChungHungreported***.accessedon July19.S. 50 QuestionnaireresponseofWSPPipeCo. 49 Ibid. production.

predominantly***. January-March 2012. 2010-12.ReportedproductioninThailandincreasedby***percentfrom2011 to2012.. 2010-12.and were***percenthigherinJanuaryͲMarch2013thaninJanuaryͲMarch2012.andwas***percentin JanuaryͲMarch2013comparedto***percentinJanuaryͲMarch2012. VIIͲ14 .exh.andwas***higherinJanuaryͲMarch2013thaninJanuaryͲMarch2012.***percentoftotalshipmentsofOCTGfromThailandwereexportedtothe UnitedStates.61TheCommissionissuedforeignproducersquestionnairestothesefirmsand   57 TheproductioncapacityreportedbyWSPPipeisbasedonoperating***hoursperweek.WSPreported***.IͲ5G. January-March 2012.58 In2012. production.IIͲ4 60 Ibid.60 Table VII-12 Tubular products: Thai capacity. and capacity utilization of welded and seamless tubular products. and projected 2013-14 * * * * * * * Alternativeproducts TableVIIͲ12presentsinformationonthetotalseamlesstubularcapacityandproduction oftherespondingproducerandexporterinThailand. 61 Petition. Table VII-11 OCTG: Data for producers in Thailand.Capacity utilizationincreasedfrom***percentin2011to***percentin2012.QuestionnaireresponseofWSP.  OperationsonOCTG TableVIIͲ11presentsinformationontheOCTGoperationsoftherespondingproducer andexporterinThailand.57Reported capacityisprojected***.IIͲ4e. and January-March 2013 * * * * * * * THEINDUSTRYINTURKEY Thepetitionintheseinvestigationsidentifiedfiveproducersand/orexportersofOCTG inTurkey.59***accountsforabout***percentofWSP’s reportedproductioncapacity.and***percentwereexportedtoothermarkets. January-March 2013.andwas***fromJanuaryͲMarch2012relativetoJanuaryͲMarch2013.Exportsof OCTGfromThailandtotheUnitedStatesincreasedby***percentfrom2011to2012. 59 Ibid. ***weeksperyear. 58 Withrespecttoproductionconstraints.WSPreportedthatitproduces***on thesameequipmentusedtoproduceOCTG.ReportedcapacityinThailandincreasedby***percentfrom2011to 2012.

IIͲ2b. 69 QuestionnaireresponseofToscelik.IIͲ6.S. 63 QuestionnaireresponseofÇayirova.BorusanMannesmannBoruSanayiVeTicaret Tas(“Borusan”).IIͲ6.Borusanreportedthatit***.IIͲ6.QuestionnaireresponsesofTurkishforeignproducers.b(“Çayirova”).69 OperationsonOCTG TableVIIͲ13presentsinformationontheOCTGoperationsoftherespondingproducers andexportersinTurkey.64 BorusanestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor approximately***percentofallsuchexportsofOCTGfromTurkeyin2012.and***wereexportedtoothermarkets.Accordingto estimatesrequestedoftherespondingTurkishproducers. 67 QuestionnaireresponseofBorusan. 66 QuestionnaireresponseofBorusan. 65 QuestionnaireresponsesofTurkishproducers.Borusanidentified***.IIͲ4d.Productionisprojectedto***by***from 2012to2013andby***percentin2014comparedto2012.  receivedacompletedresponsefromthreefirms. 70 Withrespecttoproductionconstraints.S(“Toscelik”). VIIͲ15 .IIͲ2b.whileÇayirova estimatedthatitsexportstotheUnitedStatesaccountedforapproximately***percent.63Toscelikreportedthat***percentofitstotal salesinthemostrecentfiscalyearweresalesofOCTG.Acomparisonofthesefirms’exportsdatatoofficialCommerceimportstatistics showsthatin2012theyaccountedfor***percentofallU.Capacityincreasedby***percentfrom2010to2012butwas*** percentlowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012. ProductioninTurkeyincreasedby***percentfrom2010to2012butwas***percentlowerin JanuaryͲMarch2013thaninJanuaryͲMarch2012.68ToscelikbeganproductionofERWpipein July2012andcapitalizedanadditionalpipemachinethatcanproduceOCTGinApril2013.67Toscelikreportedthatit***.66Çayirova reportedthatit***.62Çayirovareportedthat***percentofitstotalsalesin themostrecentfiscalyearweresalesofOCTG.ÇayirovaBoruSanayiVeTicaretA.Borusanreportedthat***percentofitstotalsalesinthemost recentfiscalyearweresalesofOCTG.importsfromTurkey.65 ThethreerespondingTurkishproducers’reportedchangesinoperationsthrough investmentsinnewequipmentandplantcapabilities.ExportsofOCTGfromTurkeytothe   62 QuestionnaireresponseofTensionSteel.Çayirovaidentified***.and***percentlowerin2014thanin2012.IIͲ2b.and ToscelikestimatedthatitsexportstotheUnitedStatesaccountedforapproximately*** percent.***percentoftotalshipmentsofOCTGfromTurkeywereexportedtothe UnitedStates.and Toscelikidentified***. 64 QuestionnaireresponseofToscelik.IIͲ2a.70 In2012.IIͲ7.Capacityisprojectedtobe ***percentlowerin2013thanin2012.andToscelikProfilVeSac EndustrisiA. 68 QuestionnaireresponseofToscelik.theproductionofOCTGinTurkey reportedbytherespondingproducersaccountforapproximatelyallproductionofOCTGin TurkeyandallexportstotheUnitedStates.

 72 Petition. 2010-12. VIIͲ16 . 73 QuestionnaireresponseofInterpipeNizhnedneprovsky(InterpipeNTRP).IͲ5H. 75 QuestionnaireresponsesofInterpipeNizhnedneprovsky(InterpipeNTRP)andInterpipeNikoTube LimitedLiabilityCompany.72TheCommissionissuedforeignproducerquestionnairestothesefirmsandreceiveda completedresponsefrombothfirms.Accordingtoestimates requestedoftherespondingUkrainianproducers.IIͲ6.74 InterpipeNTRPestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor approximately***percentofallsuchexportsofOCTGfromUkrainein2012.butwas***percentlowerin JanuaryͲMarch2013thaninJanuaryͲMarch2012. and January-March 2013 * * * * * * * THEINDUSTRYINUKRAINE Thepetitionintheseinvestigationsidentifiedtwoproducersand/orexportersof OCTG.71 Table VII-14 Tubular products: Turkish capacity.theproductionofOCTGinUkrainereported   71 Withrespecttoconstraintsonproductshifting. Table VII-13 OCTG: Data for producers in Turkey. 2010-12.S.importsfromUkraine. January-March 2012.InterpipeNTRPreportedthat ***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG. January-March 2013. and projected 2013-14 * * * * * * * Alternativeproducts TableVIIͲ14presentsinformationontheoverallweldedtubularcapacityandproduction oftherespondingproducersinTurkey.75Acomparisonofthesefirms’exportdatatoofficialCommerceimportstatistics showsthatin2012theyaccountedfor***U. Toscelikstated***.QuestionnaireresponsesofTurkishforeignproducers. January-March 2012.IIͲ6.IIͲ4e.exh.73InterpipeNiko reportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG. and capacity utilization of welded and seamless tubular products.Borusanidentified***.whileInterpipe Niko’sestimatedthatitsOCTGexportstotheUnitedStatesaccountedforapproximately*** percent. 74 QuestionnaireresponseofInterpipeNikoTubeLimitedLiabilityCompany.Çayirovaidentified***.IIͲ8.  UnitedStatesincreasedby***percentfrom2010to2012.InterpipeNizhnedneprovsky(“InterpipeNTRP”)and InterpipeNikoTubeLimitedLiabilityCompany(“InterpipeNiko”). production.

76 InterpipeNTRPandInterpipeNikoaremillsbelongingtoInterpipeGroup.Capacityutilizationincreasedfrom ***percentin2010to***percentin2012.ProductioninUkraineincreasedby***percentfrom2010to2012.80BothInterpipeNTRPandInterpipeNikoonlyproduceseamlessOCTG.ReportedcapacityinUkraineremainedconstantfrom2010to2012. 80 QuestionnaireresponsesofInterpipeNizhnedneprovsky(InterpipeNTRP)andInterpipeNikoTube LimitedLiabilityCompany. 77 InterpipeGroup.Productionis projectedtodecreaseby***percentfrom2013to2014.“SocialPolicy.  bytherespondingproducersaccountsforapproximately***percentofoverallproductionof OCTGinUkraine.7778According totheirwebsite.IIͲ2.biz/en/company/productions/nikotube/. 83 Withrespecttoproductionconstraints.2013.accessedonJuly25. ***weeksperyear.QuestionnaireresponseofUkrainianproducers. 79 InterpipeGroup.biz/en/company/productions/ntz/. butwas***percentlowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012.81 OperationsonOCTG TableVIIͲ15presentsinformationontheOCTGoperationsoftherespondingproducers andexportersinUkraine.InterpipeGroupisoneofthebiggestemployersinUkraine.”http://interpipe.TheproductioncapacityreportedbyInterpipeNikoTubeisbasedonoperating*** hoursperweek.***weeksperyear.79***2010and 2012.biz/en/company/respons/social/.2013.84Exports ofOCTGfromUkrainetotheUnitedStatesincreasedby***percentfrom2010to2012.IIͲ5 VIIͲ17 .IIͲ4d.and***percentwereexportedtoothermarkets.andInterpipeNiko identified***. 84 Ibid.Ukraine. andwasconstantfromJanuaryͲMarch2012relativetoJanuaryͲMarch2013.“InterpipeNTRP–Dnepropetrovsk.InterpipeNTRPidentified***.“InterpipeNIKOTUBE–Nikopol. 78 InterpipeGroup.Ukraine.but were***percentlowerinJanuaryͲMarch2013thaninJanuaryͲMarch2012.predominantly***.IIͲ4.andwas***percentinJanuaryͲMarch2013 comparedto***percentinJanuaryͲMarch2012... 82 TheproductioncapacityreportedbyInterpipeNTRPisbasedonoperating***hoursperweek.accessedonJuly25..83 In2012.accessedon July25.IIͲ7.” http://interpipe.82Reported capacityisprojected***.   76 Ibid. 81 Ibid.***percentoftotalshipmentsofOCTGfromUkrainewereexportedtothe UnitedStates.” http://interpipe.2013.

.IIͲ 8.85InterpipeNTRPreportedthatit produces***onthesameequipmentusedtoproduceOCTG. and projected 2013-14 * * * * * * * Alternativeproducts TableVIIͲ16presentsinformationonthetotalseamlesstubularcapacityandproduction oftherespondingproducersandexportersinUkraine. 87 QuestionnaireresponseofInterpipeNikoTubeLimitedLiabilityCompany.89HotRollingPipereportedthat***percentofitstotal salesinthemostrecentfiscalyearweresalesofOCTG.91 Acomparisonofthesefirms’exportdatatoofficialCommerceimportstatisticsshowsthatin 2012theyaccountedfor***percentofallU. and capacity utilization of welded and seamless tubular products.S. January-March 2012..QuestionnaireresponsesofUkrainianproducers.87 Table VII-16 Tubular products: Ukrainian capacity. VIIͲ18 .IͲ5I. 89 QuestionnaireresponseofSeAHSteelVinaCorporation.86InterpipeNikoreportedthatit produces***onthesameequipmentusedtoproduceOCTG.88TheCommissionissuedforeignproducerquestionnairestothesefirmsand receivedacompletedresponsefromtwofirms.IIͲ4e.whileHotRolling PipeestimatedthatitsexportstotheUnitedStatesaccountedforapproximately***percent.exh. January-March 2012.SeAHSteelVinareportedthat***percentofitstotalsalesinthemost recentfiscalyearweresalesofOCTG. and January-March 2013 * * * * * * * THEINDUSTRYINVIETNAM Thepetitionintheseinvestigationsidentifiedeightproducersand/orexportersofOCTG inVietnam.  Table VII-15 OCTG: Data for producers in Ukraine. 91 QuestionnaireresponsesofSeAHSteelVinaCorporationandHotRollingPipeCo. 2010-12.InterpipeNTRPidentified***..IIͲ6. 88 Petition.LtdVietnam.LtdVietnam. 2010-12.theproductionofOCTGin   85 Withrespecttoconstraintsonproductshifting.importsofOCTGfromVietnam.SeAHSteelVinaCorporationandHotRolling PipeCo. production. January-March 2013.IIͲ6.Accordingto estimatesrequestedoftherespondingVietnameseproducers.IIͲ4. 90 QuestionnaireresponseofHotRollingPipeCo. 86 QuestionnaireresponseofInterpipeNizhnedneprovsky(InterpipeNTRP).IIͲ4.InterpipeNiko identified***.LtdVietnam.90 SeAHSteelVinaestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor approximately***percentofallsuchexportsofOCTGfromVietnamin2012.

IIͲ2.”http://www. accessedonJuly26. 103 QuestionnaireresponsesofSeAHSteelVinaCorporationandHotRollingPipeCo.101 OperationsonOCTG TableVIIͲ17presentsinformationontheOCTGoperationsofthetworesponding producersandexportersinVietnam. 93 SeAHSteelVinaCorporation.. identified***.97 98 Atotalof***wasinvestedin***.Capacityutilizationincreasedfrom***percentin2010to ***percentin2012.IIͲ2. 94 QuestionnaireresponseofSeAHSteelVinaCorporation. 96 Ibid.hrpvietnam.andwas***percentinJanuaryͲMarch2013comparedto***percentin JanuaryͲMarch2012.LtdVietnam.”http://www.whileHotRollingPipeCo.In2013.LtdVietnam.HotRollingPipeistheonly producerofseamlessOCTGinVietnam.andwas***percent higherinJanuaryͲMarch2013thaninJanuaryͲMarch2012.2013.openingitsplantinDecember2011.IIͲ 5.LtdVietnam.“AboutUs.92 SeAHSteelVina’sfirstproductionlinescameonlineinMayof1999.93SeAHSteelVinais asubsidiaryoftheSeAHGroup.SeAHSteelVinainvested*** towardstheconstructionofanewproductionlinecapableofproducing***.103ExportsofOCTGfromVietnamtotheUnitedStatesincreasedby***percent   92 Ibid.Reported productioninVietnamincreasedby***percentfrom2010to2012.IIͲ4. 100 HotRollingPipeCo. Reportedcapacityisprojectedtoincreaseby***percentfrom2013to2014.php.“AboutUs.ReportedcapacityinVietnamincreasedby***percent from2010to2012.  Vietnamreportedbytherespondingproducersaccountforapproximately***percentof overallproductionofOCTGinVietnam.94SeAHSteelVina cited***. 101 QuestionnaireresponseofHotRollingPipeCo. 97 HotRollingPipeCo..96 HotRollingPipewasestablishedinAugust2011.predominantlyCanadaand Columbia.IIͲ4.php. 102 Withrespecttoproductionconstraints.com/about_us.***percentoftotalshipmentsofOCTGfromVietnamwereexportedtothe UnitedStates.accessedonJuly26.com/about_us.“Company’sHistory.hrpvietnam.2013.IIͲ7.. VIIͲ19 .99Accordingtotheirwebsite.. 98 QuestionnaireresponseofHotRollingPipeCo.95SeAHSteelVinaonlyproducesweldedOCTG.andwasthesameinJanuaryͲMarch2013asintoJanuaryͲMarch2012.. 95 Ibid..html.vn/gioiͲthieu/companysͲ history.SeAHSteelVinaidentified***.whichisbasedinKorea.QuestionnaireresponsesofSeAHSteelVinaCorporationandHotRollingPipeCo..102 In2012.”http://seahvina.and***percentwereexportedtoothermarkets.2013. 99 Ibid..com.Productionisprojectedtoincrease by***percentfrom2013to2014.IIͲ4.100HotRollingPipeonlyproducesseamlessOCTG. accessedonJuly26.

 105 QuestionnaireresponseofHotRollingPipeCo. VIIͲ20 .105 Table VII-18 Tubular products: Vietnamese capacity.SeAHSteelVina reportedthatit***.  from2010to2012. January-March 2012.IIͲ4.Withrespecttoconstraintson productshifting. 2010-12. Table VII-17 OCTG: Data for producers in Vietnam.QuestionnaireresponseofSeAHSteelVina Corporation. January-March 2013.IIͲ4a. production. 2010-12. and January-March 2013 * * * * * * *   104 QuestionnaireresponseofSeAHSteelVinaCorporation. and capacity utilization of welded and seamless tubular products.104HotRollingPipereported***.. and projected 2013-14 * * * * * * * Alternativeproducts TableVIIͲ18presentsinformationonthetotalweldedandseamlesstubularcapacity andproductionoftherespondingproducersandexportersinVietnam.SeAHSteelVinaidentified***.IIͲ4e. January-March 2012.andwere***percenthigherinJanuaryͲMarch2013thaninJanuaryͲMarch 2012.

587 312.6 68.156.7 84.190 325.646 10.195 1.490.020 1.4 22.1 84. 2010-12.7 71.189.7 16.595 220.5 0.4 Exports to: Source: Compiled from data submitted in response to Commission questionnaires.7 4.503 1.441 565.8 3.351 70.8 2.4 73.2 71.820.315 2.8 4. VIIͲ21 .5 67.417.758 2.424.485.960 113.564 111.522.9 13.602.2 12.229.950.5 Total exports 90.8 83.068 238. Table VII-19 OCTG: Data for subject producers combined.166 1.1 1.923 376.697 1.340.171 453.487.981 107. January-March 2012.305.0 5.174 74.682 1.683 77.530 75.8 70.8 4.537 2.419 End-of-period inventories Shipments: Internal consumption/ transfers Home market Exports to: Total exports Total shipments Capacity utilization 58.178 67.8 74.569 66.482 United States 944.657 1.021 3.311 297.0 69.0 3.2 72.6 5.7 United States 74.972 6.101 443.4 16.3 Share of total shipments: Internal consumption/ transfers 0.386 1.959 111.9 4.867 81.4 2.2 12.234 90.  SUBJECTCOUNTRIESCOMBINED TableVIIͲ19presentsinformationonOCTGoperationsofthereportingproducersand exportersinthesubjectcountries.066 Production 1.351.469 552.186 1.3 Inventories/shipments 5.6 66. and projected 2013-14 Actual experience Calendar year Item 2010 2011 Projections January-March 2012 2012 2013 Calendar year 2013 2014 Quantity (short tons) Capacity 2.956.727 553.771 110.475 477.146 All other markets 211.0 14.851.635 802.341 565.3 19.917 23.608 74.005 2.437 Ratios and shares (percent) 2.6 11.1 3.1 59.263 1.301 402.2 72.623 1.956.840.792 3.226.563 2.6 5.941 361.370 2.1 4.810 5.9 13.4 1.187.1 65.307.3 77.0 5.2 10.864 817.1 4.8 Home market 8.637.9 All other markets 16.643 3.6 Inventories/production 5.098 1.651 562.134 18.272. January-March 2013.7 14.8 80.

imports (percent) 18. and January-March 2013 Item 2010 Calendar year 2011 2012 Imports from India Inventories (short tons) *** *** *** Ratio to U. shipments of imports (percent) *** *** *** Imports from subject sources.S.S.7 Ratio to U.S.S.4 15. imports (percent) *** *** *** Ratio to U.103 15.5 17.781 21. January-March 2012. shipments of imports (percent) 18.0 15.9 349. shipments of imports (percent) 17. importers’ end-of-period inventories.S.730 323.132 188. shipments of imports (percent) *** *** *** Imports from Vietnam Inventories (short tons) *** *** *** Ratio to U.9 Imports from all other sources Inventories (short tons) 202.293 586. imports (percent) *** *** *** Ratio to U.S.927 190. imports (percent) 19.S.059 379.S.S. shipments of imports (percent) *** *** *** Imports from Taiwan Inventories (short tons) *** *** *** Ratio to U. shipments of imports (percent) *** *** *** Imports from Turkey Inventories (short tons) *** *** *** Ratio to U.892 15.8 469.4 216.0 15.S. shipments of imports (percent) 22.9 23.173 Ratio to U.S.S.S.S.4 21.563 263.INVENTORIESOFIMPORTEDMERCHANDISE  TableVIIͲ20presentsdataonU. imports (percent) *** *** *** Ratio to U.697 21.S.S. shipments of imports (percent) *** *** *** Imports from Philippines Inventories (short tons) *** *** *** Ratio to U.3 18. imports (percent) 18. shipments of imports (percent) *** *** *** Imports from Korea Inventories (short tons) *** *** *** Ratio to U.1 15.4 Ratio to U.S.7 571. subtotal Inventories (short tons) 143.5 221.0 18.  Table VII-20 OCTG: U.importers’reportedinventoriesofOCTG. shipments of imports (percent) *** *** *** Imports from Thailand Inventories (short tons) *** *** *** Ratio to U.1 17. imports (percent) *** *** *** Ratio to U.0 17. imports (percent) *** *** *** Ratio to U.0 25. VIIͲ22 January-March 2012 2013 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 252.S.9 .085 Ratio to U. shipments of imports (percent) *** *** *** Imports from Ukraine Inventories (short tons) *** *** *** Ratio to U.916 22.9 16.S.8 22. imports (percent) *** *** *** Ratio to U.2 Source: Compiled from data submitted in response to Commission questionnaires.S.S. 2010-12.4 19. imports (percent) *** *** *** Ratio to U.1 16. shipments of imports (percent) *** *** *** Imports from Saudi Arabia Inventories (short tons) *** *** *** Ratio to U.6 19.S. imports (percent) *** *** *** Ratio to U.6 Imports from all sources Inventories (short tons) 346.088 Ratio to U.9 18.211 15.S. imports (percent) *** *** *** Ratio to U.S.S.S.9 Ratio to U.  U.S.

939 95.613 106.674 5.2013.087 89.  Table VII-21 OCTG: U. subject-Welded Seamless Total April May June July August Quantity (short tons) September OctoberDecember *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 90.IMPORTERS’OUTSTANDINGORDERS TheCommissionrequestedimporterstoindicatewhethertheyimportedorarrangedfor theimportationofOCTGfromsubjectsourcesafterMarch31.  U.842 93.TableVIIͲ21presentsU.961 Source: Compiled from data submitted in response to Commission questionnaires.213 24. VIIͲ23 .723 17.S.S.860 100. April-December 2013 2013 Source India-Welded Seamless Total Korea-Welded Seamless Total Philippines-Welded Seamless Total Saudi Arabia-Welded Seamless Total Taiwan-Welded Seamless Total Thailand-Welded Seamless Total Turkey-Welded Seamless Total Ukraine-Welded Seamless Total Vietnam-Welded Seamless Total Subtotal.S.511 72. importshipmentsofOCTGarrangedforimportationafterMarch31.007 18.166 167.709 109.748 191.2013.227 12.924 90.233 20. importers’ arranged imports.133 19.443 124.931 87.278 113.

andpipepiling). OCTGisproducedinsubstantialquantitiesbypipeandtubeproducersthroughoutthe world.particularforweldedtubularproducts.9 percent.andmay includebothsubjectandnonsubjectpipe.informationanddataareprovidedbasedontheiravailability.UkrainianOCTG producerInterpipeissubjecttoanantidumpingdutyrateof13.ex.108Russian antidumpingdutyorders***.795/2012of August28.mostanalysisfocuseson energyapplicationsorstructuralapplications. 108 U.acommonalityamong rawmaterialsandsomeoverlapofproductionfacilitiesandmethods.7percent.106EffectiveSeptember9. includingseamlessironandalloycasingandtubing.CouncilImplementingRegulation(EU)No.29.54(“MedvedevdecidesnottoextendquotasforUkraine pipes.whileexportsofcertaintubingaresubjecttoarateof19.Accordingly.”Ukrinform. VIIͲ24 .exportsofcertainseamlesspipesandtubes.3–25.TheWorldSteelAssociation(WSA)publishesdataontheglobalproductionofthelarger productgroupingsofallpipeandtube.Thatis.forthe purposeofthissection.107InRussia.fromUkrainearesubjecttoantidumping dutiesrangingfrom12.intermsofdemandfactors.July17.S.109 INFORMATIONONNONSUBJECTCOUNTRIES MostpublisheddataonsteelpipesandtubesdistinguishOCTGandlinepipefromother formsofpipe(includingstandardpipeandvariousformsofstructuralandmechanicalpipe.September9.inpart. 109 ***.Inaddition.verybroadlydefined.   106 ThescopeoftheordersincludescertainironandalloycasingandtubingclassifiedunderHS 7304. Ukrainianexportsofcertaincasingarereportedlysubjecttoanantidumpingdutyrateof18.reflecting.2013).2012.IntheEU.combiningall formsofseamlesspipeandallformsofweldedpipe.published analysesofsupplyfactorsareoftengroupedatanevenmoreaggregatedlevel. thenreboundedandincreasedbetween2009and2011.2012.Steelpostconferencebrief. pressurepipe.globalpipeand tubeproductiondeclinedbetween2008and2009followingtheglobaleconomicdownturn. 107 OfficialJournaloftheEuropeanUnion.2012.Chinaaccountedforasubstantial majorityofproductiongrowth.  ANTIDUMPINGORCOUNTERVAILINGDUTYORDERSINTHIRDͲCOUNTRYMARKETS ExportsofcertainOCTGfromUkrainearesubjecttoantidumpingordersinthe EuropeanUnion(EU)andRussia.9percent.AsshownintablesVIIͲ22throughVIIͲ24.8percent.

138 8.564 101.388 1.532 (2) Italy 4. by region.833 14.376 820 1.347 (2) Spain 1.715 (2) 2. Original data were published in metric tons.586 1 The data presented in this table are for all pipe and tube and.533 73.803 8.471 2. figures may not add to the totals shown.715 1. Production data for Turkey are unavailable.467 1.891 93. 2 Not available.290 1.336 Subtotal 77. 2012.908 1.973 12.347 3. are substantially overstated with respect to OCTG subject to these investigations.101 58. 3 Belarus.074 9.928 6.476 Subtotal 18.  Table VII-22 Welded and seamless steel pipe and fittings: Global production.477 8.022 2.880 4.429 5.592 Philippines 152 64 55 99 Taiwan 1.338 Vietnam 606 626 742 806 Others 1. Because of rounding. Source: World Steel Association. Kazakhstan. did not report data for that year.307 5. Russia. as a result.932 115.355 Subtotal 11.516 1.027 South America: Argentina (2) (2) (2) (2 ) 2 2 2 Others () 4 () () 2 2 Subtotal () 4 () (2 ) EU (27): Germany 4.248 10.411 Subtotal 9.892 Asia: China 56.680 2.527 11.550 1.545 1. and Ukraine.164 977 1. which were converted to short tons by multiplying by 1.476 CIS: 3 Ukraine 2.679 2.000 short tons)1 North America: United States 4.580 1.257 (2) Others 8. Steel Statistical Yearbook. Note.829 India 1.288 Japan 10.—Production data for 2012 are not available.342 5. 47 VIIͲ25 .352 5.816 Canada 2.527 7.800 Mexico 1. p.549 13. 2008–11 2008 2009 2010 2011 Region Quantity (1.717 6.102311.985 2.140 74.610 1.304 4.448 1. Production data for 2011 are substantially understated since many countries.265 1.316 8.538 Others 8. table 24.658 62.892 Others 409 268 277 299 Total 116.602 Korea 5.538 79. particularly EU member countries.535 12.884 3.725 2.506 118.259 3.201 3.

338 1.443 Canada 280 168 268 280 Mexico 750 649 748 849 Subtotal 3.102311. 2 Not available. and Ukraine. Russia.  Table VII-23 Seamless steel pipe: Global production. Original data were published in metric tons.038 4.923 1.116 3.402 CIS: 3 Ukraine (2) (2) 862 966 Others (2) (2) 3. did not report data for that year. Production data for Turkey are unavailable.909 41. 2008–11 2008 2009 2010 2011 Region Quantity (1.211 25.366 1.870 2.265 24.053 1. 48.749 31.—Production data for 2012 are not available. figures may not add to the totals shown. 2012.878 948 1.647 29.444 42.415 (2) Italy 966 529 648 (2) Spain 344 172 278 (2) Others 2. Steel Statistical Yearbook. by region.029 31.571 South America: Argentina 1.241 1.632 4.006 553 859 936 2 2 Others 50 4 () () Subtotal 1. particularly EU member countries. which were converted to short tons by multiplying by 1. Kazakhstan.937 3.364 2.019 26.103 1 The data presented in this table are for all seamless steel pipe and tube and.462 Asia: China 26. are substantially overstated with respect to OCTG subject to these investigations.  VIIͲ26 .928 1.983 2.497 Subtotal (2) (2) 4.731 2 Others (2) (2) (2 ) () Total 39.811 2.402 Subtotal 6. Production data for 2011 are substantially understated since many countries. Source: World Steel Association. Note.200 India (2) (2) (2) (2) Japan 2. as a result. table 25.000 short tons)1 North America: United States 2.582 1.919 2. p.512 Korea 23 20 18 19 Philippines (2) (2) (2) (2 ) Taiwan (2) (2) (2) (2 ) 2 2 2 Vietnam () () () (2 ) 2 2 2 Others () () () (2 ) Subtotal 29. Because of rounding. 3 Belarus.056 558 859 936 EU (27): Germany 1.176 3.849 29.

368 2.653 1.280 4. Production data for 2011 are substantially understated since many countries.334 5.116 (2) Italy 3. Steel Statistical Yearbook. particularly EU member countries.480 59.”July10.511 9. AccordingtoMetalBulletinResearch(MBR).143 2. Russia.698 (2) Spain 1.288 5.640 35.492 5.265 1.921 1 The data presented in this table are for all pipe and tube and.338 Vietnam 606 626 742 806 Others 1. 2 Not available.“MetalBulletinResearch:OCTGMarket—worth$33bnandgrowing.467 1. 2008–11 2008 2009 2010 2011 Region Quantity (1. 3 Belarus. Original data were published in metric tons. Note.574 Philippines 152 64 55 99 Taiwan 1.241 59.094 4. which were converted to short tons by multiplying by 1.452 Korea 5. Because of rounding.837 34.032 635 979 (2) Others 5.394 2.aswellasinthe   110 MetalBulletin. p.502 4. 2013.129 5.411 2.436 5.andwasestimatedatapproximately19millionshort tonsin2011.070 4. figures may not add to the totals shown.367 Canada 2.464 5. 2012.—Production data for 2012 are not available. and Ukraine.888 Subtotal (2) (2) 8. Production data for Turkey are unavailable.628 1. Source: World Steel Association.572 Others (2) (2) 7.160 1.505 2.132 515 CIS: 3 Ukraine (2) (2) 1.110Inrecentyears. by region. as a result. are substantially overstated with respect to OCTG subject to these investigations. table 26.  Table VII-24 Welded steel pipe: Global production. VIIͲ27 .339 515 Subtotal 12.215 10.290 74.520 Mexico 699 640 767 562 Subtotal 5. Kazakhstan.351 7.551 1.511 2.433 9.951 2.164 977 1.445 50. 49.thegrowthinOCTGconsumptionhasreportedlybeendriven byextensivenewoilandgasdevelopmentsintheUnitedStatesandCanada.335 Subtotal 45.386 1.460 Asia: China 29.449 South America: Argentina (2) (2) (2) (2 ) 2 2 2 2 Others () () () () 2 2 2 Subtotal () () () (2 ) EU (27): Germany 2.364 74.globalOCTGconsumptionreboundedafter theglobaleconomicdownturnin2009. did not report data for that year.629 India (2) (2) (2) (2) Japan 7.685 46.284 1.000 short tons)1 North America: United States 2.102311.886 44.234 Others 380 268 277 266 Total 64.981 3.

accordingtoMetalBulletin demandforOCTGinsomeregionsactuallydeclinedin2012.2012.market.114Onthesupplyside.heatͲtreatedgradesofOCTG.directionalandhorizontaldrilling.andMexico.”July10.111Inaddition.includinginLatinAmerica.includingOCTGcapacityexpansions.“MBResearchView—OCTG:Market’sglobalvaluewillhit$40bnby2017.Germany.LatinAmericaandAfricawillbeareasofthefastestgrowthinOCTG consumption.hasreportedlytemperedOCTGdemandgrowthglobally.see sectionIIIofthisreport.112 However. 115 ForalistofrecentdevelopmentsintheU.aswellasdrillinginmore challengingenvironmentsforsourgradesofhydrocarbons. 2013.         111 MetalBulletin.“MetalBulletinResearch:OCTGMarket—worth$33bnandgrowing.Canada.leadingto weakerglobaldemandin2012comparedwith2011.”July10. VIIͲ28 .OCTGconsumptioninotherregionalmarketsfaredbetter. 2013.” November22. 114 MetalBulletin.MBRexpectsNorthAmericatoseethelargestadditionof newOCTGcapacityinthenext3–5years.including theNorthAmericanandEuropeanmarkets.Forinstance.TablesVIIͲ26and VIIͲ27provideinformationoninternationalrotaryrigcountsfortheperiod2010–12andfirstͲ half2013.S.the MiddleEast. AccordingtoMBR.MBRanticipatesglobalgrowthin OCTGconsumptiontoslowdowninthenextfiveyears.coupledwithaslowdownintheChineseeconomyandthe Europeandebtcrisis.“MBResearchView—OCTG:Market’sglobalvaluewillhit$40bnby2017.and Japancollectivelyaccountedfor45percentofglobalOCTGexportsin2012.averagingabout4percentannually.China.Thefollowingsectionprovidesinformationontheleadingnonsubjectproducersand exportersofOCTG.namely.  MiddleEastandAsia.hasledtogreaterdemandfor higherͲvalue. 112 MetalBulletin.Argentina.andtheCIS.Japan. 113 MetalBulletin.Korea.” November22.whereOCTGconsumptiongrewby10–15percent in2012comparedtothepreviousyear.2012.113Lookingforward.115 TableVIIͲ25showsglobalreportedexportsofOCTGduring2010–12.decliningnaturalgaspricesintheUnitedStatesduetothenaturalgasboom andensuingdomesticoversupply.“MetalBulletinResearch:OCTGMarket—worth$33bnandgrowing.

003 67.174 200. 2010–12 Country China Korea Japan Mexico United States Argentina Canada Germany Ukraine Singapore Austria France Russia Indonesia Italy Turkey Brazil Taiwan Romania United Kingdom Colombia Czech Republic Azerbaijan India Thailand Spain Netherlands Malaysia Denmark Belgium Australia Poland Iran Norway Philippines Slovakia Georgia Peru South Africa Cote d'Ivoire Cyprus Kazakhstan Ghana Lithuania 2010 1.228 454.334 75.926.126 251.443 50 3 Table continued on next page.872 296.631 67.017 23.072 604.705 497.897 63.226 164 7.865 12.032 89.322 3.237 443.716 156.628 377.770 16.841 51.867 82.154 8.975 238.928 252.590 240.147 4.268 312.323.437 416.039 99.324 2.717 31.559 761.565 241.389 141.447 359.206 110.488 4.787 874.299 749.539 82.663 8.763 109.  Table VII-25 OCTG: Global exports by reporting countries.410 94.586 740.081 227 3 30.104 266.272 30.173 41.643 458.545 896 840 572 434 373 370 309 254 .903 177.476 85.337 168 0 1.304 823 56 68 91 0 2012 2.997 52.437 10.709 7.683 61.752 201.475 455.224 660 0 79 20.947 417.580 8.571 418.016 29.370 14.526 23.558 53.036 5.070 19.905 52.547 249.426 8.146 1.954 209.522 58.861 118.647 118.303 23.530 175.407 139.463 2.919 33.618 338 10.629 47.734 4.685.867 7.350 10.029 256.864 3.682 47. VIIͲ29 Calendar year 2011 Quantity (short tons) 1.522 56.046 157.142 105.797 17.478 60.618 228.219 53.134 52.970 86.801 661.154 247.611 229.063 142.340 538.978 214.315 420.

but did not report exports in terms of volume. Reporting countries’ imports of OCTG from Vietnam totaled 1.-.441 245 183 159 131 131 130 110 109 100 93 91 86 47 47 45 44 28 22 22 15 15 14 12 9 4 4 1 1 1 0 0 0 (1) 7. 2013). Note.  Table VII-25--Continued OCTG: Global exports by reporting countries.102311. Source: Global Trade Atlas (accessed July 24.937. VIIͲ30 . 61.814.141 1 Not available. Global Trade Atlas reported Vietnam OCTG exports during 2010 and 2011 in terms of value. which were converted to short tons by multiplying by 1. and 245.039 8. 2010–12 Country Belarus Hungary Egypt Ireland Kenya Sweden El Salvador Ecuador Bulgaria Switzerland Guatemala Hong Kong Croatia New Zealand Algeria Latvia Chile Portugal Slovenia Morocco Mauritius Greece Costa Rica Finland Serbia Estonia Senegal Honduras Venezuela Malta Luxembourg Paraguay Vietnam Total Calendar year 2011 Quantity (short tons) 2010 0 3.Original data were published in metric tons.430 short tons in 2012.215 short tons in 2010.698. 7305.100 28 174 252 574 6 36 68 408 76 390 18.20.054 2 0 21 7 12 19 12 0 0 179 9 2 316 (1 ) 2012 2 459 279 105 441 395 18 175 36 217 160 93 3.-. figures may not add to the totals shown. Because of rounding.805 short tons in 2011.499 12 267 72 184 90 60 23 0 9 142 7 8 0 188 0 7 0 0 0 (1) 6.29. 7306.29.Global exports of OCTG reported by the Philippines are ***.358 752 6 60 353 60 1. Note. HS subheadings 7304.

found at http://phx. found at http://phx.thecountryincreasinglyrelieson   116 EnergyInformationAdministration(EIA). by country or region.zhtml?c=79687&p=irol-rigcountsintl.—Data include both onshore and offshore oil and gas rotary rigs.–March 2012 April–June 2012 Calendar quarter July–Sept.221 Source: Baker Hughes International Rig Count. June 2013.  Table VII-26 OCTG: Baker Hughes International Rotary Rig Count. retrieved July 25. Jan.919 365 424 118 78 291 256 3.875 423 1.–Dec.corporateir.541 Canada 351 Region: Latin America 383 Europe 94 Africa 83 Middle East 265 Asia Pacific 269 Total 2. Table VII-27 OCTG: Baker Hughes International Rotary Rig Count.cfm?fips=AR.970 1.991 1.–March 2013 April–June 2013 1.“ArgentinaEnergyProfile”.—Data include both onshore and offshore oil and gas rotary rigs.net/phoenix.net/phoenix.758 536 1.retrievedJuly22.foundat http://www.809 368 1.zhtml?c=79687&p=irol-rigcountsintl.gov/countries/cab. retrieved July 25.corporateir. 2013.oilproduction inArgentinahasdeclinedinrecentyears. Jan.465 423 119 96 356 241 3.–March 2012 through April–June 2013 Country or region Jan.eia.July24.itsnaturalgas productionhasdeclinedover10percentfrompeaklevelsin2006.368 3.437 426 134 114 355 245 3.906 Canada 592 173 326 Region: Latin America 432 438 414 Europe 112 117 117 Africa 83 90 108 Middle East 311 343 390 Asia Pacific 250 237 230 Total 3. 2012 2012 Rig counts Country: United States 1.761 155 408 129 103 378 242 3. June 2013.568 425 133 127 368 252 3.2013.116Moreover.771 3. by country or region.andconsequently.519 Source: Baker Hughes International Rig Count.2012. VIIͲ31 . 2010–12 Country or region Calendar year 2011 Rig counts 2010 Country: United States 1.491 Note. 2012 1. Oct. 2013.986 Note. Argentina AlthoughArgentinaisSouthAmerica’slargestnaturalgasconsumer.

. 124 TubhierWebsite.withanannualproductioncapacityofover900.ar/..corporateͲ ir.andIraq(tableVIIͲ28).“ArgentinaProfile.InternationalRigRotaryRigCount.retrievedonJuly23.118AsofJune2013.2013.foundat http://www. 123 TenarisWebsite.linepipe.whichtogetherhaveanannualcombinedproductioncapacityof 430.“ArgentinaEnergyProfile. 119 BakerHughesInc.APICompositeList.registration.cfm?fips=AR.OCTGproducerMaverickTube.000shorttonsof seamlesstubularproducts.retrievedJuly22. VIIͲ32 .Formar S.TenarisSidercaisawhollyͲownedsubsidiaryofTenaris(Luxembourg).Argentinahad82active rotaryoilandgasrigs.retrievedJuly22.”July24.A.TheleadingmarketsforArgentina’sexportsofOCTGin2012weretheUnitedStates.tubhier.”foundathttp://www.andTubhier.api.S. Indonesia.Royo.”July24.ArgentinawasthesixthͲlargestexporterofOCTG(seetable VIIͲ25).A. 2013.org.2012.DuralitteS.123Tubhierproducesasmallamountofwelded carbonandlowͲalloysteelOCTG.andproductdetailsoftheorganizations participatinginthevariousAPICertificationPrograms.includingfirmsthatarelicensedfortheAPI5CT (oilandgascasingandtubing)Monogram.122TenarisalsohasweldedsteeltubemillslocatedinBuenosAires andSantaFeprovinces.107companiesin78countriessupplyingtheoiland naturalgasindustry.tenaris.aspx.zhtml?c=79687&p=irolͲrigcountsintl. 122 TenarisistheparentcompanyofU.retrievedJuly17.119In2012.“ArgentinaEnergyProfile.2013.cfm?fips=AR.foundathttp://phx. 118 EIA.121there arefiveknownproducersofOCTGinArgentina:TenarisSiderca.2013.M.gov/countries/cab.2012.“CompanyProfile.2013.com.foundathttp://compositelist. Accordingto***120andtheAmericanPetroleumInstitute(API)CompositeList. retrievedJuly16.com/en/tenarisworldwide/southamerica/argentina.net/phoenix.retrievedJuly23.eia.andtherearenumerousprojects underdevelopmenttoexploittheseresources.124   117 EIA.a leadingglobaltubeproducer.andstandardpipeonitstwomillsinSanLuis.”foundat http://www. 121 TheAPICompositeListisadirectoryof4.  importsofbothproductstomeetitsdomesticenergyneeds.117Argentinapossessesthethird largestendowmentofrecoverableshalegasintheworld.foundat http://www. 120 ***.000shorttonsofweldedsteeltubes.2013.Itincludeslicensing.gov/countries/cab.eia.

979 9.142 1.950 35.899 905 2.992 20.404 3.foundat http://www. figures may not add to the totals shown.207 15.2013.632 59.eia.“CanadaEnergyProfile.corporateͲ ir.102311.315 Calendar year 2011 Quantity (short tons) 132.2012.945 209 9. 126 EIA.“CanadaEnergyProfile.Canada’srigcountwas183. VIIͲ33 .393 16. Because of rounding.  Table VII-28 OCTG: Argentina’s reported exports.752 11.127 In2012.379 29.29.”foundathttp://phx.438 Note. 7306.820 14.089 5.788 21.whichmakesmovingdrillingequipmentmoredifficult totransport.gov/countries/cab. 127 BakerHughesInc.736 454.849 291 1.712 9.102 27.retrievedJuly22.376 11.retrievedJuly22.339 11.”December10.gov/countries/cab.976 27.net/phoenix.733 12.andvirtuallyallofitscrudeoilexports aredestinedfortheUnitedStates.915 648 3.211 4.793 9.600 443.126AsofJune 2013.149 17.2012.532 3.The UnitedStatesistheleadingmarketforCanada’sexportsofOCTG(tableVIIͲ29).005 4.yetisthefourthlargestexporterofnaturalgas.934 7.628 29.303 5. which were converted to short tons by multiplying by 1.20.eia. 7305.445 4.125Canadaholdsarelativelysmallshareoftheworld's provennaturalgasreserves.474 8.885 6.273 45.“RigCountOverviewandSummaryCount.zhtml?c=79687&p=irolͲrigcountsoverview.—Original data were published in metric tons.996 6. HS subheadings 7304.121 7.2013..retrievedJuly22.586 6.642 27.734 47.609 27.571 2012 143.130 64.514 27. Source: Global Trade Atlas (accessed July 25.2013.338 29.421 3.SomeofthesefirmsareownedbynonͲ Canadianparentcompanies.671 25.foundat http://www. 2013).587 13.626 1.193 25.”December10.500 12.CanadawastheseventhͲlargestexporterofOCTG(seetableVIIͲ25).includingEvrazNorthAmerica(asubsidiaryofRussiansteel   125 EIA.644 9.097 21.cfm?fips=CA.Canada’srigcount typicallyfallsinthespringduetogroundthawing.252 5. Canada Canadaistheworld'ssixthͲlargestoilproducer.Several Canadiancompaniesproducecasingandtubing.498 359. 2010–12 Country United States Indonesia Iraq Venezuela Saudi Arabia Ecuador United Arab Emirates Nigeria Equatorial Guinea Italy Egypt Colombia Chile Canada Bolivia Kazakhstan Libya Romania Tunisia Angola All other Total 2010 84.cfm?fips=CA.261 6.510 7.997 6.29.

com/investors/annual_reports/.291 29 Total 420.amergerofJMC’sU.and..270 410.000shorttonsperyear.foundat http://www. HS subheadings 7304.175 416.“JMCSteelGroupAcquiresLakesideSteelInc. 7306.InJuly2013. 2013). Because of rounding.266 Note. 129 PrestonPipeandTubeReport.No.January2013.Tenaris(Luxembourg). figures may not add to the totals shown.20.tubularassetsandCanadian OCTGproducerLakesideSteel.S.OCTGproducerMaverick.29.amanufacturerofthreadedconnections.p.apipeandtubeproducer.p.ͲbasedVallourecStar).013 1.foundathttp://www.VallourecCanada(asubsidiaryofFranceͲbasedVallourecGroupandaffiliate ofU.   128 “EvraztoexpandheattreatcapacityatCalgarytubularplantby150%.S.whichownsU.2012. VIIͲ34 . which were converted to short tons by multiplying by 1.July 2013.jmcsteelgroup.—Original data were published in metric tons.whichwillincreaseitsheatͲtreatmentcapacity from80.”April3.2012.retrievedonJuly22.21.097 623 Albania 1.whichownsEnergeX.”ASMInternational.EvrazNorthAmericaannouncedplanstobuilda tubularproductionfacilityinCalgaryby2014.ExpandingOfferingforOiland GasIndustry.2013.Inc.000shorttonsto200.foundat: http://www.102311.Evraz.128InJanuary2013.150 France 158 1.2013.29.asminternational. 2010–12 Calendar year 2011 2012 Quantity (short tons) United States 417.andVAM Canada.VallourecCanada wascreatedviaamergerbetweenVallourecTubesCanada.evraz. Country 2010 Source: Global Trade Atlas (accessed July 25.130 Table VII-29 OCTG: Canada’s reported exports..(parent companyofEnergeX)completeditsacquisitionofLakesideSteelCorporationinApril2012.org/portal/site/www/NewsItem/?vgnextoid=526e31605daef310VgnVCM 100000621e010aRCRD.S.retrievedJuly22. andJMCSteelGroup.616 570 China 24 257 338 Cuba 190 486 243 Costa Rica 245 93 107 Singapore 43 19 69 Oman 8 14 65 United Arab Emirates 1 285 34 United Kingdom 67 0 32 Australia 288 13 30 Vietnam 0 0 28 Romania 28 6 19 Kazakhstan 33 2 18 Suriname 0 0 12 Ecuador 7 9 10 Colombia 13 57 9 Ukraine 0 0 9 Sweden 111 0 6 All other 448 1.  producerEvraz). 130 JMCSteelGroup.Volume31. 7305.AnnualReport.871 412.com/pressͲrelease/jmcͲsteelͲgroupͲ acquiresͲlakesideͲsteelͲinc.1.22.059 1.867 Mexico 662 2.608 418.129JMCSteelGroupInc.

 132 EIA.2013.corporateͲ ir.includingV&MDeutschland.134andTPSTechnitubeRohrenwerke.25.Louisiana(slatedforcompletionin2015).orotherEuropeancountries.Germanyhasnoliquefiednaturalgasterminals. 134 PrestonPipeandTubeReport.InternationalRotaryRigCount.foundathttp://phx.retrievedJuly17.accountingfor38percentofGermany’stotalprimaryenergyconsumptionin2011. GermanywastheeighthͲlargestglobalexporterthelargestEuropeanexporterofOCTG(see tableVIIͲ25). VIIͲ35 .133Nonetheless.asubsidiary ofVallourecGroup(France)andaffiliateofU.S. ThereareseveralOCTGproducersinGermany.andFrance(tableVIIͲ30).zhtml?c=79687&p=irolͲrigcountsintl.theUnitedKingdom.whichin2012announcedplanstobuilda$900millionseamlessOCTGmillin Caddo.131 Inaddition.soitmustimportgasviapipeline exclusivelyfromRussia.foundathttp://www.foundathttp://www.cfm?fips=GM&trk=m.30.OCTGproducerVallourecStar.GermanyisthelargestOCTGproducerandexporterinEurope. 133 BakerHughesInc.Benteler Steel/Tube.p.In2012.2013.Vol.“GermanyEnergyProfile.retrievedonJuly22.   131 EIA.gov/countries/countryͲ data.  Germany Germanyimportsnearlyallofitsoilandnaturalgas.2013.11.eia.November2012.“GermanyEnergyProfile.”May30.TheleadingmarketsforGermany’sexportsofOCTGin2012weretheUnited States.Norway.cfm?fips=GM&trk=m.eia.”May30.No.132AsofJune2013.2013..2013.OilisGermany’sprimarysourceof energy.Germanyhas 5rigs.gov/countries/countryͲ data.net/phoenix.retrievedonJuly22.

810 1.763 5.2013.903 Total 229.—Original data were published in metric tons.http://www.20.209 2.“InternationalRigRotaryRigCount. Japan Japanistheworld’slargestimporterofliquefiednaturalgasandthethirdlargest importerofoil. HS subheadings 7304.360 3.607 Brazil 0 0 1.969 476 3. 7305.872 Note. 7306.JFE SteelCorporation. Country 2010 Source: Global Trade Atlas (accessed July 25.137Asaresult.278 12.517 China 493 5.592 15.net/phoenix. Because of rounding.102311.S. 2013).”June4.470 Azerbaijan 3.201 81.161 2.corporateͲ ir.142 6.039 3.cfm?fips=JA&trk=m.737 11.847 4.588 Nigeria 3.501 Netherlands 4. 137 BakerHughesInc.“JapanEnergyProfile.479 9.135Japanreliesonoilimportstomeetabout42percentofitsenergyneeds.938 Belize 0 2.103 12.136 Withonly2rigsasofJune2013.http://www.JapanexportsalmostallofitsOCTGproduction.andMalaysia(tableVIIͲ31).2012.Japanhasverylimiteddomesticenergyresourcesinitsown country.gov/countries/countryͲ data.   135 EIA.942 1.552 14.29.069 United Kingdom 14.2013.704 Hungary 420 26 1.880 1..957 Australia 140 47 3. which were converted to short tons by multiplying by 1.2013.008 5.050 France 26. VIIͲ36 .”foundathttp://phx. figures may not add to the totals shown.965 2.548 21.087 24.596 Indonesia 15.retrievedJuly22.579 6.908 12.eia.834 713 2. 2010–12 Calendar year 2011 2012 Quantity (short tons) United States 110.681 Kazakhstan 2.”June4.391 Poland 1.JapanwasthethirdͲ largestglobalexporterofOCTGin2012(seetableVIIͲ25).TheleadingmarketsforJapan’s exportsofOCTGin2012weretheUnitedStates.eia.535 2.2012.zhtml?c=79687&p=irolͲrigcountsintl.565 200.gov/countries/countryͲ data.asubsidiaryofTenaris(Luxembourg)andaffiliateofU.  Table VII-30 OCTG: Germany’s reported exports.132 11. 136 EIA.804 3.916 13.115 Angola 5.retrievedJuly22.105 312.967 193.551 Iraq 1.175 Pakistan 8 0 1.413 Saudi Arabia 5.Norway.517 Canada 1. JapaneseOCTGproducersincludeNipponSteelSumitomoMetals(NSSM)Corporation (astheresultofamergerbetweenNipponSteelandSumitomoMetalIndustriesin2012).“JapanEnergyProfile.TenarisNKKTubes.retrievedJuly17.cfm?fips=JA&trk=m.606 All other 29.29.523 Egypt 2.

331 Brazil 12.351 14.856 10.753 21.014 Indonesia 29.100 44.3millionshorttonsatNippon Steeland3. HS subheadings 7304.20.29.138MaruichiSteelTubehasanannualsteel tubecapacityof1.pdf.417 Azerbaijan 13.430 24.730 85.andMaruichiSteelTube.670 125.”foundat http://www.196 23.323. 139 ***.151 27.986 China 39.tenaris.314 Oman 5.572 32.508 Saudi Arabia 50. Because of rounding. 2013).899 Iraq 1.707 749.817 49.139 Table VII-31 OCTG: Japan’s reported exports.241 63.895 14. figures may not add to the totals shown.102311.901 United Kingdom 15.Accordingto***.789 24.945 761.503 14.479 Norway 30.787 62.073 All other 78.126 15.487 15.“CompanyProfile. VIIͲ37 .032 88.3millionshorttonsatSumitomoMetalIndustries).559 United Arab Emirates 86.156 6.381 76.***.420 67.367 11.666 46.687 22. 7306.012 6.349 51.000shorttons.  OCTGproducerMaverick.   138 TenarisNKKTubes. Country 2010 Source: Global Trade Atlas (accessed July 25.625 Australia 12.429 14.164 Malaysia 16.228 18.000shorttons.995 Brunei Darussalam 12.retrievedJuly23.589 Singapore 49.855 Canada 27. 7305.064 Total 740.TenarisNKKTubeshasan annualsteeltubecapacityof287.120 39.741 16.089 7.388 20.059 4. 2010–12 Calendar year 2011 2012 Quantity (short tons) United States 144.2013.881 17.NSSM’scombinedannual productionoftubularproductsisalmost8millionshorttons(4.394 22.661 Vietnam 23.087 9.29.—Original data were published in metric tons.306 60.com/shared/documents/files/CB48.339 Note.731 186.824 Russia 27.316 22.514 Netherlands 17. which were converted to short tons by multiplying by 1.692 11.665 11.568 Kuwait 47.

OCTGproducerVallourecStar.andColombia(tableVIIͲ32). 146 VAMUSAWebsite.cfm?fips=MX.retrievedJuly23.“Facilities. retrievedJuly23.eia.S.144Accordingto***.net/phoenix.“MexicoEnergyProfile. 144 “TenarisopensanewrollingmillinMexico.2013. 142 EIA. VIIͲ38 .OCTGproducerMaverick.gov/countries/cab.cfm?fips=MX.com/companyͲfacilities.“MexicoEnergyProfile.000shorttons.asubsidiaryofVallourec(France)andaffiliate ofU.gov/countries/cab.“MexicoEnergyProfile.”October17.InternationalRigRotaryRigCount.awhollyͲownedsubsidiaryof Tenaris(Luxembourg)andaffiliateofU.MexicomustrelyonU.2013.aspx.140DevelopmentofMexico’sshalegasresourcesisslowdespite Mexico’sconsiderablenaturalgasresources.TAMSA openedanewseamlesstuberollingmillinVeracruz.eu/article/tenarisͲopensͲnewͲrollingͲmillͲmexico.2012.eia.”October17.000shorttons.Canada.2013.foundat http://www. ThelargemajorityofMexico’sOCTGproductionisseamlesscasingandtubing.foundat http://www.despiteoilproduction steadilydecreasingsince2004.retrievedJuly17.natural gasimportsandliquefiednaturalgasfromothercountriestosatisfyincreasingdomestic demand.The largestofMexico’sOCTGproducersisTenarisTAMSA(“TAMSA”).142AsofJune2013.”foundathttp://www.S.foundat http://www.cfm?fips=MX.2012.  Mexico Mexicoisoneofthetenlargestoilproducersintheworld.withanannualproduction capacityof450.2012.InMay2013..145VAMMexico.2013.zhtml?c=79687&p=irolͲrigcountsintl.”October17.July22. 145 ***.S.”NewEuropeOnline.neurope. 143 BakerHughesInc.141Consequently.foundat http://www.eia.corporateͲ ir.Mexicohas99activerigs.143MexicoisthefourthͲlargestglobal exporterofOCTG(seetableVIIͲ25).Mexico.retrievedJuly23. 141 EIA.TheleadingmarketsforMexico’sexportsofOCTGin2012 weretheUnitedStates.vamͲusa.retrievedJuly23.TAMSA’sannualseamlessproduction capacityis860.producescouplingsandprovidesthreadingservicesfor OCTGatitsVeracruzfacility.2013.gov/countries/cab.146   140 EIA.2013.foundathttp://phx.

388 9. HS subheadings 7304.986 15.678 Norway 7.376 5.390 Russia 1.476 Note.937 Iraq 13.516 Ecuador 19.439 35.955 33.139 10. VIIͲ39 .694 Total 417.413 67.997 Nigeria 11.107 Saudi Arabia 582 29.598 158.987 7.278 9.102311. which were converted to short tons by multiplying by 1.771 7.20.990 United Kingdom 2.245 58.117 3.859 5.654 Argentina 3. 7306.006 Colombia 46. 2010–12 Calendar year 2011 2012 Quantity (short tons) United States 146.895 13.666 102.29.176 6.039 8.857 Turkey 1.124 2.287 10.564 Italy 995 6.—Original data were published in metric tons. 7305.052 7.786 Canada 32.067 3.706 15.642 538.100 Angola 4. figures may not add to the totals shown.346 3.023 All other 84.854 9.048 3.061 3.557 11.697 18.778 3.688 201.561 9. Because of rounding.243 4.629 497. 2013).183 Venezuela 26.546 42.  Table VII-32 OCTG: Mexico’s reported exports.667 27.094 United Arab Emirates 4.014 Denmark 622 3.291 6.572 15. Country 2010 Source: Global Trade Atlas (accessed July 25.148 Egypt 7.985 Peru 2.752 Romania 0 2.29.599 34.

 .

 APPENDIXA FEDERALREGISTERNOTICES  AͲ1  .

  .

 Ukraine.gpo.2013 CertainOilCountryTubularGoods fromIndia.usitc.Taiwan.federalregister.gov/fdsys/pkg/FRͲ 2013Ͳ07Ͳ29/pdf/2013Ͳ18164.Korea.the RepublicofthePhilippines.pdf .gov.2013 CertainOilCountryTubularGoods http://www.Philippines.Inaddition.the RepublicofTurkey.andthe SocialistRepublicofVietnam: InitiationofAntidumpingDuty Investigations Source:https://www.Turkey.pdf http://www.gov/  AͲ3  http://www.Thailand.thefollowingtabulationpresents. FederalRegisternoticesissuedbytheCommissionandCommerceduringthecurrent proceeding.Thailand.pdf Arabia.andVietnam.2013 CertainOilCountryTubularGoods FromIndiaandTurkey:Initiationof CountervailingDutyInvestigations 78FR45505 July29.theRepublicofKorea.Saudi Arabia.www.gpo.gov/fdsys/pkg/FRͲ 2013Ͳ07Ͳ29/pdf/2013Ͳ18165. Citation Title Link 78FR41421 July10.gov/fdsys/pkg/FRͲ FromIndia.Saudi 2013Ͳ07Ͳ10/pdf/2013Ͳ16515.Institutionof AntidumpingandCountervailingDuty InvestigationsandSchedulingof PreliminaryPhaseInvestigations 78FR45502 July29.gpo.Taiwan.inchronologicalorder.  TheCommissionmakesavailablenoticesrelevanttoitsinvestigationsandreviewsonits website.Ukraine.

 .

 APPENDIXB CALENDAROFTHEPUBLICSTAFFCONFERENCE  BͲ1  .

  .

  CONGRESSIONALAPPEARANCE:  TheHonorableRickCrawford.P.DC.VicePresidentofMarketing.Nos.Inc.S.PresidentandCEO.Rubber.  Sessions were held in connection with these preliminary phase investigations in the Main hearingRoom(Room101).AlliedIndustrial. Ukraine.Washington. Korea.Arkansas  InSupportoftheImpositionof AntidumpingandCountervailingDutyOrders:  SchagrinAssociates Washington.500EStreet.NorthwestPipeCompany    MaximoTejeda.Representative.L. WeldedTubeUSA.PaperandForestry.VicePresidentofSalesandMarketing.m.TejasTubularProducts BͲ3  .BoomerangTube    BillSnyder.   andServiceWorkersInternationalUnion(“USW”)    GreggEisenberg.EnergexTube    RobertMahoney.andVietnam  Inv.. Taiwan.PresidentandCEO.1stDistrict. Thailand.S.   Manufacturing. TheUnitedSteel.DC onbehalfof  BoomerangTube EnergexTube.    BoomerangTube    BobOkrzesik.U. Philippines. Turkey.: 701ͲTAͲ499Ͳ500and731ͲTAͲ1215Ͳ1223(Preliminary)  DateandTime: July23.SeniorVicePresidentofStrategy&    BusinessDevelopment.2013Ͳ9:30a.Energy. CALENDAROFPUBLICPRELIMINARYCONFERENCE   Those listed below appeared as witnesses at the United States International Trade Commission’spreliminaryconference:  Subject: Certain Oil Country Tubular Goods from India.W.adivisionofJMCSteelGroup NorthwestPipeCompany TejasTubularProducts TMKIPSCO VallourecStar. Saudi Arabia.

and    ManagingDirector.SeniorVicePresidentandChiefCommercial    Officer.ManageingDirector–NorthAmerica.andPresident.    VallourecUSA    RonnyClark.LegislativeCounsel.Maverick.Director.Jameson  )  WileyReinLLP Washington.III )     BͲ4  .L.ExecutiveVicePresident.Pipeco       RogerB.       AlanH.GeneralManager–SalesandMaketing.TMKIPSCO    MartinMarini.    WeldedTube    LindaAndros.  InSupportoftheImpositionof AntidumpingandCountervailingDutyOrdersͲͲContinued  SchagrinAssociates Washington.P.PresidentandCEO.    Robert“Butch”Mandel.Schagrin  )      JohnW.VIcePResidentofSalesandMarketing.    VallourecStap.TMKIPSCO    SkipHerald.Price   )          )–OFCOUNSEL      RobertE.TenarisNorthAmerica    BradLowe.USW    SteveTait.DC onbehalfof  MaverickTubeCorporation(“Maverick”)    GermánCurá.    TenarisGlobalServices(USA)Inc.DeFrancesco.Bohn  )–OFCOUNSEL      PaulW.DirectorofMarketIntelligence.President.DC onbehalfof    DarrellBallinger.Maverick.    TejasTubularProducts    ScottBarnes.

Inc.SeniorEconomicAdvisor.Inc.Dorn.VicePresident–TubularCommercial.    UnitedStatesSteelCorporation    ScottM.       JamesC.DC onbehalfof  UnitedStatesSteelCorporation    DouglasR.SeniorVicePresident–NorthAmerican    FlatͲRolledOperations.LLC    ScottDuBois.SoonerPipe.Arps.    MassachusettsInstituteofTechnology    Dr..Thompson.U.Jr.President.President.Meagher&FlomLLP Washington.Matthews.    JohnB. InSupportoftheImpositionof AntidumpingandCountervailingDutyOrdersͲͲContinued  Skadden.    SteelTubularProducts.CoͲChiefExecutiveOfficer.GeneralManager–TubularMarketing.Cinco Pipe&Supply    ProfessorMichaelWhinston.PremierPipe.ProfessorofEconomics.Hecht  )          )–OFCOUNSEL      StephenP.Capital    Trade.S.SethKaplan.Slate.Shoaff.UnitedStatesSteelCorporation    GeorgeH.LLC    SteveMiller.Vaughn  )     BͲ5  .

DC onbehalfof  DufercoSteelInc.    BruceMalashevich.(“WSP”)       MaxF..DC onbehalfof  HotRollingPipeCo.Marshak  )  Mowry&Grimson.Inc.Desiderio.LawOfficeofGaryHorlick       KristinMowry )–OFCOUNSEL  BͲ6  .President.Kaufman  )  Grunfeld.Noonan  )       Steptoe&JohnsonLLP Washington.DC onbehalfof  ILJINSteelCorporation(“ILJIN”)       RichardO.DC onbehalfof  WSPPipeCo.DufercoSA    DavidEchavaria.Cunningham )          )–OFCOUNSEL      JoelD.Ltd.Vietnam HLDClarkSteelPipeCo.PLLC Washington.Duferco    SteelInc.       JohnM.Lebowitz.Counsel.Gurley  )          )–OFCOUNSEL      NancyA.Ltd..VicePresidentofOCTG.Silverman. InOppositiontotheImpositionof AntidumpingandCountervailingDutyOrders:  ArentFoxLLP Washington.EconomicConsultingServices    GaryHorlick.(“Duferco”) JubailEnergyServicesCompany(“JESCO”)    JohnBlomberg.&KlestadtLLP Washington.Schutzman  )          )–OFCOUNSEL      NedH.DirectorofPipeandTube.

    ZaferAtabey. DeAHSteelAmerica.ExecutiveVicePresident.Principal.MarketingStrategyTeam.Hyundai    HYSCO.Ltd.. KaoHsingChangIronandSteelCorp.Lewis  )  Morris.S.ChungHung    SteelCorporation    KevinChang.TubularSynergyGroup.    IvanLi..Inc..Manager.Tension    SteelIndustriesCo.VicePresidentofSalesDepartment..Inc. HusteelUSA. SeAHSteelAmerica.BorusanMannesmannPipeU.EconomicConsultingService.    BuddyBrewer.Ltd.Ltd.Commercialand    SpecialPipesSales.Ltd.Inc.Inc.Ltd.    DongͲHeuiPi. TensionSteelIndustriesCo.LP    JimDougan. HyundaiHYSCO NexteelCo.. ChungHungSteelCorporation FarEastMachineryCo.DC onbehalfof  BorusanMannesmannBoruSanayiveTicaretAnoniumSirketi AJUBesteelCo.PresidentandCEO. ShinYangSteelCo.McConnell  )          )–OFCOUNSEL      CraigA..Manning&Martin.DC onbehalfof  Interpipe NorthAmericanInterpipe       MarkS.VicePresidentofSalesDepartment.Inc. HusteelCo.    SteveFowler. InOppositiontotheImpositionof AntidumpingandCountervailingDutyOrders:  HoganLovellsUSLLP Washington.BorusanMannesmannPipe    U. HyundaiHYSCOUSA.Ltd.LLP Washington.LLC  BͲ7  .Inc.Ltd..S.SeniorEconomist.Ltd.

DC onbehalfof       JulieC.(“IndiaSeamless”)    ManishKhandelwal.DC onbehalfof  JindalIndiaLtd.(“Tosçelik”)anditsafilliated   exporterTosyaliDisTicaretA.(India)(“JindalSaw”) ISMTLimited(“ISMT”) JindalSawLtd.(“GVN”) JindalSawLtd.(“JindalIndia”) SuryaGlobalSteelTubesLtd.ExportManager.       DavidL.Mendoza  )      DonaldB.S.S.(“YIIP”) TosçelikveSacEndustrisiA.Manning&Martin.S./TosyaliDisTicaretA.S.(“JindalPipes”) GVNFuelsLtd.End.S.Maharashtra       LizbethR.(“SuryaGlobal”) MaharashtraSeamlessLtd.WillPlanert  )  KutakRockLLP Washington.(“Maharashtra”) JindalPipeLtd.A.Cameron  )–OFCOUNSEL      R.Levinson  )–OFCOUNSEL       LawOfficesofDavidL.TosçelikProfilve    Sac.(“TDT”)    AhmetSumer.Director.Simon Washington.Simon  )–OFCOUNSEL     BͲ8  .S.(“Çayirova”)and   itsafilliatedexporterYücelBoruIthalatͲIhracet   vePazarlamaA.LLP Washington. InOppositiontotheImpositionof AntidumpingandCountervailingDutyOrdersͲͲContiued  Morris.DC onbehalfof  ÇayirovaBoruSanayiveTicaretA.(US)(“JindalSawUS”) IndianSeamlessInc.

LLP Washington.Jeong   BͲ9  ) )–OFCOUNSEL ) .DC onbehalfof  UnitedSeamlessTubulaarPvt. OilCountryTubularLtd. InOppositiontotheImpositionof AntidumpingandCountervailingDutyOrdersͲͲContiued  GreenbergTraurig.Ltd.Bruno                RosaS.       PhilippeM.

 .

 APPENDIXC SUMMARYDATA CͲ1  .

  .

.....166 64.......... IMPsta 200 Unit value.....3) 21..8 (3................0 119...........9 10...299.....2 2012 January to March 2012 2013 7......399 9.....6 8..........52 *** 31..7 7......7) (16.........1 1............7 *** 0..... U.... 2010-12. Subtotal.......1) 16......................6 *** 0..........475.............697 54 105 501 1...........9) 0.............2 30.....4 0.....2 74.421........7 (0.5 27........0 *** 1..38 *** 37..............7) *** (0...............160..9 0.......647..............4 *** 3....173 928.................. Vietnam.......4 *** *** (0.......3 105......... IMPsta IMPsta Value... Turkey: IMPsta Quantity......279 766..3 88...........109 $1..... IMPsta 200 Unit value.......................973 20...6) 3.0 44............4 (3....511..698 $949..5 5.563 1......80 *** 13 64 341 530 88..1 (1.....976.........397 $1..3 8..........312....5 44.........6 *** *** 0..6) (4....400..............3) *** 288.....875......580.594 47.........3) 3...833 43.....3 (0........1 0...090 54...............4 1..643 $794...........341.............270............3) 3....................... 200 Ending inventory quantity............1 (3.13 *** 6....0) (44.. IMPsta 200 Unit value................... Ukraine..581 $967..........6 1.....769 $1...............................6 21........088 476.....217 22.................. subject....................................9 27...... Vietnam: Quantity..1 2.6 40......215.744 53..9 *** (36...................0) (6........7 1....................6 *** *** 0...........262 59......4 0.....975 2....... Philippines Quantity..7 *** 1..84 216.......6 45.... Korea....576 98.........6 -6.....4 24......33 188....7 *** *** 0...414.......2 3..............7) 0............0 (5................3 26.2) 4.......7 (0............30 *** 14 65 411 600 fn2 fn2 fn2 *** fn2 fn2 fn2 *** 418....................206 2............69 *** 33....087...0 *** 1.............5 0..............5 11.700...1) 38.2 *** 0.... 200 Unit value...457 522.. Taiwan............ IMPsta Value..70 252..04 571....5) 28............... subject sources: Quantity......0 1.......8 6..9 (1......3 *** 0............ Korea: IMPsta Quantity.............5 30..............1) 0........0 *** 0..163..... IMPsta 200 Unit value............0 (3..........3 *** 1.................2) *** (0........7 *** *** 0............................2) *** (0......2 2.....5 *** *** 1.........9 4............S..5) *** (37...2 0..... Korea...................7 9..............511 $1......4) 0........53 190..9 89.......3 (0.................697 53.........................987...... consumption quantity: Amount........... IMPsta 200 Unit value......... Producers' share (fn1)...00 *** C *** *** *** *** 23..........780 54.....3 24..............927 1.......325 $1.. 200 Ending inventory quantity....... January to March 2012.............................1 (0...........300...4 11........ Thailand: Quantity..........113 $934.......................0 17...018...........41 *** E 152....7) (14......883 $1............3 39.....6 2.9 21..386 $928...4 22..5) (25...7 Jan-Mar 2012-13 42....... Thailand...979 56....................036 448.....9 11. 200 Ending inventory quantity..3 18..........084 $1.............444 145....542 $900.. IMPsta IMPsta Value..........153 $952.......................4 5.16 346.. Subtotal..9 *** 1...... Turkey...............3 46................4 *** (0.............2) 0...46 *** 56.....1) 0...2) 3.......1 0...........119...3) *** 15 66 481 670 78... Total imports..... Saudi Arabia.....................8 (3........9 (5..927 $1.......... IMPsta IMPsta 200 200 5... and unit expenses=dollars per short ton.......8) (36....9 *** 28.. Saudi Arabia Quantity......1 25......389 53.933 21... Ukraine..........87 323........................6 0..... IMPsta 200 Unit value......................481 48..665................662 1.07 *** D *** *** *** *** 70.1 1........................ Turkey.8 (2........539...798 58............. 200 Ending inventory quantity.............76 *** 59.........808 533......... IMPsta 200 Unit value...............0 *** 0...........5 *** 2......00 *** C 85..........6) *** 850..9 2.705........302 50........6) (17..........................905 $917...............662 3..........8 0....2 0....................... Ending inventory quantity..808.97 *** F 49.... 200 Ending inventory quantity.7 16.....4 18..2 *** *** 0.. Value.76 *** 106....3 0... Value.0 *** 1......0 *** *** 1.. 200 Ending inventory quantity.....6 2................... IMPsta Value...........2 25....822 $820...6 25.........78 *** 96...........012....................... All others sources............664 32............991 58....5 24......................6) (11. unit labor costs................7 50.8 69....424 4.5) *** (22..5 16............ subject.7) 22.9 (18...........5 *** *** 0....8 17....6 21.......2) *** 2........1) *** 39..................4 *** 0. All others sources.........1 0...880.. Total imports: IMPsta Quantity..............4 *** 1...5 37...0 11.222 76............059 2..............1) (54...........4) (11.......3 9......9 0..1 *** *** 0........8 29...............293 3.959 3...........9 46....5 31..............................273 3....6 *** (0......6 *** 0.........6 0............087 1.............35 *** G 24..................318.......697......20 349...5 (31.........9 C-3 .........9) *** 0 0 $0...........1 (3..8 *** *** 0..............................900 16........................112......9) 1......469........4 *** 0..18 *** 2.974 $1........1 *** 3.........4 9...............................1 49...........0 *** 0.....................Table C-1 OCTG: Summary data concerning the U.....51 *** D 140................4 *** 0.......1 25..81 *** 25......844....997 201....6 *** *** 1....... Producers' share (fn1).....0 41..4) (18..313 3..........1 0...............085 451.............................0 1........7 6........135 8..9) (31..... Subtotal..6 *** 0......................593 $1.....6) 0..........337 1.9 *** 10...............951...... Value......... Importers' share (fn1): India..............923 $988...............3) (7..S...........415............2 1.....6 *** 8........ Unit value....4 6..3 (0...72 *** 3.... Philippines..376..........771..................916 18 69 301 880 112...........319........................................................89 202...3 (4..........31 263.0 1........... Philippines.....................9 *** 65.6) 52.......4 (7................ IMPsta 200 Unit value...5 (19....525....6 4.... 200 Ending inventory quantity...480 $928.....3 7................. 200 Ending inventory quantity.......3 C *** *** *** *** D *** *** *** *** E *** *** *** *** F *** *** *** *** G *** *** *** *** 9 60 61 250 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 10 61 131 320 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 0 0 $0.... Taiwan: IMPsta Quantity.. Vietnam.1 8.3) (45.620 5................72 143....9 444.088.......6 *** *** (0..........493 971.................... Value. imports from: India: Quantity..........748 $1....132 1....... 200 Ending inventory quantity..815 $1... Total imports...... Importers' share (fn1): India.992 $949...S..82 469......973 $925.............046 $1................8 5. 200 Ending inventory quantity.......6 29.....4 54....139 $1...........1) *** 1.146........5 (4.....30 *** F *** *** *** *** 11....0 29......025..... Period changes=percent--exceptions noted) Report data Calendar year 2011 2010 U.........5 55.........0 *** *** 0.000 dollars.99 *** E *** *** *** *** 17.2) 0..............4 1...........4 64..3 *** (51...........8 32.......................923 $951.........211 307.......629 $1...6 *** 3................. All other sources: Quantity........507..... nonsubject.......7 *** 1...............8) *** 12 63 271 460 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 56.......1 *** *** 0............9 41..............9 18........6 (4...201 $1.3 *** 1..756...3 (21....103 747. Saudi Arabia.......1 3.561 30......................4 0.... IMPsta Value...........97 221...........7) 69......S. nonsubject............. IMPsta Value....6 *** 1..........79 379........8 *** *** 0........... Unit values.....806 133...........659 55.....1 26.................. 200 Unit value.........124 $920.....1 *** *** 0..696 50.....5 124..2 201.....................0 274.....697 $842..13 *** G *** *** *** *** 11 62 201 390 fn2 fn2 fn2 *** fn2 fn2 fn2 *** 193...6 0.... Thailand.8) *** *** 0..6 15....401........1) (9....................638 $1.2) 18....................657 55.... market............1) *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 16 67 551 740 *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** 145 169 $1.......892 440.........022.7 3....7 8...........................781 53 104 401 950 20...........3) *** (0......... and January to March 2013 (Quantity=short tons..8 26.........07 *** 219......2 1...57 *** 17 68 621 810 151....9 0..1 2.331............4 *** 0. Value=1.......... Value.....7 40.......................9 2.......8 (4........................129... consumption value: Amount.2 *** 0..............223 $809.... IMPsta 200 Unit value..... U............1 4...........2 *** 70.... Taiwan.................4 0........0 Period changes Calendar year 2010-11 2011-12 2010-12 1..19 586............ 200 Ending inventory quantity..4 2...626 $899.....403 90.622...........1 5.....067 871.3) (3.... Ukraine: IMPsta Quantity... Value..6 0........730 1.............8 126.......1 73..........092..411....053 $1..020 $1....

9 (15.... Value............0 3.9 (1.9 7.......... fn2..91 $91...698 89..732 4..0) 10... Unit values.........674.440.....4) (0.1) 138.2 3..000 dollars.........38 $148....4 4....398 234......5) 7.................6) 1.....18 59........415...........018....... Value...98 77.......2 4..... SG&A expenses..... Gross profit or (loss)....247 52...........951 616............3 15..7 2..........651...0) 18.........363 485... U...828................237 69......330 65. January to March 2012...2 5...2) (10......0 7......1) 0.....8) 21..833.217 281.......510............9 30......6 2..772...456 3....856.16 1...................9 13.473 227.95 918...2 27........718 10.052.........7 5.......7 $114.22 439.........087 248.....076 5.......96 $125.....0 1.5 5. Calendar year 2011 2012 January to March 2012 2013 2010-12 Period changes Calendar year 2010-11 2011-12 Jan-Mar 2012-13 5....6 3. shipments: Quantity.182.724.4) (22........2 2...530 1.......987.1 7..266 113.......4 (4..048 130......61 302 303 234 32......................453 16.....74 176.989 $1.....285.06 382...3) (13.............7 1.............8 (13.......5 20...73 5..16 1.498.6 16.... Inventories/total shipments (fn1)..1 15.....8 551 555 503 559 560 563 564 691 536 540 541 517 522 33...115 $1..........65 3.........9 (0.8) 1.115 468...093 $1.2) (14.....7 27....... Capital expenditures..3 6.......49 376...098 120......0 28................ unit labor costs.....4) (2....774....8 1.783.. Source: Compiled from data submitted in response to Commission questionnaires and from official Commerce statistics.....4 2..9 42..852 $1.8 28.072 88.... Net Sales: Quantity.994 1.....7 3....0 164.2) (3. Unit value..61 209.242 $1. Value.... Operating income or (loss).8) (10.4 274 276 222 8.......731 14...Table C-1--continued OCTG: Summary data concerning the U.........89 82..5 22. Production quantity............215 1..286 392..2 (3......805 259..604 11....8 13........82 406...........0 129....79 $112..98 77..471 4.4 (2.7) 4...2 8.. C-4 ..................2 (1..450 11.884 246. Unit COGS...1 35.3 2....8 46.527.690........ Export shipments: Quantity.....366...528 645.383.....447 243........664 345... Production workers....0 5..........002 12.. Period changes=percent--exceptions noted) Report data 2010 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 U...0 11.748..1 (6..728......1 $124...164 1.000)................--Undefined.2) 3...820 620..097 1.5 $117..849 394..484...... Unit operating income or (loss).............000 hours).3) 2...... Value=1.3 13..........431....9) 5.3 4..600 1....004 $1....802 $1....86 81.0 974..895 $1..6) 12.1 7....34 448. producers': Average capacity quantity.942 312...9) (1......................6) (4.. market........7 12.007.078........1 (3......767.192 $1....175 108......5 (2..3 (2..3 14.552.8 $119.357 $1.827 3.058 2.614....--Report data are in percent and period changes are in percentage points............5) (34.7 6.....8 19.. COGS/sales (fn1)... Ending inventory quantity..........57 $186..792 11..413 $1.124.911 13.93 283 284 230 285 320 288 289 290 254 256 50.....568...314 4...025 210.....745 $1.580.......5 4.....1 12.526 269..032 $1...........7 10..493 5....38 $278.......412 638..........4) 7....3 35.....7 1.....79 947.743....778.2 9..........4) 11....6 11. and unit expenses=dollars per short ton.....575..... Cost of goods sold (COGS).....................3) 2..383 360..............4 7...3 3.. Unit value...311 70..... Hours worked (1.....6 (10..1 53.2 8......067 $1..900 $1.....953 60.8 8........5 43.....693....1 (67...6 3..557....473 $1...742 $1....15 $218......2 (0.......3 (28......3 10.0 (1......6 11....744.38 4. Unit labor costs.....6 7.726....838 $1.2) (4..040.......2) 24.........S.....356.......262 1..... and January to March 2013 (Quantity=short tons.................3 2.....3) (3.0 1.... Unit value... Wages paid ($1.....4 26..............1) fn1....448 $1....051 120...885............5) 9........317..6) (46...2 12.......341 6.247............5 (3.452...3) (32...S.9 $112.7 3.1) (12............534..43 86....795 $1.....33 3.... 2010-12...5 (68...0) (13.....327...606.....030 63..351....568....696.. Capacity utilization (fn1)..770 121. Unit SG&A expenses.076 6.....3 5.8 9.54 $128.6) 10...413 1....5) (8........540.460 4...745 1...81 42..51 3..82 $124...645 433...117 711.347 419..2 (9..5 (3...... Operating income or (loss)/sales (fn1)......S..2) 8...30 $168...... Productivity (short tons per 1..000s)........5) (5..761.

2010Ͳ12.market.JanuarytoMarch2012.TableCͲ2 OCTG(toll):SummarydataconcerningtheU.S.andJanuary toMarch2013  * * * *  CͲ5 * * * .

Table C-3
OCTG (Seamless): Summary data concerning the U.S. market, 2010-12, January to March 2012, and January to March 2013
(Quantity=short tons; Value=1,000 dollars; Unit values=dollars per short ton; Period changes=percent--exceptions noted)
Report data
Calendar year
2011

2010
U.S. consumption quantity:
Amount.............................................................
Producers' share (fn1).......................................
Importers' share (fn1):
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
Subtotal, subject.........................................
All others sources, nonsubject.......................
Total imports...........................................
U.S. consumption value:
Amount.............................................................
Producers' share (fn1).......................................
Importers' share (fn1):
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
Subtotal, subject.........................................
All others sources, nonsubject.......................
Total imports...........................................
U.S. imports from:
India:
Quantity.........................................................
Value.............................................................
Unit value......................................................
Korea:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
Philippines
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Saudi Arabia
Quantity.........................................................
IMPsta
IMPsta
Value.............................................................
200
Unit value......................................................
Taiwan:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Thailand:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
Turkey:
IMPsta
Quantity.........................................................
IMPsta
Value.............................................................
200
Unit value......................................................
Ukraine:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Vietnam:
Quantity.........................................................
IMPsta
IMPsta
Value.............................................................
200
Unit value......................................................
Subtotal, subject sources:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
All other sources:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Total imports:
Quantity.........................................................
IMPsta
IMPsta
Value.............................................................
200
Unit value......................................................

IMPsta
IMPsta
200

100
100
100

U.S. producers':
U.S. shipments:
Quantity.........................................................
Value.............................................................
Unit value......................................................

January to March
2012
2013

2012

Period changes
Calendar year
2010-11
2011-12

2010-12

Jan-Mar
2012-13

***
***

***
***

***
***

***
***

***
***

***
***

***
***

***
***

***
***

***
***
***
***
***
***
***
***
***
***
***
***

***
***
***
***
***
***
***
***
***
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***

***
***
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***
***
***
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***
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***
***
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***
***
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***
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***
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***
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***
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***
***
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***
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***
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***

C
***
***
***

D
***
***
***

E
***
***
***

F
***
***
***

G
***
***
***

9
60
61

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
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10
61
131

***
***
***

***
***
***

***
***
***

***
***
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***
***
***
C
***
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***
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D
***
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***
***
***
E
***
***
***

***
***
***
F
***
***
***

***
***
***
G
***
***
***

11
62
201

***
***
***

***
***
***

***
***
***

***
***
***

12
63
271

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
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13
64
341

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***
C
***
***
***

***
***
***
D
***
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***
***
***
E
***
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***
***
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F
***
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***
***
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G
***
***
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14
65
411

***
***
***

***
***
***

***
***
***

***
***
***

15
66
481

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
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16
67
551

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
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***

***
***
***

***
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***

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***
***

17
68
621

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

18
69
301

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

53
104
401

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

***
***
***

54
105
501

***
***
***

***
***
***

***
***
***

***
***
***

1,284,686
2,379,864
$1,852.49

1,468,507
2,827,714
$1,925.57

1,525,230
3,075,821
$2,016.63

401,478
801,570
$1,996.55

381,076
694,056
$1,821.31

fn1.--Report data are in percent and period changes are in percentage points.
fn2.--Undefined.
Source: Compiled from data submitted in response to Commission questionnaires and from official Commerce statistics.

C-6

302
303
234

18.7
29.2
8.9

14.3
18.8
3.9

3.9
8.8
4.7

(5.1)
(13.4)
(8.8)

Table C-4
OCTG (Welded): Summary data concerning the U.S. market, 2010-12, January to March 2012, and January to March 2013
(Quantity=short tons; Value=1,000 dollars; Unit values=dollars per short ton; Period changes=percent--exceptions noted)
Report data
Calendar year
2011

2010
U.S. consumption quantity:
Amount.............................................................
Producers' share (fn1).......................................
Importers' share (fn1):
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
Subtotal, subject.........................................
All others sources, nonsubject.......................
Total imports...........................................
U.S. consumption value:
Amount.............................................................
Producers' share (fn1).......................................
Importers' share (fn1):
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
Subtotal, subject.........................................
All others sources, nonsubject.......................
Total imports...........................................
U.S. imports from:
India:
Quantity.........................................................
Value.............................................................
Unit value......................................................
Korea:
Quantity.........................................................
IMPsta
IMPsta
Value.............................................................
200
Unit value......................................................
Philippines
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Saudi Arabia
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
Taiwan:
Quantity.........................................................
IMPsta
IMPsta
Value.............................................................
200
Unit value......................................................
Thailand:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Turkey:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Ukraine:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Vietnam:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
Subtotal, subject sources:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
All other sources:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
Total imports:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................

IMPsta
IMPsta
200

100
100
100

U.S. producers':
U.S. shipments:
Quantity.........................................................
Value.............................................................
Unit value......................................................

January to March
2012
2013

2012

Period changes
Calendar year
2010-11
2011-12

2010-12

Jan-Mar
2012-13

***
***

***
***

***
***

***
***

***
***

***
***

***
***

***
***

***
***

***
***
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C
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D
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E
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F
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***
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G
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9
54
55

***
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***
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***
***
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***
***
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***
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***
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***
***
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10
55
125

***
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***
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C
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E
***
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***
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F
***
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***
***
***
G
***
***
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11
56
195

***
***
***

***
***
***

***
***
***

***
***
***

12
57
265

***
***
***

***
***
***

***
***
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***
***
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***
***
***

***
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***
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***
***
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***
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13
58
335

***
***
***

***
***
***

***
***
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***
***
***

***
***
***
C
***
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***
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E
***
***
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***
***
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F
***
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***
***
***
G
***
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14
59

***
***
***

***
***
***

***
***
***

***
***
***

15
60
70

***
***
***

***
***
***

***
***
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***
***
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***
***
***

***
***
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***
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***
***
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16
61
140

***
***
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17
62
210

***
***
***

***
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18
63
295

***
***
***

***
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47
92
395

***
***
***

***
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***

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***
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***
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***
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***
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***
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***
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48
93
495

***
***
***

***
***
***

***
***
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***
***
***

1,408,785
1,947,608
$1,382.47

1,816,569
2,725,139
$1,500.16

2,054,846
3,106,211
$1,511.65

545,737
850,325
$1,558.12

fn1.--Report data are in percent and period changes are in percentage points.
fn2.--Undefined.
Source: Compiled from data submitted in response to Commission questionnaires and from official Commerce statistics.

C-7

537,088
746,186
$1,389.32

302
303
234

45.9
59.5
9.3

28.9
39.9
8.5

13.1
14.0
0.8

(1.6)
(12.2)
(10.8)



APPENDIXD 

QUARTERLY
NONSUBJECTͲCOUNTRYPRICEDATA

DͲ1

ThreeimportersreportedpricedatafornonsubjectcountryCanada(***)forproducts2
through6.Importerpricedataaccountedfor***percentofU.S.importsfromCanadaover
January2010ͲMarch2013.Thesepriceitemsandaccompanyingdataarecomparabletothose
presentedintablesVͲ5toVͲ9.PriceandquantitydatafortheUnitedStates,therelevant
subjectcountries,andCanadaareshownintableDͲ1andinfiguresDͲ1toDͲ5(withdomestic
andsubjectsources).
PricesforOCTGimportedfromCanadawerelowerthanpricesfordomestically
producedOCTGin44of52possiblecomparisonsbymarginsof1.5to27.9percent.Pricesfor
OCTGimportedfromCanadawerehigherthanpricesfordomesticallyproducedOCTGin8of
52comparisons,bymarginsof0.8to12.7percent.
PricesforimportedOCTGfromCanadawerelowerthanpricesforproductimported
fromsubjectcountriesin39of109possibleinstancesandhigherin70of109possible
instances.ThegreatestnumberofcomparisonswereavailablebetweenpricesofCanadian
productsandthosefromKoreaandTurkey.ImportsofOCTGfromCanadawerepricedbelow
thoseofOCTGfromKoreain10of42instancesandhigherin32of42instances.Importsof
OCTGfromCanadawerealsopricedbelowthosefromTurkeyin7of33instances,andabovein
26of33instances.

DͲ3

Table D-1
OCTG: Weighted-average f.o.b. prices and quantities from nonsubject source Canada, products 2-6,1
by quarters, January 2010-March 2013
Period
2010:
Jan.-Mar.
Apr.-Jun.
Jul.-Sept.
Oct.-Dec.
2011:
Jan.-Mar.
Apr.-Jun.
Jul.-Sept.
Oct.-Dec.
2012:
Jan.-Mar.
Apr.-Jun.
Jul.-Sept.
Oct.-Dec.
2013:
Jan.-Mar.

Period
2010:
Jan.-Mar.
Apr.-Jun.
Jul.-Sept.
Oct.-Dec.
2011:
Jan.-Mar.
Apr.-Jun.
Jul.-Sept.
Oct.-Dec.
2012:
Jan.-Mar.
Apr.-Jun.
Jul.-Sept.
Oct.-Dec.
2013:
Jan.-Mar.

Product 2
Price (dollars
Quantity
per ton)
(tons)

Product 3
Price (dollars
Quantity
per ton)
(tons)

Product 4
Price (dollars
Quantity
per ton)
(tons)

$***
***
***
***

***
***
***
***

$***
--***

***
0
0
***

$***
***
***
***

***
***
***
***

***
***
-***

***
***
0
***

***
***
***
--

***
***
***
0

-----

0
0
0
0

***
***
***
***

***
***
***
***

--***
--

0
0
***
0

***
***
***
***

***
***
***
***

***
***
Product 6
Price (dollars
Quantity
per ton)
(tons)

***

***

***
***
Product 5
Price (dollars
Quantity
per ton)
(tons)
$***
***
***
***

***
***
***
***

$***
***
***
***

***
***
***
***

***
-***
--

***
0
***
0

***
***
1,197
1,275

***
***
4,420
3,329

***
***
***
***

***
***
***
***

***
***
***
***

***
***
***
***

***

***

***

***

1

Product 2.-- Tubing, Grade J-55, 2 3/8" O.D., 4.7 lbs./ft., threaded and coupled, range 2, welded.
Product 3.-- Casing, Grade J-55, 5 ½" O.D., 17.0 lbs./ft., threaded and coupled, range 3, welded.
Product 4.-- Casing, Grade P-110, 5 ½" O.D., 17.0 lbs./ft., threaded and coupled, range 3, seamless.
Product 5.-- Casing, Grade J-55, 8 5/8" O.D., 32.0 lbs./ft., threaded and coupled, range 3, welded.
Product 6.-- Casing, Grade J-55, 9 5/8" O.D., 36.0 lbs./ft., threaded and coupled, range 3, welded.
Source: Compiled from data submitted in response to Commission questionnaires.

DͲ4

January 2010-March 2013 * * * * * * * Figure D-3 OCTG: Weighted-average f. prices and quantities of domestic product 2.Figure D-1 OCTG: Weighted-average f.o.b. January 2010-March 2013 * * * * * * * Figure D-2 OCTG: Weighted-average f. January 2010-March 2013 * * * * * * * Figure D-4 OCTG: Weighted-average f.o.b.o. prices and quantities of domestic and imported product 4. by quarter.o. DͲ5 . January 2010-March 2013 * * * * * * * Figure D-5 OCTG: Weighted-average f.b.o. January 2010-March 2013 * * * * * * * Table D-2 OCTG: Number of quarters that prices for OCTG from Canada were lower and higher than subject product prices Number of quarters of lower prices Number of quarters of higher Comparison country for OCTG from Canada prices for OCTG from Canada United States 44 8 Korea 10 32 Philippines 2 2 Saudi Arabia 4 1 Taiwan 3 2 Thailand 1 1 Turkey 7 26 Ukraine 5 1 Vietnam 7 5 Total 39 70 Source: Compiled from data submitted in response to Commission questionnaires. prices and quantities of domestic and imported product 5.b.b.1 by quarter. prices and quantities of domestic and imported product 3. by quarter. by quarter. by quarter. prices and quantities of domestic and imported product 6.

 .