Pub4422 OCTG PDF

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

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

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

CONTENTS
Page
Determination.........................................................................................................................1
ViewsoftheCommission.........................................................................................................3
PartI:Introduction................................................................................................................I1
Background................................................................................................................................I1
Statutorycriteriaandorganizationofthereport.....................................................................I2
Statutorycriteria...................................................................................................................I2
Organizationofreport...........................................................................................................I3
Marketsummary.......................................................................................................................I3
Summarydataanddatasources...............................................................................................I4
Previousandrelatedinvestigations..........................................................................................I4
Antidumpingandcountervailingdutyinvestigations...........................................................I4
Safeguardinvestigations.......................................................................................................I6
NatureandextentofallegedsubsidiesandsalesatLTFV........................................................I7
Allegedsubsidies...................................................................................................................I7
AllegedsalesatLTFV...........................................................................................................I10
Thesubjectmerchandise........................................................................................................I11
Commercesscope..............................................................................................................I11
Tarifftreatment...................................................................................................................I11
Theproduct.............................................................................................................................I12
Overview..............................................................................................................................I12
Descriptionandapplications...............................................................................................I13
Manufacturingprocesses....................................................................................................I18
Domesticlikeproductissues...................................................................................................I23
Physicalcharacteristicsanduses.........................................................................................I23
Manufacturingfacilitiesandproductionemployees..........................................................I24
Interchangeabilityandcustomerandproducerperceptions.............................................I25
Channelsofdistribution......................................................................................................I25
Price.....................................................................................................................................I26
i

CONTENTS
Page
PartI:IntroductionContinued
Intermediateproducts............................................................................................................I26
Uses.....................................................................................................................................I26
Markets................................................................................................................................I27
Characteristicsandfunctions..............................................................................................I27
Value....................................................................................................................................I28
Transformationprocess.......................................................................................................I28
PartII:Supplyanddemandinformation...............................................................................II1
U.S.marketcharacteristics.......................................................................................................II1
Channelsofdistribution.......................................................................................................II1
Geographicdistribution........................................................................................................II3
Supplyanddemandconsiderations.........................................................................................II4
Supply...................................................................................................................................II4
Demand..............................................................................................................................II10
Substitutabilityissues.............................................................................................................II18
Factorsaffectingpurchasingdecisions...............................................................................II18
Comparisonsofdomesticproducts,subjectimports,andnonsubjectimports................II19
PartIII:U.S.producersproduction,shipments,andemployment.......................................III1
U.S.producers.........................................................................................................................III1
U.S.production,capacity,andcapacityutilization.................................................................III5
U.S.producersU.S.shipmentsandexports...........................................................................III7
Orderbooks.............................................................................................................................III7
U.S.producersinventories.....................................................................................................III8
U.S.producersimportsandpurchases..................................................................................III8
U.S.employment,wages,andproductivity............................................................................III9
ii

CONTENTS
Page
PartIV:U.S.imports,apparentU.S.consumption,andmarketshares................................IV1
U.S.importers..........................................................................................................................IV1
U.S.imports.............................................................................................................................IV3
Negligibility..............................................................................................................................IV6
Cumulationconsiderations..................................................................................................IV8
Fungibility............................................................................................................................IV8
Presenceinthemarket.......................................................................................................IV9
Geographicalmarkets.......................................................................................................IV10
ApparentU.S.consumption..................................................................................................IV11
U.S.marketshares................................................................................................................IV12
RatioofimportstoU.S.production......................................................................................IV13
PartV:Pricingdata...............................................................................................................V1
Factorsaffectingprices............................................................................................................V1
Rawmaterialcosts...............................................................................................................V1
U.S.inlandtransportationcosts...........................................................................................V3
Pricingpractices.......................................................................................................................V3
Pricingmethods....................................................................................................................V3
Salestermsanddiscounts....................................................................................................V5
Pricedata..................................................................................................................................V6
Pricetrends.........................................................................................................................V14
Pricecomparisons..............................................................................................................V17
Lostsalesandlostrevenues...................................................................................................V20
PartVI:FinancialexperienceofU.S.producers....................................................................VI1
Background..............................................................................................................................VI1
OperationsonOCTG............................................................................................................VI1
Varianceanalysis.................................................................................................................VI6
Capitalexpendituresandresearchanddevelopmentexpenses........................................VI7
Assetsandreturnoninvestment........................................................................................VI9
iii

CONTENTS
Page
PartVI:FinancialexperienceofU.S.producersContinued
Capitalandinvestment......................................................................................................VI10
Actualnegativeeffects......................................................................................................VI11
Anticipatednegativeeffects..............................................................................................VI12
PartVII:Threatconsiderationsandinformationonnonsubjectcountries..........................VII1
TheindustryinIndia...............................................................................................................VII3
OperationsonOCTG...........................................................................................................VII4
Alternativeproducts...........................................................................................................VII5
TheindustryinKorea.............................................................................................................VII6
TheindustryinthePhilippines...............................................................................................VII8
TheindustryinSaudiArabia................................................................................................VII10
OperationsonOCTG.........................................................................................................VII10
Alternativeproducts.........................................................................................................VII11
TheindustryinTaiwan.........................................................................................................VII11
TheindustryinThailand.......................................................................................................VII13
TheindustryinTurkey..........................................................................................................VII14
iv

CONTENTS
Page
PartVII:ThreatconsiderationsandinformationonnonsubjectcountriesContinued
TheindustryinUkraine........................................................................................................VII16
TheindustryinVietnam.......................................................................................................VII18
Subjectcountriescombined.................................................................................................VII21
U.S.inventoriesofimportedmerchandise..........................................................................VII22
U.S.importersoutstandingorders......................................................................................VII23
Antidumpingorcountervailingdutyordersinthirdcountrymarkets................................VII24
Informationonnonsubjectcountries..................................................................................VII24
Argentina..........................................................................................................................VII31
Canada..............................................................................................................................VII33
Germany...........................................................................................................................VII35
Japan.................................................................................................................................VII36
Mexico..............................................................................................................................VII38
Appendixes
A.
FederalRegisternotices....................................................................................................A1
B.
Calendarofthepublicconference....................................................................................B1
C.
Summarydata...................................................................................................................C1
D. Quarterlynonsubjectcountrypricedata.........................................................................D1

Note.Informationthatwouldrevealconfidentialoperationsofindividualconcernsmaynot
bepublishedandthereforehasbeendeleted.Suchdeletionsareindicatedbyasterisks.
v
UNITEDSTATESINTERNATIONALTRADECOMMISSION

InvestigationNos.701TA499500and731TA12151223(Preliminary)

CertainOilCountryTubularGoodsfromIndia,Korea,thePhilippines,
SaudiArabia,Taiwan,Thailand,Turkey,andVietnam

DETERMINATIONS

Onthebasisoftherecord1 developedinthesubjectinvestigations,theUnitedStates
InternationalTradeCommission(Commission)determines,pursuanttosections703(a)and
733(a)oftheTariffActof1930(19U.S.C.''1671b(a)and1673b(a))(theAct),thatthereisa
reasonableindicationthatanindustryintheUnitedStatesismateriallyinjuredbyreasonof
importsfromIndia,Korea,thePhilippines,SaudiArabia,Taiwan,Thailand,Turkey,Ukraine,and
Vietnamofcertainoilcountrytubulargoods,providedforprimarilyinsubheadings7304.29,
7305.20,and7306.29oftheHarmonizedTariffScheduleoftheUnitedStates,thatarealleged
tobesoldintheUnitedStatesatlessthanfairvalue(LTFV),andbyimportsofcertainoil
countrytubulargoodsthatareallegedlysubsidizedbytheGovernmentsofIndiaandTurkey.

COMMENCEMENTOFFINALPHASEINVESTIGATIONS

Pursuanttosection207.18oftheCommission=srules,theCommissionalsogivesnotice
ofthecommencementofthefinalphaseofitsinvestigations.TheCommissionwillissueafinal
phasenoticeofscheduling,whichwillbepublishedintheFederalRegisterasprovidedin
section207.21oftheCommission=srules,uponnoticefromtheDepartmentofCommerce
(Commerce)ofaffirmativepreliminarydeterminationsintheinvestigationsundersections
703(b)or733(b)oftheAct,or,ifthepreliminarydeterminationsarenegative,uponnoticeof
affirmativefinaldeterminationsinthoseinvestigationsundersections705(a)or735(a)ofthe
Act.Partiesthatfiledentriesofappearanceinthepreliminaryphaseoftheinvestigationsneed
notenteraseparateappearanceforthefinalphaseoftheinvestigations.Industrialusers,and,
ifthemerchandiseunderinvestigationissoldattheretaillevel,representativeconsumer
organizationshavetherighttoappearaspartiesinCommissionantidumpingandcountervailing
dutyinvestigations.TheSecretarywillprepareapublicservicelistcontainingthenamesand
addressesofallpersons,ortheirrepresentatives,whoarepartiestotheinvestigations.

BACKGROUND

OnJuly2,2013,apetitionwasfiledwiththeCommissionandCommercebyUnited
StatesSteelCorporation,Pittsburgh,PA;MaverickTubeCorporation,Houston,TX;Boomerang
TubeLLC,Chesterfield,MO;EnergeX,adivisionofJMCSteelGroup,Chicago,IL;NorthwestPipe
Company,Vancouver,WA;TejasTubularProductsInc.,Houston,TX;TMKIPSCO,Houston,TX;
VallourecStar,L.P.,Houston,TX;andWeldedTubeUSA,Inc.,Lackawanna,NY,allegingthatan
1 Therecordisdefinedinsec.207.2(f)oftheCommission=sRulesofPracticeandProcedure(19
CFR'207.2(f)).
industryintheUnitedStatesismateriallyinjuredorthreatenedwithmaterialinjurybyreason
ofsubsidizedimportsofcertainoilcountrytubulargoodsfromIndiaandTurkeyandLTFV
importsofcertainoilcountrytubulargoodsfromIndia,Korea,thePhilippines,SaudiArabia,
Taiwan,Thailand,Turkey,Ukraine,andVietnam.Accordingly,effectiveJuly2,2013,the
CommissioninstitutedcountervailingdutyinvestigationNos.701TA499500(Preliminary)and
antidumpingdutyinvestigationNos.731TA12151223(Preliminary).
NoticeoftheinstitutionoftheCommission=sinvestigationsandofapublicconference
tobeheldinconnectiontherewithwasgivenbypostingcopiesofthenoticeintheOfficeofthe
Secretary,U.S.InternationalTradeCommission,Washington,DC,andbypublishingthenotice
intheFederalRegisterofJuly10,2013(78FR41421).TheconferencewasheldinWashington,
DC,onJuly23,2013,andallpersonswhorequestedtheopportunitywerepermittedtoappear
inpersonorbycounsel.

ViewsoftheCommission
Basedontherecordinthepreliminaryphaseoftheseinvestigations,wefindthatthere
isareasonableindicationthatanindustryintheUnitedStatesismateriallyinjuredbyreasonof
importsofcertainoilcountrytubulargoods(OCTG)fromIndia,Korea,thePhilippines,Saudi
Arabia,Taiwan,Thailand,Turkey,Ukraine,andVietnamthatareallegedlysoldintheUnited
StatesatlessthanfairvalueandimportsofthesubjectmerchandisefromIndiaandTurkeythat
areallegedlysubsidizedbytheGovernmentsofIndiaandTurkey.
I.
TheLegalStandardforPreliminaryDeterminations
Thelegalstandardforpreliminaryantidumpingandcountervailingdutydeterminations
requirestheCommissiontodetermine,basedupontheinformationavailableatthetimeofthe
preliminarydeterminations,whetherthereisareasonableindicationthatadomesticindustryis
materiallyinjuredorthreatenedwithmaterialinjury,orthattheestablishmentofanindustryis
materiallyretarded,byreasonoftheallegedlyunfairlytradedimports.1Inapplyingthis
standard,theCommissionweighstheevidencebeforeitanddetermineswhether(1)the
recordasawholecontainsclearandconvincingevidencethatthereisnomaterialinjuryor
threatofsuchinjury;and(2)nolikelihoodexiststhatcontraryevidencewillariseinafinal
investigation.2
II.
Background
ThepetitionsintheseinvestigationswerefiledonJuly2,2013,bytheUnitedStates
SteelCorporation(U.S.Steel);MaverickTubeCorporation(Maverick);andBoomerangTube
LLC;EnergeX,adivisionofJMCSteelGroup;NorthwestPipeCompany;TejasTubularProducts
Inc.;TMKIPSCO;VallourecStar,L.P.;andWeldedTubeUSA,Inc.(collectivelyJoint
Petitioners)(U.S.Steel,Maverick,andJointPetitionersarecollectivelythePetitioners).
PetitionersaredomesticproducersofcertainOCTGandaccountedforapproximately***
percentofreporteddomesticOCTGproductionin2012.3Petitionersappearedatthestaff
conferenceandsubmittedpostconferencebriefs.
Thefollowingrespondentsandgroupsofrespondentsappearedatthestaffconference
andsubmittedpostconferencebriefs:

1
19U.S.C.1671b(a),1673b(a)(2000);seealsoAmericanLambCo.v.UnitedStates,785F.2d994,
100104(Fed.Cir.1986);AristechChem.Corp.v.UnitedStates,20CIT353,35455(1996).Noparty
arguesthattheestablishmentofanindustryintheUnitedStatesismateriallyretardedbytheallegedly
unfairlytradedimports.
2
AmericanLambCo.,785F.2dat1001;seealsoTexasCrushedStoneCo.v.UnitedStates,35F.3d
1535,1543(Fed.Cir.1994).
3
SeeConfidentialStaffReport,MemorandumINVLL059(Aug.9,2013),asamendedby
MemorandumINVLL061(CR)atTableIII1,PublicReport,CertainOilCountryTubularGoodsfrom
India,Korea,Philippines,SaudiArabia,Taiwan,Thailand,Turkey,Ukraine,andVietnam,Inv.Nos.701
TA499500and731TA12151223(Preliminary),USITCPub.4422(Aug.2013)(PR)atTableIII1.
3

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

4
TheKoreanRespondentGroup,TaiwanRespondents,andBorusanfiledajointpostconference
brief.Inconnectionwiththatbrief,werefertotheserespondentsastheJointRespondentsGroup.
5
CRatI5,PRatI4.
6
CRatIV1,PRatIV1;CR/PRatTableIV2.
4

officialCommerceimportstatisticsforcasingandtubing(forwhichtherearespecificHTS
statisticalreportingnumbers);(ii)dataforcouplingstock(forwhichtherearenotspecificHTS
statisticalreportingnumbers)obtainedfromimporters;and(iii)importsofcasingandtubing
fromthe***.7
TheCommissionreceivedresponsestoitsquestionnairesfrom32foreign
producers/exportersofsubjectmerchandise,asfollows:
tenproducers/exportersinIndia,accountingforvirtuallyallU.S.importsofOCTGfrom
Indiain2012;8
sevenproducers/exportersinKorea,accountingforvirtuallyallU.S.importsofOCTG
fromKoreaoverthePOI;9
oneproducer/exporterinthePhilippines,accountingfor***importsofOCTGfrom
thePhilippinesin2012;10
twoproducers/exportersinSaudiArabia,accountingfor***percentofimportsof
OCTGfromSaudiArabiain2012;11
fourproducers/exportersinTaiwan,accountingforvirtuallyallimportsofOCTGfrom
Taiwanin2012;12
oneproducer/exporterinThailand,accountingfor***importsofOCTGfromThailand
in2012;13
threeproducers/exportersinTurkey,accountingfor***percentofimportsofOCTG
fromTurkeyin2012;14
twoproducers/exportersinUkraine,accountingfor***importsofOCTGfromUkraine
in2012;15and
twoproducers/exportersinVietnam,accountingfor***ofallimportsofOCTGfrom
Vietnamin2012.16
III.
DomesticLikeProduct
A.
InGeneral
IndeterminingwhetherthereisareasonableindicationthatanindustryintheUnited
Statesismateriallyinjuredorthreatenedwithmaterialinjurybyreasonofimportsofthe
subjectmerchandise,theCommissionfirstdefinesthedomesticlikeproductandthe

7
CRatIV1n.2,PRatIV1n.2;CR/PRatTableIV3;EDISDoc.No.516328.
CRatVII4,PRatVII3.
9
CRatVII9,PRatVII7.
10
CRatVII13,PRatVII9.
11
CRatVII17,PRatVII11.
12
13
14
15
16
8
5

industry.17Section771(4)(A)oftheTariffActof1930,asamended(theTariffAct),defines
therelevantdomesticindustryastheproducersasawholeofadomesticlikeproduct,or
thoseproducerswhosecollectiveoutputofadomesticlikeproductconstitutesamajor
proportionofthetotaldomesticproductionoftheproduct.18Inturn,theTariffActdefines
domesticlikeproductasaproductwhichislike,orintheabsenceoflike,mostsimilarin
characteristicsanduseswith,thearticlesubjecttoaninvestigation.19
Thedecisionregardingtheappropriatedomesticlikeproduct(s)inaninvestigationisa
factualdetermination,andtheCommissionhasappliedthestatutorystandardoflikeor
mostsimilarincharacteristicsandusesonacasebycasebasis.2021Nosinglefactoris
dispositive,andtheCommissionmayconsiderotherfactorsitdeemsrelevantbasedonthe
factsofaparticularinvestigation.22TheCommissionlooksforcleardividinglinesamong
possiblelikeproductsanddisregardsminorvariations.23AlthoughtheCommissionmustaccept
Commercesdeterminationastothescopeoftheimportedmerchandisethatissubsidized

17
19U.S.C.1677(4)(A).
19U.S.C.1677(4)(A).
19
19U.S.C.1677(10).
20
See,e.g.,CleoInc.v.UnitedStates,501F.3d1291,1299(Fed.Cir.2007);NECCorp.v.Department
ofCommerce,36F.Supp.2d380,383(Ct.IntlTrade1998);NipponSteelCorp.v.UnitedStates,19CIT
450,455(1995);TorringtonCo.v.UnitedStates,747F.Supp.744,749n.3(Ct.IntlTrade1990),affd,
938F.2d1278(Fed.Cir.1991)(everylikeproductdeterminationmustbemadeontheparticular
recordatissueandtheuniquefactsofeachcase).TheCommissiongenerallyconsidersanumberof
factorsincludingthefollowing:(1)physicalcharacteristicsanduses;(2)interchangeability;(3)channels
ofdistribution;(4)customerandproducerperceptionsoftheproducts;(5)commonmanufacturing
facilities,productionprocesses,andproductionemployees;and,whereappropriate,(6)price.See
Nippon,19CITat455n.4;TimkenCo.v.UnitedStates,913F.Supp.580,584(Ct.IntlTrade1996).
21
Inasemifinishedproductsanalysis,theCommissionexaminesthefollowing:(1)thesignificance
andextentoftheprocessesusedtotransformtheupstreamintothedownstreamarticles;(2)whether
theupstreamarticleisdedicatedtotheproductionofthedownstreamarticleorhasindependentuses;
(3)differencesinthephysicalcharacteristicsandfunctionsoftheupstreamanddownstreamarticles;(4)
whetherthereareperceivedtobeseparatemarketsfortheupstreamanddownstreamarticles;and(5)
differencesinthecostsorvalueoftheverticallydifferentiatedarticles.See,e.g.,GlycinefromIndia,
Japan,andKorea,Inv.Nos.731TA11111113(Preliminary),USITCPub.No.3921at7(May2007);
Artists'CanvasfromChina,Inv.No.731TA1091(Final),USITCPub.No.3853at6(May2006);Live
SwinefromCanada,Inv.No.731TA1076(Final),US1TCPub.3766at8n.40(Apr.2005);CertainFrozen
FishFilletsfromVietnam,Inv.No.731TA1012(Preliminary),USITCPub.No.3533at7(Aug.2002).
22
See,e.g.,S.Rep.No.96249at9091(1979).
23
See,e.g.,Nippon,19CITat455;Torrington,747F.Supp.at74849;seealsoS.Rep.No.96249at
9091(Congresshasindicatedthatthelikeproductstandardshouldnotbeinterpretedinsucha
narrowfashionastopermitminordifferencesinphysicalcharacteristicsorusestoleadtothe
conclusionthattheproductandarticlearenotlikeeachother,norshouldthedefinitionoflike
productbeinterpretedinsuchafashionastopreventconsiderationofanindustryadverselyaffected
bytheimportsunderconsideration.).
18
6

and/orsoldatlessthanfairvalue,24theCommissiondetermineswhatdomesticproductislike
theimportedarticlesCommercehasidentified.25TheCommissionmay,whereappropriate,
includedomesticarticlesinthedomesticlikeproductinadditiontothosedescribedinthe
scope.26

B.
ProductDescription
Initsnoticesofinitiation,Commercedefinedtheimportedmerchandisewithinthe
scopeoftheseinvestigationsasfollows:

Themerchandisecoveredbytheinvestigationsiscertainoilcountry
tubulargoods(OCTG),whicharehollowsteelproductsofcircularcross
section,includingoilwellcasingandtubing,ofiron(otherthancastiron)orsteel
(bothcarbonandalloy),whetherseamlessorwelded,regardlessofendfinish
(e.g.,whetherornotplainend,threaded,orthreadedandcoupled)whetheror
notconformingtoAmericanPetroleumInstitute(API)ornonAPI
specifications,whetherfinished(includinglimitedserviceOCTGproducts)or
unfinished(includinggreentubesandlimitedserviceOCTGproducts),whether
ornotthreadprotectorsareattached.Thescopeoftheinvestigationsalso
coversOCTGcouplingstock.
Excludedfromthescopeoftheinvestigationsare:casingortubing
containing10.5percentormorebyweightofchromium;drillpipe;unattached
couplings;andunattachedthreadprotectors.
Themerchandisesubjecttotheinvestigationsiscurrentlyclassifiedinthe
HarmonizedTariffScheduleoftheUnitedStates(HTSUS)underitemnumbers:
7304.29.10.10,7304.29.10.20,7304.29.10.30,7304.29.10.40,7304.29.10.50,
7304.29.10.60,7304.29.10.80,7304.29.20.10,7304.29.20.20,7304.29.20.30,
7304.29.20.40,7304.29.20.50,7304.29.20.60,7304.29.20.80,7304.29.31.10,
7304.29.31.20,7304.29.31.30,7304.29.31.40,7304.29.31.50,7304.29.31.60,
7304.29.31.80,7304.29.41.10,7304.29.41.20,7304.29.41.30,7304.29.41.40,

24
See,e.g.,USEC,Inc.v.UnitedStates,34Fed.Appx.725,730(Fed.Cir.2002)(TheITCmaynot
modifytheclassorkindofimportedmerchandiseexaminedbyCommerce.);AlgomaSteelCorp.v.
UnitedStates,688F.Supp.639,644(Ct.IntlTrade1988),affd,865F.3d240(Fed.Cir.),cert.denied,
492U.S.919(1989).
25
HosidenCorp.v.AdvancedDisplayMfrs.,85F.3d1561,1568(Fed.Cir.1996)(theCommissionmay
findasinglelikeproductcorrespondingtoseveraldifferentclassesorkindsdefinedbyCommerce);Cleo,
501F.3dat1298n.1(Commerces{scope}findingdoesnotcontroltheCommissions{likeproduct}
determination.);Torrington,747F.Supp.at74852(affirmingtheCommissionsdeterminationdefining
sixlikeproductsininvestigationswhereCommercefoundfiveclassesorkinds).
26
See,e.g.,PureMagnesiumfromChinaandIsrael,Inv.Nos.701TA403and731TA89596(Final),
USITCPub.3467at8n.34(Nov.2001);Torrington,747F.Suppat74849(holdingthattheCommission
isnotlegallyrequiredtolimitthedomesticlikeproducttotheproductadvocatedbythepetitioner,co
extensivewiththescope).
7

7304.29.41.50,7304.29.41.60,7304.29.41.80,7304.29.50.15,7304.29.50.30,
7304.29.50.45,7304.29.50.60,7304.29.50.75,7304.29.61.15,7304.29.61.30,
7304.29.61.45,7304.29.61.60,7304.29.61.75,7305.20.20.00,7305.20.40.00,
7305.20.60.00,7305.20.80.00,7306.29.10.30,7306.29.10.90,7306.29.20.00,
7306.29.31.00,7306.29.41.00,7306.29.60.10,7306.29.60.50,7306.29.81.10,
and7306.29.81.50.
Themerchandisesubjecttotheinvestigationsmayalsoenterunderthe
followingHTSUSitemnumbers:7304.39.00.24,7304.39.00.28,7304.39.00.32,
7304.39.00.36,7304.39.00.40,7304.39.00.44,7304.39.00.48,7304.39.00.52,
7304.39.00.56,7304.39.00.62,7304.39.00.68,7304.39.00.72,7304.39.00.76,
7304.39.00.80,7304.59.60.00,7304.59.80.15,7304.59.80.20,7304.59.80.25,
7304.59.80.30,7304.59.80.35,7304.59.80.40,7304.59.80.45,7304.59.80.50,
7304.59.80.55,7304.59.80.60,7304.59.80.65,7304.59.80.70,7304.59.80.80,
7305.31.40.00,7305.31.60.90,7306.30.50.55,7306.30.50.90,7306.50.50.50,
and7306.50.50.70.27

OCTGincludescasing,tubing,andcouplingstockofcarbonandalloysteelusedinoil
andgaswells.28Casingisacircularpipethatservesasastructuralretainerforthewallsofthe
well.Ittypicallyhasanoutsidediameter(O.D.)rangingfrom4.5inchesto20inchesanda
lengthtypicallyrangingfrom34feetto48feet.Casingprovidesafirmfoundationforthedrill
stringbysupportingthewallsoftheholetopreventcavinginorwallcollapsebothduring
drillingandafterthewelliscompleted.29Casingalsoservesasasurfacepipedesignedto
preventcontaminationoftherecoverableoilandgasbysurfacewater,gas,sand,or
limestone.30Tubingisasmallerdiameterpipe(between1.0504.5inchesO.D.)installedinside
thelargerdiametercasingthatisusedtoconducttheoilorgastothesurface,eitherthrough
naturalfloworthroughpumping.31Couplingstockisathickwalled,seamlesstubularproduct
usedtomanufacturecouplingblanks.Couplingblanks,inturn,areunthreadedtubeblanks
usedtomakeindividualcouplings.Couplingsarethickwalledandinternallythreadedseamless
cylindersthatareusedtojointwolengthsofthreadedOCTG.32Casingandtubingareusually
producedinaccordancewithspecificationspromulgatedbytheAPI.33

27
CertainOilCountryTubularGoodsfromIndia,theRepublicofKorea,theRepublicofthe
Philippines,SaudiArabia,Taiwan,Thailand,theRepublicofTurkey,Ukraine,andtheSocialist
RepublicofVietnam:InitiationofAntidumpingDutyInvestigations,78Fed.Reg.45505,45512(July
29,2013);CertainOilCountryTubularGoodsfromIndiaandTurkey:InitiationofCountervailingDuty
Investigations,78Fed.Reg.45502,45505(July29,2013).
28
CRatI15,PRatI13.
29
CRatI18,PRatI15.
30
CRatI20,PRatI15.
31
CRatI20,PRatI17.
32
CRatI21,PRatI17.
33
CRatI20,PRatI17.
8

C.
ArgumentsandAnalysis
PetitionersarguethattheCommissionshouldfindonelikeproductthatiscoextensive
withthescopeoftheseinvestigations.34TheJointRespondentsGroupagreeswiththe
domesticlikeproductdefinitionproposedbyPetitioners.35ILJINarguesthattheCommission
shouldfindthatthefollowingfourproductsareseparatedomesticlikeproducts(ratherthan
proposingalternativelikeproductdefinitions):(i)finishedseamlessOCTG,(ii)finishedwelded
OCTG,(iii)seamlessgreentubes,and(iv)weldedgreentubes.3637
1.
WhetheraClearLineDividesSeamlessOCTGandWeldedOCTG
PhysicalCharacteristicsandUses.SeamlessandweldedOCTGbotharegenerally
producedinaccordancewithspecificationspromulgatedbytheAPIandareusedindrillingfor
oilornaturalgas.38TheweldlineinweldedOCTGrepresentsadistinctphysicalcharacteristic
notpresentinseamlessOCTG.39BothweldedandseamlessOCTGareusedforthesame
purpose,foroilandgaswells.SeamlessOCTGiseitherrequiredorpreferredincertaindrilling
conditions.40
ManufacturingFacilities,ProductionProcessesandEmployees.U.S.millsproduce
weldedandseamlessOCTGonseparateproductionlines.41Whilesomedomesticproducers
makebothproducts,mostmakeonlyone.42SeamlessOCTGisproducedfromabilletthatis
eitherpiercedorextrudedtoformahollowshellthatissubsequentlyrolled.WeldedOCTGis
producedfromsteelsheetincoilformthatisrolledandwhoseedgesareheatedandwelded
togethertoformahollowshell.43SeamlessOCTGproductionfacilitiesareconsiderablymore
expensivetobuildthanweldedOCTGproductionlines.44Althoughtheinitialproduction
processesaredifferentforweldedandseamlessOCTG,theprocessesforheattreating(tothe
extentthatthepipesareheattreated)andfinishingarethesame.

34
U.S.SteelPostconferenceBriefatExh.1,pp.2527,MaverickPostconferenceBriefat23,andJoint
PetitionersPostconferenceBriefat23.
35
JointPostconferenceBriefonBehalfofRespondentsfromKorea,Taiwan,andTurkeyat7and
ResponsetoStaffQuestionsat14,andConferenceTranscript(Tr.)at241243(Cameron).
36
ILJINdefinesgreentubesassemifinishedOCTGthatis...processedbyheattreatingaswellas
byotherprocesses...beforebeingsoldintheU.S.merchantOCTGmarket.ILJINPostconferenceBrief
at11.ILJINexpressesdoubtastowhetherU.S.Steelusesasimilardefinitionofgreentubes.Id.at12,
n.32.
37
ILJINPostconferenceBriefat1627.
38
CRatI20,PRatI17.
39
CRatI30,PRatI2324.
40
CRatII26,PRatII2122.
41
CRatI31,PRatI24.
42
CRatI31,PRatI24.
43
CRatI2223,PRatI18.
44
Tr.at14(Schagrin),244(Khandelwal),and244245(Blomberg).
9

ChannelsofDistribution.AlmostallfinishedweldedOCTGandfinishedseamlessOCTG
aresoldtodistributors.45
Interchangeability.WeldedandseamlessOCTGareinterchangeabletoalargeextent,
butnotcompletely.AlthoughseamlessOCTGcanbeusedinanyweldedOCTGapplication,the
reverseisnottrue.Certainhighstressapplications,suchashighersulfursourservice
applications,requireseamlessOCTG,andtheseamlessproductmayalsobepreferredinsome
applicationstoreducerisk.46AwitnessforpetitionersestimatedthatweldedOCTGcouldbe
usedfor70percentofseamlessapplications,andawitnessforrespondentsnotedthattheyare
interchangeableahighpercentageofthetime.47Moreover,counselfortheJointRespondent
GrouptestifiedthatthedegreeofoverlapbetweenseamlessandweldedOCTGthatexists
todayisgreaterthanwhentheCommissionfirstdecidedtotreatthetwoasasinglelike
productalmost20yearsago.48
ProducerandCustomerPerceptions.Asnotedabove,weldedandseamlessOCTGare
producedonseparateproductionlines,usingdifferentprocesses,and,asnotedbelow,
seamlessOCTGsellsatasubstantialpremiumtotheweldedproduct.SeamlessOCTGis
requiredinsomehighstressapplicationsandisregardedasbeingsafertouseinothers.49
Price.AverageannualunitvaluesofU.S.producersU.S.shipmentsshowthatfinished
seamlessOCTGwassellingatasubstantialpremiumtofinishedweldedOCTGbetweenJanuary
2010andMarch2013,theperiodofinvestigation(POI).Forexample,in2012theaverage
unitvalueforseamlessOCTGwas$2,017,whiletheaverageunitvalueforweldedOCTGwas
$1,512.50
Conclusion.WeldedOCTGandseamlessOCTGsharebasicphysicalcharacteristics.
Theirgeneralusesinoilandgaswellsarethesame.Theyaremadeindifferentmanufacturing
facilities,usingdifferentprocesses,buttheyaresubjecttothesameheattreatmentand
finishing.Theyshareidenticalchannelsofdistribution.Thereisalargedegreeof
interchangeabilitybetweenthetwoproducts,althoughweldedOCTGcannotbeusedincertain
demandingapplications.Distinctionsinthewaysinwhichtheseproductsaremadeandpriced
willinfluencecustomerandproducerperceptionsoftheseproducts.Finally,thepricepremium
forseamlessOCTGissubstantial.
Onbalance,inlightoftheidenticalchannelsofdistribution,commonbasicphysical
characteristicsanduses,andthelargedegreeofinterchangeabilitybetweentheproducts,we
donotfindthatseamlessandweldedOCTGareseparatelikeproducts.

45
CRatI33,PRatI25.
CRatI30andII2627,PRatI2324andII2122.
47
Tr.at109(Matthews)and261(Brewer).
48
Tr.at241(Cameron).
49
50
CR/PRatTableI2.
46
10

2.
WhetheraClearLineDividesGreenTubesfromFinishedOCTG
Basedontherecordofthesepreliminaryphaseinvestigations,ourcurrent
understandingofthedefinitionofgreentubesisthattheseareunfinishedtubulargoodsthat
mayrequireheattreatmentorfurtherprocessingtomeettheAPIspecificationsforcasingand
tubing.Greentubesneednotalwaysbeheattreatedbeforefinaluse.Insomecases,
upgradeablegreentubesthatmeettheminimumspecificationsforlowergradeAPI5CTcasing
andtubing(i.e.,H40andJ55)canbecertifiedtothosegradesandusedinapplicationsnot
requiringadditionalheattreatment,oncetheyhavebeenfinished(i.e.,ifrequired,threaded
andcoupled).However,heattreatmentwillsometimesallowsuchtubestomeetminimum
specificationsforhighergradecasingandtubing.51
Becausethequestionofwhethergreentubesshouldbetreatedasaseparatelike
productfromfinishedOCTGinvolvesacomparisonofarticlesatdifferentstagesofprocessing,
itisappropriatetoanalyzethislikeproductissueusingthesemifinishedproductanalysis.52
DedicationforUse.Therecordindicatesthatallgreentubesarededicatedtothe
productionoffinishedOCTG.Insomecases,thiswillrequireheattreatment;inothercases,it
willrequireonlyendfinishing.Greentubesareunusablewithoutbeingatleastendfinished.53
SeparateMarkets.ILJINsassertionthattherearecompletelyseparatemarketsfor
greentubesandfinishedOCTGwiththeformerbeingsoldtoprocessorsandthelattersoldto
distributorsisnotfullysupportedbythecurrentrecord.Somegreentubesaresoldto
distributorswhothenarrangeforthegreentubestobeheattreatedand/orfinished.54
Moreover,greentubessoldtoprocessorsarefrequentlysoldtodistributorsafterheat
treatment.55
DifferencesinPhysicalCharacteristicsandFunctionsoftheUpstreamandDownstream
Articles.GreentubesintendedforaspecificOCTGapplicationaretypicallyproducedtomeet
thespecificationsforthatapplication(involving,forexample,specificchemistries,tensile
strength,wallthickness,andlength).56Thus,thespecificcharacteristicsofthegreentube
impartessentialcharacteristicstothefinishedOCTG.Heattreatmentdoesnotchangethe
physicalappearanceofthetubes,butitdoeschangethemicrostructureandmechanical
propertiesofpipes.57Thefinishingprocess(upsettingpipeends58andthreadingthem)does
changethephysicalcharacteristicsofthepipestosomeextent,butrendersthemusablein

51
CRatI2021,PRatI17.
See,e.g.,DrillPipeandDrillCollarsfromChina,Inv.Nos.701TA474and731TA1176
(Preliminary),USITCPub.4127at7(Mar.2010).
53
CRatI3233,PRatI15.Endfinishingreferstotheprocessofthreadingtheendofatubeorcasing
andaddingacoupling.SeeCRatI28,PRatI22.
54
CRatI33andI36,PRatI25andI27.
55
CRatI36,PRatI27.
56
CRatI31,PRatI24.
57
CRatI27,PRatI2122.
58
Upsettingreferstoaprocessinwhichtheendofapipeisheatedtoforgingtemperature,and
theninsertedendwiseintoanupsettingmachine.Themachinepushesthehotmetalback,creatinga
thickerwallattheendofthepipe.CRatI28,PRatI22.
52
11

theirintendedenduseapplication.59Insum,greentubesandfinishedOCTGsharesome
physicalcharacteristics,butaredifferentinotherrespects.
Greentubesareanintermediateproductthatcannotbeusedinawell.However,green
tubeshavenofunctionotherthanbeingprocessedintofinishedOCTG.60
DifferencesinValue.Thecurrentrecordshowsthatpricesforgreentubesare
substantiallylowerthanpricesforfinishedOCTG.Forexample,U.S.millshipmentsofgreen
tubeintendedforOCTGapplicationstooneprocessorhadanaverageunitvalueof***in2012,
incomparisontoanaverageunitvalueof***forU.S.shipmentsoffinishedOCTG.61However,
greentubesaccountforanotinsubstantialpartofthefinalcostoffinishedOCTG.62
ExtentofProcessesUsedtoTransformUpstreamProductintoDownstreamProduct.To
theextentthatgreentubesareheattreatedandfinished,theprocessesusedtotransformthe
greentubesaresubstantial.63Asdiscussedbelow,theCommissionhasinpastinvestigations
involvingOCTGfoundthatprocessorsthatperformheattreatmentengageinsufficient
productionrelatedactivitytoqualifyasdomesticproducersofOCTG.Totheextentthatgreen
tubesareonlyendfinished,theprocessusedtotransformgreentubesintothedownstream
productisnotassubstantial.64TheCommissionhasinpastinvestigationsinvolvingOCTGfound
thatthreadersdonotengageinsufficientproductionrelatedactivitytoqualifyasdomestic
producersofOCTG.
Conclusion.Whiletheavailablerecordinformationonthisissueatthepreliminary
phaseoftheseinvestigationsismixed,allgreentubesarededicatedtotheproductionof
finishedOCTG.Althoughthetwoproductsappearlargelytobesoldindifferentmarkets,there
issomeoverlapinthatsomegreentubesmaybesoldtodistributors.Greentubesandfinished
OCTGsharesomebasicphysicalcharacteristics,butnotothers.Theirfunctionsaredifferent.
ThereisasignificantdifferenceinthevalueofgreentubesandfinishedOCTG.Theextentof
theprocessesinvolvedintransforminggreentubeintofinishedOCTGvariesdependingon
whetherheattreatmentisinvolved.Onbalance,forpurposesofthesepreliminary
determinations,theredoesnotappeartobeacleardividinglinebetweengreentubesand
finishedOCTG,andwedonotfindthattheyareseparatelikeproducts.65

59
CRatI28,PRatI22.
CRatI37,PRatI2728.
61
CRatI37,PRatI28.
62
SeeCR/PRatTableI3(showingunitvaluesforpurchasesofunfinishedOCTGandU.S.shipmentsof
finishedOCTG).
63
CRatI2628,PRatI2122.
64
CRatI2829,PRatI2223.
65
Wenotethatsomeofthepartiestothepreliminaryphaseoftheseinvestigationsmayhavebeen
usingthetermgreentubetomeandifferentthings.Tr.at266(Treat).Insomecases,theyreferredto
aproductthatrequiresheattreatmentbeforeitcanbeused.Tr.at222(Cameron).Inothercases,
theyusedthetermtoencompassnotonlypipethatrequiresheattreatment,butalsoproductthatcan
beusedwithoutheattreatmentonceitisendfinished.Tr.at26667(Cameron,Cunningham).The
Commissionintendstoreconsiderthisissueinanyfinalphaseoftheseinvestigations,andexaminethe
extenttowhichgreentubesandfinishedOCTGaresoldinseparatemarkets.Partiesareremindedthat
(Continued)
60
12

IV.
DomesticIndustry
Thedomesticindustryisdefinedasthedomesticproducersasawholeofadomestic
likeproduct,orthoseproducerswhosecollectiveoutputofadomesticlikeproductconstitutes
amajorproportionofthetotaldomesticproductionoftheproduct.66Indefiningthedomestic
industry,theCommissionsgeneralpracticehasbeentoincludeintheindustryproducersofall
domesticproductionofthelikeproduct,whethertollproduced,captivelyconsumed,orsoldin
thedomesticmerchantmarket.
A.
SufficientProductionRelatedActivities
Indecidingwhetherafirmqualifiesasadomesticproducerofthedomesticlikeproduct,
theCommissiongenerallyanalyzestheoverallnatureofafirmsU.S.productionrelated
activities,althoughproductionrelatedactivityatminimumlevelscouldbeinsufficientto
constitutedomesticproduction.67
InpriorOCTGinvestigations,theCommissionfoundthatthedomesticindustries
(producingcasing,tubing,anddrillpipe)68includedprocessors,butdidnotincludefirmsthat
performbasicthreadingandcouplingoperations(threaders).TheCommissionfoundthatthe
heattreatmentperformedatprocessingfacilitiesaltersthemicrostructureormechanical
propertiesofthepipe.Moreover,processingoperations,particularlyconcerningdrillpipe,
requirededicatedequipmentandsignificantlevelsofmetallurgicalandengineeringexpertise.
Processorsemploymentwassubstantialinrelationtothatofmills.Additionally,processing

(Continued)
iftheywanttheCommissiontocollectadditionaldatainanyfinalphaseinvestigations,theyshouldso
indicateinwrittencommentstodraftquestionnaires,pursuantto19C.F.R.section207.20(b),andstate
withprecisionthelikeproductdefinitionsthattheypropose.
66
19U.S.C.1677(4)(A).
67
TheCommissiongenerallyconsiderssixfactors:(1)sourceandextentofthefirmscapital
investment;(2)technicalexpertiseinvolvedinU.S.productionactivities;(3)valueaddedtotheproduct
intheUnitedStates;(4)employmentlevels;(5)quantityandtypeofpartssourcedintheUnitedStates;
and(6)anyothercostsandactivitiesintheUnitedStatesdirectlyleadingtoproductionofthelike
product.NosinglefactorisdeterminativeandtheCommissionmayconsideranyotherfactorsitdeems
relevantinlightofthespecificfactsofanyinvestigation.DiamondSawbladesandPartsThereoffrom
ChinaandKorea,Inv.Nos.731TA109293(Final),USITCPub.3862at811(July2006).
68
Thescopeoftheseinvestigationsisessentiallythesameasthescopeoftheinvestigationinthe
Commissionsrecent2010investigationofcertainoilcountrytubulargoodsfromChina.SeeCertainOil
CountryTubularGoodsfromChina,Inv.No.701TA463(Final),USITCPub.4124at5(Jan.2010)(2010
OCTG).Thescopeoftheseinvestigations(andthe2010Chinainvestigations)differsfromprior
investigationsinthattheseinvestigationsdonotincludedrillpipe,butdoincludecouplingstock.See
CertainOilCountryTubularGoodsfromArgentina,Italy,Japan,Korea,andMexico,Inv.Nos.731TA711
and713TA716(SecondReview),USITCPub.3923at7(June2007);andCertainOilCountryTubular
GoodsfromAustria,Brazil,China,France,Germany,India,Indonesia,Romania,SouthAfrica,Spain,
Turkey,Ukraine,andVenezuela,Inv.Nos.701TA428,731TA992994and9961005(Preliminary),
USITCPub.3511at5(May2002).
13

operationswerecapitalintensive.Bycontrast,thecapitalinvestments,technicalexpertise,and
employmentassociatedwiththreadingandcouplingoperationsweremorelimited.69
Therecordinthesepreliminaryphaseinvestigationsdoesnotindicateanychangesin
thenatureoftheactivitiesperformedbyprocessorsandthreaderssincethepriorOCTG
investigations.70Thus,itprovidesnobasisfortreatingprocessorsandthreadersdifferently
thaninpriorOCTGinvestigations.Weincludeprocessorsbutdonotincludethreadersinthe
domesticindustry.71
B.
RelatedParties
Wemustdeterminewhetheranyproducerofthedomesticlikeproductshouldbe
excludedfromthedomesticindustrypursuanttoSection771(4)(B)oftheTariffAct.This
provisionallowstheCommission,ifappropriatecircumstancesexist,toexcludefromthe
domesticindustryproducersthatarerelatedtoanexporterorimporterofsubjectmerchandise
orwhicharethemselvesimporters.72ExclusionofsuchaproduceriswithintheCommissions
discretionbaseduponthefactspresentedineachinvestigation.73

69
E.g.,OilCountryTubularGoodsfromArgentina,Austria,Italy,Japan,Korea,Mexico,andSpain,Inv.
Nos.701TA363364,731TA711717(Final),USITCPub.2911atI34(Aug.1995).
70
Noneofthepartiestothepreliminaryphaseoftheseinvestigationsadvocatedtreatingprocessors
andthreadersdifferentlythaninpriorOCTGinvestigations,exceptthatMavericksuggestedthatthe
CommissionmightreconsideritspriorpracticeoftreatingprocessorsthatheattreatunfinishedOCTGas
domesticproducers,inlightofaMay2013preliminaryscopedeterminationinwhichCommerceruled
thatgreentubesthatareproducedinChinaandheattreated,threaded,andcoupledinathird
countrybeforebeingshippedtotheUnitedStatesremainaproductofChina.MaverickPostconference
BriefatExh.1,pp.1415.CommercesMay2013preliminaryscopedetermination,citedbyMaverick,
doesnotconcernU.S.productionoperationsandhenceisnotdispositivefortheCommissionsanalysis
ofwhetherU.S.processorsengageinsufficientproductionrelatedactivitytobeconsidereddomestic
producers.Ifanypartywantstoraisethisissueinanyfinalphaseinvestigations,itshouldmake
appropriatecommentsatthequestionnairedraftingstagetoensureappropriatedatacollection.
71
Toproperlyanalyzethisissue,inanyfinalphaseoftheseinvestigationswewillseek,interalia,
segregateddataonOCTGimportedintotheUnitedStates(fromsubjectandnonsubjectsources),for
heattreatmentintheUnitedStates.
72
SeeTorringtonCo.v.UnitedStates,790F.Supp.1161,1168(Ct.IntlTrade1992),affdmem.,991
F.2d809(Fed.Cir.1993);SandvikABv.UnitedStates,721F.Supp.1322,133132(Ct.IntlTrade1989),
affdmem.,904F.2d46(Fed.Cir.1990);EmpirePlowCo.v.UnitedStates,675F.Supp.1348,1352(Ct.
IntlTrade1987).
73
TheprimaryfactorstheCommissionhasexaminedindecidingwhetherappropriatecircumstances
existtoexcludearelatedpartyincludethefollowing:
(1)thepercentageofdomesticproductionattributabletotheimportingproducer;
(2)thereasontheU.S.producerhasdecidedtoimporttheproductsubjecttoinvestigation,i.e.,
whetherthefirmbenefitsfromtheLTFVsalesorsubsidiesorwhetherthefirmmustimportinorderto
enableittocontinueproductionandcompeteintheU.S.market;and
(Continued)
14

Onedomesticproducer,***,importedOCTGdirectlyfromoneofthesubjectcountries
duringthePOI.74Itisthereforearelatedpartyasdefinedbythestatute.75Wefindthat
appropriatecircumstancesdonotexisttoexclude***fromthedomesticindustry.
***imported***.76Thecompany***.77Itsimportsaccountedfor***percentofits
domesticproductioninthatperiod,78suggestingitsprimaryinterestisnotindomestic
production,asopposedtoimportationofthesubjectmerchandise.***,and***withrespect
toothersubjectcountries.79Thecompanysoperatingincomeratiowas***thanthatofany
otherdomesticproducerininterim2013.808182Wedonotfinditappropriatetoexclude***
fromthedomesticindustry,asitisa***.83

(Continued)
(3)thepositionoftherelatedproducervisavistherestoftheindustry,i.e.,whetherinclusionor
exclusionoftherelatedpartywillskewthedatafortherestoftheindustry.See,e.g.,TorringtonCo.v.
UnitedStates,790F.Supp.at1168.
74
CR/PRatTableIII8.
75
Anotherdomesticproducer,***,purchasedsubjectmerchandise.CR/PRatTableIII8.The
Commissionhaspreviouslyconcludedthatapurchasermaybetreatedasarelatedpartyifitcontrols
largevolumesofsubjectimports.TheCommissionhasfoundsuchcontroltoexistwhenthedomestic
producerwasresponsibleforapredominantproportionofanimporterspurchasesandthesepurchases
weresubstantial.See,e.g.,FoundryCokefromChina,Inv.No.731TA891(Final),USITCPub.3449at8
9(Sept.2001).***purchasesofOCTGfrom***.ItspurchasesofOCTGfrom***.Thepurchasesofthe
importersfromwhich***werenotsubstantial.Intheyearinwhichitspurchasesofimportsfrom***.
Accordingly,wedonottreat***asarelatedparty.
76
CR/PRatTableIII8.
77
CR/PRatTableIII1Note.
78
CR/PRatTableIII8.
79
CR/PRatTableIII1.
80
CR/PRatTableVI2.
81
Consistentwithherpracticeinpastinvestigationsandreviews,CommissionerAranoffdoesnotrely
onindividualcompanyoperatingincomemargins,whichreflectadomesticproducersfinancial
operationsrelatedtoproductionofthedomesticlikeproduct,inassessingwhetherarelatedpartyhas
benefittedfromimportationofsubjectmerchandise.Rather,shedetermineswhethertoexcludea
relatedpartybasedprincipallyonitsratioofsubjectimportstodomesticproductionandwhetherits
primaryinterestslieindomesticproductionorimportation.***.
82
Forpurposesofthepreliminaryphaseoftheseinvestigations,CommissionerPinkertdoesnotrely
upon***financialperformanceindeterminingwhetherthereareappropriatecircumstancestoexclude
itfromthedomesticindustry.Inhisview,thepresentrecordisnotsufficienttolinktheproducers
financialperformancewithrespecttoitsU.S.operationstoanyspecificbenefititderivesfromits
relatedpartystatus.
83
Forexample,itproduced***ofthe1,018,330shorttonsproducedbythedomesticindustryin
interim2013.CR/PRatTableIII3.
15

V.
NegligibleImports
PursuanttoSection771(24)oftheTariffAct,importsfromasubjectcountryof
merchandisecorrespondingtoadomesticlikeproductthataccountforlessthan3percentof
allsuchmerchandiseimportedintotheUnitedStatesduringthemostrecent12monthsfor
whichdataareavailableprecedingthefilingofthepetitionshallbedeemednegligible.84The
statutefurtherprovidesthatsubjectimportsfromasinglecountrythataccountforlessthan3
percentofsuchtotalimportsoftheproductmaynotbeconsiderednegligibleifthereare
severalcountriessubjecttoinvestigationwithnegligibleimportsandthesumofsuchimports
fromallsuchcountriesaccountsformorethan7percentofallsuchmerchandiseimportedinto
theUnitedStates.85
TheCommissionhasfoundinpriorinvestigationsthatthe12monthperiodpreceding
thefilingofthepetitionendswiththelastfullmonthpriortothemonthinwhichthepetition
isfiled,ifthosedataareavailable.86AsthepetitionsintheseinvestigationswerefiledonJuly
2,2013,anddataareavailableforJune2013,themostrecent12monthsforwhichdataare
availableprecedingthefilingofthepetitionareJuly2012throughJune2013.Asdiscussed
above,theCommissioncalculatedtheimportdataforthisperiodusingofficialimportstatistics
forcasingandtubing,dataforcouplingstockobtainedfromimporters,andspecificimportdata
for***.
Therearefourcountrieswhoseimportswerebelowtheapplicable3percentstatutory
threshold:87Taiwan(2.9percent),thePhilippines(2.2percent),SaudiArabia(***percent),and
Thailand(0.8percent).88Theaggregatevolumeofimportsfromthesecountriesis***

84
19U.S.C.1671b(a),1673b(a),1677(24)(A)(i),1677(24)(B);seealso15C.F.R.2013.1
(identifyingcertaindevelopingcountriesforpurposesof19U.S.C.1677(36)forwhichtherelevant
negligibilitythresholdisdifferentincountervailingdutyinvestigations).
85
19U.S.C.1677(24)(A)(ii).Thethresholdis9percentfordesignateddevelopingcountries.19
U.S.C.1677(24)(B).
86
CarbonandCertainAlloySteelWireRodfromBrazil,Canada,Egypt,Germany,Indonesia,Mexico,
Moldova,SouthAfrica,TrinidadandTobago,Turkey,Ukraine,andVenezuela,Inv.Nos.701TA417421
(Preliminary)and731TA953963(Preliminary),USITCPub.3456at8,n.37(Oct.2001.Seealso,e.g.,
PolyethyleneTerephthalateFilm,SheetandStripfromBrazil,China,Thailand,andtheUnitedArab
Emirates,Inv.Nos.731TA11311134(Preliminary),USITCPub.3962at12n.68(Nov.2007)at12,n.68;
HydraulicMagneticCircuitBreakersfromSouthAfrica,Inv.No.731TA1033(Preliminary),USITCPub.
3600at9,n.43(June2003);UreaAmmoniumNitrateSolutionfromBelarus,Lithuania,Russiaand
Ukraine,Inv.Nos.731TA10061009(Preliminary),USITCPub.3517at9,n.51(June2002).Thispractice
wasaffirmedinCoSteelRaritan,Inc.v.UnitedStates,244F.Supp.2d1349(Ct.IntlTrade2002),
vacatedonothergrounds,CoSteelRaritan,Inc.v.UnitedStates,357F.3d.1294(Fed.Cir.2004).
87
Forpurposesofcountervailingdutyinvestigations,Indiaisamongthecountriesclassifiedas
developingcountriesunder15C.F.R.2013.1,sothenegligibilitythresholdforthecountervailing
dutyinvestigationofsubjectimportsfromIndiais4percent.19U.S.C.1677(24)(B).Subjectimports
fromIndia(at***percent)areabovethatthreshold.CR/PRatTableIV4.
88
CR/PRatTableIV4.
16

percent.89Becausethisexceedsthestatutorythresholdof7percent,wedonotfindthat
importsfromanyofthesubjectcountriesarenegligible.
VI.
Cumulation
Forpurposesofevaluatingthevolumeandpriceeffectsforadeterminationof
reasonableindicationofmaterialinjurybyreasonofsubjectimports,section771(7)(G)(i)ofthe
TariffActrequirestheCommissiontocumulatesubjectimportsfromallcountriesastowhich
petitionswerefiledand/orinvestigationsselfinitiatedbyCommerceonthesameday,ifsuch
importscompetewitheachotherandwiththedomesticlikeproductintheU.S.market.In
assessingwhethersubjectimportscompetewitheachotherandwiththedomesticlike
product,theCommissiongenerallyhasconsideredfourfactors:

(1)
thedegreeoffungibilitybetweensubjectimportsfromdifferent
countriesandbetweensubjectimportsandthedomesticlikeproduct,
includingconsiderationofspecificcustomerrequirementsandother
qualityrelatedquestions;
(2)
thepresenceofsalesorofferstosellinthesamegeographicmarketsof
subjectimportsfromdifferentcountriesandthedomesticlikeproduct;
(3)
theexistenceofcommonorsimilarchannelsofdistributionforsubject
importsfromdifferentcountriesandthedomesticlikeproduct;and
(4)
whetherthesubjectimportsaresimultaneouslypresentinthemarket.90
Whilenosinglefactorisnecessarilydeterminative,andthelistoffactorsisnot
exclusive,thesefactorsareintendedtoprovidetheCommissionwithaframeworkfor
determiningwhetherthesubjectimportscompetewitheachotherandwiththedomesticlike
product.91Onlyareasonableoverlapofcompetitionisrequired.92
Petitionersarguethatallsubjectimportsshouldbecumulated.93USTPL/OCTLargues
thatimportsfromIndiashouldnotbecumulatedwiththosefromothersubjectcountries,orat

89
CRatIV8,PRatIV7.
SeeCertainCastIronPipeFittingsfromBrazil,theRepublicofKorea,andTaiwan,Inv.Nos.731TA
27880(Final),USITCPub.1845(May1986),affd,FundicaoTupy,S.A.v.UnitedStates,678F.Supp.898
(Ct.IntlTrade),affd,859F.2d915(Fed.Cir.1988).
91
See,e.g.,WielandWerke,AGv.UnitedStates,718F.Supp.50(Ct.IntlTrade1989).
92
TheStatementofAdministrativeAction(SAA)totheUruguayRoundAgreementsAct(URAA),
expresslystatesthatthenewsectionwillnotaffectcurrentCommissionpracticeunderwhichthe
statutoryrequirementissatisfiedifthereisareasonableoverlapofcompetition.H.R.Rep.No.103
316,Vol.Iat848(1994)(citingFundicaoTupy,678F.Supp.at902);seeGossGraphicSys.,Inc.v.United
States,33F.Supp.2d1082,1087(Ct.IntlTrade1998)(cumulationdoesnotrequiretwoproductstobe
highlyfungible);WielandWerke,AG,718F.Supp.at52(Completelyoverlappingmarketsarenot
required.).
93
U.S.SteelPostconferenceBriefat1214.
90
17

leastnotwithimportsfromcountriesthatexportmostlysemifinishedOCTGtotheUnited
States.94ILJINarguesthatimportsfromcountriesthatshipmostlysemifinishedOCTGshould
notbecumulatedwiththosefromcountriesthatshipmostlyfinishedOCTG.95TheSaudi
RespondentsarguethatimportsfromSaudiArabiashouldnotbecumulatedwiththosefrom
othersubjectcountriesbecausecompetitionisattenuatedamongimportsfromSaudiArabia,
othersubjectcountries,andthedomesticlikeproductbecausetheproductfromSaudiArabiais
highendseamlessOCTG.96TheUkraineRespondentsrequestedthatimportsfromUkrainenot
becumulatedwiththosefromothersubjectcountriesbutdidnotspecifyabasisfortheir
argument.97HRParguesthatimportsfromVietnamshouldnotbecumulatedbecausesuch
importsareaninsignificantfactorintheU.S.marketandarenotlikelytogrowsignificantly.98
ThethresholdrequirementforcumulationissatisfiedbecausePetitionersfiledthe
antidumpingdutyandcountervailingdutypetitionswithrespecttotheninesubjectcountries
onthesameday,July2,2013.Inaddition,noneofthestatutoryexceptionstocumulation
applies.Asdiscussedbelow,wefindareasonableoverlapofcompetitionamongsubject
importsfromallninecountriesandbetweensubjectimportsfromeachsourceandthe
domesticlikeproduct.
Fungibility.Casingandtubingproducts,regardlessofsource,aregenerallyproducedin
accordancewithAPIstandards.99Mostrespondingdomesticproducersandamajorityof
importersreportedthatsubjectimportsfromthesubjectcountriesarealwaysor
frequentlyusedinterchangeablywitheachotherandwiththedomesticlikeproduct.The
remainingdomesticproducersandimportersindicatedthatOCTGfromthesubjectcountries
aresometimesusedinterchangeablywitheachotherandwiththedomesticlikeproduct.100
Nodomesticproducersorimportersreportedthatsubjectimportsareneverused
interchangeablywitheachotherandwiththedomesticlikeproduct.101
Whenaskedwhetherdifferencesotherthanpriceareeversignificantintheirsalesin
choosingbetweenOCTGfromdifferentsources,thegreatmajorityofdomesticproducers
respondedsometimesornever.102Importersweremoredividedonthisquestion.A
pluralityofimportersreportedthereweresometimesdifferencesotherthanpricebetween
domesticandsubjectimportsandbetweensubjectcountries,butotherresponsesweresplit
betweenalways,frequently,andnever.103
Werecognizethatthereareseveralfactorsthatlimitthefungibilitybetweenandamong
subjectimportsfromeachsourceandthedomesticlikeproduct.First,weldedandseamless
OCTGarenotcompletelyinterchangeable.Importsfromthesubjectcountriestendedtobe

94
USTPL/OCTLPostconferenceBriefat27.
ILJINPostconferenceBriefat2829.
96
SaudiRespondentsPostconferenceBriefat2728.
97
UkraineRespondentsPostconferenceBriefat8.
98
HRPPostconferenceBriefat47.
99
CRatII26,PRatII22.
100
CR/PRatTableII6.
101
CR/PRatTableII6.
102
CR/PRatTableII7.
103
CR/PRatTableII7.
95
18

concentratedinoneproductortheother:importsfromKorea,thePhilippines,Taiwan,Turkey,
andVietnamwerealmostexclusivelyweldedOCTG;importsfromSaudiArabia,Thailand,and
UkrainewereexclusivelyseamlessOCTG;andimportsfromIndiawerepredominantlyseamless
OCTG.104AlthoughseamlessOCTGcanbeusedinanyweldedOCTGapplication,thereverseis
nottrue.CertainhighstressapplicationsrequireseamlessOCTG,andtheseamlessproduct
mayalsobepreferredinsomeapplicationstoreducerisk.105Awitnessforpetitioners
estimatedthatweldedOCTGcouldbeusedfor70percentofseamlessapplicationsanda
witnessforrespondentsnotedthattheyareinterchangeableinmanycasesfroman
engineeringperspective.106Fungibilitymayalsobesomewhatlimitedbyrequirementsfor
premiumconnectionsorforalloyOCTGgrades.107Anotherfactorthatmaylimitfungibility
somewhatistheextenttowhichsubjectcountriesandthedomesticindustryshipunfinishedor
finishedOCTG.USTPL/OCTLcontendsthatthemajorityofimportsfromIndiaandsome
othersubjectcountriesarefinishedOCTG,whilealmostallimportsfromothersubject
countriesconsistofunfinishedOCTGsuchasgreentubesthathavenotbeenheattreatedor
threaded,andplainendpipethatgenerallyhasbeenheattreatedbutnotthreaded.108We
note,however,thatUSTPL/OCTLhasnotprovidedanydatatosupportitsclaimthatimports
fromparticularcountriesarepredominantlyfinishedorunfinishedOCTG.Weintendtogather
shipmentdataonfinishedOCTG,unfinishedOCTG,andgreentubesinanyfinalphaseofthese
investigations.109Wenotehowever,thattotheextentthatanysubjectcountryexportsan
appreciableamountofbothtypesofOCTG,thissupportsafindingofareasonableoverlapof
competition.110ThedomesticindustrysellsbothunfinishedandfinishedOCTG.111Asforthe
undocumentedcontentionsofUSTPL/OCTLandILJINthatunfinishedandfinishedOCTGdonot
competewitheachother,therecordsuggestsotherwise.Forexample,adistributormayweigh
whethertobuyplainendpipe(anunfinishedproduct)andhaveitthreadedand/orcoupledby
afinisherratherthanbuyingafinishedOCTGproduct.112

104
CR/PRatTableIV5.
106
CRatII26,PRatII21.
107
108
USTPL/OCTLPostconferenceBriefat23.
109
PartiesareencouragedtospecifydefinitionsforunfinishedOCTG,finishedOCTG,andgreen
tubessothataccurateshipmentdatacanbegatheredfortheseproducts.
110
ThefactshereareclearlydistinguishablefromthoseintheLightweightThermalPaper
investigation,onwhichUSTPL/OCTLandILJINrely.Inthatcase,allimportsfromonesubjectcountry
werejumborolls,andallimportsfromtheothersubjectcountrywereslitrolls.Thetwoformscouldnot
beusedinterchangeably,andtheCommissionfoundnoreasonableoverlapofcompetitionbasedon
lackoffungibility.CertainLightweightThermalPaperfromChinaandGermany,Inv.Nos.701TA451
and731TA11261127(Final),USITCPub.4043at12(Nov.2008).ContrarytoILJINscontention,the
Commissiondidnotpurporttocreateanyruleconcerningcumulationofunfinishedandfinished
articles.
111
Tr.at8788(Thompson)andU.S.SteelPostconferenceBriefatExh.1,p.19.
112
SeeU.S.SteelPostconferenceBriefatExh.1,pp.1920.
105
19

Onbalance,therecordindicatesasubstantialdegreeofsubstitutabilitybetweenand
amongsubjectimportsfromeachsourceandthedomesticlikeproduct,notwithstandingthe
factorsthatlimitfungibility.
ChannelsofDistribution.Subjectimportsandthedomesticlikeproductsharedthe
samechannelsofdistribution.DuringthePOI,thegreatmajorityofdomesticallyproducedand
importedOCTGfromeachsubjectsourcewereshippedtodistributors.113
GeographicOverlap.Themajorityofimportsfromeachsubjectsourceare
concentratedintheCentralSouthwest.114ThePacificCoastreceivedthesecondgreatestshare
ofsubjectimports,withsubjectimportsfrom***thatregion.115AllrespondingU.S.producers
reportedmakingsalestotheCentralSouthwest,andnineof14reportedmakingsalestothe
PacificCoastregion.
SimultaneousPresenceinMarket.Subjectimportsfromeachsubjectsourcewere
presentintheUnitedStatesineachyearofthePOIandininterim2013,exceptthattherewere
noimportsfromthePhilippinesorThailandin2010.116Subjectimportsfromeachsubject
sourcewerepresentinthemajorityofthe39monthsofthePOI,exceptforimportsfromthe
Philippines(whichwerepresentin17months)andimportsfromThailand(whichwerepresent
in19months).117
Conclusion.Insum,becausetherelevantantidumpingandcountervailingdutypetitions
werefiledonthesameday,andtherecordindicatesthatthereisareasonableoverlapof
competitionbetweenandamongsubjectimportsandthedomesticlikeproduct,wecumulate
subjectimportsfromIndia,Korea,thePhilippines,SaudiArabia,Taiwan,Thailand,Turkey,
Ukraine,andVietnamforpurposesofouranalysisofwhetherthereisareasonableindication
ofmaterialinjury.
VII.
ReasonableIndicationofMaterialInjurybyReasonofSubjectImports

A.
LegalStandard
Inthepreliminaryphaseofantidumpingandcountervailingdutyinvestigations,the
CommissiondetermineswhetherthereisareasonableindicationthatanindustryintheUnited
Statesismateriallyinjuredorthreatenedwithmaterialinjurybyreasonoftheimportsunder
investigation.118Inmakingthisdetermination,theCommissionmustconsiderthevolumeof
subjectimports,theireffectonpricesforthedomesticlikeproduct,andtheirimpacton
domesticproducersofthedomesticlikeproduct,butonlyinthecontextofU.S.production

113
CRatII1,PRatII1.
CRatII3,PRatII3,andCR/PRatTableII2.
115
CRatII3,PRatII3,andCR/PRatTableII2.
116
CR/PRatTableIV2.
117
CR/PRatTableIV6.
118
19U.S.C.1671b(a),1673b(a).
114
20

operations.119Thestatutedefinesmaterialinjuryasharmwhichisnotinconsequential,
immaterial,orunimportant.120Inassessingwhetherthereisareasonableindicationthatthe
domesticindustryismateriallyinjuredbyreasonofsubjectimports,weconsiderallrelevant
economicfactorsthatbearonthestateoftheindustryintheUnitedStates.121Nosinglefactor
isdispositive,andallrelevantfactorsareconsideredwithinthecontextofthebusinesscycle
andconditionsofcompetitionthataredistinctivetotheaffectedindustry.122
AlthoughthestatuterequirestheCommissiontodeterminewhetherthereisa
reasonableindicationthatthedomesticindustryismateriallyinjuredbyreasonofunfairly
tradedimports,123itdoesnotdefinethephrasebyreasonof,indicatingthatthisaspectofthe
injuryanalysisislefttotheCommissionsreasonableexerciseofitsdiscretion.124Inidentifying
acausallink,ifany,betweensubjectimportsandmaterialinjurytothedomesticindustry,the
Commissionexaminesthefactsofrecordthatrelatetothesignificanceofthevolumeandprice
effectsofthesubjectimportsandanyimpactofthoseimportsontheconditionofthedomestic
industry.Thisevaluationunderthebyreasonofstandardmustensurethatsubjectimports
aremorethanaminimalortangentialcauseofinjuryandthatthereisasufficientcausal,not
merelyatemporal,nexusbetweensubjectimportsandmaterialinjury.125
Inmanyinvestigations,thereareothereconomicfactorsatwork,someorallofwhich
mayalsobehavingadverseeffectsonthedomesticindustry.Sucheconomicfactorsmight
includenonsubjectimports;changesintechnology,demand,orconsumertastes;competition
amongdomesticproducers;ormanagementdecisionsbydomesticproducers.Thelegislative
historyexplainsthattheCommissionmustexaminefactorsotherthansubjectimportsto
ensurethatitisnotattributinginjuryfromotherfactorstothesubjectimports,thereby
inflatinganotherwisetangentialcauseofinjuryintoonethatsatisfiesthestatutorymaterial

119
19U.S.C.1677(7)(B).TheCommissionmayconsidersuchothereconomicfactorsasare
relevanttothedeterminationbutshallidentifyeach{such}factor...{a}ndexplaininfullitsrelevance
tothedetermination.19U.S.C.1677(7)(B).
120
19U.S.C.1677(7)(A).
121
19U.S.C.1677(7)(C)(iii).
122
19U.S.C.1677(7)(C)(iii).
123
19U.S.C.1671b(a),1673b(a).
124
AngusChemicalCo.v.UnitedStates,140F.3d1478,148485(Fed.Cir.1998)({T}hestatutedoes
notcompelthecommissionerstoemploy{aparticularmethodology}.),affg944F.Supp.943,951(Ct.
IntlTrade1996).
125
TheFederalCircuit,inaddressingthecausationstandardofthestatute,hasobservedthat{a}s
longasitseffectsarenotmerelyincidental,tangential,ortrivial,theforeignproductsoldatlessthan
fairvaluemeetsthecausationrequirement.NipponSteelCorp.v.USITC,345F.3d1379,1384(Fed.Cir.
2003).ThiswasreaffirmedinMittalSteelPointLisasLtd.v.UnitedStates,542F.3d867,873(Fed.Cir.
2008),inwhichtheFederalCircuit,quotingGeraldMetals,Inc.v.UnitedStates,132F.3d716,722(Fed.
Cir.1997),statedthatthiscourtrequiresevidenceintherecordtoshowthattheharmoccurredby
reasonoftheLTFVimports,notbyreasonofaminimalortangentialcontributiontomaterialharm
causedbyLTFVgoods.SeealsoNipponSteelCorp.v.UnitedStates,458F.3d1345,1357(Fed.Cir.
2006);TaiwanSemiconductorIndustryAssnv.USITC,266F.3d1339,1345(Fed.Cir.2001).
21

injurythreshold.126Inperformingitsexamination,however,theCommissionneednotisolate
theinjurycausedbyotherfactorsfrominjurycausedbyunfairlytradedimports.127Nordoes
thebyreasonofstandardrequirethatunfairlytradedimportsbetheprincipalcauseof
injuryorcontemplatethatinjuryfromunfairlytradedimportsbeweighedagainstotherfactors,
suchasnonsubjectimports,whichmaybecontributingtooverallinjurytoanindustry.128Itis
clearthattheexistenceofinjurycausedbyotherfactorsdoesnotcompelanegative
determination.129
Assessmentofwhethermaterialinjurytothedomesticindustryisbyreasonofsubject
importsdoesnotrequiretheCommissiontoaddressthecausationissueinanyparticularway
aslongastheinjurytothedomesticindustrycanreasonablybeattributedtothesubject
importsandtheCommissionensure{s}thatitisnotattributinginjuryfromothersourcesto

126
SAA,H.R.Rep.103316,Vol.Iat85152(1994)({T}heCommissionmustexamineotherfactorsto
ensurethatitisnotattributinginjuryfromothersourcestothesubjectimports.);S.Rep.96249at75
(1979)(theCommissionwillconsiderinformationwhichindicatesthatharmiscausedbyfactorsother
thanlessthanfairvalueimports.);H.R.Rep.96317at47(1979)(inexaminingtheoverallinjurybeing
experiencedbyadomesticindustry,theITCwilltakeintoaccountevidencepresentedtoitwhich
demonstratesthattheharmattributedbythepetitionertothesubsidizedordumpedimportsis
attributabletosuchotherfactors;thosefactorsincludethevolumeandpricesofnonsubsidized
importsorimportssoldatfairvalue,contractionindemandorchangesinpatternsofconsumption,
traderestrictivepracticesofandcompetitionbetweentheforeignanddomesticproducers,
developmentsintechnologyandtheexportperformanceandproductivityofthedomesticindustry);
accordMittalSteel,542F.3dat877.
127
SAAat85152({T}heCommissionneednotisolatetheinjurycausedbyotherfactorsfrominjury
causedbyunfairimports.);TaiwanSemiconductorIndustryAssn,266F.3dat1345.({T}heCommission
neednotisolatetheinjurycausedbyotherfactorsfrominjurycausedbyunfairimports....Rather,the
Commissionmustexamineotherfactorstoensurethatitisnotattributinginjuryfromothersourcesto
thesubjectimports.(emphasisinoriginal));AsociaciondeProductoresdeSalmonyTruchadeChileAG
v.UnitedStates,180F.Supp.2d1360,1375(Ct.IntlTrade2002)({t}heCommissionisnotrequiredto
isolatetheeffectsofsubjectimportsfromotherfactorscontributingtoinjuryormakebrightline
distinctionsbetweentheeffectsofsubjectimportsandothercauses.);seealsoSoftwoodLumberfrom
Canada,Inv.Nos.701TA414and731TA928(Remand),USITCPub.3658at10001(Dec.2003)
(Commissionrecognizedthat{i}fanallegedotherfactorisfoundnottohaveorthreatentohave
injuriouseffectstothedomesticindustry,i.e.,itisnotanothercausalfactor,thenthereisnothingto
furtherexamineregardingattributiontoinjury),citingGeraldMetals,132F.3dat722(thestatute
doesnotsuggestthatanimporterofLTFVgoodscanescapecountervailingdutiesbyfindingsome
tangentialorminorcauseunrelatedtotheLTFVgoodsthatcontributedtotheharmfuleffectson
domesticmarketprices.).
128
S.Rep.96249at7475;H.R.Rep.96317at47.
129
SeeNippon,345F.3dat1381(anaffirmativematerialinjurydeterminationunderthestatute
requiresnomorethanasubstantialfactorshowing.Thatis,thedumpingneednotbethesoleor
principalcauseofinjury.).
22

thesubjectimports.130131Indeed,theFederalCircuithasexaminedandaffirmedvarious
Commissionmethodologiesandhasdisavowedrigidadherencetoaspecificformula.132
TheFederalCircuitsdecisionsinGeraldMetals,Bratsk,andMittalSteelallinvolved
casesinwhichtherelevantotherfactorwasthepresenceinthemarketofsignificant
volumesofpricecompetitivenonsubjectimports.TheCommissioninterpretedtheFederal
CircuitsguidanceinBratskasrequiringittoapplyaparticularadditionalmethodology
followingitsfindingofmaterialinjuryincasesinvolvingcommodityproductsandasignificant
marketpresenceofpricecompetitivenonsubjectimports.133Theadditional
replacement/benefittestlookedatwhethernonsubjectimportsmighthavereplacedsubject
importswithoutanybenefittotheU.S.industry.TheCommissionappliedthatspecific
additionaltestinsubsequentcases,includingtheCarbonandCertainAlloySteelWireRodfrom
TrinidadandTobagodeterminationthatunderliestheMittalSteellitigation.
MittalSteelclarifiesthattheCommissionsinterpretationofBratskwastoorigidand
makesclearthattheFederalCircuitdoesnotrequiretheCommissiontoapplyanadditional
testnoranyonespecificmethodology;instead,thecourtrequirestheCommissiontohave
evidenceintherecordtoshowthattheharmoccurredbyreasonoftheLTFVimports,and
requiresthattheCommissionnotattributeinjuryfromnonsubjectimportsorotherfactorsto

130
MittalSteel,542F.3dat87778;seealsoid.at873(WhiletheCommissionmaynotenteran
affirmativedeterminationunlessitfindsthatadomesticindustryismateriallyinjuredbyreasonof
subjectimports,theCommissionisnotrequiredtofollowasinglemethodologyformakingthat
determination...{andhas}broaddiscretionwithrespecttoitschoiceofmethodology.)citingUnited
StatesSteelGroupv.UnitedStates,96F.3d1352,1362(Fed.Cir.1996)andS.Rep.96249at75.
131
CommissionerPinkertdoesnotjointhisparagraphorthefollowingthreeparagraphs.Hepoints
outthattheFederalCircuit,inBratsk,444F.3d1369,andMittalSteel,heldthattheCommissionis
required,incertaincircumstanceswhenconsideringpresentmaterialinjury,toundertakeaparticular
kindofanalysisofnonsubjectimports,albeitwithoutrelianceuponpresumptionsorrigidformulas.
MittalSteelexplainsasfollows:

WhatBratskheldisthatwherecommodityproductsareatissueandfairlytraded,
pricecompetitive,nonsubjectimportsareinthemarket,theCommissionwouldnot
fulfillitsobligationtoconsideranimportantaspectoftheproblemifitfailedtoconsider
whethernonsubjectornonLTFVimportswouldhavereplacedLTFVsubjectimports
duringtheperiodofinvestigationwithoutacontinuingbenefittothedomesticindustry.
444F.3dat1369.Underthosecircumstances,BratskrequirestheCommissionto
considerwhetherreplacementoftheLTFVsubjectimportsmighthaveoccurredduring
theperiodofinvestigation,anditrequirestheCommissiontoprovideanexplanationof
itsconclusionwithrespecttothatfactor.

542F.3dat878.
132
NucorCorp.v.UnitedStates,414F.3d1331,1336,1341(Fed.Cir.2005);seealsoMittalSteel,542
F.3dat879(BratskdidnotreadintotheantidumpingstatuteaProcrusteanformulafordetermining
whetheradomesticinjurywasbyreasonofsubjectimports.).
133
MittalSteel,542F.3dat87579.
23

subjectimports.134Accordingly,wedonotconsiderourselvesrequiredtoapplythe
replacement/benefittestthatwasincludedinCommissionopinionssubsequenttoBratsk.
TheprogressionofGeraldMetals,Bratsk,andMittalSteelclarifiesthat,incases
involvingcommodityproductswherepricecompetitivenonsubjectimportsareasignificant
factorintheU.S.market,theCourtwillrequiretheCommissiontogivefullconsideration,with
adequateexplanation,tononattributionissueswhenitperformsitscausationanalysis.135
Thequestionofwhetherthematerialinjurythresholdforsubjectimportsissatisfied
notwithstandinganyinjuryfromotherfactorsisfactual,subjecttoreviewunderthesubstantial
evidencestandard.136CongresshasdelegatedthisfactualfindingtotheCommissionbecause
oftheagencysinstitutionalexpertiseinresolvinginjuryissues.137
B.
ConditionsofCompetitionandtheBusinessCycle
Thefollowingconditionsofcompetitioninformouranalysisofwhetherthereisa
reasonableindicationofmaterialinjurybyreasonofcumulatedsubjectimports.
1.
DemandConditions
AstheCommissionhasfoundinpriorOCTGinvestigationsandreviews,demandfor
OCTGiscyclicalandlargelydrivenbythelevelofactivityintheU.S.economy,specificallyinthe
oilandgasexplorationandproductionsectors.138Becauseoilandnaturalgaspricespartly
influencedrillingactivity,thesepricesalsodrivethedemandforOCTG.139Thedemandfor
OCTGiscloselyassociatedwiththenumberofrigsandtotalfootageofwellsdrilledinthe
UnitedStates.140

134
MittalSteel,542F.3dat873(quotingfromGeraldMetals,132F.3dat722),87579&n.2
(recognizingtheCommissionsalternativeinterpretationofBratskasaremindertoconductanon
attributionanalysis).
135
Tothatend,aftertheFederalCircuitissueditsdecisioninBratsk,theCommissionbeganto
presentpublishedinformationorsendoutinformationrequestsinfinalphaseinvestigationsto
producersinnonsubjectcountriesthataccountedforsubstantialsharesofU.S.importsofsubject
merchandise(if,infact,therewerelargenonsubjectimportsuppliers).Inordertoprovideamore
completerecordfortheCommissionscausationanalysis,theserequeststypicallyseekinformationon
capacity,production,andshipmentsoftheproductunderinvestigationinthemajorsourcecountries
thatexporttotheUnitedStates.TheCommissionplanstocontinueutilizingpublishedorrequested
informationinfinalphaseinvestigationsinwhichtherearesubstantiallevelsofnonsubjectimports.
136
Weprovideinourrespectivediscussionsofvolume,priceeffects,andimpactafullanalysisof
otherfactorsallegedtohavecausedanymaterialinjuryexperiencedbythedomesticindustry.
137
MittalSteel,542F.3dat873;NipponSteelCorp.,458F.3dat1350,citingU.S.SteelGroup,96F.3d
at1357;S.Rep.96249at75(ThedeterminationoftheITCwithrespecttocausationis...complexand
difficult,andisamatterforthejudgmentoftheITC.).
138
2010OCTG,USITCPub.4124at12;CRatII12,PRatII11.
139
CRatII12,PRatII11.
140
CRatII1,PRatII1.
24

OCTGdemandroseconsiderablyduringthePOI.ApparentU.S.consumptionofOCTG
increasedfrom5.0millionshorttonsin2010to6.1millionshorttonsin2011and7.2million
shorttonsin2012.141MeasuresofOCTGdemandincreasedsharplybetweenJanuary2010and
November2011beforebeginningasmallandirregulardecline.142Specifically,rigcountand
totalfootagedrilledincreasedbetween2010and2011,thendeclinedslightlyin2012.143
Operatorconsumptionfigures,whichtrackOCTGusedbywelloperators,increasedsteadily
from2010to2012beforedeclininginthefirsthalfof2013.144Somerespondingproducersand
importersnotedthatdemandhasnotincreasedinrecentmonths.145

U.S.producersandrespondentsgenerallyagreethatdemandforOCTGhasrisensharply
sinceJanuary2010.146Thisislargelyduetoincreaseduseofhydraulicfracturing(alsoknownas
fracking)andhorizontaldrillingandincreaseddrillingspurredbyhigheroilprices.147Since
January2010,horizontaldrillingandfrackinghaveplayedanincreasingroleinoilandgas
exploration.148Becausebothtechniquesallowwellstoreachfurther,thefootageofOCTGused
whenfrackingand/orhorizontaldrillingisgreateronaperwellbasisthanthefootageusedin
traditionalverticalwells.149Thisincreasehasalsoledtogreaterdemandforpremiumand
semipremiumconnectionsandthreadsforthesehighstressapplications.150
2.
SupplyConditions

ThethreesourcesofOCTGsupplyintheU.S.marketaredomesticshipments,importsof
subjectmerchandiseandimportsfromnonsubjectcountries.OCTGimportsfromChinahaveall
butdisappearedfromtheU.S.marketafterantidumpingandcountervailingdutyorderswere
imposedonOCTGfromChinain2010.151

141
CR/PRatTableIV7.Apparentconsumptionforinterim2013was1.7millionshorttons,slightly
lowerthanthe1.9millionshorttonsininterim2012.
142
CR/PRatFiguresII3,II4,andII5.
143
CR/PRatFiguresII4andII5.ThenumberofrigsintheUnitedStateswasaround1,200atthe
beginningof2010,rosetoaround1,700inearly2011,andpeakedatslightlygreaterthan2,000inlate
2011beforebeginningtodeclineslowlythroughthefirsthalfof2012andmorerapidlyinthesecond
halfofthatyear.Rigcounthashoveredaround1,750throughouttheinterim2013period.Total
footagedrilledwasaround240millionfeetin2010,roseabove300millionfeetin2011,anddropped
slightly,butremainedover300millionfeetin2012.
144
CR/PRatFigureII3.
145
CRatII19,PRatII16.
146
CRatII18,PRatII16;KoreanRespondentGroupPostconferenceBriefat16(incorporatedby
referencebyTaiwanandthePhilippineRespondents,Borusan,USTPL/OCTL,theJindalGroup,
ayirova/Toselik,andHRP).
147
CRatII19,PRatII16.
148
CRatII1,PRatII1.
149
CRatI1718andII1,PRatI1415andII1.
150
CRatII27,PRatII22.
151
ExhibitstoTestimonyofMr.Hecht,Skadden,Arps,Slate,MeagherandFlomLLC,Tr.Appendixat
2.
25

The13domesticproducersthatrespondedtotheCommissionsU.S.producers
questionnaireaccountedforthevastmajorityofOCTGproducedintheUnitedStates.152The
domesticindustryscapacityincreasedfrom5.5millionshorttonsin2010to5.7millionshort
tonsin2011and6.0millionshorttonsin2012.153Capacityutilizationincreasedfrom52.5
percentin2010to60.7percentin2011and63.0percentin2012.154U.S.producershave
plannedfurtherexpansionsandadditionalplantopeningsinthecurrentandfollowingyears.155

The32subjectproducers/exportersofOCTGthatrespondedtotheCommissions
questionnairesaccountedforallorvirtuallyallimportsofOCTGin2012ineightofthenine
subjectcountriesintheseinvestigations.156Subjectcapacityrosefrom2.2millionshorttonsin
2010to3.0millionshorttonsin2011and3.2millionshorttonsin2012.157Subjectcapacity
utilizationalsorose,from58.6percentin2010to66.0percentin2011and69.8percentin
2012.158Contributingtothisincreasedsubjectcapacityarenewproductionfacilitiesinthe
PhilippinesandThailandthatpetitionersallegewereestablishedbyfirmsaffiliatedwith
producersinChinanowsubjecttoU.S.antidumpingandcountervailingdutyorders.159

152
CRatIII1,PRatIII1.
CR/PRatTableIII3.Thedomesticindustryscapacitywas1.5millionshorttonsininterim2012
and1.6millionshorttonsininterim2013.
154
CR/PRatTableII3.Capacityutilizationwas69.7percentininterim2012and65.4percentin
interim2013.
155
CR/PRatTableIII2.TableIII2liststhevariousinvestments,changesinproductioncapacity,
acquisitions/mergers,andshutdownsinthedomesticindustrysince2010.Thetablelists20instances
whereproducershaveannouncedconstructionofadditionalfacilities,upgradedequipment,added
productionlines,and/orcommissionednewmills.Severalproducersalsoreportedhavingtoshutdown
facilitiestemporarilyduetolackoforders,curtailproduction,and/orcurtailemployment.CRatIII56,
PRatIII4.
For2013andbeyond,TenarisannounceditsintentiontobuildanewseamlessmillinTexasby2016,
BorusanandMannesmanbrokegroundonamillinTexasthatisexpectedtobeginproductionofOCTG
in2015;VallourecexpectstobeginheattreatmentandfinishingoperationsinanewmillinOhio;
WeldedTubehasbegunconstructionofamillinNewYorkthatisexpectedtobeginproductionin2013;
OMKcommissionedamillinTexasthatisexpectedtoreachfullcapacitybymid2013;BigRiverSteel
announcedaproposedmillwithanannualcapacityof1.7millionshorttons;andTexasSteelConversion
has***.CR/PRatTableIII2.SeealsoCR/PRTableVI4,showingcapitalexpendituresincreasingfrom
$269.0millionin2010to$711.1millionin2011anddecreasingto$616.9millionin2012.
156
CRatVII4,9,13,17,22,26,30,34,and38;PRatVII3,7,9,11,13,14,16,17,and19.
Respondingproducers/exportersfromVietnamaccountedforonly***percentofimportsofOCTGfrom
Vietnamin2012.CRatVII38,PRatVII19.
157
CR/PRatTableVII19.Subjectcapacitywas802,900shorttonsininterim2012and817,800short
tonsininterim2013.
158
CR/PRatTableVII19.Subjectcapacityutilizationwas70.5percentininterim2012and67.7
percentininterim2013.
159
SeeCRatVII13,PRatVII9;CRatVII26,PRatVII14.ThePhilippineRespondentscapacity
increasedfromnonein2010to***shorttonsin2011,andincreased***percentin2012.Capacity
utilizationinthePhilippinesincreasedfrom***percentin2011to***percentin2012.InThailand,
(Continued)
153
26

ImportsfromnonsubjectcountrieswerepresentintheU.S.marketthroughoutthe
POI. Theyoriginatedfromavarietyofcountries,includingCanada,Japan,Germany,Mexico,
Argentina,Austria,Russia,Romania,Colombia,Brazil,andSpain.Thelargestsourcesof
nonsubjectimportsduringthePOIwereCanada,Japan,Germany,Mexico,andArgentina.161
SeveraldomesticproducershaveaffiliatesthatproduceOCTGinnonsubjectcountriessuchas
***.162
Asizeableportionofimportsfromsubjectand,tosomedegree,nonsubjectsources
consistsofOCTGproductsthatarefurtherprocessedintheUnitedStates,suchasgreentubes
thatmaynothavebeenheattreatedorthreaded,aswellasplainendpipethatmayhavebeen
heattreatedbutnotthreaded.Wewillseekmoreinformationinanyfinalphaseofthese
investigationsregardingthenatureandextentofcompetitionamongOCTGproductsatthe
variousstagesofprocessing,includinghowtheimportedproductscompetewithproducts
manufactureddomestically.
InventoriesofU.S.producedOCTGandOCTGfromsubjectcountriesbothintheUnited
Statesandinthesubjectcountriesarealsoasourceofcurrentsupply.U.S.inventoriesof
domesticproductwereattheirlowestin2010andpeakedinabsolutetermsinMarch2012.163
PetitionersassertthatthecurrentinventoriesofOCTGfromallsourcesrepresent
approximatelya5monthsupplyandthatthisinventoryoverhangistoohigh.164Cumulated
inventoriesofsubjectimportsintheUnitedStateshaveincreasedfrom143,927shorttonsin
2010,to190,730shorttonsin2011,andreached323,088shorttonsin2012.165Wewillseek
furtherinformationinanyfinalphaseinvestigationsregardingfactorswhichmightaffect
inventorylevelsandseekpartiescommentsontypicalinventorylevelsinthisindustry.
160
3.
Substitutability
OCTGisproducedaccordingtostandardsandspecificationspublishedbyanumberof
organizations,includingtheAPI.166OnceamillpassesinspectionandobtainsAPIcertification,
itmaybeginmarketingitsOCTGasAPIgrade.167OCTGisusuallyproducedinaccordancewith

(Continued)
capacityincreasedfromnonein2010to***shorttonsin2011,and***shorttonsin2012.Capacity
utilizationwas***percentinthefirstyearofproductionandincreasedto***percentin2012.
160
CR/PRatTableIV2.
161
CR/PRatTableIV3.
162
CR/PRatTableIII1.
163
CRatIII14,PRatIII8.InventoriesasapercentofU.S.shipments,however,declinedfrom14.0
percentin2010to12.4percentin2011and10.7percentin2012.Theywere11.8percentininterim
2012and12.0percentininterim2013.
164
U.S.SteelPostconferenceBriefat49(citingPetitionVol.I,ExhibitI53).
165
CR/PRatTableC1.
166
CRatI15,PRatI12.Whileotherorganizationsandstandardsexist,forthepurposesofthese
investigations,wewillidentifydifferentgradesofOCTGusingAPIstandardsandspecifications.
167
Tr.at120(Miller).
27

APIspecification5CT,whichencompasses22separategradesofcasingandtubing.168OCTGis
alsoproducedintwoforms:seamlessorwelded.
ThereisahighdegreeofsubstitutabilitybetweenU.S.producedOCTGandimported
OCTGthatisofthesameAPIgradeandtype.169Mostproducersandimportersindicatedthat
subjectimportsanddomesticallyproducedOCTGarealwaysorfrequently
interchangeable.170AfewimportersindicatedthatdomesticandsubjectcountryOCTGare
onlysometimesinterchangeable,asdiscussedabove.

PetitionersassertthatthePOIwascharacterizedbyanincreasingpresenceof
commoditygradeOCTG,asopposedtopremiumorproprietaryOCTG.171However,thereisa
lackofclarityintherecordintheseinvestigationsastothedefinitionsofcommodity,standard,
semipremium,andpremiumOCTG.172Nordoestherecordprovideanyclearexplanationof
howproprietarygradesofOCTGfitintoand/oroverlapthesecategoriesandwhetherthese
designationsapplytojustpipe,thenatureofthethreadingorendfinishing,and/oralsoapply
tocouplingstock.Wewillseekfurtherinformationinanyfinalphaseinvestigations,including
butnotlimitedto,thedefinitionofpremiumOCTG,howspecificAPIgradesmightcorrelate
withcommodityorpremiumgradeOCTG,whethercouplingstockcanbemanufacturedin
premiumstandards,andwhatpercentofthemarketisoccupiedbyproprietary,premium,
semipremium,standard,andcommodityOCTG.Weinvitepartycommentsontheappropriate
definitionsinthecommentsonthedraftquestionnairesforthefinalphaseofthese
investigations.Wealsointendtoexploretheextenttowhichsuchdesignationsaffectpricesof
thevariousOCTGproducts.

4.
OtherConditionsofCompetition
OCTGintheUnitedStatesisvirtuallyalwayssoldthroughadistributor.Approximately
99percentofOCTGproducedintheUnitedStatesandatleast***percentofOCTGimported
fromsevenoftheninesubjectcountrieswassoldtoadistributorduringthePOI.173The
remainingtwosubjectcountries,SaudiArabiaandUkraine,sold***percent,respectively,of
theirOCTGtodistributors.174
U.S.distributorsallreportedsellingaportionoftheirOCTGstocktoendusersthrough
programsales.Programsales,whichreportedlyrepresentasizeableportionoftheU.S.
market,arenoncontractualobligationsamongmills,distributors,andendusers.175Program
salesarrangementslayoutwhichtypeofOCTGistobesupplied,whenitwillbedelivered,and

168
CRatI20n.22,PRatI17,n.22.
CRatII22,PRatII18.
170
CRatII25,PRatII19.
171
See,e.g.,Tr.at29(Matthews),119(Schagrin),and120(Thompson).
172
Tr.at13536(Thompson)({Thedifferencebetweencommodity,standard,semipremiumand
premiumOCTG}isalittlebitconfusing....Ithinkifyouaskallofus,wellgiveyouadifferentanswer.)
173
CRatII1,PRatII1.
174
CRatII1,PRatII1;CR/PRatTableII1.
175
CRatII28,PRatII23.
169
28

atwhatprice.176Themajorityoftherespondentsarguedthattheyarelockedoutofprogram
sales;duetogeographicboundaries,theyareunabletomeetshortdeadlinesorguarantee
timelydelivery.177OnlyKoreanRespondentsandUSTPL/OCTLreportedparticipatingin
programsales,USTPL/OCTLtoalimiteddegreeandKoreanRespondentsasasupplemental
supplier.178ItisunclearwhetherexistinginventoriesintheU.S.marketenableasupplierto
participateinprogramsales.Wewillseekfurtherinformationinanyfinalphaseinvestigations
regardingprogramsales,specificallywhatshareoftheU.S.markettheycover,howthey
operate,includingtowhatextentotherproductscanbesubstitutedwithinaprogramsale
agreement,andhowpricesforOCTGnotsoldinprogramsalesaffectprogramsaleprices.
C.
VolumeofSubjectImports
Section771(7)(C)(i)oftheTariffActprovidesthattheCommissionshallconsider
whetherthevolumeofimportsofthemerchandise,oranyincreaseinthatvolume,eitherin
absolutetermsorrelativetoproductionorconsumptionintheUnitedStates,issignificant.179
CumulatedsubjectimportshaveheldasubstantialpresenceintheU.S.market
throughoutthePOI.Cumulatedsubjectimportsincreasedfrom850,000shorttonsin2010to
1.3millionshorttonsin2011,andreached1.8millionshorttonsin2012.180Theabsolute
volumeofcumulatedsubjectimportsincreasedsharplysince2010,whenCommerceissued
antidumpingandcountervailingdutyordersonOCTGfromChina.181Asexplainedabove,
apparentU.S.consumptionroseduring20102012,increasingby22.3percentbetween2010
and2011andby16.8percentbetween2011and2012foranoverallincreaseof42.8percent
between2010and2012.182Thevolumeofcumulatedsubjectimportsrosefaster,increasingby

176
CRatII28,PRatII23.
SaudiArabiaPostconferenceBriefat21;KoreaRespondentsat1011;CayirovaPostconference
Briefat7;UkrainePostconferenceBriefat21;HRPPostconferenceBriefat5;andPhilippineRespondent
PostconferenceBriefat13.WhileILJIN,SeAH,andThaiRespondentsdidnotbriefthisissue,witnesses
attheconferencereportedthatallsubjectimportsexceptforthosefromKoreawereexcludedfrom
programsales.Tr.at253259(Brewer,Cameron,Echevaria,Fowler,Khandelwal,McConnell,and
Simon).
178
USTPL/OCTLPostconferenceBriefat10,citingTr.at194(Ingeneral,Indianproducersparticipate
onlytoalimiteddegreeinprogramsalesandhighvolumeprocurementbidswithU.S.endusers);Joint
RespondentGroupPostconferenceBriefat15.
179
19U.S.C.1677(7)(C)(i).
180
CR/PRatTableIV2.Cumulatedsubjectimportswere476,800shorttonsininterim2012and
440,000shorttonsininterim2013.
181
CertainOilCountryTubularGoodsFromthePeoplesRepublicofChina:AmendedFinalAffirmative
CountervailingDutyDeterminationandCountervailingDutyOrder,75Fed.Reg.3203(Jan.20,2010);
CertainOilCountryTubularGoodsFromthePeoplesRepublicofChina:AmendedFinalDeterminationof
SalesatLessThanFairValueandAntidumpingDutyOrder,75Fed.Reg.28551(May21,2010).
182
CR/PRatTableC1.ApparentU.S.consumptionininterim2013was11.2percentlowerthanin
interim2012.Id.
177
29

55.1percentbetween2010and2011andby37.2percentbetween2011and2012,foran
overallincreaseof112.8percentbetween2010and2012.183
Themarketshare(byquantity)ofcumulatedsubjectimportsincreasedfrom17.0
percentin2010to21.5percentin2011and25.3percentin2012.184Thisgaininmarketshare
cameattheexpenseofboththedomesticindustryandnonsubjectimports.Thedomestic
industrysmarketsharedecreasedfrom53.7percentin2010to53.6percentin2011and50.0
percentin2012.185Nonsubjectimportsmarketsharedecreasedby4.6percentagepointsfrom
29.3percentin2010to24.9percentin2011and24.7percentin2012.186
CumulatedsubjectimportsofOCTGwerealsosignificantrelativetodomestic
production.Theratioofcumulatedsubjectimportstodomesticproductionincreasedfrom
29.5percentin2010to37.8percentin2011andto47.9percentin2012.187
Forpurposesofthesepreliminarydeterminations,wefindthatthecumulatedvolume
ofsubjectimports,andtheincreaseinthatvolume,issignificantbothinabsolutetermsand
relativetoconsumptionandproductionintheUnitedStates.
D.
PriceEffectsoftheSubjectImports
Section771(7)(C)(ii)oftheTariffActprovidesthat,inevaluatingthepriceeffectsof
subjectimports,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, which
otherwisewouldhaveoccurred,toasignificantdegree.188
Therecordinthesepreliminaryphaseinvestigationsindicatesthatsubjectimportsand
domesticallyproducedOCTGmadetothesamespecificationsarehighlysubstitutableandthat
priceisanimportantfactorinpurchasingdecisions.189

183
CR/PRatTableC1.Thevolumeofcumulatedsubjectimportsininterim2013was7.7percent
lowerthanininterim2012.Id.
184
CR/PRatTableIV8.Cumulatedsubjectimportsheld25.4percentofU.S.marketshareininterim
2012and26.4percentofmarketshareininterim2013.Id.
185
CR/PRatTableIV8.Thedomesticindustrysmarketsharewas50.5percentininterim2012and
55.1percentininterim2013.Id.
186
CR/PRatTablesIV8andC1.U.S.importsfromnonsubjectcountrieswere5.6percentagepoints
lowerbyquantity,and4.3percentagepointslowerbyvalue,ininterim2013thanininterim2012.Id.
187
CR/PRatTableIV9.Theratiowas45.3percentininterim2012and43.2percentininterim2013.
Id.
188
19U.S.C.1677(7)(C)(ii).
189
CR/PRatTablesII6andII7.
30

TheCommissioncollectedquarterlypricingdataonsixOCTGproducts.190ElevenU.S.
producersand19importersprovidedusablepricingdataforsalesoftherequestedproducts,
althoughnotallfirmsreportedpricingforallproductsandallquarters.191192
Thepricingdatashowthatthesubjectimportsundersoldthedomesticlikeproductin
153of192possiblecomparisons,andoversoldthedomesticlikeproductintheremaining39
instances.193Themarginsofundersellingrangedupto45.0percent,andtheaveragemarginof
undersellingwas9.5percent.194Giventhehighfrequencyofundersellingandthefactthat
priceisanimportantconsiderationinpurchasingdecisions,wefindtheundersellingtobe
significant.195
Overall,pricesforthedomesticlikeproductbetweenthefirstandthelastquarterofthe
POIincreasedbybetween0.1and6.7percent.Theincreaseinpriceswasnotsteady.In
general,pricesincreasedduring2010and2011,anddecreasedduring2012andinthefirst
quarterof2013.Domesticpriceswerelowestforeachofthe6productsinthefirstquarterof
2010andhighestinthesecondhalfof2011orfirsthalfof2012.Pricingdataforimporterswas
morevaried,bothintermsofpricechangesbetweenthefirstandlastyearoftheperiod,and
withrespecttowhenthehighestorlowestvalueswereobserved.196
Thereisevidencethatsubjectimportshadpricesuppressingeffectsonthedomestic
likeproductduringthePOI.OverthePOI,thedomesticindustrysratioofcostofgoodssold

190
Thepricingproductswere:Product1Tubing,GradeL80,27/8"O.D.,6.5lbs./ft.,threadedand
coupled,range2,seamless;Product2Tubing,GradeJ55,23/8"O.D.,4.7lbs./ft.,threadedand
coupled,range2,welded;Product3Casing,GradeJ55,5"O.D.,17.0lbs./ft.,threadedandcoupled,
range3,welded;Product4Casing,GradeP110,5"O.D.,17.0lbs./ft.,threadedandcoupled,range
3,seamless;Product5Casing,GradeJ55,85/8"O.D.,32.0lbs./ft.,threadedandcoupled,range3,
welded;andProduct6Casing,GradeJ55,95/8"O.D.,36.0lbs./ft.,threadedandcoupled,range3,
welded.CRatV910,PRatV6.
191
CRatV10,PRatV6.Reportedpricingproductsrepresented10.5percentofU.S.shipmentsof
U.S.producedproducts,and2.8percentofshipmentsofimportedproductfromIndia,3.8percentof
shipmentsofimportedproductfromKorea,3.2percentofshipmentsofimportedproductfromthe
Philippines,3.2percentofshipmentsofimportedproductfromSaudiArabia,0.8percentofshipments
ofimportedproductfromTaiwan,2.6percentofshipmentsofimportedproductfromThailand,10.1
percentofshipmentsofimportedproductfromTurkey,5.3percentofshipmentsofimportedproduct
fromUkraine,and6.9percentofshipmentsofimportedproductfromVietnam.CRatV10,PRatV67.
Weinvitethepartiesintheircommentsonthedraftquestionnairesforthefinalphaseofthese
investigationstocommentontheproposedpricingproducts.
192
CRatV10,PRatV7.
193
CRatV27,PRatV17.
194
CRatV27,PRatV17.
195
Respondentsarguethatthereisastrongpreferenceamongpurchasersforthedomesticproduct
duetoshorterleadtimes,greaterflexibility,andalsoforliabilityreasons,andthat,forthesereasons,
customersrequireadiscountwhenpurchasingfromimportsources.E.g.,JointRespondentsBriefat14
and25.Thereisnotenoughinformationontherecordofthepreliminaryphaseoftheseinvestigations
forustoassesswhetherthedomesticproductcommandsapricepremium,andif,so,themagnitudeof
thatpremium.Wewillexplorethisissuefurtherinanyfinalphaseoftheseinvestigations.
196
CRatV23,PRatV14;CR/PRatTablesV4toV9.
31

(COGS)tonetsalesincreasedeachyear.197DespiteanoverallincreaseinapparentU.S.
consumption,increasesinannualnetsalesrevenuewerenotenoughtocoverincreasesin
costs,suggestingthatthedomesticindustrywasexperiencingacost/pricesqueeze.198
Thereisfurthersupportforourfindingofevidenceofpricesuppressionintherecord
informationonthelostsalesandlostrevenueexperiencedbythedomesticindustry.
Petitionersmade74lostsalesallegationstotaling$267millionandinvolving155,408shorttons
and13lostrevenueallegationstotaling$1.1millionandinvolving12,372shorttons.Intotal,
purchasersagreedwithallegationstotaling32,940shorttonsoflostsales,accountingfor$53.8
million,aswellas9,905shorttonsoflostrevenueaccountingfor$935,287.199Additionally,six
of15respondingproducersreportedswitchingtosubjectimports,witheachreportingdoingso
forpricereasons,and11of14respondingimportersreportedU.S.producershadtoreduce
theirpricestocompetewithOCTGfromthesubjectcountries.200
Accordingly,basedontherecordinthepreliminaryphaseoftheseinvestigations,we
findthepriceundersellingbythesubjectimportstobesignificantandevidencethattheprice
ofsubjectimportspreventeddomesticpriceincreaseswhichotherwisewouldhaveoccurredto
asignificantdegree.Wethusfindforthepurposesofthesepreliminarydeterminations
evidencethatsubjectimportshadanadverseeffectonpricesofthedomesticlikeproduct.

E.
ImpactoftheSubjectImports201
Section771(7)(C)(iii)oftheTariffActprovidesthattheCommission,inexaminingthe
impactofthesubjectimportsonthedomesticindustry,shallevaluateallrelevanteconomic
factorswhichhaveabearingonthestateoftheindustry.Thesefactorsincludeoutput,sales,
inventories,capacityutilization,marketshare,employment,wages,productivity,profits,cash
flow,returnoninvestment,abilitytoraisecapital,researchanddevelopment,andfactors
affectingdomesticprices.Nosinglefactorisdispositiveandallrelevantfactorsareconsidered

197
TheratioofCOGStonetsalesincreasedfrom77.3percentin2010to81.6percentin2011and
82.8percentin2012.TheratioofCOGStonetsaleswas77.6percentininterim2012and86.2percent
ininterim2013.CR/PRatTableC1.TheJointRespondentGrouparguesthatanyincreaseinthisratio
isduetoanincreaseinthedomesticindustrysfactorycostsassociatedwithnewentrantsinthe
market.JointRespondentGroupPostconferenceBriefat2930.Weintendtoexplorethisissueinany
finalphaseoftheseinvestigations.
198
Unitnetsalesvalueswere$1,615in2010,$1,696in2011,$1,729in2012.UnitCOGSwere$1,247
in2010,$1,384in2011,$1,432in2012,$1,356.79ininterim2012,and$1,351.82ininterim2013.
CR/PRatTableC1.
199
CRatV3031,PRatV20.
200
CRatV36,PRatV21.
201
Inthenoticeinitiatingitsantidumpingdutyinvestigations,Commerceestimatedantidumpingduty
marginsof12.67percentto239.64forimportsfromIndia,66.19percentto158.53percentforimports
fromKorea,46.04percentto56.38percentforimportsfromthePhilippines,53.34percentforimports
fromSaudiArabia,68.44percentto70.98percentforimportsfromTaiwan,118.32percentforimports
fromThailand,44.52percentto47.20percentforimportsfromTurkey,25.75percentto30.76percent
forimportsfromUkraine,and103.43percentto111.47percentforimportsfromVietnam.CRatI12
13,PRatI11.
32

withinthecontextofthebusinesscycleandconditionsofcompetitionthataredistinctiveto
theaffectedindustry.
Thedomesticindustrysproductionincreasedfrom2.9millionshorttonsin2010to3.5
millionshorttonsin2011and3.8millionshorttonsin2012.202Thedomesticindustrys
productioncapacitywas5.5millionshorttonsin2010,5.7millionshorttonsin2011,and6.0
millionshorttonsin2012.203Capacityutilizationimprovedfrom52.5percentin2010to60.7
percentin2011and63.0percentin2012.204ThedomesticindustrysU.S.shipmentsincreased
from2.7millionshorttonsin2010to3.3millionshorttonsin2011and3.6millionshorttonsin
2012.205Endinginventoryquantitieswere376,911shorttonsin2010,406,604shorttonsin
2011,and382,718shorttonsin2012.206
Theindustrysemploymentindicatorsimprovedthroughout20102012.207Thenumber
ofproductionworkerswas6,002in2010,6,731in2011,and7,453in2012.208Hoursworked
totaled12.7millionin2010,14.3millionin2011,and16.1millionin2012.209Wagespaidwere
$345.5millionin2010,$392.4millionin2011,and$469.4millionin2012.210
Thedomesticindustrystotalnetsalesroseinthe20102012period.211Totalnetsales
were$4.6billionin2010,$5.9billionin2011,and$6.5billionin2012.212Operatingincome
increasedfrom$620.5millionin2010to$645.1million2011,butthendeclinedto$639.0
millionin2012.Ofthe$639.0millioninoperatingincomerecordedin2012,$281.0millionwas

202
CR/PRatTableIII3.Productionof1.0millionshorttonsininterim2013waslowerthan1.1
millionshorttonsininterim2012.Id.
203
CR/PRatTableIII3.Capacitywashigher,at1.6millionshorttonsininterim2013,thanininterim
2012,whenitwas1.5millionshorttons.Id.
204
CR/PRatTableIII3.Capacityutilizationwas69.7percentininterim2012and65.4percentin
interim2013.Id.
205
CR/PRatTableIII5.TheindustrysU.S.shipmentswere947,215shorttonsininterim2012and
918,164shorttonsininterim2013.Id.
206
CR/PRatTableIII7.Endinginventorieswerelowerininterim2013,at439,450shorttons,thanin
interim2012,whentheywere448,792shorttons.Id.
207
CR/PRatTableIII9.Wagespaidandproductivity,however,wereslightlylowerininterim2013
thanininterim2012.Id.
208
CR/PRatTableIII9.Therewere7,314productionworkersininterim2012and7,460production
workersininterim2013.Id.
209
CR/PRatTableIII9.Hoursworkedwere4.1millioninbothinterim2012andinterim2013.Id.
210
CR/PRatTableIII9.Wagespaidwere$120.8millionininterim2012and$120.1ininterim2013.
Productivity(inshorttonsper1,000hours)was227.8in2010,243.9in2011,234.1in2012,259.7in
interim2012,and248.5ininterim2013.Id.
211
CR/PRatTableVI1.
212
CR/PRatTableVI1.Thedomesticindustrystotalnetsaleswere$1.8billionininterim2012and
$1.5billionininterim2013.Id.
33

recordedinthefirstquarterofthatyear.213Operatingincomemarginsdeclinedthroughoutthe
POI.Theywere13.6percentin2010,11.0percentin2011,and9.8in2012.214
ThedomesticindustrymadesignificantcapitalexpendituresduringthePOI$269.0
millionin2010,$711.1millionin2011,and$616.9millionin2012.215Thepartiesweredivided
astothesignificanceoftheseexpenditures.Petitionerscontendthattheseinvestmentsinnew
plantandequipmentmakethedomesticindustryespeciallyvulnerabletotheeffectsofsubject
imports,becauseoftheneedtoearnareasonablereturnontheseinvestments.216
Respondentsarguethattheseinvestmentsareasignofthedomesticindustryshealth.217We
invitefurthercommentonthisissueinanyfinalphaseoftheseinvestigations.
Asdiscussedabove,wehavefoundthecumulatedvolumeofsubjectimportsandthe
marketshareofthoseimportstohavebeensignificantoverthePOI,thattheseimports
undersoldthedomesticlikeproducttoasignificantdegree,andthatthereisevidenceofprice
suppressionbythesubjectimports.Thedomesticindustrysoperatingincomeandmarket
sharedeclinedfrom2011to2012,despitearobustincreaseindemandandavailablecapacity
overthatperiod.218Anumberofthedomesticindustryseconomicindicatorswerelowerin
interim2013thanininterim2012.Consequently,wefind,forpurposesofthepreliminary
phaseoftheseinvestigations,thatthereisareasonableindicationthatthelargeandincreasing
volumeofsubjectimportshadamaterialadverseimpactonthedomesticindustry.
Inconductingourimpactanalysis,wehavealsoconsideredtheroleofnonsubject
importssoasnottoattributeinjuryfromthemtosubjectimports.219Thevolumeofnonsubject

213
CR/PRatTableVI1.
CR/PRatTableVI1.Theoperatingmarginwas5.8percentininterim2013,sharplylowerthanthe
16.0percentlevelininterim2012.Operatingincomeof$89.1millionininterim2013wassharplylower
thanthe$281.0millionoperatingincomeininterim2012.Id.
215
CR/PRatTableVI5.Capitalexpenditureswere$130.7millionininterim2012and$88.4millionin
interim2013.Thedomesticindustrysresearchanddevelopmentexpenseswere$2.1millionin2010,
$3.5millionin2011,$6.4millionin2012,$1.1millionininterim2012,and$1.8millionininterim2013.
Id.
216
E.g.,U.S.SteelPostconferenceBriefat12.
217
E.g.,JointRespondentsPostconferenceBriefat3334.
218
Thedomesticindustrysoperatingincomefellfrom$645.1millionin2011to$639.0millionin
2012,anditsmarketsharefellfrom53.6percentto50.0percent,whileU.S.consumptionrosefrom6.1
millionshorttonsin2011to7.2millionshorttonsin2012.CR/PRatTableC1.
219
Basedontheavailableevidenceinthesepreliminaryinvestigations,CommissionerPinkertfinds
thatpricecompetitivenonsubjectimportswereasignificantfactorintheU.S.marketforoilcountry
tubulargoodsduringtheperiodofinvestigation.Healsofinds,however,thatregardlessofwhetheroil
countrytubulargoodsconstituteacommodityproduct,nonsubjectimportswouldnothavereplaced
thesubjectimportswithoutbenefittothedomesticindustryhadthesubjectimportsexitedthemarket
duringtheperiod.Theaverageunitvaluesofthenonsubjectimportswereconsistentlyhigherthan
thoseofthesubjectimports.CR/PRatTableIV2.Moreover,pricesfornonsubjectimportsfrom
Canada,thelargestsourceofnonsubjectimports,werehigherthanthepricesforsubjectimportsin70
outof109possibleinstancesandlowerin39outof109.CR/PRatTableIV3,D3.Thus,any
replacementofthesubjectimportsbynonsubjectimportswouldgenerallyhavebeenathigherprices,
whichwouldhavebenefitedthedomesticindustry.
214
34

importsincreasedinthe20102012period,buttheirmarketsharedeclined,atthesametime
asthemarketshareofsubjectimportsincreased.Thevolumeofnonsubjectimportswas1.47
millionshorttonsin2010,1.53millionshorttonsin2011,and1.77millionshorttonsin2012.
Themarketshareoftheseimports,measuredbyquantity,was29.3percentin2010,24.9
percentin2011,and24.7percentin2012.220Theaverageunitvalueofnonsubjectimportswas
substantiallyhigherthantheaverageunitvalueofsubjectimportsthroughoutthePOI.221
VIII. Conclusion
Forthereasonsstatedabove,wedeterminethatthereisareasonableindicationthatan
industryintheUnitedStatesismateriallyinjuredbyreasonofsubjectimportsofOCTGfrom
India,Korea,thePhilippines,SaudiArabia,Taiwan,Thailand,Turkey,Ukraine,andVietnamthat
areallegedlysoldintheUnitedStatesatlessthanfairvalueandthatareallegedlysubsidizedby
theGovernmentsofIndiaandTurkey.

220
CR/PRatTablesIV2andIV8.Boththevolumeandmarketshareofnonsubjectimportswere
lowerininterim2013,at307,457shorttonsand18.5percent,thanininterim2012,whentheywere
451,279shorttonsand24.1percent.Id.
221
CR/PRatTableIV2.Werecognizethataverageunitvaluesareoflimitedvaluebecausetheymay
reflectdifferencesinproductmixratherthandifferencesinprice.
35

PARTI: INTRODUCTION
BACKGROUND
TheseinvestigationsresultfromapetitionfiledwiththeU.S.DepartmentofCommerce
(Commerce)andtheU.S.InternationalTradeCommission(USITCorCommission)by
UnitedStatesSteelCorporation(U.S.Steel),Pittsburgh,PA;MaverickTubeCorporation
(Maverick),Houston,TX;BoomerangTubeLLC(Boomerang),Chesterfield,MO;EnergeX,a
divisionofJMCSteelGroup(EnergeX),Chicago,IL;NorthwestPipeCompany(Northwest),
Vancouver,WA;TejasTubularProductsInc.(Tejas),Houston,TX;TMKIPSCO,Houston,TX;
VallourecStar(Vallourec),L.P.,Houston,TX;andWeldedTubeUSA(Welded),Inc.;
Lackawanna,NY,onJuly2,2013,allegingthatanindustryintheUnitedStatesismaterially
injuredandthreatenedwithmaterialinjurybyreasonofsubsidizedimportsofcertainoil
countrytubulargoods(OCTG)1fromIndiaandTurkey,andlessthanfairvalue(LTFV)
importsofOCTGfromIndia,Korea,Philippines,SaudiArabia,Taiwan,Thailand,Turkey,Ukraine,
andVietnam.2Thefollowingtabulationprovidesinformationrelatingtothebackgroundof
theseinvestigations.34

Effective date
July 2, 2013
July 23, 2013

July 29, 2013
August 16, 2013

August 16, 2013
August 23, 2013
Action
Petition filed with Commerce and the Commission;
institution of Commission investigation (78 FR 41421,
July 10, 2013)
Commissions conference
Commerces notice of initiation of countervailing duty and
antidumping duty investigations (78 FR 45502 and
45505, July 29, 2013)
Commissions vote
Commissions determination
Commissions views

1
SeethesectionentitledTheSubjectMerchandiseinPartIofthisreportforacomplete
descriptionofthemerchandisesubjecttotheseinvestigations.
2
MaverickandVallourectakenopositionwithregardtothepetitionoftheimpositionof
antidumpingdutiesonOCTGfromSaudiArabia.
3
PertinentFederalRegisternoticesarereferencedinapp.A,andmaybefoundattheCommissions
website(www.usitc.gov).
4
Alistofwitnessesappearingattheconferenceispresentedinapp.Bofthisreport.
I1

STATUTORYCRITERIAANDORGANIZATIONOFTHEREPORT
Statutorycriteria
Section771(7)(B)oftheTariffActof1930(theAct)(19U.S.C.1677(7)(B))provides
thatinmakingitsdeterminationsofinjurytoanindustryintheUnitedStates,theCommission
shallconsider(I)thevolumeofimportsofthesubjectmerchandise,(II)the
effectofimportsofthatmerchandiseonpricesintheUnitedStatesfor
domesticlikeproducts,and(III)theimpactofimportsofsuch
merchandiseondomesticproducersofdomesticlikeproducts,butonlyin
thecontextofproductionoperationswithintheUnitedStates;and...
mayconsidersuchothereconomicfactorsasarerelevanttothe
determinationregardingwhetherthereismaterialinjurybyreasonof
imports.
Section771(7)(C)oftheAct(19U.S.C.1677(7)(C))furtherprovidesthat
Inevaluatingthevolumeofimportsofmerchandise,theCommissionshall
considerwhetherthevolumeofimportsofthemerchandise,orany
increaseinthatvolume,eitherinabsolutetermsorrelativetoproduction
orconsumptionintheUnitedStatesissignificant.
...
Inevaluatingtheeffectofimportsofsuchmerchandiseonprices,the
Commissionshallconsiderwhether...(I)therehasbeensignificantprice
undersellingbytheimportedmerchandiseascomparedwiththepriceof
domesticlikeproductsoftheUnitedStates,and(II)theeffectofimports
ofsuchmerchandiseotherwisedepressespricestoasignificantdegreeor
preventspriceincreases,whichotherwisewouldhaveoccurred,toa
significantdegree.
...
Inexaminingtheimpactrequiredtobeconsideredundersubparagraph
(B)(i)(III),theCommissionshallevaluate(withinthecontextofthe
businesscycleandconditionsofcompetitionthataredistinctivetothe
affectedindustry)allrelevanteconomicfactorswhichhaveabearingon
thestateoftheindustryintheUnitedStates,including,butnotlimitedto
...(I)actualandpotentialdeclineinoutput,sales,marketshare,profits,
productivity,returnoninvestments,andutilizationofcapacity,(II)factors
affectingdomesticprices,(III)actualandpotentialnegativeeffectson
cashflow,inventories,employment,wages,growth,abilitytoraise
capital,andinvestment,(IV)actualandpotentialnegativeeffectsonthe
existingdevelopmentandproductioneffortsofthedomesticindustry,
includingeffortstodevelopaderivativeormoreadvancedversionofthe
I2

domesticlikeproduct,and(V)in{anantidumpinginvestigation},the
magnitudeofthemarginofdumping.

Organizationofreport
PartIofthisreportpresentsinformationonthesubjectmerchandise,allegeddumping
marginsandsubsidies,anddomesticlikeproduct.PartIIofthisreportpresentsinformationon
conditionsofcompetitionandotherrelevanteconomicfactors.PartIIIpresentsinformationon
theconditionoftheU.S.industry,includingdataoncapacity,production,shipments,
inventories,andemployment.PartsIVandVpresentthevolumeofsubjectimportsandpricing
ofdomesticandimportedproducts,respectively.PartVIpresentsinformationonthefinancial
experienceofU.S.producers.PartVIIpresentsthestatutoryrequirementsandinformation
obtainedforuseintheCommissionsconsiderationofthequestionofthreatofmaterialinjury
aswellasinformationregardingnonsubjectcountries.
MARKETSUMMARY
OCTGgenerallyisusedinoilandgaswells,andconsistsprimarilyofcasingandtubing.
TheleadingU.S.producersofOCTGareU.S.SteelandTMKIPSCO,bothofwhichproduceOCTG
inmultipleU.S.facilitiesandmanufacturebothseamlessandweldedOCTG.Theleading
producersofOCTGinsubjectcountriesincludeMaharashtraofIndia(Maharashtra),Hyundai
HYSCOandAJUBesteelofKorea,HLDClarkofPhilippines,JaubailEnergyServicesCompany
(JESCO)ofSaudiArabia,TensionSteelIndustries(TensionSteel)ofTaiwan,WSPPipe
(WSP)ofThailand,BorusanofTurkey,InterpipeofUkraine,andSeAHSteelVinaofVietnam.
LeadingproducersofOCTGinnonsubjectcountriesincludethefollowing:TenarisinArgentina;
Tenaris,Evraz,andVallourecinCanada;VallourecandBentelerSteel/TubeinGermany;Nippon
SteelSumitomoMetals(NSSM),JFESteel,TenarisNKKTubes,andMaruichiSteelTubeinJapan;
andTenarisTAMSAinMexico.TheleadingU.S.importersofOCTGfromsubjectcountriesare
***.NoothersingleU.S.importerofOCTGfromsubjectcountriesaccountedformorethansix
percentofthequantityofimportedsubjectOCTGin2012.5LeadingimportersofOCTGfrom
nonsubjectcountries(primarilyArgentina,Canada,Germany,Japan,andMexico)include***.
U.S.purchasersofOCTGincludedistributorswhichtypicallypurchasedirectlyfromU.S.mills
andU.S.importersaswellasproductionandexplorationcompaniesthatpurchasefromthe
distributors.
ApparentU.S.consumptionofOCTGtotaledapproximately7.2millionshorttons($11
billion)in2012.ThirteenfirmsaccountingforthelargemajorityofU.S.productionresponded
totheCommissionsrequestfordata.U.S.producersU.S.shipmentsofOCTGtotaled3.6

5
DufercoisthesoleimporterofOCTGfromSaudiArabiaandInterpipeimportsvirtuallyallOCTG
fromUkraine.
I3

millionshorttons($6.2billion)in2012,andaccountedfor50.0percentofapparentU.S.
consumptionbyquantityand54.9percentbyvalue.U.S.importsfromsubjectsourcestotaled
1.8millionshorttons($2.0billion)in2012andaccountedfor25.3percentofapparentU.S.
consumptionbyquantityand17.5percentbyvalue.U.S.importsfromnonsubjectsources
totaled1.8millionshorttons($3.1billion)in2012andaccountedfor24.7percentofapparent
U.S.consumptionbyquantityand27.6percentbyvalue.
SUMMARYDATAANDDATASOURCES
AsummaryofdatacollectedintheseinvestigationsispresentedinappendixC,tablesC
1throughC4.Exceptasnoted,U.S.industrydataarebasedonquestionnaireresponsesof13
firmsthataccountedforthevastmajorityofU.S.productionofOCTGduring2012.Partialdata
submittedbyatollprocessorappearsseparatelyinappendixC.U.S.importsarebasedon
officialCommercestatisticsexceptasnoted.Additionalinformationregardingnonbsubject
pricedataappearsinappendixD.
PREVIOUSANDRELATEDINVESTIGATIONS
Antidumpingandcountervailingdutyinvestigations
OCTGhasbeenthesubjectofseveralCommissioninvestigations.Alistingofthese
investigationsispresentedintableI1.
Table I-1
OCTG: Previous and related investigations, 1984-2010
Original investigation
Date
Number
Country
Commission reviews
Outcome
Dates
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
Petition withdrawn
Petition withdrawn
Petition withdrawn
ITA revoked 6/30/85
1984
731-TA-193
Korea
Affirmative
1984
731-TA-194
Mexico
Affirmative
1984
731-TA-195
Spain
Affirmative
Tablecontinuedonnextpage.
I4

Table I-1--Continued
Date
1985
Number
701-TA-240
Country
Austria
Commission reviews
Outcome
Dates
Current status
Outcomes
Affirmative
Petition withdrawn
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
1985
731-TA-251
Venezuela
Affirmative
1985
731-TA-275
Argentina
Affirmative
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
1995
731-TA-714
Japan
Affirmative
2001 / 2006
1995
731-TA-715
Korea
Affirmative
2001 / 2006
1995
731-TA-716
Mexico
Affirmative
2001 / 2006
1995
731-TA-717
Spain
Negative
I5
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
-

Table I-1--Continued
Date
2002
Number
701-TA-428
Country
Austria
Commission reviews
Outcome
Dates
Current status
Outcomes
Negative
2002
731-TA-992
Austria
Negative
2002
731-TA-993
Brazil
Negative
Negative
2002
731-TA-994
China
2002
731-TA-995
Colombia
2002
731-TA-996
France
()
Negative
2002
731-TA-997
Germany
Negative
2002
731-TA-998
India
Negative
2002
731-TA-999
Indonesia
Negative
2002
731-TA-1000
Romania
Negative
Negative
2002
731-TA-1001
South Africa
2002
731-TA-1002
Spain
Negative
2002
731-TA-1003
Turkey
Negative
2002
731-TA-1004
Ukraine
Negative
2002
731-TA-1005
Venezuela
Negative
2010
701-TA-463
China
Affirmative
2010
731-TA-1159
China
Affirmative
Order in place
Order in place
Date or Dates refers to the year in which the investigation, first review, or second review was instituted by the
Commission.
2
Preliminary determination.
3
Following the withdrawal of the petition on Colombia and Commerces decision not to institute an investigation on
OCTG from that country, the Commission discontinued its investigation No. 731-TA-995 (OCTG from Colombia).
Source: Compiled from Commission determinations published in the Federal Register.
Safeguardinvestigations
FollowingreceiptofarequestfromtheOfficeoftheUnitedStatesTradeRepresentative
(USTR)onJune22,2001,theCommissioninstitutedinvestigationNo.TA20173,Steel,under
section202oftheTradeActof19746todeterminewhethercertainsteelproducts,including
seamlessandweldedOCTG,7werebeingimportedintotheUnitedStatesinsuchincreased

6
19U.S.C.2252.
Seamlessandweldedcasingandtubing,aswellasseamlessdrillpipe,werefoundtobeasingle
likeordirectlycompetitiveproductbyChairmanStephenKoplan,ViceChairmanDeannaTannerOkun,
andCommissionersMarciaE.MillerandJenniferA.Hillman,whileCommissionersLynnM.Braggand
(continued...)
7
I6

quantitiesastobeasubstantialcauseofseriousinjury,orthethreatthereof,tothedomestic
industriesproducingarticleslikeordirectlycompetitivewiththeimportedarticle.8OnJuly26,
2001,theCommissionreceivedaresolutionadoptedbytheCommitteeonFinanceoftheU.S.
Senate(SenateFinanceCommitteeorCommittee)requestingthattheCommission
investigatecertainsteelimportsundersection201oftheTradeActof1974.9Consistentwith
theSenateFinanceCommitteesresolution,theCommissionconsolidatedtheinvestigation
requestedbytheCommitteewiththeCommissionspreviouslyinstitutedinvestigationNo.TA
20173.10OnDecember20,2001,theCommissionissueditsdeterminationsandremedy
recommendations.TheCommissionmadeanegativedeterminationwithrespecttoOCTG.11
TheCommissionalsomadeanegativedeterminationwithrespecttoseamlesstubularproducts
otherthanOCTG.12
NATUREANDEXTENTOFALLEGEDSUBSIDIESANDSALESATLTFV
Allegedsubsidies
OnJuly29,2013,CommercepublishedanoticeintheFederalRegisteroftheinitiation
ofitscountervailingdutyinvestigationonOCTGfromIndiaandTurkey.13Thefollowing
programsinIndiaareincluded:
I.
DutyExemption/RemissionSchemes
1. AdvanceLicenseProgram(ALP)
2. AdvanceAuthorizationProgram(AAP)
3. DutyFreeImportAuthorizationScheme(DFIAScheme)

(continued)
DennisM.DevaneyfoundseamlessandweldedOCTGtobepartofbroaderproductgroupingsincluding
allseamlesscarbonandalloysteeltubularproductsandallweldedcarbonandalloysteeltubular
products,respectively.See,e.g.,Steel,Inv.No.TA20173,VolumeI:DeterminationsandViewsof
Commissioners,USITCPublication3479,December2001,pp.1718;152154;274275;and318319.
8
InstitutionandSchedulingofanInvestigationunderSection202oftheTradeActof1974(19U.S.C.
2252)(theAct),66FR35267,July3,2001.
9
19U.S.C.2251.
10
ConsolidationofSenateFinanceCommitteeResolutionRequestingaSection201Investigationwith
theInvestigationRequestedbytheUnitedStatesTradeRepresentativeonJune22,2001,66FR44158,
August22,2001.
11
Steel;ImportInvestigations,66FR67304,December28,2001.Specifically,ChairmanKoplan,Vice
ChairmanOkun,andCommissionersMillerandHillmanfoundseamlessandweldedcasingandtubing,
aswellasseamlessdrillpipe,tobeasinglelikeordirectlycompetitiveproduct,andmadeanegative
determinationwithrespecttoOCTG,whileCommissionersBraggandDevaneydissented,havingmade
affirmativedeterminationswithrespectallseamlesscarbonandalloysteeltubularproductsandall
weldedcarbonandalloysteeltubularproducts.
12
Ibid.Thisproductincludescouplingstock.SeeUSITCPublication3479,Vol.I,p.13.
13
CertainOilCountryTubularGoodsFromIndiaandTurkey:InitiationofCountervailingDuty
Investigations,78FR45502,July29,2013.
I7

II.
III.
IV.
V.
4. DutyEntitlementPassbookScheme(DEPS)andSuccessorPrograms
SubsidiesforExportOrientedUnits
1. DutyFreeImportofGoods,IncludingCapitalGoodsandRawMaterials
2. ReimbursementofCentralSalesTax(CST)PaidonGoodsManufactured
inIndia
3. DutyDrawbackonFuelProcuredfromDomesticOilCompanies
4. ExemptionfromPaymentofCentralExciseDutyonGoodsManufactured
inIndiaandProcuredfromaDomesticTariffArea(DTA)
OtherCountervailableSubsidiesProvidedbytheGOI
1. ExportPromotionCapitalGoodsScheme
2. PreShipmentandPostShipmentExportFinancing
3. MarketDevelopmentAssistance(MDA)Scheme
4. MarketAccessInitiative
5. FocusProductScheme
6. GovernmentofIndiaLoanGuarantees
7. StatusCertificateProgram
8. IncomeTaxExemptionProgramUnderSection80IBoftheIncomeTax
Act
9. TargetPlusScheme
SubsidiesforProducersandExportersLocatedinSpecialEconomicZones
1. DutyFreeImportationofCapitalGoodsandRawMaterials,Components
Consumables,Intermediates,SparePartsandPackingMaterial
2. ExemptionfromPaymentofCSTonPurchasesofCapitalGoodsandRaw
Materials,ComponentsConsumables,Intermediates,SparePartsand
PackingMaterial
3. ExemptionfromElectricityDutyandCessonElectricitySuppliedtoaSEZ
Unit
4. SEZIncomeTaxExemption
5. SEZServiceTaxExemption
6. SteelDevelopmentFund
7. ProvisionofHotRolledSteelbytheSteelAuthorityofIndiaforLessThan
AdequateRemuneration
8. ProvisionofCaptiveMiningRightsforIronOre
9. ProvisionofCaptiveMiningRightsforCoal
10. ProvisionofHighGradeIronOreforLessThanAdequateRemuneration
SubsidiesUndertheSGAPIndustrialInvestmentPromotionPolicy
1. GrantUndertheSGAPIIPP:25PercentReimbursementoftheCostof
LandinIndustrialEstatesandDevelopmentAreas
2. GrantUndertheSGAPIIPP:ReimbursementofPowerattheRateofRs.
0.75perUnit
3. GrantUndertheSGAPIIPP:50PercentSubsidyforExpenseIncurredfor
QualityCertification
4. GrantUndertheSGAPIIPP:50PercentSubsidyonExpensesIncurredin
PatentRegistration
I8

VI.
5. GrantUndertheSGAPIIPP:25PercentSubsidyonCleanerProduction
Measures
6. TaxIncentivesUndertheSGAPIIPP:100PercentReimbursementof
StampDutyandTransferDutyPaidforthePurchaseofLandand
BuildingsandtheObtainingofFinancialDeedsandMortgages
7. TaxIncentivesUndertheSGAPIIPP:25PercentReimbursementonValue
AddedTax,CST,andStateGoodsandServicesTax
8. TaxIncentivesUndertheSGAPIIPP:ExemptionfromtheSGAP
NonagriculturalLandAssessment
9. ProvisionofGoodsandServicesforLessthanAdequateRemuneration
UndertheSGAPIIPP:ProvisionofInfrastructureforIndustriesLocated
Morethan10KilometersfromExistingIndustrialEstatesorDevelopment
Areas
10. ProvisionofGoodsandServicesforLessthanAdequateRemuneration
UndertheSGAPIIPP:GuaranteedStablePricesandReservationof
MunicipalWater
11. TheAPIICsAllotmentofLandforLessthanAdequateRemuneration
12. TheAPIICsProvisionofInfrastructure
13. TheSGOGsExemptionsandDeferralsonSalesTaxforPurchasesof
Goods
14. TheSGOGsVATRemissionSchemeEstablishedonApril1,2006
15. ProvisionofLandUseRightsforLessthanAdequateRemunerationunder
theGujaratIndustrialDevelopmentCorporationEstateScheme
16. TheSGOGsCriticalInfrastructureProjectScheme
17. TheSGOGsSchemeforAssistancetoIndustrialParks/IndustrialEstates
SetUpbyPrivateInstitutions
18. GujaratIndustrialInvestmentCorporationFinancing
19. SGOGSEZAct:ExemptionsfromPaymentofSalesTax,StampDutyand
RegistrationFees
20. SGOMSalesTaxProgram
21. VATRefundsUndertheSGOMPackageSchemeofIncentives
22. ElectricityDutyExemptionsUnderthePackageSchemeIncentives1993
23. RefundsofOctroiUnderthePackageSchemeofIncentives1993(Octroi
RefundScheme)
24. OctroiLoanGuarantees
25. WaivingofLoanInterestbySICOM
26. InvestmentSubsidies
27. InfrastructureMegaProjectsUndertheMaharashtraIndustrialPolicy
2006
28. ProvisionofLandforLessThanAdequateRemuneration
AllegedSubsidiesUnderthePackageSchemeofIncentives2007
1. SubsidiesforMegaProjectsUnderthePackageSchemeofIncentives
2007
2. ExemptionfromElectricityDutyforUpto15Years
I9

3. ExemptionfromStampDuty
4. ReducedVATRatesforInputsandRawMaterials
5. LandandInfrastructureProvidedinHSIIDCIndustrialEstatesforLessthan
AdequateRemuneration

ThefollowingprogramsinTurkeyareincluded:

I.
ProvisionofHotRolledSteelforLessthanAdequateRemuneration
II.
PreShipmentExportCreditsfromTurkEximbank
III.
TurkEximbank'sForeignTradeCompany(FTC)ExportLoans
IV.
TurkEximbanksPreExportCreditsProgram
V.
ShorttermExportCreditDiscountProgram
VI.
ExportInsuranceProvidedbyTurkEximbank
VII.
LargeScaleInvestmentIncentives
1. ValueAddedTax(VAT)andCustomsDutyExemptions
2. LargeScaleInvestmentIncentivesTaxReductions
3. IncomeTaxWithholding
4. SocialSecurityandInterestSupport
5. LandAllocation
VIII.
StrategicInvestmentIncentives
1. VATandCustomsDutyExemptions
2. TaxReductions
3. IncomeTaxWithholding
4. SocialSecurityandInterestSupport
5. LandAllocation
IX.
DeductionsfromTaxableIncomeforExportRevenue
X. IncentivesforResearch&Development(R&D)Activities
1. TaxBreaks
2. ProductDevelopmentR&DSupportUFT
XI.
ProvisionofLandforLessthanAdequateRemuneration
XII.
ProvisionofElectricityforLessThanAdequateRemuneration
XIII.
WithholdingofIncomeTaxonWagesandSalaries
XIV.
ExemptionfromPropertyTax
XV.
EmployersShareinInsurancePremiumsProgram
XVI.
PreferentialTaxBenefitsforTurkishOCTGProducersLocatedinFreeZones
AllegedsalesatLTFV
OnJuly29,2013,CommercepublishedanoticeintheFederalRegisteroftheinitiation
ofitsantidumpingdutyinvestigationsonOCTGfromIndia,Korea,Philippines,SaudiArabia,
I10

Taiwan,Thailand,Turkey,Ukraine,andVietnam.14Commercehasinitiatedantidumpingduty
investigationsbasedonestimateddumpingmarginsof12.67percentto239.64percentfor
OCTGfromIndia,66.19percentto158.53percentforOCTGfromKorea,46.04percentto
56.38percentforOCTGfromPhilippines,53.34percentforOCTGfromSaudiArabia,68.44
percentto70.98percentforOCTGfromTaiwan,118.32percentforOCTGfromThailand,25.75
percentto30.76percentforOCTGfromUkraine,and103.43percentto111.47percentfor
OCTGfromVietnam.
THESUBJECTMERCHANDISE
Commercesscope
Commercehasdefinedthescopeoftheseinvestigationsasfollows:
OCTG,whicharehollowsteelproductsofcircularcrosssection,including
oilwellcasingandtubing,ofiron(otherthancastiron)orsteel(both
carbonandalloy),whetherseamlessorwelded,regardlessofendfinish
(e.g.,whetherornotplainend,threaded,orthreadedandcoupled)
whetherornotconformingtoAmericanPetroleumInstitute(API)or
nonAPIspecifications,whetherfinished(includinglimitedserviceOCTG
products)orunfinished(includinggreentubesandlimitedserviceOCTG
products),whetherornotthreadprotectorsareattached.Thescopeof
theinvestigationsalsocoversOCTGcouplingstock.Excludedfromthe
scopeoftheinvestigationsare:casingortubingcontaining10.5percent
ormorebyweightofchromium;drillpipe;unattachedcouplings;and
unattachedthreadprotectors.15
Tarifftreatment
TheimportedOCTGsubjecttotheseinvestigationsareclassifiedinthe2013
HarmonizedTariffScheduleoftheUnitedStates(HTSUS)insubheadings7304.29,7305.20,
and7306.29,casingandtubingofakindusedindrillingforoilandgas.16TheHTSUSstatistical

14
CertainOilCountryTubularGoodsFromIndia,theRepublicofKorea,theRepublicofthe
Philippines,SaudiArabia,Taiwan,Thailand,theRepublicofTurkey,Ukraine,andtheSocialistRepublicof
Vietnam:InitiationofAntidumpingDutyInvestigations,78FR45505,July29,2013.
15
IbidandCertainOilCountryTubularGoodsFromIndiaandTurkey:InitiationofCountervailingDuty
Investigations,78FR45502,July29,2013.
16
ThemerchandisesubjecttotheinvestigationsiscurrentlyclassifiedintheHTSUSunderthe
followingstatisticalreportingnumbers:7304.29.10.10,7304.29.10.20,7304.29.10.30,7304.29.10.40,
7304.29.10.50,7304.29.10.60,7304.29.10.80,7304.29.20.10,7304.29.20.20,7304.29.20.30,
7304.29.20.40,7304.29.20.50,7304.29.20.60,7304.29.20.80,7304.29.31.10,7304.29.31.20,
7304.29.31.30,7304.29.31.40,7304.29.31.50,7304.29.31.60,7304.29.31.80,7304.29.41.10,
(continued...)
I11

reportingnumbersareprovidedforconvenienceandcustomspurposesonly;thewritten
descriptionofthescopeoftheseinvestigationsisdispositive.Thecolumn1general(most
favorednation)rateofdutyforthesestatisticalreportingnumbers,applicabletoproducts
subjecttotheinvestigations,isfree.
THEPRODUCT17
Overview
Steelpipeandtubesaremadeincircular,rectangular,orothercrosssections,andare
generallymanufacturedbyeithertheweldedorseamlessprocess.Steelpipeandtube
manufacturedbyeitherprocesscanbecategorizedbythecarbonandalloygradesusedinsteel
production.Inaddition,steelpipeandtubecanbefurthercategorizedbyenduse.The
AmericanIronandSteelInstitute(AISI)hasdefinedsixsuchendusecategories:standardpipe,
linepipe,structuralpipeandtubing,mechanicaltubing,pressuretubing,andoilcountry
tubulargoods(OCTG).18
Steelpipesandtubesaregenerallyproducedaccordingtostandardsandspecifications
publishedbyanumberoforganizations,includingtheAmericanSocietyforTestingand
Materials(ASTM),theAmericanSocietyofMechanicalEngineers(ASME),andtheAmerican
PetroleumInstitute(API).ComparableorganizationsintheUnitedKingdom,Japan,andRussia,
andothercountriesalsohavedevelopedstandardspecificationsforsteelpipesandtubes.

(continued)
7304.29.41.20,7304.29.41.30,7304.29.41.40,7304.29.41.50,7304.29.41.60,7304.29.41.80,
7304.29.50.15,7304.29.50.30,7304.29.50.45,7304.29.50.60,7304.29.50.75,7304.29.61.15,
7304.29.61.30,7304.29.61.45,7304.29.61.60,7304.29.61.75,7305.20.20.00,7305.20.40.00,
7305.20.60.00,7305.20.80.00,7306.29.10.30,7306.29.10.90,7306.29.20.00,7306.29.31.00,
7306.29.41.00,7306.29.60.10,7306.29.60.50,7306.29.81.10,and7306.29.81.50.
ThemerchandisesubjecttotheinvestigationsmayalsoenterunderthefollowingHTSUSstatistical
reportingnumbers:7304.39.00.24,7304.39.00.28,7304.39.00.32,7304.39.00.36,7304.39.00.40,
7304.39.00.44,7304.39.00.48,7304.39.00.52,7304.39.00.56,7304.39.00.62,7304.39.00.68,
7304.39.00.72,7304.39.00.76,7304.39.00.80,7304.59.60.00,7304.59.80.15,7304.59.80.20,
7304.59.80.25,7304.59.80.30,7304.59.80.35,7304.59.80.40,7304.59.80.45,7304.59.80.50,
7304.59.80.55,7304.59.80.60,7304.59.80.65,7304.59.80.70,7304.59.80.80,7305.31.40.00,
7305.31.60.90,7306.30.50.55,7306.30.50.90,7306.50.50.50,and7306.50.50.70.
17
Exceptasnoted,informationpresentedintheDescriptionandApplicationsandManufacturing
ProcessesisdrawnfromCertainOilCountryTubularGoodsfromChina,InvestigationNo.701TA463
(Final),USITCPublication4124,January2010.
18
Standard,line,andpressurepipeisgenerallyintendedtoconveyliquidsandistypicallytestedand
ratedforitsabilitytowithstandhydrostaticpressure.Structuralpipeandtubingisusedforloadbearing
purposesandconstruction,althoughonlysmallamountsofseamlesspipeareusedinstructural
applications.Seamlessmechanicaltubingistypicallyacustomdesignedproductemployedwithinthe
automotiveindustryandbyequipmentmanufacturers.OCTGaresteelpipesandtubesusedinthe
drillingofoilandgaswellsandintheconveyingofoilandgasfromwithinthewelltogroundlevel.
I12

Descriptionandapplications
OCTGincludescasingandtubingofcarbonandalloysteelusedinoilandgaswells.
FigureI1showsasimplifiedschematicarrangementofatypicalwellwithasystemofcasing
andtubing.FigureI2presentsamoredetailedrepresentationofanoilorgaswell,including
descriptionsofdifferenttypesofcasingbydepthandfunction.
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, Fifth Edition, American Petroleum Institute, June 1996, p. 11.
I13

Figure I-2
Casing and tubing: Subsurface components of an oil or gas well, including descriptions of
different types of casing by depth and function

Source: La Plata County Energy Council, Inc. (Durango, CO), Gas Facts: Gas Well Life Cycle, found at
http://www.energycouncil.org/gas-well-life-cycle, retrieved July 30, 2013.
I14

Recentadvancementsinoilandgasexplorationtechnologies,includingadvanced
horizontaldrilling19andhydraulicfracturing(figureI3),20haveenabledoilandgaswellsto
reachlocationsthatwerepreviouslydeemedcostprohibitive.Inaddition,theapplicationof
newtechnologiesalsopermitsmorewellsperacre,thusincreasingoilandgasproductionand
recoverablereserves.
Casingisacircularpipethatservesasastructuralretainerforthewallsofthewell.
Casingtypicallyhasanoutsidediameter(OD)rangingfrom4.5inchesto20inchesandalength
typicallyrangingfrom34feetto48feet.Casingprovidesafirmfoundationforthedrillstring21
bysupportingthewallsoftheholetopreventcavinginorwallcollapsebothduringdrillingand
afterthewelliscompleted.Afterthecasingissetinthewellhole,concreteisusuallypumped
downthroughthecasingtothebottomofthewellandthenuptheannulus(thespacebetween
thewellwallandthecasing)untiltheannulusisfilled.
Casingalsoservesasasurfacepipedesignedtopreventcontaminationofthe
recoverableoilandgasbysurfacewater,gas,sand,orlimestone.Casingmustbesufficiently
strongtocarryitsownweight,aswellastoresistbothexternalpressureandpressurewithin
thewell.Casingcanbethreadedatbothendsandconnectedwithothercasingpieceswith
couplingsorconnectors.Becausetheamountofopenholethatcanbedrilledatanyonetimeis
limited,largerwellsrequireastringofconcentriclayersofcasingratherthanasinglecasing.
Severalsizesofcasingmaybesetinsidethewellafterithasbeendrilled,withthelargersizes
setatthetopofthewell,andthesmallersizessettowardthebottom.

19
Horizontaldrillingisavariantofdirectionaldrillinginwhichverticaldrillingwithinawellturns
horizontalwiththereservoirrocktoexposemoreofthewellboretotheoilornaturalgas.Moreoiland
naturalgascanbeproducedfromfewerwellswithlesssurfacedisturbance.AmericanPetroleum
Institute(API),AdvancedDrillingTechniques,foundathttp://www.api.org/oilandnaturalgas
overview/explorationandproduction/naturalgas/advanceddrilling,retrievedJuly29,2013.AsofJuly
26,2013,60percentofactiverotaryrigs(1,067rigs)intheUnitedStatesemployedhorizontaldrilling,
while16percent(287rigs)employeddirectionaldrilling.BakerHughesInternationalInc.,North
AmericanRotaryRigCount,July26,2013.
20
Hydraulicfracturing(commonlyreferredtoasfracking)requiresthehighpressureinjectionofa
mixtureofwater,sand,andchemicalsthroughthewellandintothesurroundingshalerockformations,
creatinganetworkofnarrowfracturesintherock.Thefracturesallowmoreoilandnaturalgastoenter
throughperforationsmadeinthecasingandtubing.
21
Thedrillstringconsistsofthreedifferentnonsubjectproducts:drillpipe,drillcollars,andthedrill
bit.
I15

Figure I-3
Casing and tubing: Horizontal drilling and hydraulic fracturing

Source: American Petroleum Institute (API), The Facts About Hydraulic Fracturing and Seismic Activity, 2013.

I16

Tubingisasmallerdiameterpipe(between1.0504.5inchesOD)installedinsidethe
largerdiametercasingthatisusedtoconducttheoilorgastothesurface,eitherthrough
naturalfloworthroughpumping.Substancessuchaslubricantsarealsopumpedintothewell
throughthetubingforwelltreatment.Tubingmustbestrongenoughtosupportitsown
weight,thatoftheoilorgas,andthatofanypumpingequipmentsuspendedonthestring.
Tubing,likecasing,usuallyisproducedinaccordancewithAPIspecification5CT.22
Greentubereferstounfinishedtubulargoodsthatmayrequireheattreatmentor
furtherprocessingtomeettheAPI5CTspecificationsforcasingandtubing.Insomecases,
upgradeablegreentubethatmeetstheminimumspecificationsforlowergradeAPI5CT
casingandtubing(i.e.,H40andJ55)canbecertifiedtothosegradesandusedinapplications
notrequiringadditionalheattreatment.23Inotherinstances,dependingonitssteel
compositionandwallthickness,greentubethatmeetscertainnonheattreatablegradesofthe
APIspecificationforcasingandtubing(e.g.,H40andJ55)canbesubsequentlyheattreatedto
increaseyieldandtensilestrengthsinordertomeettheminimumspecificationsforhigher
gradeAPI5CTcasingandtubing(e.g.,P110).2425Finishedcasingandtubingtypicallyrefersto
productthathasbeenheattreated,tested,threaded,andcoupled.
Couplingstockisathickwalled,seamlesstubularproductusedtomanufacturecoupling
blanks.Couplingblanks,inturn,areunthreadedtubeblanksusedtomakeindividualcouplings.
Couplingsarethickwalledandinternallythreadedseamlesscylindersthatareusedforjoining
twolengthsofthreadedOCTG.CouplingsareproducedandcertifiedtothesameAPIgradeand
typeastheOCTGtowhichthecouplingsarejoined.Couplingtypicallyaccountsfor23percent
oftheweightofendfinishedtubingorcasing.

22
TheAPIspecification5CTdesignates22separategradesofcasingandtubing.Gradesaregenerally
classifiedandrankedbytheirminimumyieldstrength,andareidentifiedbyaletter(i.e.,H,J,K,N,M,L,
C,T,P,andQ;withHbeingtheweakestandQbeingthestrongest)andanumber(minimumyield
strengthinthousandsofpoundspersquareinch,orksi).Thus,gradeJ55orK55stipulatesthatthe
pipehaveminimumyieldstrengthsof55,000ksi(J55andK55differwithrespecttominimumtensile
strengths).Inaddition,anAPIgrademaybefurtherdelineatedbychemicalcomposition,methodof
production(i.e.,seamlessorwelded),dimension,heattreatment,testingprocedures,andother
engineeringspecifications,dependingoncustomersrequirements.Forexample,GradeL80,type9Cr
mustcontain810percentchromiumbyweight,producedbytheseamlessmanufacturingprocess,and
betemperedandquenched.CertainOCTGmustbeheattreatedtoachieveparticularphysical
characteristics.
23
Greentubecertifiedtothesegradesundergofurtherfinishingoperations,includingthreading.
FinishingoperationsaredescribedintheManufacturingProcessessectionofPartI.
24
Conferencetranscript,pp.222223(Fowler);U.S.Steelpostconferencebrief,exh.1,pp.1819.
25
API5CTgradesH40,J55,K55,andcertainN80gradesdonotrequireheattreatment.Accordingto
industryrepresentatives,thesegradesaregenerallyconsideredthecarbongrades.OtherAPIgrades
suchascertainN80grades,L80,andP110dorequireheattreatment,followedbythreadingand
coupling,tofinishthepipe.Thesepipesaregenerallyconsideredalloygrades.Maverickpostconference
brief,exh.1,p.10.
I17

Manufacturingprocesses
Themanufacturingprocessforcasingandtubingincludesformingandfinishingphases.
Theformingphasetakesplaceentirelyatthemanufacturingfacilityormill.Finishing,by
contrast,maytakeplaceatthemillorataprocessingorthreadingfacility.

Formingphase

OCTGmillsmanufacturecasingandtubingeitherbytheseamlessprocessorbythe
electricresistancewelding(ERW)process,alowercostmethodthantheseamlessprocess,
dependingontheservicerequirements.Bycontrast,millsmanufacturecouplingstockforOCTG
couplingsexclusivelythroughtheseamlessprocess.
SeamlessOCTGismanufacturedbyeitheroftwohightemperaturemethodstoforma
centralcavityinasolidsteelbillet;namely,therotarypiercingmethodandthehotextrusion
method.Roundorsquarebilletsserveastheinputforseamlesstubing(figureI4).Ifasquare
billetisused,itisfirstforcedthroughacircularrollpass,whichtransformedthebilletfrom
squaretoroundforthepiercingoperation.Intherotarypiercingmethod,theheatingbilletis
grippedbyangledrolls,whichcausethebillettorotateandadvanceoverapiercerpoint,
formingaholethoughthelengthofthebillet.Intheextrusionmethod,thebilletishotpunch
piercedandthenextrudedaxiallythroughadieandoveramandrel,formingahollowshell.The
hollowshellproducedbyeithermethodisthenrolledwithafixedplugorwithacontinuous
mandrelinsidetheshelltoreducethewallthicknessandincreasetheshellslength.Finally,the
shellisrolledinasizingmillorastretchreducingmillwhereitisformedtosize.
WeldedOCTGismanufacturedfromsteelsheetincoilform(figureI5).Thesteelsheet
isslittothewidththatcorrespondstothedesireddiameteroftube.Theslitsheetpasses
throughaseriesofrollerswhileatambienttemperatureandformsatubularshape.Theedges
arethenheatedbyelectricresistanceandweldedtogetherbyheatandpressure,withoutthe
additionoffillermetal.Theweldingpressurecausessomeofthemetaltobesqueezedfrom
theweldingjoint,formingabeadofmetalontheinsideandoutsideofthetube.Thisbead,or
weldingflash,isusuallytrimmedfromboththeoutsideandtheinsidesurfaces.

I18

Figure I-4
Casing and tubing: Seamless manufacturing process

Source: JFE Steel Corporation, OCTG (Product Catalog).

I19

Figure I-5
Casing and tubing: ERW manufacturing process

Source: JFE Steel Corporation, OCTG (Product Catalog).
I20

Finishingphase

Aftertheformingphase,thepipeisheattreated,upset,andthreaded.U.S.pipemills
typicallyareequippedwiththefacilitiesnecessarytoperformtheseprocesses.However,there
arevariousnonpipeproducers,knownasprocessorsorthreaders,whichcanperformcertain
aspectsofthefinishingoperations.Independentprocessorsoperatefacilitiesthatarecapable
offullbodyheattreatment,aswellasupsettingpipeends.26Threadersarecapableof
threadingandcoupling,hydrostatictesting,andmeasuringthelengthofOCTGproducts.Some
processorsandthreadersmayalsomanufacturingcouplingsthatbecomepartoffinishedOCTG.
AccordingtoanindustrysourceinapriorCommissioninvestigation,processorsandthreaders
mainlyserveimportssinceOCTGareoftenimportedasplainends,andareheattreated,upset,
andthreadedintheUnitedStates.Thisapproachprovidesdistributorswiththeflexibilityto
processandthreadtheproductincompliancewithavarietyofspecifications,thusallowing
themtoserveavarietyofconsumerneeds.27

Heattreatment

Inthesteelmanufacturingprocess,specificengineeringcharacteristicsandmechanical
propertiesofthesteelcanbeachievedthroughtheapplicationofdifferentheattreatments.
Heattreatingmayinvolveoneormoreheatingcyclesineitheracontinuousorbatchfurnace,
withcontrolledratesofcooling.Specificheattreatingrequirementsdependonthegradeof
steelbeingprocessed.Forweldedpipe,theheattreatmentmaycovertheweldedseamonly,
orthefullcrosssectionofthepipe.APIstandardsspecifyadocumentedprocedureforevery
particulargradeandtypeofpipe.APIspecificheattreatmentprocessesintheproductionof
casingandtubingincludingannealing,normalizing,andquenchandtempering.
Annealingisasingleheattreatmentprocessthatpreparesthesteelforfabricationor
service.Thesteelisheatedtoatemperatureinornearaspecificrange,andcooledata
predeterminedrateorcycle.Annealingrelievesinternalresidualstressesorhardnessinduced
bywelding,bycoldworking,orbymachining.
Inthenormalizingprocess,thepipeisheatedaboveaspecifictemperature,heldatthis
temperatureforaspecifiedtime,andthenaircooled.Normalizingrefinesthesteelgrainsize

26
Mostprocessorstypicallyperformthreadingoperations,althoughmanythreadersdonotperform
processingoperationslikeheattreatment.Forthisreason,thetermprocessorinthisandother
sectionsofthisreportismeanttoincludeprocessorswhoarealsothreaders.Discussionofindependent
threadersislimitedinthisreport,astheCommissioninrecentOCTGinvestigationshasnotdeemed
threaderstobepartofthedomesticindustryproducingcasingandtubing.OilCountryTubularGoods
fromArgentina,Italy,Japan,Korea,andMexico,InvestigationNos.731TA711and713716(Second
Review),USITCPublication3923,June2007,p.9.CertainOilCountryTubularGoodsfromChina,
InvestigationNo.701TA463(Final),USITCPublication4124,January2010,p.I18.
27
CertainOilCountryTubularGoodsfromChina,InvestigationNo.701TA463(Final),USITC
Publication4124,January2010,p.I18.
I21

andobtainsacarbidesizeanddistributionthatismoresuitableforfutureheattreatmentthan
theasrolledstructure.
Quenchingandtemperingisasequentialprocessinwhichthepipeisheatedtoa
specifictemperatureforaspecifiedtimeperiodtomodifythesteelsmicrostructure,andthen
quenchedinacoolingmediumsuchaswater,oil,orair,dependingonthethicknessofthe
pipe.Afterquenching,thesteelisverybrittleandmustbereheatedandthencooledunder
specificconditions.Thisprocessiscalledtempering.Thepipemustundergoaspecified
processofquenchingandtemperinginordertoqualifyforcertainAPIgrades.

Dependingonthepipedesign,APIstandardsmayspecifyasingleheattreatment
processorcombinationofprocessesforthepipe,suchasnormalizingandtempering,or
quenchingandtempering.Afterheattreatment,sizingrollsshapethetubetoaccurate
diametertolerances.Theproductiscooledandthencuttolengthattheendofthetubemill.
Couplingstockismadetothesamegradeandtypespecificationsascasingandtubing.It
mustalsobesubjecttothesameheattreatmentaspipe,exceptwherespecifiedbythe
purchaser.

Upsettingandthreading

Casingandtubingarefinishedbythreadingandtheattachmentofasuitablecouplingto
oneendofeachlength.Forsomecasingortubingthatissubjecttosevereorsourservice,28itis
necessarytoprovideadditionalstrengthinthejoint,andforthisreason,theendsofthepipe
areupsetbeforethreadsarecut.Intheupsettingprocess,theendofthepipeisheatedto
forgingtemperature,andtheninsertedendwiseintoanupsettingmachine.Themachine
pushesthehotmetalback,creatingathickerwallattheendofthepipe.Theupsettingmaybe
controlledtodisplacetheextrathicknesstotheinsideortheoutsideofthepipe.
Casingandtubingcanbejoineddirectlyusingmale(outer)andfemale(inner)threading,
orbyusingcouplingswithfemalethreadsoneachend.Typically,thepipeismountedona
latheandthreadsarecutbyusingsharpsteelcuttingtools(calledchasers),whicharemounted
onathreadingdiesurroundingthepipe.Asthepipeisturnedonthelathe,thethreadingdie
movedalongthepipesaxis,producingtherequiredspiralcutontheinneroroutersurfaceof
thepipe.ThreadingcanbemadetomeetAPIstandards,ormadetoproprietarystandardsthat
aredesigned,registered,andprotectedbypatentsorotherintellectualpropertyrights
mechanismandthatarenotspecifiedbyAPIstandards.Forinstance,OCTGproducersmay
marketproprietarysemipremiumorpremiumthreadedconnectionsthatprovidehigher
torsionalloads,bendingresistance,orgreatersealabilityforcasinginchallengingdrilling

28
Sourcrudeoilorsourgasisdefinedasanoil/gascontainingcommonimpuritiessuchaswater,
carbondioxide,hydrogensulfide,andoxygen,whicharemixedinwiththeoil/gasduringextraction.
Theseimpuritiescorrodeorcausecrackinginsteel;albeit,withoutanyobservablechangeinappearance
priortofailure.
I22

environments.29Afterthreading,athreadprotectorisappliedtothethreadedpipeendsduring
handling,transportation,orstorage.30
DOMESTICLIKEPRODUCTISSUES
TheCommissionsdecisionregardingtheappropriatedomesticproductsthatarelike
thesubjectimportedproductisbasedonanumberoffactorsincluding:(1)physical
characteristicsanduses;(2)commonmanufacturingfacilitiesandproductionemployees;(3)
interchangeability;(4)customerandproducerperceptions;(5)channelsofdistribution;and(6)
price.Informationregardingthesefactorsisdiscussedbelow,followedbyadiscussionof
intermediateproductsinthefollowingsection.
ThepetitionintheseinvestigationsexplicitlyincludesseamlessandweldedOCTG
regardlessofendfinish,aswellasunfinishedOCTG,includinggreentubesthatrequirefurther
processingsuchasheattreatment.PetitionerscontendthattheCommissionshouldfindone
domesticlikeproductcoextensivewithCommercesscope.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.SteelandTenarisbothproduceandmarketvarioussemipremiumandpremium
threadedconnections.
30
Threadingcanbeperformedaftertransportationtoavoiddamagecausedbymovement,water,or
weather.Damagedthreadscancauseexpensiverupturesofthepipestringincasingandtubing
applicationswherepipesareconnectedtooneanotherbythreadedjoints.
31
Petition,p.20.
32
PetitionerU.S.Steelspostconferencebrief,p.910.
33
PetitionerU.S.Steelspostconferencebrief,p.9.
34
ILJINSteelCorporation(Korea)(ILJIN)spostconferencebrief,pp.16and19.
I23

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.
ClarkspecifiedthatVallourecssmallamountofgreentubesisspecifictocasingtotubing,ratherthan
drillpipe.
37
QuestionnaireresponsesofU.S.Steel,TMKIPSCO,andTejas.
38
ILJINspostconferencebrief,July26,2013,p.25.
39
I24

Interchangeabilityandcustomerandproducerperceptions
RespondentILJINarguesthatseamlessOCTGismoresuitablethanweldedOCTGfor
applicationsrequiringgreaterstrengthandreliability,andthereforethetwoproductsarenot
completelyinterchangeable.40Asdiscussedabove,U.S.producersalsoidentifycertain
conditionsorapplicationsforwhichweldedcasingandtubingarenotinterchangeablefor
seamlesscasingandtubing.Nonetheless,U.S.producersgenerallyconsideredthetwoformsof
OCTGtobeinterchangeable(U.S.Steel),almostinterchangeableforthevastmajorityof
themarket(Maverick),orincompetitionwiththeexceptionoftheveryhighendsourservice
market(Vallourec).41
Greentubeforcasingandtubingrequiresheattreatmenttoachievethefinalgrade.
Thus,greentube,likeallunfinishedformsofOCTG,requiresadditionalprocessingstepstobe
consideredreadyfordownholeapplications.TheU.S.industryisnotbelievedtofocuson
upgradeableOCTG(carbongradecasingandtubingthat,afterheattreatment,certifiedto
higherAPIgrades).Nonetheless,someU.S.millsarebelievedtoproducesuchproducts.42
Channelsofdistribution
AlthoughtheCommissiondidnotcollectseparatedataspecifictoU.S.producers
shipmentsofweldedOCTGandseamlessOCTG,U.S.producerssellvirtuallyalloftheirU.S.
producedcasingandtubingtodistributors.AsdiscussedinPartIIofthisreport,morethan98
percentofallsuchshipmentsaretodistributors.
Becausemostmillsmaintaintheirownheattreatmentoperations,U.S.producedgreen
tubeisbelievedtobesoldinverylimitedquantities.43U.S.Steel,believedtobeoneofthe
largermillssellinggreentube,reportedshipping***percentofitsgreentubetoprocessorsin
2010,***percentin2011,and***percentin2012.Conversely,U.S.Steelshipped***percent
ofitsgreentubetodistributorsin2012,***percentin2011,and***percentin2012.44

40
Conferencetranscript,pp.99100(Matthews,Lowe,Clark).
42
See,e.g.,pressreleasefromNorthwestPipeannouncingtheexpansionintotubingwithphysical
propertiesforheattreating.NorthwestPipeCompanysTubularProductsGrouptoUpgradeMillin
Houston,Texas,February8,2011.Seealsoconferencetranscript,pp.222(Fowler).Mr.Fowlertestified
thatupgradingwasarelativelyrecentdevelopmentthatpermittedsupplierstoservemultiplemarket
sectors.Mr.Fowlerfurtherindicatedthatthepracticewaspopularwithimporters,butnotedalso
thatsomedomesticmillsweretakingadvantageoftheprocess.
43
Conferencetranscript,p.88(Clark,Mahoney,andThompson),withfurtherelaborationonbehalf
ofU.S.Steelregardingshipmentsofgreentubeinrecentyears.U.S.Steelspostconferencebrief,exh.1,
p.19.
44
Correspondencefrom***,August6,2013.U.S.Steel***.
41
I25

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
JanuaryMarch
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.producedgreentubes,directcomparisons
tofinishedOCTGarelimited.TableI3presentsacomparisonof***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(orgreenifnotheattreated)OCTGisaprecursorto
finishedOCTG.Therefore,inaddressingwhetherunfinishedOCTGandfinishedOCTGconstitute
asingledomesticlikeproduct,theCommissionmayapplyitssemifinishedproductanalysis.
Uses
Greentubeisatermthatcanapplytounfinished,nonheattreatedtubebodies
intendedforcasingandtubingorfordrillpipe.Thescopeoftheseinvestigations,however,

45
46
I26

focusesontheformerformofgreentube.AccordingtoRespondents,greentubesreferto
semifinishedseamlessandweldedOCTGthatisprocessedbyheattreating,aswellasbyother
processes(suchasthreadingandcoupling,upsetting,andqualitytesting)beforebeingsoldin
theU.S.merchantOCTGmarket.47Theheattreatmentimpartsthenecessarymechanicaland
structuralpropertiesthatenabletheseamlessgreentubetobeusedinanOCTGapplication.48
Aspreviouslynotedinthissection,greentubeintendedforanOCTGapplicationis
typicallyproducedtomeetthespecificationsforthatparticularapplication,andnotforother
applications,suchasdrillpipe.Accordingto***,greentubeisproducedtocustomer
specificationsintermsofchemistry,outsidediameter,length,andtolerances.49
Markets
RespondentILJINarguesthatthechannelsofdistributiondifferbetweenseamlessgreen
tubeandfinishedseamlessOCTG.ILJINarguesthattheneedforheattreatmentdetermines
intowhattypesofmarketsseamlessgreentubesaresoldandtothetypeofcustomersthat
purchaseseamlessgreentubes.ThisRespondentcontendsthatcustomersforimported
seamlessgreentubeswouldbeprocessorswithavailablefacilitiestoheattreatandotherwise
finishtheimportedproduct.Moreover,ILJINarguesthatsimpledistributorsthatpurchase
finishedOCTGlackheattreatingcapabilities.Assuch,importedseamlessgreentubeand
finishedseamlessOCTGaresoldintodifferentchannelsofdistribution.50
Withrespecttodomesticallyproducedgreentube,aspreviouslynoted,U.S.Steel
reportedsellinggreentubetoprocessorsandtodistributors***.51Greentubesoldto
processors,however,frequentlyissoldtodistributorsafterheattreatment.Independent
processorsknowntopurchaseU.S.producedgreentubeinclude***.Thisprocessor***.52
Characteristicsandfunctions
Asdiscussedabove,greentubeintendedforOCTGapplicationsisproducedtothe
chemistryanddimensionalspecificationsthatpermitprocessorstoundertakefinishing
operationssuchasheattreatment,upsetting,threading,andcoupling.Priortoheattreatment,
however,greentubecannotbeconnectedtootherfinishedOCTGtoformacasingortubing
string,andthuscannotfunctionasacomponentofeitheracasingortubingstringforuseinoil
andgasdrilling.However,insomecasesgreentubingthatmeetstheminimumspecifications

47
49
Stafftelephoneinterviewwith***,July31,2013.
50
51
Importersalsosellgreentubetodistributors.Seequestionnaireresponseof***,whichsellsgreen
tubefrom***todistributors.***scustomeris***.Stafftelephoneinterviewwith***,August8,
2013.
52
Questionnaireresponseof***.
48
I27

forlowergradeAPI5CTcasingandtubing(i.e.,H40andJ55)canbecertifiedtothosegrades
andusedinapplicationsnotrequiringadditionalheattreatment(followingthreadingand
coupling).
Value
UnfinishedOCTGinitsgreenstageisproducedbybothseamlessandweldedpipemills.
AsshownintableI3,purchasesbyprocessor***ofgreentubeintendedforOCTGapplications
hadanaverageunitvalueof***in2012.Incomparison,U.S.millshipmentsoffinishedOCTG
hadanaverageunitvalueof$***in2012.Thedifferentialisnarrower,however,forcertain
finished,nonheattreatedOCTGproducts.U.S.producedweldedthreadedandcoupledJ55
tubingreportedasproduct2intheCommissionspricedatahadanaveragepriceof$***in
2012.U.S.producedweldedthreadedandcoupledJ55casingreportedasproduct6inthe
Commissionspricedatahadanaveragepriceof$***in2012.
Transformationprocess
RespondentILJINarguesthatbecauseofthenecessityofheattreatment,seamless
greentubesthathavenotundergoneheattreatmentasimportedarenotinterchangeablewith
otherfinishedOCTGproducts.53ILJINarguesthatseamlessgreentubesthathavenot
undergoneheattreatmentasimporteddifferintheirphysicalandstructurepropertiesfrom
finishedseamlessOCTG,therebypreventingthemfrombeinginterchangeableforanyuse.54
Asdiscussedpreviously,greentubeintendedforOCTGapplicationsisproducedby
eithertheseamlessorweldedprocess.Greentubestypicallyundergoaheattreatmentprocess
toimpartthenecessaryphysicalcharacteristicsoffinishedOCTG.Dependingonitssteel
compositionandwallthickness,greentubethatmeetscertainnonheattreatablegradesofthe
APIspecificationforcasingandtubingsuchasJ55canbesubsequentlyheattreatedtoimprove
itsyieldandtensilestrengthsinordertomeettheminimumspecificationsforhighergradeAPI
5CTcasingandtubingsuchasP110.However,thesegreentubescanalsobesoldasJ55tubing
orcasing.OneindustryrepresentativeattheCommissionsstaffconferencenotedthatgreen
tubethatisupgradabletovarioushigherstrengthAPI5CTgradescouldthereforeservetwo
tothreedifferentsectorsofthemarket.55

53
Ibid,p.17.
55
Conferencetranscript,p.222223(Fowler).
54
I28
PARTII: SUPPLYANDDEMANDINFORMATION
U.S.MARKETCHARACTERISTICS
OCTGincludescasingandtubingforuseinoilandnaturalgasexplorationand
production.Bothtraditionalverticaldrillingandhorizontaldrillingsuchashydraulingfracturing
employcasingforstructuralintegrityandtubingforliquidandgasflow.SinceJanuary2010,the
useoffrackinghasincreased,ashasthenumberofrigsandtotalfootageofwellsdrilled.The
amountofOCTGusedinfrackingcanbegreaterthanthatusedintraditionalverticalwells.1As
aresult,thedemandforOCTGiscloselyassociatedwiththeamountofacitivityinthese
sectors.OCTGcanbemanufacturedusingeitherseamlessorweldedtechniques.

Channelsofdistribution
DomesticallyproducedandimportedOCTGaresoldmainlythroughdistributors(table
II1).DuringJanuary2010March2013,U.S.producersshippedapproximately99percentof
theirOCTGtodistributors.U.S.importersshippedatleast***percentoftheirsubjectimported
OCTGfromsevenoftheninesubjectcountriestodistributorsineachoftheyearsunder
investigation.ForOCTGimportedfromtheothertwocountries,SaudiArabiaandUkraine,***
percentoftheirsales,respectively,weremadetodistributorsduringtheperiodof
investigation.U.S.importersshipped92.8percentofOCTGimportedfromnonsubjectsources
todistributorsbetweenJanuary2010andMarch2013.
Conferencetranscript,p.185(Brewer).
II1
Table II-1
OCTG: U.S. producers and U.S. importers U.S. shipments by sources and channels of
distribution, 2010-12, and January-March 2013
Period
2010
2011
2012
Item
Share of U.S. shipments (percent)
U.S. producers U.S. shipments of OCTG to:
98.4
99.1
98.6
Distributors
1.6
0.9
1.4
End users
U.S. importers U.S. shipments of OCTG from India to:
99.2
96.8
98.1
Distributors
0.8
3.2
1.9
End users
U.S. importers U.S. shipments of OCTG from Korea to:
97.6
98.4
98.6
Distributors
2.4
1.6
1.4
End users
U.S. importers U.S. shipments of OCTG from the Philippines to:
***
***
***
Distributors
***
***
***
End users
U.S. importers U.S. shipments of OCTG from Saudi Arabia to:
***
***
***
Distributors
***
***
***
End users
U.S. importers U.S. shipments of OCTG from Taiwan to:
92.7
94.0
96.7
Distributors
7.3
6.0
3.3
End users
U.S. importers U.S. shipments of OCTG from Thailand to:
***
***
Distributors
-***
***
End users
-U.S. importers U.S. shipments of OCTG fromTurkey to:
***
***
***
Distributors
***
***
***
End users
U.S. importers U.S. shipments of OCTG from Ukraine to:
***
***
***
Distributors
***
***
***
End users
U.S. importers U.S. shipments of OCTG from Vietnam to:
***
***
***
Distributors
***
***
***
End users
U.S. importers U.S. shipments of
OCTG from all other countries to:
92.0
92.8
93.3
Distributors
8.0
7.2
6.7
End users
Note.--Numbers may not add to 100.0 because of rounding.
II2
Jan.-March
2013
98.9
1.1
96.6
3.4
98.9
1.1
***
***
***
***
96.3
3.7
***
***
***
***
***
***
***
***
91.9
8.1
Geographicdistribution
OCTGissoldthroughouttheUnitedStatestodistributorsand,ultimately,tooiland
naturalgasexplorationandproductionfirms.Consequently,salesareconcentratedinmajoroil
andgasproducingregions.TableII2presentsgeographicmarketareasservedbyproducers
andimporters.SevenU.S.producerssupplyOCTGnationally.Intotal,14U.S.producers
reportedsalesofOCTGintheCentralSouthwest;11intheMidwest;12reportedsalesinthe
Mountainregion;11intheNortheast;9inthePacificCoast;and9intheSoutheast.Also,two
producers(***)reportedmakingsalesinAlaska.Themajorityofsubjectimportsare
concentratedintheCentralSouthwest,andimportsfromeachsubjectcountrywereshippedto
thatregionbyatleast***importers.ThePacificCoastreceivedthatsecondgreatestcoverage
bysubjectimports,withimportsfrom***servingthatregion.OnlyimportersofOCTGfrom
UkrainereportedservingtheentireUnitedStates.

Table II-2
OCTG: Geographic market areas in the United States served by U.S. producers and importers, by
number of responding firms
Central
Pacific
Region
Southwest Midwest Mountains Northeast Coast Southeast
Other1
14
11
12
11
9
9
2
U.S. 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. markets, including AK, HI, PR, VI, among others.
II3
Ingeneral,U.S.producersshippedtheirOCTGlongerdistancesthandidimportersof
OCTGfromsubjectcountries.Themajorityofproducersreportedselling10.9percentwithin
100milesoftheirproductionfacility,43.0percentbetween100and1,000miles,and46.1
percentover1,000miles.ShipmentsbycountryandbydistancearepresentedintableII3.
Table II-3
OCTG: Shipments by country and by distance reported by U.S. producers and importers
Item
0 to 100 miles
101-1,000 miles
Over 1,000 miles
U.S. producers
10.9
43.0
46.1
India
77.7
21.5
0.8
Korea
75.7
23.5
0.8
Philippines
100.0
0.0
0.0
Saudi Arabia
***
***
***
Taiwan1
---Thailand1
---Turkey
48.4
42.9
8.7
Ukraine
77.9
21.3
0.8
Vietnam
99.5
0.5
0.0
1
No data were reported for imports from Taiwan and Thailand.
SUPPLYANDDEMANDCONSIDERATIONS
Supply
Domesticproduction
ThemajorityofU.S.OCTGproductionfacilitiesarelocatedrelativelyclosetosourcesof
oilandnaturalgas.2Basedonavailableinformation,U.S.producershavetheabilitytorespond
tochangesindemandwithmoderatechangesinthequantityofshipmentsofU.S.produced
OCTGtotheU.S.market.Themaincontributingfactorstothisdegreeofresponsivenessof
supplyaresubstantialexcesscapacity,someabilitytouseinventories,andtheabilitytoswitch
toandfromproducingotherproductsonthesameequipmentandmachinery.

Industrycapacity
U.S.producerscapacityincreasedfrom5.5millionshorttonsin2010to6.0millionin
2012,andithascontinuedtoincreasein2013.Despitean8.9percentincreaseincapacity
between2010and2012,thecapacityutilizationrateincreasedfrom52.5percentin2010to
63.0percentin2012,andwas65.4percentinJanuarytoMarch2013,comparedwith69.7
percentinJanuarytoMarch2012.Continuingandadditionalplantopeningsandexpansionsare
plannedinthenearfutureaswell.3Thisrelativelymoderatelevelofutilizationsuggeststhat
U.S.producersmayhavesubstantialandgrowingcapacitytoproduceOCTGinresponseto
increasesinprice.
SeePartIIIofthisreportforfurtherdetail.
PartIIIcontainsspecificinformationregardingthesizeandtimingoftheseplantopenings.
II4
Producerinventorylevels
InventoriesaretypicallymoderateinthisindustrysinceOCTGisusuallyproducedto
orderforspecificendusersbutshippedtoandinventoriedbydistributorstomeetdelivery
scheduleneeds.U.S.producersratioofinventoriestototalshipmentsdecreasedfrom13.3
percentattheendof2010to10.1percentbytheendof2012,andwas11.4percentof
annualizedshipmentsinMarch2013,comparedwith11.1percentinMarch2012.Theselevels
ofinventoriessuggestthatU.S.producersmayhavesomeabilitytouseinventoriestorespond
topricechanges.LargerinventoriesaremoretypicallyheldbydistributorsofOCTG.More
informationregardingmarketinventorylevelsispresentedlaterinPartII.

Alternativemarkets
U.S.producersexports,asashareoftotalshipments,increasedfrom4.9percentin
2010to5.5percentin2012,butwere4.4percentinJanuaryMarch2013,comparedwith5.9
percentinJanuaryMarch2012.Baseduponrelativelylowexportvolumesandsmallvariations
inrelativelevels,U.S.producerslikelyhavelittleabilitytoshiftshipmentsbetweentheU.S.
marketandothermarketsinresponsetopricechanges.

Productionalternatives
U.S.producersproduceweldedandseamlessoil/gaswellcasingandtubing,mechanical
tubing,andstandard/line/pressurepipeonthesameequipmentusedtoproduceOCTG.
Accordingtoquestionnaireresponses,76.8percentofsharedweldedproductionin2010was
usedtomanufactureOCTGand23.1percentwasusedtoproduceother(nonOCTG)welded
products.ThenonOCTGsharedecreasedto20.0percentin2012,andwas16.1percentin
JanuaryMarch2013,comparedwith24.1percentoneyearearlier,indicatingthatagreater
proportionofsharedweldedproductionresourcesisbeingusedtomanufactureOCTG.
Withrespecttosharedseamlesspipeandtubeproduction,18.2percentwasusedfor
nonOCTGproductionin2010.Thisincreasedto21.8percentin2011,butdecreasedto19.6
percentin2012.Theproportionremainedthesameininterim2012and2013at17.9percent.

Supplyconstraints
U.S.producerswereaskediftheyrefused,declined,orwereunabletosupplyOCTG
sinceJanuary1,2010.4Threeof14respondingproducersreportedthattheywereunableto
supplyproductatsometimesince2010.Producer***statedthatitwascautiousinbringingin
newcustomers***.***.***.
Thisincludesplacingcustomersonallocationorcontrolledorderentry,decliningtoaccept
customersorrenewexistingcustomers,deliveringlessthanthequantitypromised,orfailingtomeet
timelyshipmentcommitments.
II5
Subjectimports
SubjectimportsofOCTGhaveincreasedsince2010.Atthebeginningof2010,
countervailingdutiesonOCTGimportedfromChinaenteredintoeffect,andantidumping
dutiesfollowedinApril2010.5AftertheplacementofADandCVDdutiesonChineseproduct,
subjectimportsincreasedfrom851,000shorttonsin2010to1.8millionshorttonsin2012.
However,subjectimportswerelowerininterim2013(440,000shorttons)thanininterim2012
(478,000shorttons).6
Subjectimportsincreasedfrom17.0percentofthequantityofapparentU.S.
consumptionin2010to25.3percentin2012,andrepresented26.4percentofapparentU.S.
consumptioninthefirstthreemonthsof2013.ThelargestsourceofOCTGimportsfrom
subjectcountriesthroughoutthisperiodwasKorea,whichrepresented***percentof
apparentU.S.consumptionin2012.Thailandwasthesmallestsubjectsource(0.4percent)in
2012.Thequantityoftheexportsvariedbycountry.Countrybycountrydatawereavailablefor
productimportedintotheU.S.marketsforallsubjectcountries(tableII4).
Publication4124,January2010.
6
Importsfromsubjectcountriestendedtobelargelyorexclusivelyweldedorexclusivelyseamless
OCTG,asarearrangedimportsforbetweenAprilandDecember2013.TheindustriesinKorea,the
Philippines,Taiwan,andTurkeyarrangedimportsofonlyweldedOCTGtotheUnitedStates,whereas
theindustriesinSaudiArabia,Thailand,andUkrainearrangedimportsofonlyseamlessOCTG.The
industriesinIndiaandVietnamarrangedimportsofbothtypesinAprilthroughDecemberof2013.
KoreanandVietnameseproducershadweldedOCTGcapacityin2010,butaddedcapacityto
manufactureseamlessOCTGbeginningin2012.Conversely,theindustryinSaudiArabiaaddedcapacity
tomanufactureweldedOCTGin2012,whereasithadpreviouslyonlyhadseamlesscapacity.
II6
Table II-4
OCTG: Capacity, total shipments to the U.S. market, capacity utilization, inventories, sales to its
home market and the U.S., and overall capability to shift sales to the United States
Year
Sales to
Total
U.S.
Inventories
markets
capacity imports1 Capacity
to
utilization shipments Home U.S.
Short tons
Percent
Factors influencing supply responsiveness

to changes in the U.S. market
India:
2010
555,217
***
37.6
9.4
28.5
2011
748,850
***
49.1
5.1
44.0
2012
771,354
***
49.6
5.7
47.7
Jan.-Mar.
2013
194,376
***
34.2
8.2
42.2
2010
955,761
***
62.0
3.7
0.8
2011
1,089,878
***
66.7
2.7
0.7
2012
1,157,437
***
77.0
4.9
1.0
294,273
***
74.9
4.6
1.8
2010
--
--
--
2011
***
23,933
***
n/a
***
2012
Jan.-Mar.
2013
***
70,166
***
n/a
***
***
11,399
***
n/a
***
2010
***
***
***
***
***
2011
***
***
***
***
***
2012
***
***
***
***
***
Jan.-Mar.
2013
***
***
***
***
***
2010
***
56,594
***
***
***
2011
***
96,403
***
***
***
2012
*** 106,576
***
***
***
Jan.-Mar.
2013
*** 25,973
Table continued on the next page.
***
***
***
India was the third-largest source of subject

60.3 imports in 2012. In interim 2013, Indian
production and capacity utilization was just
greater than half of what it was in interim
47.5
2012. Indias home market accounts for about
half of its sales. Indian producers moderate
45.6 shipments to the United States, increasing
capacity, low capacity utilization, and
inventory level increase their ability to
54.7 increase shipments to the U.S. market.
Korea:
Jan.-Mar.
2013
Korea has been the largest source of imports

98.0 of OCTG since 2010. Its low inventories and
limited alternative markets reduce its ability to
96.3 increase its supply the U.S. market in the
event of a price change. However, it has the
96.9 largest capacity to produce welded OCTG and
Korean producers recently added seamless
capacity, which may increase the ability to
94.4 supply the U.S. market.
Philippines:
The producer in the Philippines had the
-- smallest capacity among subject producers
and the highest capacity utilization in 2012
*** and interim 2013. The *** of sales are exports
to the United States. *** inventories were
*** reported. These factors indicate a relatively
low ability to increase shipments to the United
*** States.
Saudi Arabia:
Saudi Arabia has a relatively large home
*** market, but *** of it its output was shipped to
the United States in 2011-12. Producers in
Saudi Arabia have been adding capacity and
***
project this to continue, thus increasing the
ability to ship to the United States; however,
*** high capacity utilization moderates this ability.
Ending inventories have been declining and
were lowest in interim 2013, but are still
*** moderately-sized.
Taiwan:
II7
Based on foreign producers data covering

*** 95.5 percent of U.S. imports from Taiwan,
capacity remained constant, but capacity
utilization peaked in 2011. Inventories held by
***
Taiwan producers are relatively low, the home
market is small, and most production is
*** shipped to the U.S. market. These factors
indicate that Taiwan producers may have
some ability to increase shipments to the U.S.
*** market.
Table II-4--Continued
OCTG: Capacity, total shipments to the U.S. market, capacity utilization, inventories, sales to
various markets and overall capability to shift sales to the United States
Year
Sales to
Total
U.S.
Inventories
markets
capacity imports1 Capacity
to
utilization shipments Home U.S.
Short tons
Percent
Factors influencing supply responsiveness

to changes in the U.S. market
Thailand:
2010
--
--
--
2011
***
6,135
***
***
***
2012
***
31,833
***
***
***
Jan.-Mar.
2013
***
3,424
***
***
***
2010
***
85,222
***
***
***
2011
***
140,806
***
***
***
2012
***
152,444
***
***
***
Jan.-Mar.
2013
***
24,217
***
***
***
2010
***
***
***
***
***
2011
***
***
***
***
***
2012
***
***
***
***
***
Jan.-Mar.
2013
***
***
***
***
***
2010
***
145
***
***
***
2011
***
56,697
***
***
***
20122
Jan.-Mar.
2013
***
219,997
***
***
***
***
37,561
***
***
***
The responding Thai producer had the fewest

-- sales of subject OCTG to the United States
over 2010-12 and in 2012. All of the Thai
*** producers shipments were of seamless OCTG.
*** quantities already sold to the U.S. market
*** may decrease the ability to increase supply to
the U.S. market; *** capacity utilization and ***
ending inventories increase Thai producers
ability to shift shipments to the U.S. market,
*** however.
Turkey:
Producers in Turkey shipped over *** percent of
*** their OCTG to the U.S. market and has
maintained a high capacity utilization rate
*** despite increasing capacity levels. Ending
inventories were highest in interim 2013,
*** though only *** more tons than in interim 2012.
Each of these factors decrease Turkish
producers ability to increase shipments to the
*** U.S. market.
Ukraine:
Ukrainian capacity did not change, but its
*** capacity utilization increased in 2010-12.
Utilization was lower in interim 2013, but still
*** above *** percent. This indicates producers in
Ukraine have some ability to increase their
*** shipments to the U.S. market. The existence of
large third-country markets indicate that
producers in the Ukraine could increase
shipments to the U.S. market, but inventories
*** are low.
Vietnam:
Producers in Vietnam had the largest increase
*** in shipments to the United States between
2010 and 2012. Vietnam does not have any
*** developed hydro-carbon mining, so all
production is exported, with *** percent
*** shipped to the United States since 2010.
Ending inventories were *** percent of total
*** shipments in interim 2013.
U.S. imports are from official Commerce statistics. All other data are from the foreign producers questionnaires and reflect the
coverage provided in the foreign producer questionnaires.
2
This capacity figure does not include data for three producers in Vietnam which did not respond to the Commissions questionnaire
but were in operation and exporting during 2012. One of the producers, ***. Respondent SeAH Vinas postconference brief, pp. 8-9.
Note.Foreign producer data for most subject countries cover the majority of imports into the United States in 2012: ***. Vietnamese
foreign producers responding to the questionnaires exported *** percent of Vietnams reported imports to the United States. For further
information, see Part VII.

II8
Supplyconstraints
Thirtyoneof44respondingimportersstatedthattheyhadnothadanyconstraintson
theirsupply.Theother13importersattributedsupplyconstraintstoissuesincluding:an
allocatedshareofproductioncapacitylimitingthenumberofcustomersthatoneimporteris
abletoserve;afireintheproductionplant;canceledordersduetodelayedshipmentsand
decliningprices;aninabilitytosourceP110regularandHCpipe;lackofheattreatingfacilities
intheUnitedStates;theavailability/inabilitytosupplyofpremiumandsemipremiumthreads;
logisticalissues;anexclusivecontract;beingonallocationfromthemill;andtheneedforthe
milltoorderbloomsspecificallyforOCTGorders.

Nonsubjectimports
Nonsubjectimportsaccountedfor29.3percentofapparentU.S.consumptionin2010,
anddecreasedto24.7percentin2012.InJanuaryMarch2013,nonsubjectimportsaccounted
for18.5percentofapparentU.S.consumption.TheleadingnonsubjectsourcesforU.S.imports
ofOCTGareCanada,Japan,Germany,Mexico,andArgentina.Eachofthesecountriesisrelated
toatleastonedomesticproducerordistributorofOCTG.Overall,CanadaandJapanwerethe
secondandthirdlargestsourcesofimportsofOCTGintotheUnitedStatesin2012,although
CanadaandArgentinawerethesecondandthirdlargestsourcesofimportsofOCTGintothe
UnitedStatesinJanuary2010March2013behindKorea.

Inventories
Inventoriesarehelddomesticallybyproducers,distributors,importers,andendusersin
theUnitedStates.DistributorswilltypicallystockOCTGfromproducersandimporters,andtry
tomaintaininventorylevelsthatareneithertoosmall(riskingmisseddeliverytimeframesor
lostsales)ortoolarge(riskingpricefluctuationsthataffectthevaluationofanyheldstock).
Wheninventoriesareperceivedtogettoolarge,lessOCTGwillberequiredfromproducersand
importers,soitinfluencesbothsupplyanddemandofOCTG.
FigureII1presentstheinventoryonhand,inmillionsoftonsandthenumberofmonths
ofinventoryonhand(basedonoperatorconsumption).Thenumberofmonthsofinventoryon
handhadreachedapeakpriorto2010,reachingover3.8milliontons(16months)inearly
2009,7andwascontinuingtodecreaseatthestartof2010.Inventorylevelsbothintermsof
tonnageandmonthsonhandreachedatroughinJanuary2012,butthenincreaseduntil
October2012.InventoriesincreasedirregularlybetweenDecember2012andMarch2013.
Publication4124,January2010,FigureII1andTableII2.
II9
Figure II-1
OCTG: U.S. inventory
y levels and months
m
sup
pply on hand
d, January 20
010-March 20
013
Source: Prreston Publishin

ng Co.
In
nthepreviou
usOCTGcassein2010,ittwasnotedtthatmarkettparticipantsprefertossee
inventoriiesatorbelo
owsixmontths.8Atthesstaffconfereence,petitionerstestifieedthatfive
monthso
ofinventoryispresentlyytoomuch,aandthreem
monthsofinvventoryisprreferred,bassed
onincreaasedsupplychainefficie
enciesandadecreaseinthevariety ofOCTGuseedinextractting
shaleoilandgas.9Re
espondentsd
disagreedw
withthisasseessmentandtestifiedthaatthepreferred
levelofin
nventorieso
onhandisarroundfivem
months,asthhenumbero
ofstoragefacilitieshave
increased
d,especiallyyoutsideofTTexas.

Demand
D
U.S.dem
mand
Basedonavailableinform
mation,itisllikelythatchhangesinthepricelevellofOCTGwiill
resultinasmallchan
ngeinthequ
uantityofOC
CTGdemandded.Themaaincontributtingfactorstto
thesmalldegreeofrresponsivene
essarethelackofsubsttituteproducctsforOCTG
GandthatOCTG
represen
ntsasmallto
omoderateccostsharefo
ormostofittsenduseproducts.
OilCo
ountryTubula
arGoodsfrom
mChina,InvN
No.701TA4663(Final),USITCPublicatio
on4124,Janu
uary
2010,p.III4.
9
Confe
erencetransccript,pp.394
40(Lowe)and
dp.91(Kaplaan).
II10
Demanddeterminan
nts
DemandforO
D
OCTGisdrive
enbythelevvelofactivittyintheU.S.economy,aandisderiveed
fromthedemandforrhydrocarbo
on(oilandn
naturalgas)eexplorationanddrilling..Theamoun
ntof
drillingissinfluenced,,atleastparrtially,bythe
epriceofoillandnaturalgas.
Atthebeginn
A
ningoftheperiodofinve
estigation,t heUnitedSttateswasreecoveringfro
om
therecen
ntrecession(figureII1).U.S.GDPin
ncreasedineeachquarterbeginninginJuly
Septemb
ber2009,byratesbetwe
een0.1and4
4.1percent(figureII2)..BlueChipEEconomic
IndicatorrsforecaststthatrealGDPwillgrowb
by***perceentforfullyyear2013(in
ncluding****
percentiinthethirdq
quarterand***percenttinthefourtthquarter)aand***percentin2014
4.10
Figure II-2
OCTG: Pe
ercent chang
ges in real grross domesttic product (G
GDP) growth
h, by quarterrs, January 2
2009March 20
013
Percentagechange
4
2
0
2
2
4
4
6
6
2009
2010
0
2011
2012
2013
GDP
Source: Bu
ureau of Econo
omic Analysis, U.S.
U Departme
ent of Commercce.
Accordingto
A
datafromP
PrestonPublishing,OCTG
Goperatorcconsumption
n,ameasureeof
tonnageofOCTGuse
ed,increased
dbetweenJanuary20100andNovem
mber2011(ffigureII3).11
Sincethaattime,operratorconsum
mptionhasb
beendecrea singirregulaarly.OCTGconsumption
nhas
12
decrease
edapproximately14perrcentintheffirsthalfof22013. Then
numberofrrigshasfollowed
asimilarpattern(figu
ureII4).Sim
milarly,thefo
ootagedrilleedincreased
dbetween2010and201
11,
butdeclinedin2012(figureII5).13Asthenu
umberofrigssincreased,thetotalprroductionof
naturalggasandoilhaasincreased
daswell(figu
ureII6).
10
BlueeChipEconom
micIndicatorss,July10,201
13.
Shad
dinginthefigguresidentifie
esperiodsoutsidetheJan uary2010March2013tim
meframe.
12
Jun
neOCTGPrice
esPostSurprisingUptick;FFurtherUpwaardMomentu
umLimited,SSteelMarket
Intelligencce,June27,2
2013.
13
Base
edondatafro
omtheEnergyInformation
nAdministrattionandestim
matesfromO
OilandGasJournal.
11
II11
Figure II-3
OCTG: Operator
O
cons
sumption, monthly, Janu
uary 2009-Ma
arch 2013
Source: Prreston Publishin

ng Co., various
s issues, 2011--2013.
Figure II-4
OCTG: Baker-Hughes
s rig count, weekly,
w
Janu
uary 5, 2007-J
July 12, 2013
3
Source: Ba
aker-Hughes North America Rotary
R
Rig Cou
unt.
II12
Figure II-5
OCTG: To
otal feet drillled, yearly, 2007-12
2
Source: En
nergy Information Adminstration, and Oil and
d Gas Journal, Jan. 9, 2012 a
and Jan. 7, 201
13 (2011-12 da
ata).
90
80
70
60
50
40
30
20
10
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.
II13
Billion cubic feet per day
Million barrels per day
Figure II-6
OCTG: Crude oil and dry natural gas
g production, monthly
y, January 20
009-June 201
13, estimated
d
July 2013
3-December 2014
Thenumbero
ofrigstypicaallyrespondstothepricceofnaturalgasandoil.Asthepriceeof
oilincreaasedbeginningin2009,thenumberrandproporrtionofrigsd
devotedtoo
oilproductio
on
increased
d(figureII7
7).Between2002and20
009,morethhan80perceentofrigsin
ntheUnited
Stateswe
eregasrigs.Thischange
eisseenstarrtingin20099,andtheprroportionisnow
approxim
mately80percentoilrigssand20perrcentnatura lgasrigs(figgureII8).
Figure II-7
OCTG: Crude oil (WT
TI) and natura
al gas (Henry
y Hub spot) p
prices, montthly, January
y 2009-June 2
2013,
estimated
d July 2013-D
December 20
014
Source: En
nergy Information Administrattion.
Althoughope
A
eratorconsu
umptionhasbeenfallinggsincelate22011,somessignshave
pointedttoincreased
dconsumptio
onintheseccondhalfof2013.Attheestaffconfeerence,
responde
entstestified
dthattheriggcountisexxpectedtoinncreaseby44.3percentinthesecond
d
halfof20
013,andby2.8percentin2014.14O
Oneindustryypublication
nnotedthatJuneOCTG
pricesexxperiencedth
heirfirstincreasesinceMarch20122,althoughccontinuedprriceincreaseeswill
likelybelimitedasm
morecapacityycomesonlineinNorthhAmerica.155
Asnotedearl
A
lier,thequantityofOCTTGusedinoiilandnaturaalgasexplorrationand
extractio
onisdetermiinedbythenumberofrigsthatareoperatingasswellastheelengthand
depthofthewellsbe
eingdrilled.Marketpartticipantsattthestaffcon
nferencenottedthatthe
increased
duseofhorizontaldrillin
ngonshaleplayshasleddtoanincreeasedneedfforOCTG,ass
somelen
ngthsofhorizontalwellscanreach2
2miles.16FiigureII9dissplaystheprroportionofrigs
bydrillingtype(i.e.,horizontal,vvertical,ord
directional).A
Asshownin
nthisfigure,theproporttion
ofrigsthatemployh
horizontaldrrillinghasinccreasedsubsstantially,fro
om20perceentoftotalrrigs
14
Confferencetransscript,p.176(Dougan).
Jun
neOCTGPrice
esPostSurprisingUptick;FFurtherUpwaardMomentu
umLimited,SSteelMarket
Intelligencce,June27,2
2013.
16
Confferencetransscript,p.263(Fowler).
15
II14
atthebe
eginningof2
2007,to48p
percentatth
hebeginninggof2010.Th
heproportio
oncontinued
dto
climb,reaching65pe
ercentinFeb
bruary2013beforebeginningtodeeclineslightlyy.AsofJuly
2013,horizontaldrilllingaccountedfor60pe
ercentofdom
mesticdrillin
ng.

Figure II-8
OCTG: Proportion of U.S. rigs dev
voted to natu
ural gas and
d oil mining, w
weekly, Jaun
nary 2009-Ju
uly
2013
Source: Ba
R
Rig Cou
unt.
Figure II-9
OCTG: Proportion of U.S. rigs, by
y drilling type
e, 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
R
Rig Cou
unt.
II15
Vertical
1/5/2012
1/5/2013
Apparentconsumption
Similartothetrendsinconstruction,apparentU.S.consumptionofOCTGincreased
from5.0millionshorttonsin2010to7.2millionshorttonsin2012.ApparentU.S.consumption
waslowerinJanuaryMarch2013thaninJanuaryMarch2012(1.7millionshorttons,
comparedwith1.9millionshorttons).

Demandperceptions
WhenaskedhowdemandforOCTGhaschangedwithintheUnitedStatessinceJanuary
2010,themajorityofrespondingproducers(9of11)andimporters(26of45)reportedthat
demandforOCTGhasincreased(tableII5).Producer***described2010to2012asprobably
thebestthreeyearperiodforOCTGdemandinthiscountrysincethe1980s.17Reasons
providedbyproducersandimportersmostlyfocusedonincreasedhydraulicfracturingand
increaseddrillingduetoincreasedoilprices.Someproducersandimportersnotedthatdemand
hasnotincreasedinrecentmonths.***reportedthatitestimatesthatdemandintheUnited
Stateswillincreaseby2percentin201214.Amongthosefirmsthatreportedthatdemandhad
fluctuated,reasonscitedincludedchangingrigcounts,fluctuatingrawmaterialcosts,and
increasedoil/decreasedgasexploration.
Table II-5
OCTG: U.S. 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. producers
26
12
16
Importers
Demand outside the United
States:
U.S. producers
Importers

Seasonalityandbusinesscycles
MarketparticipantsatthestaffconferencewereaskedwhetherU.S.demandforOCTG
washigherorlowerduringanyparticularseason.MostU.S.producers(11of14)andimporters
(26of44)reportedthattherearebusinesscyclesorseasonalityinOCTGdemand.Some
seasonalitywasnotedintheUnitedStates.Inparticular,thereisadecreaseinOCTGdemandat
theendoftheyear,whenexplorationbudgetshavebeenexhaustedandfirmsseektoreduce
taxexposureoninventorieslocatedinHouston.Incontrast,theremaybesomeseasonality
17
***producerquestionnaireresponse.
II16
withrespecttoincreaseddrillinginthewinterinCanadawheniceallowstransittomore
remotelocations.18
Themajorityoffirmsnotingtheexistenceofseasonalityorbusinesscyclesreferredto
theenergycycleanddemandfactorscitedearliersuchasoilandgaspricesandrigcounts.
Producer***reportedthatthedegreeofwetweatherinthespringcandecreasedemandin
thenorthernUnitedStates.Importers***notedthatthereisincreasedactivityduringthe
summerandlessduringthewinter.Importer***statedthatNovemberandDecemberare
typicallyslow,whileJanuaryandFebruaryaretypicallybusy.Importer***alsoindicateda
slowdownattheendoftheyear.

Substituteproducts
Thirteenof14U.S.producersand38of40importersreportedthatthereareno
substitutesforOCTG.OnepossiblesubstituteforOCTGiscoiledtubing,whichcouldbeusedin
wellinterventions,completions,andworkoversofbothnewandoldwells,asnotedby***.19
Importer***statedthatlinepipecouldbeusedassurfacecasinginshallowwellswithlittle
pressureandimporter***statedthatexpandablecasingcouldbeusedinlinerandcasing.

Costshare
OCTGaccountsforasmallshareofthecostoftheenduseproductsinwhichitisused.
Industryfirmsgavehighlyvaryinganswers.20Producers***notedthatOCTGaccountsfor7to
8percentofthecostofoilandgasdrilling/extraction.Producer***statedthatOCTGaccounts
for15percentofthecost,and***statedthatOCTGaccountsfor85percentofthecostofoil
andgasdrilling.Importers***reportedthatOCTGaccountsfor10percentofthecostof
oil/gaswells.Importer***statedthatOCTGaccountsfor25percentofthecostofoilandgas
exploration.

DemandoutsidetheUnitedStates
MostU.S.producers(8of13)andmostimporters(16of31)reportedthatdemand
outsidetheU.S.markethasincreasedsinceJanuary2010.Reasonsforincreasingdemand
reportedbyproducersandimportersincluded:moreefficientdrillingtechniques;increased
horizontalwelldrilling;additionaldemandinAustralia,Brazil,Iraq,SaudiArabia,andtheGulf
CooperationCouncilcountries;increasedCanadian,Chinese,andRussianwellsdrilled;
increasedglobaloilandgasdrilling;andincreasedoilandgasexplorationactivity.Importer***
stated,Demandhasgenerallyincreasedincertainmarketsandithasdecreasedinothers.
Overall,however,globaldemandisprojectedtoincreaseslightlyfrom2012to2014.***
18
Conferencetranscript,p.247(Brewer)and***producerquestionnaireresponses.
***stated,however,thatthiswasverylimitedandwouldnotlikelyhaveanyeffectontheOCTG
market.
20
Inaddition,fiveproducersand21importersreportedthatOCTGaccountsfor100percentofthe
enduseproductinwhichitisused.
19
II17
estimatesthatOCTGdemandwillincreasebyaboutlessthan10percent.Muchofthisincrease,
however,willbeinmarketsthesubjectimportscannotserve.

SUBSTITUTABILITYISSUES
ThedegreeofsubstitutionbetweendomesticandimportedOCTGdependsuponsuch
factorsasrelativeprices,quality(e.g.,physicalcharacteristics,consistency,tubingandcasing
typeandgrade,etc.),andconditionsofsale(e.g.,pricediscounts/rebates,availability,payment
terms,productservices,reliabilityofsupply,etc.).Basedonavailabledata,staffbelievesthat
thereisahighdegreeofsubstitutabilitybetweenU.S.producedOCTGandthatimportedfrom
subjectcountries.

Factorsaffectingpurchasingdecisions
AnumberoffactorsinfluencepurchasersdecisionsregardingthesourceoftheOCTG
theybuy.OCTGmustmeettherequiredAPIspecificationfortheproject,andmustbeofan
acceptablequalitytothepurchaser.SomeprojectsrequiretheOCTGbeproducedbyacertain
process(i.e.,seamless).Leadtimesandavailabilitywerealsonotedasimportantfactors
determiningpuchaserssourcingdecisions.

Leadtimes
ThemajorityofdomesticproductionofOCTG(88.3percent)ismadeonaproducedto
orderbasis.Infact,allsalesofOCTGby***areproducedtoorder.Domesticleadtimesfor
producedtoorderOCTGrangedbetween1and4months,withanaverageofalmost2months.
Forsalesfrominventory,leadtimesrangedbetween1and30days,averaging12days.
AmajorityofimportersshipmentsofOCTG(61.8percentacrossallsubjectcountries)
werealsomadeonaproducedtoorderbasis.Onlyimportsfrom***weresoldfrom
importersinventoriesamajorityofthetime(***percent).Importsfrom***werealsothe
onlyimportsthathadaportion***.ImportedOCTGfrom***werelessoftensoldona
producedtoorderbasis(***percent)thanthosefrom***(***percent).Acrossallsubject
countries,leadtimesforproducedtoorderOCTGrangedfrom2to6monthsandaveraged4
months.Forthoseshippedfromimportersinventories,leadtimerangedbetween2daysand1
month,andaveraged13daysacross10respondingimporters.21

Suppliercertification
Domesticproducersnotedatthestaffconferencethatsuppliersdonotneedtoget
certifiedbyindividualpurchasers.22Rather,thecasingandtubingunderconsiderationmust
meetthegradestandards.AslongasamillsorprocessorsfacilitymeetstheAPIs
specifications,itcanbecertifiedtousetheAPIstamponitsproducts.ReceivingAPI
21
Datafor***arenotincludedinthesedata.Itreportedleadtimesfromitsinventoriesof***.With
thesedataincluded,theaverageleadtimeincreasestonearly***days.
22
Conferencetranscript,p.120(MillerandSchagrin).
II18
certificationtypicallyrequiresfourtoninemonths,dependingontheprocessforwhich
certificationissought(e.g.,threading,heattreatment,ormanufacturing).23

Comparisonsofdomesticproducts,subjectimports,andnonsubjectimports
Interchangeability
TodeterminewhetherU.S.producedOCTGcangenerallybeusedinthesame
applicationsasimportsfromtheninesubjectcountriesaswellasothercountries,U.S.
producersandimporterswereaskedwhethertheproductscanalways,frequently,
sometimes,orneverbeusedinterchangeably.AsshownintableII6,mostproducers
reportedthatproductfromallcountrypairswasalwaysorfrequentlyinterchangeable.A
pluralityofimporters,alsoreportedthatU.S.andimportedproductwasalways
interchangeablewithdomesticOCTG,butbetweenfiveandnineimportersalsoindicatedthat
subjectimportsanddomesticproductionweresometimesorfrequentlyinterchangeable.
Factorscitedbyimportersaslimitinginterchangeabilityincluded:issueswithrespecttowelded
vs.seamlessOCTG(notedby8importers);qualityissues(7importers);grades,sizesand
connections(3importers);purchaserapprovalandimportslessacceptedatlargecompanies(2
importerseach);andprogramsales(1importer).Inaddition,oneimporter(***)statedthata
producerscontinuedmaintainanceofanAPIcertificationisanindicationthatproductsshould
beofsimilarquality.
23
Conferencetranscript,p.248(Brewer).
II19
Table II-6
OCTG: Perceived interchangeability between product produced in the United States and in other
countries, by country pairs
Number of U.S. producers
Number of U.S. importers
reporting
reporting
Country pair
A
F
S
N
A
F
S
N
U.S. vs. subject countries:
U.S. vs. India
11
2
0
0
14
5
8
U.S. vs. Korea
10
2
0
0
14
7
9
U.S. vs. Philippines
10
1
1
0
13
5
6
U.S. vs. Saudi Arabia
10
1
0
0
13
5
5
U.S. vs. Taiwan
10
1
0
0
12
5
7
U.S. vs. Thailand
10
1
0
0
13
5
5
U.S. vs. Turkey
10
2
0
0
13
5
7
U.S. vs. Ukraine
10
1
1
0
11
7
6
U.S. vs. Vietnam
10
1
1
0
12
6
8
Subject vs. subject countries:
India vs. Korea
8
0
0
0
9
4
6
India vs. Philippines
8
0
0
0
10
5
5
India vs. Saudi Arabia
8
0
0
0
9
4
5
India vs. Taiwan
8
0
0
0
8
5
5
India vs. Thailand
8
0
0
0
9
4
5
India vs. Turkey
8
0
0
0
10
6
5
India vs. Ukraine
8
0
0
0
8
6
5
India vs. Vietnam
8
0
0
0
9
5
6
Korea vs. Philippines
8
0
0
0
10
6
6
Korea vs. Saudi Arabia
8
0
0
0
8
4
6
Korea vs. Taiwan
8
0
0
0
8
6
7
Korea vs. Thailand
8
0
0
0
9
4
6
Korea vs. Turkey
8
0
0
0
9
5
7
Korea vs. Ukraine
8
0
0
0
8
5
7
Korea vs. Vietnam
8
0
0
0
9
6
7
Philippines vs. Saudi Arabia
8
0
0
0
8
4
5
Philippines vs. Taiwan
8
0
0
0
8
6
5
Philippines vs. Thailand
8
0
0
0
9
4
5
Philippines vs. Turkey
8
0
0
0
9
5
6
Philippines vs. Ukraine
8
0
0
0
8
5
6
Philippines vs. Vietnam
8
0
0
0
9
6
6
Saudi Arabia vs. Taiwan
8
0
0
0
8
6
5
Saudi Arabia vs. Thailand
8
0
0
0
8
4
5
Saudi Arabia vs. Turkey
8
0
0
0
9
5
6
Saudi Arabia vs. Ukraine
8
0
0
0
8
7
5
Table continued on next page.
II20
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
OCTG: Perceived interchangeability between product produced in the United States and in other
countries, by country pairs
reporting
reporting
Country pair
A
F
S
N
A
F
S
N
Saudi Arabia vs. Vietnam
8
0
0
0
8
5
6
Taiwan vs. Thailand
8
0
0
0
8
4
6
Taiwan vs. Turkey
8
0
0
0
8
5
7
Taiwan vs. Ukraine
8
0
0
0
8
5
7
Taiwan vs. Vietnam
8
0
0
0
8
7
5
Thailand vs. Turkey
Thailand vs. Ukraine
Thailand vs. Vietnam
Turkey vs. Ukraine
Turkey vs. Vietnam
Ukraine vs.Vietnam
Subject vs. nonsubject
countries:
Combined
India vs. nonsubject
Korea vs. nonsubject
Philippines vs. nonsubject
Saudi Arabia vs. nonsubject
Taiwan vs. nonsubject
Thailand vs. nonsubject
Turkey vs. nonsubject
Ukraine vs. nonsubject
Vietnam vs. 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.A=Always, F=Frequently, S=Sometimes, N=Never.


Weldedvs.seamlessOCTG
TherearecertainapplicationsinwhichweldedandseamlessOCTGcannotbeused
interchangeably.SeamlessOCTGcouldbeusedinanyapplicationwhichrequiredwelded
OCTG.24Thesameisnottrueinreverse.Ataminimum,highstressapplicationssuchassour
service,whichcouldaccountforanestimated10percentofthemarket,requireseamless
OCTG.AwitnessforpetitionersestimatedthatweldedOCTGcouldbeusedfor70percentof
seamlessapplicationsandawitnessforrespondentsnotedthattheyareinterchangeablein
manycasesfromanengineeringperspective.25Petitionersfurtherstatedthatbeyondthat,the
projectengineerspreferencecanbeadecidingfactor.Witnessesforrespondentsnotedthat
24
Conferencetranscript,p.109(Matthews).
Conferencetranscript,pp.109(Matthews)and261(Brewer).
25
II21
engineerspreferenceforahigherpricedseamlessproductmaybeduetoapreferenceto
reducerisk.26TherehasbeenanincreasedpreferenceforseamlessOCTGsinceincidentssuch
astheBPMacondooilspillin2010.27
Asnotedearlier,subjectcountrieshavetypicallyimportedeitheronetypeofOCTGor
theother,whichmaylimitsubstitutabilityamongsubjectcountries.28

Quality
OCTGistypicallyproducedtomeet,ifnotexceed,APIspecifications.Petitioners
contendthatifapipemeetstheAPIspecificationthenitisinterchangeable,exceptforthoseat
thetopendoftheproductrange.29Awitnessforpetitionersestimatedthat90to95percentof
OCTGisofacommoditytypegradefromapipebodystandpoint.30Awitnessforrespondents
statedthat,incontrast,APIcertificationconfirmsthatthepipemeetsspecifications,butdoes
notimplyalevelofqualityoftheOCTG.31Oneproducerandsevenimportersindicatedthat
qualityissuesareasignificantfactorintheirsalesofOCTG.Qualitycanvarybymill,asnotedby
firmsuchasimporter***.

Premiumconnectionsandalloygrades
AnincreasingproportionofdemandintheUnitedStatesreportedlyrequirespremium
orsemipremiumconnectionsorthreads.Semipremiumandpremiumthreadsareusedin
highstressapplicationssuchasoffshoreandinhorizontaldrillingandneedtowithstandhigh
torque,highcompression,andbending.Awitnessforpetitionersestimatedthat80percentof
threadsarecommoditytype,andthatsemipremiumorpremiumthreadscanbeaddedto
weldedorseamlesspipefromanysource,includingthatfromsubjectcountries.32Another
witnesstestifiedthathisfirmhadlostasaleofOCTGwithsemipremiumthreadingtoOCTG
importedfromKorea.33
Witnessesforrespondentstestifiedthatpremiumandsemipremiumthreadsandalloy
gradesarebeingemphasizedbydomesticproducers,andtheyhavevirtuallynocompetitionin
fortheseproducts,sincenoneofthesuppliersinthecountrieslistedinthepetitionimported
proprietarypremiumconnectionstotheU.S.marketplace.34Initsquestionnaireresponse,
importer***indicatedthatpremiumconnectionsarenotavailablefromKorea.
AnincreasingfocusofdomesticOCTGdemandhasbeenhigheralloygradesofOCTG
suchasP110.35Awitnessforrespondentsnotedthatalloygradesarenotimportedtothe
26
Conferencetranscript,pp.263264(BlombergandFowler).
Conferencetranscript,p.263(Fowler).
28
Formoreinformationregardingweldedvs.seamlessproduction,seePartIII.
29
Conferencetranscript,pp.119120(Schagrin).
30
Conferencetranscript,pp.136137(Thompson).
31
Conferencetranscript,p.249(BrewerandCameron).
32
Conferencetranscript,p.137(Thompson).
33
Conferencetranscript,p.137(Snyder).
34
Conferencetranscript,pp.165166(Fowler).
35
Conferencetranscript,pp.165(Fowler)and188(Sumer),andTheFiveYearOutlookforthe
GlobalOCTGIndustry,MetalBulletinResearch,2013.
27
II22
UnitedStatesbythesubjectcountries.Instead,morebasicupgradeableJ55pipeorgreentubes
areimportedandthenheattreatedtoincreasethegradetoanalloygrade.36

Programsales
Programsalesarenoncontractualobligationsbetweenmills,distributors,andendusers
whichencompasswhattypeofOCTGistobesupplied,whenitwillbesupplied,andatwhat
priceitwillbesupplied.Programsalescanhelpminimizesupplychaindisruption.Atthestaff
conference,domesticproducerwitnessestestifiedthatalargeproportionofsalesismade
subjecttoprogramsales.37Respondentsindicatedthat,withtheexceptionofsuppliersfrom
Korea,themajoritydonotparticipateinprogramsalesduetodifficultieswithbeingableto
ensureontimedeliveryinanindustrythatisincreasinglyneedingjustintimedelivery.38

Differencesotherthanprice
Producersandimporterswereaskedtoassesshowoftendifferencesotherthanprice
weresignificantinsalesofOCTGfromtheUnitedStates,subject,andnonsubjectcountries.As
seenintableII7,nearlyallproducersreportedthattherewereeithersometimesornever
differencesotherthanpriceforproductfromeachofthecountrypairs,withalargerincidence
ofneverwhencomparingsubjectcountrieswitheachother.Importersresponseswere
considerablymorevaried.Apluralityofimportersreportedthereweresometimes
differencesotherthanpricebetweendomesticandsubjectimportsandbetweensubject
countries,butotherresponsesweresplitbetweenalways,frequently,andnever.
ImportersprovidedsimilarresponseswhencomparingsubjecttononsubjectcountriesOCTG.
36
Conferencetranscript,pp.155156(SchagrinandThompson).
Conferencetranscript,p.133(DuBois).
38
Conferencetranscript,pp.253259(Brewer,Cameron,Echavaria,Fowler,Khandelwal,McConnell,
andSimon).
37
II23
Table II-7
OCTG: Significance of differences other than price between OCTG produced in the United States
and in other countries, by country pair
Country pair
U.S. vs. subject countries:
U.S. vs. India

reporting
A
F
S
N

reporting
A
F
S
N
U.S. vs. Korea
11
U.S. vs. Philippines
U.S. vs. Saudi Arabia
U.S. vs. Taiwan
U.S. vs. Thailand
U.S. vs. Turkey
12
U.S. vs. Ukraine
10
U.S. vs. Vietnam

India vs. Korea
India vs. Philippines
India vs. Saudi Arabia
India vs. Taiwan
India vs. Thailand
India vs. Turkey
India vs. Ukraine
India vs. Vietnam
Korea vs. Philippines
Korea vs. Saudi Arabia
Korea vs. Taiwan
Korea vs. Thailand
Korea vs. Turkey
Korea vs. Ukraine
Korea vs. Vietnam
Philippines vs. Saudi Arabia
Philippines vs. Taiwan
Philippines vs. Thailand
Philippines vs. Turkey
Philippines vs. Ukraine
Philippines vs. Vietnam
Saudi Arabia vs. Taiwan
Saudi Arabia vs. Thailand
Saudi Arabia vs. Turkey
Saudi Arabia vs. Ukraine

II24
OCTG: Significance of differences other than price between OCTG produced in the United States
and in other countries, by country pair
Country pair

reporting
A

reporting

Saudi Arabia vs. Vietnam
Taiwan vs. Turkey
Taiwan vs. Ukraine
Taiwan vs. Vietnam
Thailand vs. Turkey
Thailand vs. Ukraine
Thailand vs. Vietnam
Turkey vs. Ukraine
Turkey vs. Vietnam
12
Ukraine vs.Vietnam
Subject vs. nonsubject countries:
Combined
India vs. nonsubject
Korea vs. nonsubject

Philippines vs. nonsubject
0
0
0
0
2
2
4
4
3
1
2
2
6
6
4
4
Saudi Arabia vs. nonsubject
Taiwan vs. nonsubject
Thailand vs. nonsubject

Turkey vs. nonsubject
0
0
0
0
2
2
4
4
1
2
2
2
6
6
3
3
Ukraine vs. nonsubject
Vietnam vs. nonsubject

0
0
Note.--A=Always, F=Frequently, S=Sometimes, N=Never.
II25
PARTIII: U.S.PRODUCERSPRODUCTION,SHIPMENTS,AND
EMPLOYMENT
TheCommissionanalyzesanumberoffactorsinmakinginjurydeterminations(see19
U.S.C.1677(7)(B)and1677(7)(C)).InformationonallegedsubsidieswaspresentedinPartI
ofthisreportandinformationonthevolumeandpricingofimportsofthesubjectmerchandise
ispresentedinPartIVandPartV.Informationontheotherfactorsspecifiedispresentedinthis
sectionand/orPartVIand(exceptasnoted)isbasedonthequestionnaireresponsesof13
firmsthataccountedforthevastmajorityofU.S.productionofOCTGduring2012.
U.S.PRODUCERS
TheCommissionsentU.S.producerquestionnairestothe13firmsidentifiedinthe
petitionandadditional22U.S.firmsthatmaintainAPIcertificationtomanufactureorprocess
productsinaccordancewithspecification5CT.1Thirteenfirmsprovideduseable,completedata
ontheirproductiveoperations.2Staffbelievesthattheseresponsesrepresentthevastmajority
ofU.S.productionofOCTG.
TableIII1listsU.S.producersofOCTG,typeandlocationofproduction,positionsonthe
petition,relatedfirms,andsharesoftotalproduction.
Table III-1
OCTG: U.S. producers of OCTG, their positions on the petition, type and location of production,
related and/or affiliated firms and shares of reported production, 2012
Boomerang Tube, LLC
Liberty, TX
N/A
***
Drill Pipe International LLC
***
New Hope, MN
New Hope, MN
***
EnergeX Tube1
EVRAZ Rocky Mountain Steel2
Support
Petitioner
***
Sharon, PA; Warren,

OH; Thomasville, AL
Pueblo, CO
Thomasville, AL
N/A
***
***
Firm
Mill locations
Processing
locations
Share of
production
(percent)
Position on
orders
Support
Petitioner

1
SixfirmsrespondedthattheydidnotproduceOCTG.
Inaddition,***providedpartialdata.***arepresentedseparatelyattableC2.Thecompany,
however,***.
***didnotprovideusabledata.***.
Finally,petitionerWeldedTubedidnotproduceOCTGduringtheperiodforwhichdatawere
requested;thefirmanticipatescommencingproductioninAugust2013.
2
III1
Table III-1--Continued
OCTG: U.S. producers of OCTG, their positions on the petition, type and location of production,
related and/or affiliated firms and shares of reported production, 2012
Mill locations
N/A
Processing locations
Houston, TX
Share of
production
(percent)
***
Hickman, AR;
Conroe, TX
Hickman, AR; Conroe,

TX;
Houston, TX
***
Bossier City, LA;

Houston, TX
Houston, TX
Sapulpa, OK
N/A
Houston, TX
Muskogee, OK
Tejas Tubular Products, Inc.
Support
Petitioner
***
***
Support
Petitioner
Stephenville, TX
Houston, TX
Texas Steel Conversion, Inc.

Texas Tubular Products
***
***
N/A
Lone Star, TX
Houston, TX; Bryan,

TX
N/A
Firm
Laguna Tubular Products Corp.3
Maverick Tube Corporation4

Northwest Pipe Company
OMK
Paragon Industries, Inc.
Position on
orders
***
Support all,
excluding Saudi
Arabia (no
position)
Petitioner
TMK IPSCO7
Support
Petitioner
United States Steel Corporation8
Support
Petitioner
Vallourec Star, LP9

Welded Tube USA, Inc.10
Total
1
***.
2
***.
3
***.
4
***.
5
***.
6
***.
7
***.
8
***.
9
***.
10
***.
Blytheville, AR;
Camanche, IA;
Ambridge, PA;
Wilder, KY
Fairfield, AL;
Lorain, OH; Lone
Star, TX; Bellville,
TX
Support all,
excluding Saudi
Arabia (no
position)
Petitioner
Support
Petitioner
***
6
***
***
Houston, TX
***
Youngstown, OH
Youngstown, OH;
Houston, TX ; Port
Place, Muskogee, OK
***
Lackawanna, NY
N/A
***
Blytheville, AR;
Koppel, PA; Baytown,
TX; Catoosa, OK
Note.-- ***.
III2
***
5
***
100.0
AsindicatedintableIII1,oneU.S.producer(***)isrelatedtoaforeignproducerofthe
subjectmerchandiseandnoU.S.producerisrelatedtoaU.S.importerofthesubject
merchandise.Inaddition,asdiscussedingreaterdetailbelow,***subjectmerchandiseand
***thesubjectmerchandisefromU.S.importers.
IntheCommissionsquestionnaire,U.S.producerswereaskediftheyexperiencedany
plantopenings,plantclosings,relocations,expansions,acquisitions,consolidations,prolonged
shutdownsorproductioncurtailments,orrevisedlaboragreementssinceJanuary1,2010.3
TableIII2summarizesindustryeventsregardingchangesinproductioncapabilityand
investments,acquisitions/mergers,andshutdownssince2010.Descriptionsofotherevents
follow.
Table III-2
OCTG: Important industry events, since 2010
Year
2010
2011
Company
Northwest Pipe
Co.
Laguna
U.S. Steel
Boomerang Tube
(Chesterfield, MO)
Northwest Pipe
Co.
TMK IPSCO
(Houston, TX)
TMP IPSCO
(Houston, TX)
Tianjin Pipe Corp
(China)
Tejas Tubular
Maverick
OMK
Description of event (merger, shutdown, bankruptcy, change in production or

capacity level, etc.)
Capacity increase: Northwest Pipe begins producing OCTG at its Houston, TX,
facility.
Capacity increase: ***.
Capacity increase: U.S. Steel completes the construction of an additional quench
and temper line, as well as threading and coupling stations, at its Lorain, OH,
rolling mill. The $*** investment added *** short tons of new heat treating capacity
to the facility.
Capacity increase: Boomerang Tube begins commercial production of OCTG at
its new 400,000 short tons-per-year (tpy) welded tubular products mill in Liberty, TX
($*** investment). The mill also produces limited quantities of welded line pipe.
Capacity increase: Northwest Pipe ramps up production of OCTG and line pipe
at its 150,000 tpy rolling mill located in Bossier City, LA.
Capacity increase: TMK IPSCO commissions a second 40,000 tpy OCTG
threading line at its Brookfield, OH, facility. The second line allows the Brookfield
facility to thread OCTG up to 13 inches in outside diameter (OD), up from 4-7
inches OD.
Capacity increase: TMK IPSCO announces plans to build an OCTG threading
facility at its 570,000 tpy welded rolling mill in Wilder, KY. The facility produces
OCTG, line pipe, and standard pipe.
Capacity increase: Tianjin Pipe Group Corp (TPCA) breaks ground on a 500,000
tpy seamless OCTG mill in Gregory, TX ($1 billion investment). Finishing and
threading operations are expected to be completed by 2013, followed by the
construction of a rolling mill and electric arc furnace (EAF) steel-making facility.
Capacity increase: Tejas Tubular commissions a new welded OCTG rolling mill
in Stephenville, TX.
Capacity increase: ***. ***.
Acquisition: OMK acquires Tubular Solutions, a processing and finishing facility.

3
Certaincapacityexpansionsarenotreflectedinthetradedatareportedinthissectionofthereport
becausetheyhavenotyetoccurredasofthelatestperiodforwhichdatawerecollected,JanuaryMarch
2013.
III3

Table III-2--Continued
OCTG: Important industry events, since 2010
Year
Company
2012
U.S. 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, shutdown, bankruptcy, change in production or

capacity level, etc.)
Joint venture: U.S. Steel and Buth Gilliam Enterprises form a new joint venture,
Patriot Premium Threading Services (Midland, TX,) to provide OCTG threading and
repair services.
Acquisition/merger: JMC Steel Group acquires and merges Canadian OCTG
producer Lakeside Steel (Welland, Ontario, Canada) with its own tubular assets to
form a new division called EnergeX Tube. Lakesides U.S.-based facilities are
located in Thomasville, AL, and Corpus Christi, TX. EnergeX casing and tubing is
produced in Thomasville, AL; Warren, OH; and Welland, Ontario, Canada.
Shutdown: JMC Steel Group ***.
Capacity increase: TMK IPSCO breaks ground on a new threading facility at is
operations in Odessa, TX. The $17 million investment will expand threading
capacity for premium connections on OCTG with 213 inches OD.
Capacity increase: Benteler Steel/Tube announces plans to build a seamless
OCTG facility, including a hot-rolling mill and finishing lines, in Caddo, LA ($900
million investment). A second phase of the mill will include the completion of an
EAF mill. Groundbreaking at the facility is expected in 2013, with completion of the
seamless OCTG facility slated for 2015.
Consolidation: TMK IPSCO ***.
Capacity increase: Tejas Tubular ***.
Capacity increase: Tenaris announces its intention to build a new seamless
OCTG mill in Bay City, TX, expected to be completed by mid-2016. The plant will
have an OCTG capacity of 600,000 tpy with heat treatment and premium threading
facilities, but no melting capacity.
Capacity increase: Borusan and Mannesmann breaks ground on a 300,000 tpy
welded OCTG mill in Baytown, TX ($150 million investment). The mill, which will
employ 250 workers, is expected to begin production of OCTG in 2015.
Capacity increase: Vallourec starts commercial production of seamless OCTG at
its new 350,000 tpy seamless rolling mill in Youngstown, OH. Heat treatment and
finishing operations begin in 2013.
Capacity increase: Welded Tube USA, a subsidiary of Canada-based pipe and
tube producer Welded Tube of Canada, begins construction of a *** tpy welded
OCTG rolling mill in Lackawanna, NY ($50 million investment). Production of
OCTG is expected to begin in mid-2013.
Capacity increase: United Metallurgical Company (OMK) commissions a 200,000
tpy ERW OCTG mill in Houston, TX ($100 million investment). The rolling mill will
produce OCTG in outside diameters ranging from 2.757 inches, and will source
hot-rolled coil feedstock primarily from local producers. The plant is expected to
reach full capacity by mid-2013.
Capacity increase: Big River Steel announces a proposed $1.1 billion project to
produce OCTG, coiled products, and electrical steels in Osceola, AK. The
proposed mill would have an annual capacity of 1.7 million short tons for all
products.
Capacity increase: Texas Steel Conversion ***.
Source: Metal Bulletin, various articles; responses to the Commission questionnaire.
Severalfirmsreportedchangestotheiroperationsrelatedtoshutdowns,production
curtailments,oremployment.***.***.***.***.***.***.***.***.
III4
U.S.PRODUCTION,CAPACITY,ANDCAPACITYUTILIZATION
TableIII3presentsdataregardingU.S.producersproduction,capacity,andcapacity
utilization.TotalU.S.capacityofOCTGincreased,byapproximately246,000tonsfrom2010to
2011,andbyapproximately243,000tonsfrom2011to2012;totalcapacityincreasedfrom
2010to2012byapproximately489,000tons(8.9percent).Capacitywasapproximately47,000
tonsgreaterinJanuaryMarch2013thaninJanuaryMarch2012.FourU.S.producers
accountedfortheincreaseinindustrycapacityfrom2010to2012.4Boomerangscapacity
increasedby***.EnergeXscapacityincreasedby***.Maverickscapacity***.Northwests
capacityincreased***.FiveU.S.producersaccountedforthenetincreaseincapacityin
JanuaryMarch2013relativetoJanuaryMarch2012.InJanuaryMarch2013,comparedto
JanuaryMarch2012,***.5***,reportedareductionof***shorttons.
Table III-3
OCTG: U.S. producers production, capacity, and capacity utilization, 2010-12, January-March
2012, and January-March 2013
Calendar year
January-March
Item
2010
2011
2012
2012
2013
Capacity
5,498,058
5,744,456
5,987,827
1,510,530
1,557,600
Production
2,885,247
3,484,953
3,772,030
1,052,237
1,018,330
Capacity utilization (percent)
52.5
60.7
63.0
69.7
65.4
TotalOCTGproductionincreasedfrom2010to2012by30.7percent,butwas3.2
percentlowerinJanuaryMarch2013thaninJanuaryMarch2012.Mostoftheincreasein
productionwasduetoincreasedweldedOCTGproduction.6From2010to2012,productionof
weldedOCTGincreasedby634,120tons(41.8percent)andproductionofseamlessOCTG
increasedby253,373tons(18.5percent).ProductionofweldedOCTGinJanuaryMarch2013
was11,994shorttons(2.0percent)lowerthaninJanuaryMarch2012.Likewise,productionof
seamlessOCTGinJanuaryMarch2013was21,022tons(4.6percent)lowerthaninJanuary
March2012.
Therateofcapacityutilizationincreasedalongsidetheyeartoyearincreasesincapacity
andproductionduring201012.CapacityutilizationwaslowerinJanuaryMarch2013thanin
JanuaryMarch2012,reflectingbothhigherlevelsofcapacityandlowerlevelsofproduction
volume.

4
***.
***.
6
TableIII4presentsU.S.producersproduction,capacity,andcapacityutilizationofweldedand
seamlesstubularproducts.ProductionofweldedandseamlessOCTGareprovidedseparatelyinthis
table.Capacitydataincludescapacityfor***.
5
III5
Table III-4
Tubular products: U.S. producers production, capacity, and capacity utilization of welded and
seamless tubular products, 2010-12, January-March 2012, and January-March 2013
Calendar year
January-March
Item
2010
2011
2012
2012
2013
Capacity (short tons)
Welded tubular products
3,667,454
3,951,654
4,181,145
1,045,287
1,035,787
Seamless tubular products
2,715,085
2,715,085
2,715,085
678,771
722,569
Total
6,382,539
6,666,739
6,896,230
1,724,058
1,758,356
Production (short tons)
Welded
Oil/gas well casing
1,357,407
1,772,461
1,935,095
478,630
519,719
Oil/gas well tubing
158,777
195,908
215,209
118,254
65,171
Welded OCTG subtotal
1,516,184
1,968,369
2,150,304
596,884
584,890
Other welded products
457,770
525,603
537,969
189,054
112,537
All welded products
1,973,954
2,493,972
2,688,273
785,938
697,427
Seamless
Oil/gas well casing
1,151,505
1,317,653
1,428,096
398,402
407,517
Oil/gas well tubing
171,980
144,441
152,797
40,916
21,011
OCTG coupling stock
44,798
53,987
40,763
16,036
5,804
Seamless OCTG subtotal
1,368,283
1,516,081
1,621,656
455,354
434,332
Other seamless products
303,633
422,425
395,760
99,780
94,860
All seamless products
1,671,916
1,938,506
2,017,416
555,134
529,192
Total welded & seamless
3,645,870
4,432,478
4,705,689
1,341,072
1,226,619
Capacity utilization (percent)
Welded tubular products
53.8
63.1
64.3
75.2
67.3
Seamless tubular products
61.6
71.4
74.3
81.8
73.2
Average
57.1
66.5
68.2
77.8
69.8
Producerswereaskedtodescribetheconstraint(s)thatsetthelimit(s)oftheir
productionability.Boomerangreported***.DPIreported***.EnergeXreported***.Evraz
reported***.Lagunareported***.Maverickreported***.Northwestreported***.Paragon
reportedthat***.Tejasreported***.TexasTubularreported***.TMKIPSCOreported***.
U.S.Steelreportedthat***.Vallourecreportedthat***.WeldedTube,whichisslatedtostart
productioninAugust2013,reported***.
Producerswereaskedtodescribetheconstraint(s)thatsetthelimit(s)onabilitytoshift
productioncapacitybetweenproducts.Boomerangreported***.DrillPipereported***.
EnergeXreported***.Evrazreported***.Lagunareported***.Maverickreported***.
NorthwestPipereported***.Paragonreported***.Tejasreported***andthat***.Texas
Tubularreported***.TMKIPSCOreported***.U.S.Steelreportedthat***.Vallourec
reportedthat***.WeldedTubereported***.
III6
U.S.PRODUCERSU.S.SHIPMENTSANDEXPORTS
TableIII5presentsU.S.producersU.S.shipments,exportshipments,andtotal
shipments.ThequantityofU.S.producersU.S.shipmentsofOCTGincreasedby32.9percent
from2010to2012butwas3.1percentlowerinJanuaryMarch2013thaninJanuaryMarch
2012.7AverageunitvaluesofU.S.shipmentsincreasedsteadilyduring201012,butwere10.0
percentlowerinJanuaryMarch2013thaninJanuaryMarch2012.
Table III-5
OCTG: U.S. producers U.S. shipments, export shipments, and total shipments, 2010-12, JanuaryMarch 2012, and January-March 2013
Calendar year
January-March
Item
2010
2011
2012
2012
2013
Quantity (short tons)
U.S. shipments
2,693,471
3,285,076
3,580,076
947,215
918,164
Export shipments
138,884
176,942
209,383
59,175
42,311
Total shipments
2,832,355
3,462,018
3,789,459
1,006,390
960,475
Value (1,000 dollars)
U.S. shipments
4,327,473
5,552,852
6,182,032
1,651,895
1,440,242
Export shipments
246,448
312,802
360,989
108,192
70,838
Total shipments
4,573,921
5,865,654
6,543,021
1,760,087
1,511,080
Unit value (dollars per short ton)
U.S. shipments
1,607
1,690
1,727
1,744
1,569
Export shipments
1,774
1,768
1,724
1,828
1,674
Total shipments
1,615
1,694
1,727
1,749
1,573
Share of quantity (percent)
U.S. shipments
95.1
94.9
94.5
94.1
95.6
Export shipments
4.9
5.1
5.5
5.9
4.4
Total shipments
100.0
100.0
100.0
100.0
100.0
Note.Because of rounding, figures may not add to the totals shown.

ORDERBOOKS
TableIII6presentsU.S.producersreportedquantityofOCTG,bytypeofOCTG,
producedin2013duringthemonthsofApril,May,andJune,andquantitiesscheduledtobe
producedbasedonordersforJulythroughDecember.8TotalproductionofOCTGinAprilJune
2013was1,088,899shorttonsa6.9percentincreaseoverOCTGproductioninJanuary

7
Whileninefirmsreportedexports,exportshipmentswereconsistentlylessthansixpercentoftotal
shipments.
8
TMKIPSCOnotesthat***.QuestionnaireresponseofTMKIPSCO,atII9.
III7
March2013.OrdersforJulySeptemberwere819,668shorttonsandforOctoberDecember
were520,940shorttons.
Table III-6
OCTG: Production and orders for OCTG, April-December 2013
2013
Production
Item
Welded
Seamless
Total
April
May
206,714
150,492
357,206
195,987
165,017
361,004
Orders
June
July
August
206,926
182,626
171,850
163,763
141,808
113,970
370,689
324,434
285,820
September
OctoberDecember
119,552
89,862
209,414
264,675
256,265
520,940
Source: Compiled from data submitted in response to Commission questionnaires
U.S.PRODUCERSINVENTORIES
TableIII7presentsU.S.producersendofperiodinventoriesandtheratioofthese
inventoriestoU.S.producersproduction,U.S.shipments,andtotalshipmentsovertheperiod
forwhichdatawerecollected.ProducersinventoriespeakedinabsolutetermsinMarch2012
andwereattheirlowestlevelsin2010.Producersinventoriesin2010,however,coincidewith
thehighestlevelofratiosofinventoriestoproduction,U.S.shipments,andtotalshipments.
Table III-7
OCTG: U.S. producers end-of-period inventories, 2010-12, January-March 2012, and JanuaryMarch 2013
Calendar year
January-March
Item
2010
2011
2012
2012
2013
Inventories (short tons)
376,911
406,604
382,718
448,792
439,450
Ratio to production (percent)
13.1
11.7
10.1
10.7
10.8
Ratio to U.S. shipments (percent)
14.0
12.4
10.7
11.8
12.0
Ratio to total shipments (percent)
13.3
11.7
10.1
11.1
11.4

U.S.PRODUCERSIMPORTSANDPURCHASES
U.S.producersimportsandpurchasesofOCTGarepresentedintableIII8.
Table III-8
OCTG: U.S. producers U.S. production, imports and purchases, 2010-12, January-March 2012,
and January-March 2013
*
III8
U.S.EMPLOYMENT,WAGES,ANDPRODUCTIVITY
TableIII9showsU.S.producersemploymentrelateddataduringtheperiodforwhich
datawerecollected.Intheaggregate,U.S.producersreportedanincreaseinthenumberof
productionandrelatedworkersfrom2010to2012.***reportedadeclineinproductionand
relatedworkersduringthisperiod.Thenumberofproductionandrelatedworkerswashigher
inJanuaryMarch2013thaninJanuaryMarch2012.Sixproducersaccountedfortheincrease,
ledby***.Sixproducers,***,however,cumulativelyreported***fewerproductionand
relatedworkersinJanuaryMarch2013thaninJanuaryMarch2012.
Table III-9
OCTG: Average number of production and related workers, hours worked, wages paid to such
employees, hourly wages, productivity, and unit labor costs, 2010-12, January-March 2012, and
January-March 2013
Calendar year
January-March
Item
2010
2011
2012
2012
2013
PRWs (number)
6,002
6,731
7,453
7,314
7,460
Total hours worked (1,000 hours)
12,664
14,286
16,115
4,051
4,098
Hours worked per PRW (hours)
2,110
2,122
2,162
554
549
Wages paid ($1,000)
345,473
392,447
468,398
120,805
120,087
Hourly wages (dollars)
27.28
27.47
29.07
29.82
29.30
Productivity (short tons per 1,000 hours)
227.8
243.9
234.1
259.7
248.5
Unit labor costs (per short ton)
119.74
112.61
124.18
114.81
117.93
III9
PARTIV: U.S.IMPORTS,APPARENTU.S.CONSUMPTION,ANDMARKET
SHARES
U.S.IMPORTERS
TheCommissionissuedimporterquestionnairesto54firmsbelievedtobeimportersof
subjectOCTG,aswellastoallU.S.producersofOCTG.1Usablequestionnaireresponseswere
receivedfrom46companies,representing53.6percentoftotalimportsfromIndia,allimports
fromKorea,82.7percentoftotalimportsfromthePhilippines,allimportsfromSaudiArabia,
35.9percentoftotalimportsfromTaiwan,91.3percentoftotalimportsfromThailand,79.4
percentoftotalimportsfromTurkey,allimportsfromUkraine,90.3percentoftotalimports
fromVietnam,and85.2percentoftotalimportsfromallothersourcesunderrelevantHTS
statisticalreportingnumbers,asadjusted.2TableIV1listsallrespondingU.S.importersof
OCTGfromtheninesubjectsourcesandothersources,theirU.S.headquarters,theirsourcesof
importssince2010,andtheirsharesofU.S.importsin2012.
Table IV-1
OCTG: U.S. importers, source(s) of imports, U.S. headquarters, and shares of imports, 2012
Firm
Amerjin
ArcelorMittal International America
Bell Supply Company
Benteler Steel & Tube
Borusan Mannesmann Pipe U.S.
Commercial Metals
Coutinho & Ferrostaal
Daewoo International (America)
Dongbu USA
Drill Pipe International
DSL Corp.
Duferco Steel
Energex Tube
Evraz Inc. NA Canada
Headquarters
Houston, TX
Chicago, IL
Gainesville, TX
Houston, TX
Houston, TX
Irving, TX
Houston, TX
Teaneck, NJ
Torrance, CA
New Hope, MN
Houston, TX
Matawan, NJ
Chicago, IL
Chicago, IL
Source(s)
of
imports
***
***
***
***
***
***
***
***
***
***
***
***
***
***
Share of imports (percent)

Subject
***
***
***
***
***
***
***
***
***
***
***
***
***
***
Nonsubject
***
***
***
***
***
***
***
***
***
***
***
***
***
***
TheCommissionissuedquestionnairestothosefirmsidentifiedinthepetition,alongwithfirms
that,basedonareviewofdataprovidedbyU.S.CustomsandBorderProtection(Customs),were
believedtoimportOCTG.
2
TherelevantstatisticalreportingnumbersappearinPartIofthisreport.OfficialCommerce
statisticswereadjustedtoinclude***andknownimportsofcouplingstockenteredunderHTS
statisticalreportingnumbersotherthanthosespecifiedforcasingandtubing.
IV1
Total
***
***
***
***
***
***
***
***
***
***
***
***
***
***

Table IV-1--Continued
OCTG: U.S. importers, source(s) of imports, U.S. headquarters, and shares of imports, 2012
Firm
Fremark Industries
Houston Steel & Pipe International
Husteel U.S.A.
Hyundai Hysco U.S.A.
IMCO International
Headquarters
New York, NY
Missouri City, TX
Houston, TX
Houston, TX
Burlington, ON,
Canada
Source(s)
of
imports
***
***
***
***
Share of imports (percent)

Subject
***
***
***
***
Nonsubject
***
***
***
***
Total
***
***
***
***
***
***
***
***
Indian Seamless
Houston, TX
***
***
***
***
International Pipe Trading Company

Jindal Saw Limited
(Seamless Tubes Division)
Kumkang Kind U.S.A.
Laguna Tubular Products
Marubeni-Itochu Tubulars America
Nexteel America
North American Interpipe
Corona del Mar, CA
***
***
***
***
Nashik, MH, India

Orange, CA
Houston, TX
Houston, TX
Houston, TX
Houston, TX
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
Houston, TX
Pleasant Hill, CA
***
***
***
***
***
***
***
***
Houston, TX
Ridgefield Park, NJ
Pasadena, TX
Santa Fe Spring, CA
Houston, TX
New York, NY
Houston, TX
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
Schaumburg, IL
***
***
***
***
Schaumburg, IL
Houston, TX
Southfield, MI
Houston, TX
Georgetown, KY
Houston, TX
Houston, TX
Concord, ON,
Canada
Houston, TX
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
100.0
***
***
100.0
***
***
100.0
Okaya (U.S.A.)
Oxbow Steel International
Salzgitter Mannesmann International
(U.S.A.)
Samsung C&T America
SDB Trade International
Seah Steel America
Standard Tube Company
Stemcor U.S.A.
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.
Total
IV2

U.S.IMPORTS
TableIV2presentsdataforU.S.importsofOCTGfromIndia,Korea,thePhilippines,
SaudiArabia,Taiwan,Thailand,Turkey,Ukraine,Vietnam,andallothersources.
Table IV-2
OCTG: U.S. imports by source, 2010-12, January-March 2012, and January-March 2013
Item
Calendar year
January-March
2010
2011
2012
2012
2013
India
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0
23,933
70,166
17,900
11,399
Saudi Arabia
***
***
***
***
***
Taiwan
56,594
96,403
106,576
33,664
25,973
Thailand
0
6,135
31,833
2,662
3,424
Turkey
85,222
140,806
152,444
49,481
24,217
Ukraine
***
***
***
***
***
Vietnam
145
56,697
219,997
59,659
37,561
Subtotal, subject
850,067
1,318,337
1,808,662
476,808
440,036
All others
1,469,206
1,525,975
1,771,959
451,279
307,457
Total U.S. imports
2,319,273
2,844,313
3,580,620
928,087
747,493
India
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0
21,542
64,973
16,992
9,223
Saudi Arabia
***
***
***
***
***
Taiwan
47,697
90,113
98,124
32,581
20,643
Thailand
0
8,053
43,815
3,769
4,593
Turkey
76,626
133,698
145,153
48,923
22,480
Ukraine
***
***
***
***
***
Vietnam
169
53,923
201,905
55,386
30,822
Subtotal, subject
871,927
1,511,511
1,976,638
533,883
448,046
All others
2,215,397
2,475,629
3,112,109
766,201
522,974
Total U.S. imports
3,087,325
3,987,139
5,088,748
1,300,084
971,020
IV3
OCTG: U.S. imports by source, 2010-12, January-March 2012, and January-March 2013
Item
Calendar year
January-March
2010
2011
2012
2012
2013
India
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0
900
926
949
809
Saudi Arabia
***
***
***
***
***
Taiwan
843
935
921
968
795
Thailand
0
1,313
1,376
1,416
1,341
Turkey
899
950
952
989
928
Ukraine
***
***
***
***
***
Vietnam
1,163
951
918
928
821
Average, subject
1,026
1,147
1,093
1,120
1,018
All others
1,508
1,622
1,756
1,698
1,701
Average, total imports
1,331
1,402
1,421
1,401
1,299
India
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0.0
0.8
2.0
1.9
1.5
Saudi Arabia
***
***
***
***
***
Taiwan
2.4
3.4
3.0
3.6
3.5
Thailand
0.0
0.2
0.9
0.3
0.5
Turkey
3.7
5.0
4.3
5.3
3.2
Ukraine
***
***
***
***
***
Vietnam
0.0
2.0
6.1
6.4
5.0
Subtotal, subject
36.7
46.3
50.5
51.4
58.9
All others
63.3
53.7
49.5
48.6
41.1
Total U.S. imports
100.0
100.0
100.0
100.0
100.0
Share of value (percent)
India
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0.0
0.5
1.3
1.3
0.9
Saudi Arabia
***
***
***
***
***
Taiwan
1.5
2.3
1.9
2.5
2.1
Thailand
0.0
0.2
0.9
0.3
0.5
Turkey
2.5
3.4
2.9
3.8
2.3
Ukraine
***
***
***
***
***
Vietnam
0.0
1.4
4.0
4.3
3.2
Subtotal, subject
28.2
37.9
38.8
41.1
46.1
All others
71.8
62.1
61.2
58.9
53.9
Total U.S. imports
100.0
100.0
100.0
100.0
100.0
Landed, duty-paid.
Note.Because of rounding, figures may not add to the totals shown.
Source: Compiled from data submitted in response to Commission questionnaires and official Commerce
Statistics.

IV4

TableIV3presentsdataforU.S.importsofOCTGfrommajornonsubjectsources.
Table IV-3
OCTG: U.S. imports from leading nonsubject sources, 2010-12, January-March 2012, and JanuaryMarch 2013
Item
Calendar year
January-March
2010
2011
2012
2012
2013
Canada
414,522
409,964
409,669
110,220
84,713
Japan
160,059
148,812
227,791
46,399
39,824
Germany
120,944
107,632
163,797
24,000
32,597
Mexico
148,863
197,508
153,524
59,523
24,800
Argentina
81,808
119,362
138,985
42,429
45,692
Austria
94,260
118,572
108,933
36,847
25,088
Russia
78,202
55,192
88,343
30,325
849
Romania
56,374
39,281
57,552
9,839
12,000
Colombia
39,344
54,956
47,612
12,123
4,426
Brazil
37,387
30,037
44,413
6,632
5,309
Spain
32,254
35,857
40,992
11,508
4,052
All others (nonsubject)
165,180
152,557
179,199
39,591
21,714
Coupling stock adjustment
40,007
56,247
111,147
21,844
6,392
Total (nonsubject)
1,469,206
1,525,975
1,771,959
451,279
307,457
Canada
Japan
Germany
Mexico
Argentina
Austria
Russia
Romania
Colombia
Brazil
Spain
Total (nonsubject)
573,560
289,775
205,512
250,100
130,938
157,291
83,182
77,073
57,010
65,591
50,968
217,048
57,349
2,215,397

551,479
630,176
333,561
494,067
192,056
299,394
354,772
317,450
212,609
271,164
212,155
203,222
57,702
102,218
60,236
93,241
83,981
76,777
49,729
72,615
63,889
66,966
221,368
296,009
82,092
188,811
2,475,629
3,112,109
IV5
165,381
102,693
43,897
108,349
83,632
68,967
35,319
17,214
19,554
11,597
18,978
57,582
33,040
766,201
122,815
69,554
50,958
52,570
87,646
44,914
1,140
19,350
6,714
8,381
6,205
42,901
9,827
522,974
OCTG: U.S. imports from leading nonsubject sources, 2010-12, January-March 2012, and JanuaryMarch 2013
Item
Calendar year
January-March
2010
2011
2012
2012
2013
Canada
Japan
Germany
Mexico
Argentina
Austria
Russia
Romania
Colombia
Brazil
Spain
Total (nonsubject)
1
Landed, duty-paid.
1,384
1,810
1,699
1,680
1,601
1,669
1,064
1,367
1,449
1,754
1,580
1,314
1,433
1,508
1,345
2,241
1,784
1,796
1,781
1,789
1,045
1,533
1,528
1,656
1,782
1,451
1,459
1,622
1,538
2,169
1,828
2,068
1,951
1,866
1,157
1,620
1,613
1,635
1,634
1,652
1,699
1,756
1,500
2,213
1,829
1,820
1,971
1,872
1,165
1,750
1,613
1,749
1,649
1,454
1,513
1,698
1,450
1,747
1,563
2,120
1,918
1,790
1,343
1,612
1,517
1,579
1,531
1,976
1,537
1,701
Statistics.
NEGLIGIBILITY
Thestatuterequiresthataninvestigationbeterminatedwithoutaninjury
determinationifimportsofthesubjectmerchandisearefoundtobenegligible.3Negligible
importsaregenerallydefinedintheTariffActof1930,asamended,asimportsfromacountry
ofmerchandisecorrespondingtoadomesticlikeproductwheresuchimportsaccountforless
than3percentofthevolumeofallsuchmerchandiseimportedintotheUnitedStatesinthe
mostrecent12monthperiodforwhichdataareavailablethatprecedesthefilingofthe
petitionortheinitiationoftheinvestigation.However,ifthereareimportsofsuchmerchandise
fromanumberofcountriessubjecttoinvestigationsinitiatedonthesamedaythatindividually
accountforlessthan3percentofthetotalvolumeofthesubjectmerchandise,andifthe
importsfromthosecountriescollectivelyaccountformorethan7percentofthevolumeofall
suchmerchandiseimportedintotheUnitedStatesduringtheapplicable12monthperiod,then
importsfromsuchcountriesaredeemednottobenegligible.4TableIV4presentsdatafor
Sections703(a)(1),705(b)(1),733(a)(1),and735(b)(1)oftheAct(19U.S.C.1671b(a)(1),
1671d(b)(1),1673b(a)(1),and1673d(b)(1)).
4
Section771(24)oftheAct(19U.S.C1677(24)).
IV6

importsduringJuly2012June2013foreachsubjectcountryanditsshareoftotalimports.Data
arepresentedforofficialCommercedataforU.S.importsofOCTGandthesameCommerce
dataadjustedtoaccountforsubjectimports***andknownimportsofcouplingstockentered
underHTSstatisticalreportingnumbersotherthanthosespecifiedforcasingandtubing.
OfficialCommercedataaloneshowthatsharesofimportsfromthreesubjectcountries
individuallyaccountforlessthan3percentofthevolumeoftotalimportsofOCTGPhilippines
(2.3percent),SaudiArabia(2.1percent),andThailand(0.9percent)andcombinedlessthan7
percentofthevolumeoftotalimportsofOCTG(5.1percent).5AdjustedofficialCommerce
datashowthatsharesofimportsfromfoursubjectcountriesindividuallyaccountforlessthan
3percentofthevolumeoftotalimportsofOCTGPhilippines(2.2percent),SaudiArabia(***
percent),Taiwan(2.9percent),andThailand(0.8percent)andcombinedmorethan7percent
ofthevolumeoftotalimportsofOCTG(***percent).
Table IV-4
OCTG: U.S. imports by source and share of imports, July 2012-June 2013
Country
India
Korea
Philippines
Saudi Arabia
Taiwan
Thailand
Turkey
Ukraine
Vietnam
Subject, subtotal
All other sources
Total
July 2012 - June 2013

Adjusted
Official Commerce data official Commerce data
132,136
***
868,098
***
68,532
68,532
59,141
***
92,900
92,900
26,137
26,137
130,422
130,422
96,200
***
173,298
173,298
1,646,864
1,702,831
1,383,694
1,470,411
3,030,557
3,173,242
Becauseofrounding,thecombinedshareisnotthesameasthesumofindividuallyreported
shares.
IV7

OCTG: U.S. imports by source and share of imports, July 2012-June 2013
July 2012 - June 2013
Country
Adjusted
Official Commerce data official Commerce data
India
4.4
***
Korea
28.6
***
Philippines
2.3
2.2
Saudi Arabia
2.0
***
Taiwan
3.1
2.9
Thailand
0.9
0.8
Turkey
4.3
4.1
Ukraine
3.2
***
Vietnam
5.7
5.5
Subject, subtotal
54.3
53.7
All other sources
45.7
46.3
Total
100.0
100.0
Statistics.
Cumulationconsiderations
Inassessingwhetherimportsshouldbecumulated,theCommissiondetermines
whetherU.S.importsfromthesubjectcountriescompetewitheachotherandwiththe
domesticlikeproductandhasgenerallyconsideredfourfactors:(1)fungibility,(2)presenceof
salesorofferstosellinthesamegeographicalmarkets,(3)commonorsimilarchannelsof
distribution,and(4)simultaneouspresenceinthemarket.Issuesconcerningchannelsof
distributionareaddressedonPartIIofthisreport.Additionalinformationconcerning
fungibility,geographicalmarkets,andsimultaneouspresenceinthemarketispresentedbelow.
Fungibility
TableIV5presentsdataforU.S.producersratiosofU.S.shipmentsofseamlessOCTG
andweldedOCTG,andsubjectimportsratiosofimportsofseamlessOCTGandweldedOCTG,
bysource.
IV8

Table IV-5
OCTG: Shares of seamless OCTG and welded OCTG, by source, 2012
Item
Seamless OCTG
Welded OCTG
Share (percent)
U.S. producers' shipments
42.6
57.4
U.S. imports from-India
***
***
Korea
***
***
Philippines
0.0
100.0
Saudi Arabia
100.0
0.0
Taiwan
3.0
97.0
Thailand
100.0
0.0
Turkey
0.0
100.0
Ukraine
100.0
0.0
Vietnam
1.6
98.4
Statistics.
Presenceinthemarket
OfficialCommercedataforU.S.importswereusedtoevaluatesubjectimportpresence
inthemarket.TableIV6summarizesthenumberofmonthsinwhichimportswerepresent
fromeachsubjectsource.ImportsfromIndiaandKoreawerepresentineverymonthduring
January2010March2013.ImportsfromthePhilippineswerenotpresentin2010,presentfor
fivemonthsin2011,10monthsin2012,andtwomonthsduringJanuaryMarch2013.Imports
fromSaudiArabiawerepresentforthreemonthsin2010,eightmonthsin2011,eightmonths
in2012,andtwomonthsduringJanuaryMarch2013.ImportsfromTaiwanwerepresentfor
ninemonthsin2010,tenmonthsin2011,andallmonthsduringJanuary2012March2013.
ImportsfromThailandwerenotpresentin2010,presentforfivemonthsin2011(allduringthe
secondhalfoftheyear),andallbutonemonthduringJanuary2012March2013.Importsfrom
Turkeywerepresentfortenmonthsin2010andallbuttwomonthsduringJanuary2011
March2013.ImportsfromUkrainewerepresentforeightmonthsin2010andallbutfour
monthsduringJanuary2011March2013.ImportsfromVietnamwerepresentfortwomonths
duringin2010(duringthefourthquarteroftheyear),sevenmonthsfor2011,andforall
monthsduringJanuary2012March2013.
IV9

Table IV-6
OCTG: Number of months of presence of imports, 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.
Geographicalmarkets
OfficialCommercestatisticsshowthatin2012,approximately97percentofU.S.
importsofcasingandtubingfromsubjectcountriesenteredtheUnitedStatesthroughthe
HoustonGalveston,TXcustomsdistrict.ForeightoftheninesubjectsourcesIndia,Korea,
Philippines,SaudiArabia,Taiwan,Ukraine,andVietnamthevastmajorityofsuchimports
enteredthroughtheHoustonGalveston,TXcustomsdistrict.Importsofcasingandtubingfrom
ThailandenteredthroughboththeHoustonGalveston,TXcustomsdistrict(63percent)andthe
LosAngeles,CAcustomsdistrict(37percent).
IV10

APPARENTU.S.CONSUMPTION
TableIV7presentsdataonapparentU.S.consumptionandU.S.marketsharesfor
OCTGovertheperiodforwhichdatawerecollected.

Table IV-7
OCTG: U.S. shipments of domestic product, U.S. imports, and apparent U.S. consumption, 201012, January-March 2012, and January-March 2013
Calendar year
January-March
Item
2010
2011
2012
2012
2013
2,693,471
3,285,076
3,580,076
947,215
918,164
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0
23,933
70,166
17,900
11,399
Saudi Arabia
***
***
***
***
***
Taiwan
56,594
96,403
106,576
33,664
25,973
Thailand
0
6,135
31,833
2,662
3,424
Turkey
85,222
140,806
152,444
49,481
24,217
Ukraine
***
***
***
***
***
Vietnam
145
56,697
219,997
59,659
37,561
Subtotal, subject
850,067
1,318,337
1,808,662
476,808
440,036
All other sources
1,469,206
1,525,975
1,771,959
451,279
307,457
Total imports
2,319,273
2,844,313
3,580,620
928,087
747,493
Apparent consumption
5,012,744
6,129,389
7,160,696
1,875,302
1,665,657
Value ($1,000)
4,327,473
5,552,852
6,182,032
1,651,895
1,440,242
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0
21,542
64,973
16,992
9,223
Saudi Arabia
***
***
***
***
***
Taiwan
47,697
90,113
98,124
32,581
20,643
Thailand
0
8,053
43,815
3,769
4,593
Turkey
76,626
133,698
145,153
48,923
22,480
Ukraine
***
***
***
***
***
Vietnam
169
53,923
201,905
55,386
30,822
Subtotal, subject
871,927
1,511,511
1,976,638
533,883
448,046
All other sources
2,215,397
2,475,629
3,112,109
766,201
522,974
Total imports
3,087,325
3,987,139
5,088,748
1,300,084
971,020
Apparent consumption
7,414,798
9,539,991
11,270,780
2,951,979
2,411,262
Statistics.
IV11

U.S.MARKETSHARES
U.S.marketsharedataarepresentedintableIV8.
Table IV-8
OCTG: U.S. consumption and market shares, 2010-12, January-March 2012, and January-March
2013
Calendar year
January-March
Item
2010
2011
2012
2012
2013
Apparent U.S. consumption
5,012,744
6,129,389
7,160,696
1,875,302
1,665,657
Value ($1,000)
Apparent U.S. consumption
7,414,798
9,539,991
11,270,780
2,951,979
2,411,262
53.7
53.6
50.0
50.5
55.1
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0.0
0.4
1.0
1.0
0.7
Saudi Arabia
***
***
***
***
***
Taiwan
1.1
1.6
1.5
1.8
1.6
Thailand
0.0
0.1
0.4
0.1
0.2
Turkey
1.7
2.3
2.1
2.6
1.5
Ukraine
***
***
***
***
***
Vietnam
0.0
0.9
3.1
3.2
2.3
Subtotal, subject
17.0
21.5
25.3
25.4
26.4
All other sources
29.3
24.9
24.7
24.1
18.5
Total imports
46.3
46.4
50.0
49.5
44.9
Share of value (percent)
58.4
58.2
54.9
56.0
59.7
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0.0
0.2
0.6
0.6
0.4
Saudi Arabia
***
***
***
***
***
Taiwan
0.6
0.9
0.9
1.1
0.9
Thailand
0.0
0.1
0.4
0.1
0.2
Turkey
1.0
1.4
1.3
1.7
0.9
Ukraine
***
***
***
***
***
Vietnam
0.0
0.6
1.8
1.9
1.3
Subtotal, subject
11.8
15.8
17.5
18.1
18.6
All other sources
29.9
26.0
27.6
26.0
21.7
Total imports
41.6
41.8
45.1
44.0
40.3
Statistics.
IV12

RATIOOFIMPORTSTOU.S.PRODUCTION
TableIV9presentsdataontheratioofU.S.importstoU.S.production.
Table IV-9
OCTG: Ratio of U.S. imports to U.S. production, 2010-12, January-March 2012, and January-March
2013
Calendar year
January-March
Item
2010
2011
2012
2012
2013
U.S. production
2,885,247
3,484,953
3,772,030
1,052,237
1,018,330
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0
23,933
70,166
17,900
11,399
Saudi Arabia
***
***
***
***
***
Taiwan
56,594
96,403
106,576
33,664
25,973
Thailand
0
6,135
31,833
2,662
3,424
Turkey
85,222
140,806
152,444
49,481
24,217
Ukraine
***
***
***
***
***
Vietnam
145
56,697
219,997
59,659
37,561
Subject sources
850,067
1,318,337
1,808,662
476,808
440,036
All others
1,469,206
1,525,975
1,771,959
451,279
307,457
Total
2,319,273
2,844,313
3,580,620
928,087
747,493
Ratio of imports to production (percent)
***
***
***
***
***
Korea
***
***
***
***
***
Philippines
0.0
0.7
1.9
1.7
1.1
Saudi Arabia
***
***
***
***
***
Taiwan
2.0
2.8
2.8
3.2
2.6
Thailand
0.0
0.2
0.8
0.3
0.3
Turkey
3.0
4.0
4.0
4.7
2.4
Ukraine
***
***
***
***
***
Vietnam
0.0
1.6
5.8
5.7
3.7
Subject sources
29.5
37.8
47.9
45.3
43.2
All others
50.9
43.8
47.0
42.9
30.2
Total
80.4
81.6
94.9
88.2
73.4
Statistics.
IV13
PARTV:: PRICING
GDATA
FACTORSA
AFFECTINGP
PRICES

Rawm
materialcossts

Rawmaterials,primarilyhotrolledstteel(orbilleetsandinputtssuchasco
oke,scrap,pig
iron,and
dhotbriquettediron),accountforth
hemajorityoofthecostofOCTG.Raw
wmaterialsaasa
shareofcostofgood
dssoldfordo
omesticproducersofOC
CTGdecreassedfrom61..6percentin
n
58.2percenttin2012,an
ndwere59.2
2percentinJJanuaryMarch2013,co
omparedwitth
2010to5
60.7perccentinJanuaaryMarch2
2012.AlthoughU.S.prodducersmostoftennoted
dafluctuatin
ng
trendinttheirrawmaaterialcostssince2010,threenoteddadownwardtrendand
dthreerepo
orted
thatinpu
utcostshave
ebeenstartingtorise.Im
mportersrepportedthatscrapandho
otrolledcoiilare
themosttimportantrrawmaterialsinthepro
oductionofO
OCTG,andamajorityreportedthat
pricesforrawmaterialshaveeitherbeende
ecliningorfluuctuatingsin
nceJanuary2010.Averaage
costsofh
hotrolledstteelsheetussedtomakeweldedOCTTGandscrap
pusedtomaakehotrolleed
billetsussedinthemaanufactureo
ofseamlessOCTGduringgJanuary20010throughMarch2013
3are
presente
edinfigureV
V1.FigureV
V2presentslongerterm
mtrends,speecificallyJanuary2006Ju
une
1
2013.FiggureV3pressentspricesofhotrolledbillets.
Figure V--1
OCTG: Average cons
sumer ferrous scrap price
es (No. 1 hea
avy melt, Chicago) and h
hot-rolled ste
eel
sheet pric
ces (Midwes
st), monthly, January 2010-March 201
13
Source: Am
merican Metal Market.
M

1
Dataarepresente
edforsquarecrosssection
nedbillets,asopposedtob
billetswithro
oundcross
obethebestavailabledattaregardingh
hotrolledbilletprices.Em
mail
sections.TThesedataarrebelievedto
from***..
V1
Figure V--2
OCTG: Average cons
sumer ferrous scrap price
es (No. 1 hea
avy melt, Chicago) and h
hot-rolled ste
eel
sheet pric
ces (Midwes
st), monthly, January 200
06-June 2013
3
Source: Am
merican Metal Market.
M

Figure V--3
OCTG: Hot-rolled billet prices (Black Sea export, FOB, sq uares), montthly, January
y 2010-July 2
2013

*
*
*
**
*

Pricesofhotrolledsheettincoilsand
dscrapincreasedbetweenJanuary2
2010andthee
2
springoff2011. Hotrolledsteelsheetpricesshavebeengraduallydeecliningsinccethatpointt.
Pricesofsteelscraphavebeenle
essvolatiletthanthoseoofhotrolledcoilovertheperiodand
d
stayedju
ustabove$4
400pershortttonthrougghtheendoff2011.Afterreachingth
heirperiodp
peak
inJanuarry2012,scraappriceshavvealsobeen
ndecreasingslightly.
In
naddition,energy(main
nlynaturalgaasandelectricity)accou
untsforapo
ortionofthecost
ofproducingOCTG,aalbeitaconssiderablysm
mallerproporrtionthanraawmaterialss.Thoughthe
priceofn
naturalgash
helpsdrived
demandforO
OCTG,itisa lsoacostfactorinitsm
manufacture.The
pricesofnaturalgasdeclinedbetween2010
0and2012,bbutincreaseedinthefirsttquarterof
2013.Thepricesofe
electricityan
ndironorere
emainedrelativelystead
dy,changingglessthan2
percento
overthetwo
oyears(tableV1).

2
Thisiincreaseisaccontinuationoftheincreasethatbegannatinmid20009(thebotto
omofthereccent
recession).
V2

Table V-1
OCTG: Prices of inputs, yearly, 2010-12 and January - March 2013
Item
2010
2011
Natural gas price (end-use,
industrial sector, per mmBTU)
$5.44
$5.11
Electricity (industrial, cents per kwh)
6.8
6.8
Iron ore (per metric ton)
$98.79
$99.45
2012
$3.82
6.7
$101.00e
Jan.-Mar. 2013
$4.56
6.8e
n/a
Note.Aneafteranumberindicatesthatdatafortheentireperiodisunavailable,sothepresenteddataareestimates.

Sources: Energy Information Administration, http://www.eia.doe.gov,
http://www.eia.gov/forecasts/steo/tables/?tableNumber=8#, and
http://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/mcs-2013-feore.pdf.
U.S.inlandtransportationcosts
SevenU.S.producersprovidedusableU.S.transportationcosts,averaging7percentand
rangingfrom4to12percentofthetotaldeliveredcostoftheirU.S.shipments.3U.S.produced
OCTGisshippedavarietyofdistances,thoughalargemajorityin2012wasshippedbetween
101and1,000miles(43.0percent)ormorethan1,000miles(46.1percent).4Sixproducers
reportedarrangingtransportationforpurchasers,whereassevenreportedthatpurchasers
arrangeitthemselves.
SixteenimportersreportedusableU.S.transportationcosts,with14ofthe16reporting
transportationcoststhataveragedlessthan2percentandrangedfrom0.2to5.0percentof
totaldeliveredcosts.5Lowtransportationcostswereexpected,as19of28importersshipped
90to100percentoftheirOCTG100milesorless.6Twentynineof34respondingimporters
reportedthatpurchasersarrangetransportation.

PRICINGPRACTICES

Pricingmethods

Pricingbasis
MostfirmsreportedsellingOCTGonaspotbasis.TwelveU.S.producersreportedthat
theysetpricesforOCTGonatransactionbytransactionbasis,5reportedsellingviacontracts,
and2reportedusingpricelists(tableV2).Amajorityofimportersalsoreportedsettingprices
onatransactionbytransactionbasis.Oneproducer(***)andoneimporter(***)reported

3
Twoproducersadditionallyreportedtransportationcostsaseitherabove50percentoraszero.
Thesedatawerenotused.
4
SeePartIIforfurtherdetailregardingshipmentdistances.
5
Transportationcostsreportedbyimporters***werereportedtobe10percent.
6
AsdiscussedinPartIV,asubstantialportionofU.S.importsenterthroughtheportofHouston
Galveston,Texas.
V3

usingcurrentcompetitiveoffersforallofitssaleswhetheronthespotmarketorsubjectto
shortorlongtermcontracts.Oneotherproducer(***)notedthatmostofitssalesare
programsales(discussedingreaterdetailbelow).

Table V-2
OCTG: U.S. producers and importers reported price setting methods, by number of responding
firms1
Method
U.S. 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.

Domesticsalesaresomewhatdividedbetweenshorttermcontractsalesandspotsales
(tableV3).Eightof12respondingproducersreportedthatatleast50percentoftheir2012
OCTGsaleswereviashortorlongtermcontracts.7Atthestaffconference,anindustry
representativestatedthatmanysalesareconsideredprogramsales,whicharemorelike
priceagreementsthancontracts.8

Table V-3
OCTG: U.S. producers and importers reported use of contracts and spot sales, by type of sale,
2012
Type of sale
U.S. producers
Importers
Long-term contracts
2
1
Short-term contracts
10
15
Spot sales
12
25
Fourteenofthe24importersofsubjectOCTGsoldexclusivelyonaspotbasis,andeight
otherssoldatleast50percentoftheirOCTGonthespotmarketin2012.Fourteenimporters
soldsubjectOCTGviashorttermcontracts,withthreedoingsoexclusively(***)reported
sellingOCTGonalongtermbasis;longtermcontractsaccountedforallofitssalesofOCTG.
Whenaskedwhatproportionoftheirsalesaresubjecttoshorttermandlongterm
contracts(asopposedtoonetimespotmarketsales),domesticproducersindicatedthat60.1
percentoftheirOCTGshipmentsweremadepursuanttocontracts,and63.5percentof
reportedshipmentsofimportsweremadepursuanttoshortorlongtermcontracts.***was

7
Thesefirmsare***.Inall,contractsalesaccountedforapproximately60percentofdomestic
producersalesofOCTGin2012.
8
Conferencetranscript,p.132(Miller).Therefore,allprogramsalesmaynotbeaccountedforin
contractpercentagedata.
V4

theonlyimporterreportinglongtermcontractsales,andindicatedallitssalesaresubjectto
thesecontracts.U.S.producers***reportedselling***percentoftheir2012salesofOCTGon
alongtermcontractbasis.
Amajorityof2012shipmentsofOCTGimportedfromKorea,SaudiArabia,andTaiwan
weresoldpursuanttoshorttermcontracts.Aslightmajorityof2012OCTGshipmentsfrom
India,Ukraine,andVietnamweresoldonthespotmarket,aswerealargemajorityofthose
importedfromthePhilippines,Thailand,andTurkey(***).

Contractterms
ElevenU.S.producersshorttermcontractswerereportedtobebetween1and12
monthslong(averaging5months).Termsalsovary:3respondingproducersshortterm
contractsfixedonlyprice,whereas4fixedpriceandquantity;6typicallyhadrenegotiable
priceswhereas4didnot;and7typicallydidnotcontainmeetorreleaseclauses,whereas3
did.9
Importersshorttermcontractsrangedbetweenfor2and8months(averaging4
months),typicallyfixedbothpriceandquantity,thoughtheyallowedpricerenegotiation,and
didnothavemeetorreleaseprovisions.

Programsales
Programsalesarenoncontractualobligationsbetweenmills,distributors,andendusers
thatspecifythetypeofOCTGtobesupplied,whenitwillbesupplied,andatthepriceatwhich
itwillbesupplied.Itmayprovideestimatedconsumptionandaframeworkforpricing,which
mayberenegotiatedduringthetermoftheprogram.10Termsoftheprogramvaryfrom
agreementtoagreement.Onedomesticindustryparticipantestimatedthatprogramsales
encompassasmuchas80to85percentofthemarketforOCTG.11Respondentsindicatedthat,
withtheexceptionofsuppliersfromKorea,themajoritydonotparticipateinprogramsales
duetodifficultieswithbeingabletoensureontimedelivery.12

Salestermsanddiscounts
Elevenof14respondingproducers13and22of28respondingimportersreportedthat
themajorityoftheirsaleswereonanf.o.b.basis;3producersand8importersreportedthat
mostoftheirsaleswereonadeliveredbasis.Themajorityofproducersshippingonanf.o.b.

9
Notallproducerswhichindicatedthattheyusedshorttermcontractsrespondedtoallportionsof
thisquestion.
10
Conferencetranscript,pp.130133(DuBoisandMiller).
11
Conferencetranscript,p.133(DuBois).***.
12
Conferencetranscript,pp.253259(Brewer,Cameron,Echavaria,Fowler,Khandelwal,McConnell,
andSimon).
13
Oneproducernotedtypicallyshippingonbothadeliveredandanf.o.b.basis.
V5

basisdosofromtheirmill,whileamajorityofimportersshippingonanf.o.b.basis(12)doso
fromHouston,Texas;sixothersnotedsellingfromtheportofentryordock.
Morethanhalf(9of14)ofrespondingproducersdonotofferdiscountstopurchasersof
OCTGexceptforearlypaymentdiscounts,whereasthreeofferquantityorannualvolume
discounts(***).Theindustrystandardpaymenttermsproducersofferedare2%10/net30
days,although***offerstermsof2%25/net60.14Thirtyfourimportersoffernodiscounts,
whereasthree(***)offerquantityortotalvolumediscounts.Eightimportersofferadiscount
otherthanquantitydiscounts:fouroffera2percentearlypaymentdiscountandfouroffer
discountsonatransactionbytransactionbasis.Salesaretypicallymadeonanet30payment
basis,althoughfourrespondingimportersreportednet60paymentterms.Oneimporter,***,
statedthatitsstandardpaymenttermsarenet180days.

PRICEDATA
TheCommissionrequestedU.S.producers(includingprocessors)andU.S.importersof
OCTGtoprovidequarterlydataforthetotalquantityandvalueofOCTGthatwasshippedto
unrelatedcustomersintheU.S.market.QuarterlydatawererequestedfortheperiodJanuary
2010March2013.Theproductsforwhichpricingdatawererequestedareasfollows:
Product1.Tubing,GradeL80,27/8"O.D.,6.5lbs./ft.,threadedandcoupled,range2,
seamless

Product2.Tubing,GradeJ55,23/8"O.D.,4.7lbs./ft.,threadedandcoupled,range2,welded

Product3.Casing,GradeJ55,5"O.D.,17.0lbs./ft.,threadedandcoupled,range3,welded

Product4.Casing,GradeP110,5"O.D.,17.0lbs./ft.,threadedandcoupled,range3,
seamless

Product5.Casing,GradeJ55,85/8"O.D.,32.0lbs./ft.,threadedandcoupled,range3,
welded,and

Product6.Casing,GradeJ55,95/8"O.D.,36.0lbs./ft.,threadedandcoupled,range3,
welded.

14
Eightof14respondingproducersoffertheseterms,whileanotherthreeoffernet30termsand
threeoffersomethingdifferent.
V6

ElevenU.S.producers(millsandprocessors)15and19importersprovidedusableprice
dataforsalesofthesixproducts,althoughnotallfirmsreportedpricesforallproductsandall
quarters.Reportedpricingproductsrepresented10.5percentofU.S.shipmentsofU.S.
producedproducts.Amongsubjectimports,theyrepresent2.8percentofshipmentsof
importedproductfromIndia,3.8percentofshipmentsofimportedproductfromKorea,3.2
percentofshipmentsofimportedproductfromthePhilippines,3.2percentofshipmentsof
importedproductfromSaudiArabia,0.8percentofshipmentsofimportedproductfrom
Taiwan,2.6percentofshipmentsofimportedproductfromThailand,10.1percentof
shipmentsofimportedproductfromTurkey,5.3percentofshipmentsofimportedproduct
fromUkraine,and6.9percentofshipmentsofimportedproductfromVietnam.16
Inaddition,thesamedatawererequestedforimportsfromnonsubjectcountries
CanadaandJapan.NopricingdatawerereceivedforsalesofimportsfromJapan,butthe
CommissionreceiveddataforsalesofimportsfromCanada.Pricedataarepresentedintables
V4toV9andfiguresV4toV9.Alldataarereportedinshorttonsanddollarspershortton.

15
U.S.pricedataconsistprimarilyofdatareportedbyU.S.millsbutalsoincludedatareportedby
U.S.processors***.
16
TherearealargevarietyofgradesandsizesofcasingandtubingintheOCTGmarket.Theselected
productsarerepresentativeofthoseusedinthemarket.Consequently,thesepercentagesare
expectedlysmall.
V7

Table V-4
OCTG: Weighted-average f.o.b. prices and quantities of domestic and imported product 1,1 and
margins of underselling/(overselling), by quarter, 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.
United States
Price
(dollars
Quantity
per ton)
(tons)
India
Price
(dollars
per ton)
Korea
Quantity
(tons)
Margin
Price
(dollars
per ton)
Quantity
(tons)
Margin
***
***
1,878
1,981
***
***
5,931
4,833
-***
***
--
0
***
***
0
-***
***
--
-----
0
0
0
0
-----
1,811
1,773
1,993
2,042
5,584
6,448
7,872
5,541
***
----
***
0
0
0
***
----
-----
0
0
0
0
-----
2,071
2,013
1,813
1,850
5,513
6,945
12,866
10,486
-***
***
***
0
***
***
***
***
***
***
***
-***
-***
0
***
0
***
-***
-***
7,009
***
***
***
***
***
***
1,752
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.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
-***
***
***
-Oct.-Dec.
-0
-***
***
***
-2011:
-0
-***
***
***
-Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
-***
***
***
-Oct.-Dec.
-0
-***
***
***
-2012:
-0
-***
***
***
-Jan.-Mar.
Apr.-Jun.
***
***
***
***
***
***
-Jul.-Sept.
***
***
***
***
***
***
-Oct.-Dec.
***
***
***
***
***
***
***
2013:
-0
-***
***
***
***
Jan.-Mar.
1
Product 1.-- Tubing, Grade L-80, 2 7/8" O.D., 6.5 lbs./ft., threaded and coupled, range 2, seamless.
Margin
0
0
0
0
-----
0
0
0
0
-----
0
0
0
***
---***
***
***
Note.--In addition to these quarterly data, there was one quarter in which imported product 1 from the Philippines was
sold: in Jul.-Sept. 2012, *** short tons were sold at a price of $*** per short ton, yielding an underselling margin of ***
percent.
V8

Table V-5
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.
United States
Price
(dollars
Quantity
per ton)
(tons)
India
Price
(dollars
per ton)
Korea
Quantity
(tons)
Price
(dollars
per ton)
Margin
Quantity
(tons)
Margin
***
***
***
1,481
***
***
***
12,409
-----
0
0
0
0
-----
***
***
***
***
***
***
***
***
***
***
***
***
***
***
1,566
1,568
***
***
10,256
12,470
-----
0
0
0
0
-----
***
***
***
***
***
***
***
***
***
***
***
***
1,540
1,478
1,448
1,364
8,482
10,872
5,078
6,923
-----
0
0
0
0
-----
***
***
***
1,234
***
***
***
1,648
***
***
***
9.6
1,393
7,258
***
***
***
***
***
***
Philippines
Price
(dollars
per ton)
Quantity
(tons)
Turkey
Margin
Price
(dollars
per ton)
Quantity
(tons)
Vietnam
Margin
Price
(dollars
per ton)
2010:
-0
-***
***
***
-Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
--0
--Oct.-Dec.
-0
-***
***
***
-2011:
-0
-***
***
***
-Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
-***
***
***
-Oct.-Dec.
-0
-***
***
***
-2012:
-0
-***
***
***
-Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
-***
***
***
-Oct.-Dec.
***
***
***
***
***
***
***
2013:
***
***
***
***
***
***
***
Jan.-Mar.
1
Product 2.-- Tubing, Grade J-55, 2 3/8" O.D., 4.7 lbs./ft., threaded and coupled, range 2, welded.
V9
Quantity
(tons)
Margin
0
0
0
0
-----
0
0
0
0
-----
0
0
0
***
---***
***
***

Table V-6
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.
United States
Price
(dollars
Quantity
per ton)
(tons)
Korea
Price
(dollars
per ton)
Philippines
Quantity
(tons)
Margin
Price
(dollars
per ton)
Quantity
(tons)
Margin
1,097
1,197
1,266
1,180
10,334
11,367
11,583
12,876
***
***
***
***
***
***
***
***
***
***
***
***
-----
0
0
0
0
-----
1,198
1,207
1,310
1,295
13,050
9,836
11,821
13,536
***
***
***
***
***
***
***
***
***
***
***
***
-----
0
0
0
0
-----
1,283
1,274
1,259
1,187
11,373
13,787
15,576
11,180
***
***
***
***
***
***
***
***
***
***
***
***
-***
-***
0
***
0
***
-***
-***
8,360
***
***
***
***
***
***
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.-Mar.
Apr.-Jun.
-0
--0
--Jul.-Sept.
-0
--0
--Oct.-Dec.
-0
--0
--2011:
-0
--0
-***
Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
-***
***
***
***
Oct.-Dec.
-0
-***
***
***
***
2012:
-0
-***
***
***
***
Jan.-Mar.
Apr.-Jun.
***
***
***
***
***
***
***
Jul.-Sept.
***
***
***
***
***
***
***
Oct.-Dec.
-0
-***
***
***
***
2013:
-0
-***
***
***
***
Jan.-Mar.
1
Product 3.-- Casing, Grade J-55, 5 " O.D., 17.0 lbs./ft., threaded and coupled, range 3, welded.
V10
Quantity
(tons)
Margin
0
0
0
0
-----
***
0
***
***
***
-***
***
***
***
***
***
***
***
***
***
***
***

Table V-7
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.
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
-----
1,927
1,818
***
***
1,698
203
***
***
-***
***
***
0
***
***
***
-***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
1,929
***
1,801
***
5,390
***
3,798
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
9,006
***
***
***
***
***
***
1,627
Thailand
Price
(dollars
per ton)
Quantity
(tons)
Ukraine
Margin
Price
(dollars
per ton)
Quantity
(tons)
Margin
2010:
-0
--0
-Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
Jul.-Sept.
-0
--0
-Oct.-Dec.
-0
-***
***
***
2011:
-0
-***
***
***
Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
Jul.-Sept.
-0
--0
-Oct.-Dec.
-0
-***
***
***
2012:
***
***
***
***
***
***
Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
Jul.-Sept.
-0
-***
***
***
Oct.-Dec.
***
***
***
***
***
***
2013:
-0
--0
-Jan.-Mar.
1
Product 4.-- Casing, Grade P-110, 5 " O.D., 17.0 lbs./ft., threaded and coupled, range 3, seamless.
V11

Table V-8
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.
United States
Price
(dollars
Quantity
per ton)
(tons)
India
Price
(dollars
per ton)
Quantity
(tons)
Korea
Margin
Price
(dollars
per ton)
Quantity
(tons)
Margin
1,042
1,133
1,223
1,144
7,538
6,751
5,428
8,131
---***
0
0
0
***
---***
***
***
***
***
***
***
***
***
***
***
***
***
1,135
1,212
1,261
1,301
17,726
13,018
9,338
18,333
***
-***
***
***
0
***
***
***
-***
***
***
***
***
***
***
***
***
***
***
***
***
***
1,283
1,274
1,244
1,195
22,639
23,542
25,329
25,024
---***
0
0
0
***
---***
***
-***
***
***
0
***
***
***
-***
***
23,751
***
***
***
***
***
***
1,112
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.-Mar.
Apr.-Jun.
-0
--0
--Jul.-Sept.
-0
--0
--Oct.-Dec.
-0
--0
--2011:
-0
-***
***
***
-Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
--0
--Oct.-Dec.
-0
-***
***
***
-2012:
-0
-***
***
***
***
Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
***
Jul.-Sept.
***
***
***
***
***
***
***
Oct.-Dec.
***
***
***
***
***
***
***
2013:
-0
-***
***
***
***
Jan.-Mar.
1
Product 5.-- Casing, Grade J-55, 8 5/8" O.D., 32.0 lbs./ft., threaded and coupled, range 3, welded.
Margin
0
0
0
0
-----
0
0
0
0
-----
***
***
***
***
***
***
***
***
***
***
Note.--In addition to these quarterly data, there was one quarter in which imported product 1 from the Philippines was
sold: in Jan.-Mar. 2012, *** short tons were sold at a price of $*** per short ton, yielding an underselling margin of ***
percent.
V12
Table V-9
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.
United States
Price
(dollars
Quantity
per ton)
(tons)
India
Price
(dollars
per ton)
Korea
Quantity
(tons)
Margin
Price
(dollars
per ton)
Quantity
(tons)
Margin
1,068
1,144
1,217
1,183
18,310
32,283
24,742
27,463
--***
***
0
0
***
***
--***
***
***
***
***
***
***
***
***
***
***
***
***
***
1,151
1,241
1,296
1,300
28,507
34,555
30,419
43,763
-----
0
0
0
0
-----
***
***
***
***
***
***
***
***
***
***
***
***
1,298
1,276
1,228
1,167
47,873
35,100
43,430
43,753
-***
***
***
0
***
***
***
-***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
44,384
***
***
***
***
***
***
1,116
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.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
-***
***
***
-Oct.-Dec.
-0
-***
***
***
-2011:
-0
-***
***
***
-Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
-0
-***
***
***
-Oct.-Dec.
-0
-***
***
***
-2012:
-0
-***
***
***
-Jan.-Mar.
Apr.-Jun.
-0
-***
***
***
-Jul.-Sept.
***
***
***
***
***
***
-Oct.-Dec.
-0
-***
***
***
***
2013:
***
***
***
***
***
***
-Jan.-Mar.
1
V13
Margin
0
0
0
0
-----
0
0
0
0
-----
0
0
0
***
---***
--
Figure V-4
OCTG: Weighted-average f.o.b. prices and quantities of domestic and imported product 1, by
quarter, January 2010-March 2013
*
*
*
*
*
*
*
Figure V-5
*
*
*
*
*
*
*
Figure V-6
*
*
*
*
*
*
*
Figure V-7
*
*
*
*
*
*
*

Figure V-8
*
*
*
*
*
*
*
Figure V-9
*
*
*
*
*
*
*
Pricetrends
Ingeneral,pricesincreasedduring2010and2011,anddecreasedduring2012andin
thefirstquarterof2013.TableV10summarizesthepricetrends,bycountryandbyproduct.
Asshowninthetable,domesticpriceswerelowestforeachofthe6productsinthefirst
quarterof2010andhighestinthesecondhalfof2011orfirsthalfof2012.Overall,prices
betweenthefirstandthelastquarterincreasedbybetween0.1and6.7percent.Pricingdata
forimporterswasmorevaried,bothintermsofpricechangesbetweenthefirstandlastyearof
theperiod,andwithrespecttowhenthehighestorlowestvalueswereobserved.Importer
pricechangesrangedbetweenamorethan30percentdecreaseandapositive16percent
increase.
V14

Table V-10
OCTG: Summary of weighted-average f.o.b. 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.S.
13
$***
$***
1.7
India
8
***
***
(20.9)
Korea
3
***
***
-Philippines
1
***
***
-Thailand
3
***
***
-Ukraine
12
***
***
***
Vietnam
2
***
***
-Product 2
U.S.
13
$***
$***
3.5
India
1
***
***
-Korea
13
***
***
(30.5)
Philippines
2
***
***
-Turkey
12
***
***
(17.6)
Vietnam
2
***
***
-Product 3
U.S.
13
$1,097
$1,310
1.8
Korea
13
***
***
13.9
Philippines
3
***
***
-Taiwan
2
***
***
-Turkey
8
***
***
-Vietnam
8
***
***
-Product 4
U.S.
13
$***
$***
0.1
India
12
***
***
16.3
Saudi Arabia
9
***
***
-Thailand
2
***
***
-Ukraine
9
***
***
***
Product 5
U.S.
13
$1,042
$1,301
6.7
India
6
***
***
-Korea
12
***
***
(9.2)
Philippines
1
***
***
-Taiwan
2
***
***
-Turkey
8
***
***
-Vietnam
5
***
***
-Product 6
U.S.
13
$1,068
$1,300
4.5
India
6
***
***
(11.6)
Korea
13
***
***
(8.6)
Taiwan
2
***
***
-Turkey
12
***
***
(16.7)
Vietnam
1
***
***
-1
Percentage change is based on unrounded data. Changes are not reported for products for which data were not
available in both the first and last year of the period.
V15

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

17
Importer***statedthatitwasfacingstiffcompetitionduringthatquarter,inparticularfrom
importssuchasthosefromKorea,thePhilippines,andVietnamamongothers.Itfeltthatifitdidnot
bringitspricesdown,itwouldhavebeensittingontheinventoryforyears.Stafftelephoneinterview
with***.
18
Thisdeclineisdueto***.
V16

forwhichdatawereavailable)andthesecondquarterof2012,beforedecreasingto$***per
shorttoninthethirdquarterof2012.PricesforimportedTurkishproduct5haveincreased
veryslightly(***percent)throughthefirstquarterof2013.PricesforIndianproduct5were
sporadic,buthavedeclinedsincetheirpeakinthefirstquarterof2011.Importerproduct5
fromVietnamwerevirtuallyidenticalinthefirstandsecondquarterof2012,butdecreasedin
priceineveryquarterthroughthefirstquarterof2013.
Pricesofproduct6importedfromKoreaincreasedirregularlythroughthethirdquarter
of2012anddecreasedineachquarterthereafter.Pricesforproduct6importedfromTurkey
werehigherthananyotherpricesinthesecondquarterof2012throughthefirstquarterof
2012.Afterthatpoint,theyfollowedthesamegeneraltrendasdomesticandKoreanproduct6
prices.Pricesforproduct6fromIndiawereagainsporadic,butdecreasedineachquarter
betweenthesecondquarterof2012andthefirstquarterof2013.

Pricecomparisons
AsshownintableV11,pricesforOCTGimportedfromtheninesubjectcountrieswere
belowthoseforU.S.producedproductin153of192possibleinstances;marginsofunderselling
rangedfrom0.0to45.0percent,averaging9.7percent.Intheremaining39instances,prices
forOCTGfromtheninesubjectcountrieswerebetween0.1and24.5percentabovepricesfor
thedomesticproduct,averaging7.7percent.
DatabycountryareprovidedintableV12.Thecountrieswiththegreatestnumberof
possiblecomparisonswereKorea,Turkey,India,Ukraine,andVietnam.OCTGfromthe
Philippines,SaudiArabia,andTaiwanundersoldU.S.OCTGineachofthequartersforwhich
comparisonswerepossible,althougheachofthesecountrieshadlessthan10comparisons
possible.ThailandundersoldtheU.S.productinfourquarters,andoversolditinone.

Table V-11
OCTG: Instances of underselling/overselling and the range and average margins, all subject
countries combined, January 2010-March 2013
Margins of underselling
Product
Number of
quarters of
underselling
Number of
quarters of
(overselling)
Average
(percent)
26
22
Margins of (overselling)
Range (percent)
Range (percent)
Min
Max
Average
(percent)
17.2
0.6
45.0
(7.3)
(5.2)
(9.3)
13.0
0.9
38.4
(7.0)
(0.2)
(14.2)
26
6.7
0.5
19.1
(4.2)
(0.1)
(10.7)
29
9.0
0.6
17.7
(4.3)
(2.4)
(7.5)
24
10
7.6
0.6
21.6
(9.9)
(1.2)
(18.4)
26
4.6
0.0
19.4
(10.3)
(1.5)
(24.5)
Total
153
39
9.5
0.0
45.0
(7.7)
(0.1)
(24.5)

V17
Min
Max

Table V-12
OCTG: Instances of underselling/overselling and the range and average margin by country,
January 2010-March 2013
Product
and
country
Number of
quarters of
underselling
Number of
quarters of
(overselling)
Average
(percent)
Min
***
***
***
***
***
***
Range (percent)
Range (percent)
Max
Average
(percent)
Min
Max
***
***
***
***
***
***
***
***
--
--
--
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
--
--
--
Total
28
8.6
0.6
25.9
(5.9)
(3.1)
(9.3)
***
***
***
***
***
--
--
--
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
Total
35
19
6.8
0.0
32.7
(7.4)
(0.2)
(18.4)
***
***
***
***
--
--
--
***
***
***
***
--
--
--
***
***
***
***
--
--
--
***
***
***
***
--
--
--
Total
18.7
6.0
44.3
--
--
--
***
***
***
--
--
--
5.0
0.6
15.5
--
--
--
India
Korea
Philippines
Saudi Arabia
4
Total
9

V18

Table V-12--Continued
OCTG: Instances of underselling/overselling and the range and average margin by country,
January 2010-March 2013
Product
and
country
Number of
quarters of
underselling
Number of
quarters of
(overselling)
Average
(percent)
Min
***
***
***
***
Total
Range (percent)
Range (percent)
Max
Average
(percent)
Min
Max
***
***
--
--
--
***
***
***
--
--
--
***
***
***
--
--
--
7.5
2.3
21.6
--
--
--
***
***
***
***
***
--
--
--
***
***
***
***
***
***
***
***
Total
13.4
8.1
17.7
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
Total
27
13
6.8
0.8
19.1
(9.2)
(0.1)
(24.5)
***
***
***
***
***
--
--
--
***
***
***
***
***
***
***
***
Total
20
13.0
1.5
23.7
***
***
***
***
***
***
***
***
--
--
--
***
***
***
***
***
--
--
--
***
***
***
***
***
***
***
***
***
***
***
***
***
--
--
--
***
***
***
***
***
--
--
--
Total
17
14.9
0.7
45.0
***
***
***
Taiwan
Thailand
Turkey
Ukraine
Vietnam
V19

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;asummaryoftheinformationobtainedispresentedintablesV13
andV14alongwiththe16respondingpurchasersreplies.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,butthatnoorderswerepulledfromU.S.producerssince
V20

2010.ItaddedthatU.S.producershaveoccasionallyreducedtheirpriceonspecificquotesto
competewithforeignproducersofOCTG.
***agreedwiththeallegedpricedifferences,butdidnotpurchasetheimportedforeign
OCTGoutofsupportfordomesticmills.However,itstatedthatdomesticproducersofOCTG
havehadtolowertheirpricestocompetewiththeimportedproduct.Accordingtoits
response,oursellingpricehasdecreased***%sellingdomesticproduct.
***somewhatagreedwiththeallegations,addingthatbidsareoftenawardedbased
onamultitudeoffactorsbeyondprice.Thesefactorsmayinclude,butarenotlimitedto,
quality,milldelivery,requirementdates,relationships,customerpreference,shortandlong
termpurchasingstrategies,etc.Itfurthercommentedthatdomesticmillsarevery
competitiveandbothimportanddomesticOCTGmillsadjusttheirpricingupanddownbased
onavarietyoffactors.
For***,pricedidinfluencethechoicetoshiftpurchasesawayfromdomestic
producers,butavailabilityofdomestictonsforspecificrequirementsalsoplaysabigpartin
theselectionoftubulars.
***notedthatitdidnothavetoloweritsU.S.pricinginordertocompetewithimport
pricing.
***commentedthatitonlybeganfocusingondomesticmillsourcesin***,butnoted
thatdomesticproducershavereducedtheirpricessincelate2012asaresultofoversupplyand
morecompetitivemarketconditions.
***statedthatitsrejectionoftheoriginalquotefromU.S.producerswasnot
necessarilyinresponsetocompetingimportsfromthespecifiedsubjectcountry,butthat,in
general,domesticmillsareforcedtolowerpricestocompetewithimportedOCTGproduct
prices.
***notedthatthese{foreign}millswerealwaysbelowdomesticpricing,andthatto
selldomesticpipe,itrequiresanenduserthatprefersit,andiswillingtospendmoretohaveit.
Otherwise,thepricesaretoohigh.Evenincaseswheredomesticproducersreducedtheir
prices,itstatedthatthecostofdomesticallyproducedOCTGwasstillhigherthanthemills
mentionedinthistradecase.
***addedthatpricesofOCTGfromthespecifiedsubjectcountryareroughly
$***/shorttonlessexpensivethandomesticgoods.Itfurthernotedthatitprefersdomestic
product,andthusoften***.
Inadditiontothedataregardingthespecificallegations,purchasersnamedinthe
allegationswereaskedtwoquestionsregardingtheOCTGmarket.Thefirstiswhetherthe
purchaserswitchedsuppliersfromaU.S.producertoimportsofsubjectproductsinceJanuary
2010,andifpricewasthereasonfortheswitch.TheywerealsoaskedifU.S.producershadto
decreasetheirpricesinordertocompetewiththepriceofOCTGfromsubjectsources.
ResponsesarepresentedintableV15.Sixof15respondingpurchasersnotedswitchingto
subjectimports,witheachreportingthattheydidsoforpricereasons.Elevenof14responding
importersindicatedthatU.S.producershadtoreducetheirpricestocompetewithOCTGfrom
subjectcountries.

V21

Table V-15
OCTG: Purchasers responses regarding shifting supply and price reductions
*
*
*
*
V22
*
*
*
PARTVI: FINANCIALEXPERIENCEOFU.S.PRODUCERS
BACKGROUND
ThirteenU.S.producersprovideduseablefinancialdataontheiroperationsonOCTG.1
ThesedataarebelievedtoaccountforthemajorityofU.S.productionofOCTGin2012.Nofirm
reportedinternalconsumptionortransfersinthefinancialsectionoftheCommissions
questionnaire.***firmsprovideddataontheirindependenttollingoperationsonOCTG,which
wereequivalenttoapproximately***percentoftotalnetsalesbyvaluein2012;thesedata
arenotpresentedseparatelyinthissectionofthereport.Asnotedbelow,allbuttwoofthe
firmsreportedafiscalyearendofDecember31.
TenofthefirmsreportedproducingweldedOCTGandsixreportedproducingseamless
OCTG;U.S.SteelandTMKIPSCOmanufacturebothseamlessandweldedOCTG,andTejas
processesboth.Productionisconcentratedamongafewfirms:Overall,***.2Theproduction
ofbothseamlessandweldedOCTGrosefrom2010to2012andwaslowerinJanuaryMarch
2013thaninJanuaryMarch2012.
SeveralU.S.producersstartedproducingweldedOCTGduringthe201013period,
includingBoomerang,EnergeX,Northwest,Tejas,TexasSteelConversion(beganoperations
onlyinMay2013),andVallourecStar.3ForsomethisinvolvedexpandingOCTGoperationsfrom
heattreatingandendingfinishingtotubeproduction.Thesefirmstogetheraccountedfor
about***percentoftheindustrysoperatingincomein2012,largelyaccountedforby***.
OperationsonOCTG
IncomeandlossdataforU.S.producersoperationsonOCTGarepresentedintable
VI1,whiletableVI2presentsselectedcompanyspecificfinancialdata.Resultsofoperations
onOCTGarebrieflydescribedhere:

x Totalnetsalesrosebyquantityandvaluebetween2010and2012butbothwere
lowerinJanuaryMarch2013comparedwiththesameperiodin2012.The
increaseinaverageunitsalesvaluesbetween2010and2012andsubsequent
1
Thesefirmsare:***.Unlessnotedotherwise,eachfirmhasafiscalyearthatendsonorabout
December31.ThemajorityofU.S.producersreportedtheirfinancialresultsonthebasisofGAAP.
MaverickandTMKIPSCOreportedtheirsonthebasisofInternationalFinancialReportingStandards
(IFRS).Twofirmsadditionallyprovidedtollingdata(sectionVoftheCommissionsquestionnaire):***.
DifferencesbetweenthetradeandfinancialsectionsoftheCommissionsquestionnaireare
accountedforbytimingdifferences,differencesinrounding,andbecause***.
2
SeparatetradedataonseamlessandweldedOCTGarepresentedinappendixC.
3
Questionnaireresponses,sectionII2a.BoomerangandTejas,bothopenedamanufacturingfacility
forweldedOCTGin2011,andbothwereprocessorsonlypreviously,forexample.SeeMavericks
postconferencebrief,p.13.
VI1
declinefromJanuaryMarch2012toJanuaryMarch2013ledtothegreater
percentageincreaseanddecrease,respectivelyinsalesvaluecomparedwith
salesvolume.AsthedataintableVI2indicate,directionalchangesinperiodto
periodsalesweregenerallythesameforallfirms.Italsoappearsthatchangesin
averagesalesvalueswereduetochangesinunderlyingpricesasopposedto
changesinproductmix.Rampupofoperationsbyseveralofthenewerfirms
andincreasedsalesbyestablishedfirms(***,forexample)accountedformost
oftheincreaseinsalesbetween2010and2012.

Totalcostofgoodssold(COGS)increasedbetweentheyearlyperiodsindollar
termsby53.2percent,whichrepresentedagreaterincreasethanthatofeither
salesvolumeorvalue;COGSwaslowerinJanuaryMarch2013comparedto
JanuaryMarch2012byasimilarproportionassalesvolume(3.6percent
comparedwith3.3percent).Between2010and2012,directionalchangesin
COGSwerethesameforeachfirm;betweenJanuaryMarch2012andJanuary
March2013,suchchangesdidvarybyfirm(tableVI2).ThechangeintotalCOGS
wasledbythecostcategoriesofrawmaterialcostsandotherfactorycosts,
whichaveragednearly60percentand31percentduringthefullyearlyperiods,
respectively.Asshowninthecostofsalessectionofthevarianceanalysis(table
VI3),theincreaseintotalCOGSisprimarilyattributabletoincreasedsales
volumeswhiletheincreaseinunitcostsofthecomponents,principallyraw
materialsandotherfactorycosts,playedasecondaryrole.
Totalrawmaterialcosts,thesinglelargestcostcomponentofOCTG,
increasedindollartermsandasaratiotosaleswithincreasingsalesvolume.The
perunitvalueincreasewasaccountedforbyincreasesinthepriceorcostof
hotrolledsheetandbilletusedasinputsforpipemaking.Betweentheinterim
periods,totalrawmaterialcostswerelowerindollartermsandonaperunit
basisbuthigherasaratiotototalsales.Thepatternwasnotuniformor
consistentthroughouttheperiodforallU.S.producers(tableVI2).
Otherfactorycostsalsoincreasedindollartermsandonaperunitbasis
duringtheyearlyperiods;someofthisisaccountedforbythegreatervolumeof
salesandsomeisaccountedforbystartupproblemsofU.S.producers.4
Betweentheinterimperiods,otherfactorycostsincreasedindollartermsas
wellasaratiotototalsalesandonaperunitbasis.
***rampupcostsin2012andbothinterimperiods,forexample.Questionnaireresponseof***,
sectionIII9.
VI2
Totalselling,general,andadministrative(SG&A)expensesroseindollars
betweentheyearlyperiodsandweregreaterinJanuaryMarch2013thanin
JanuaryMarch2012.AsaratiotosalesandonaperunitbasisSG&Aexpenses
declinedbetween2010and2012,butwerehigherinJanuaryMarch2013than
inthesameperiodoneyearearlier.Generally,thedirectionofchangebyfirm
trackedtheindustrytotalandratiotonetsales.Therewaslargevariability
betweenfirmsthatreflected,inpart,thestartupofoperations.

Totaloperatingincomewaspositiveineachperiodandtheindustrycollectively
recordedhigheroperatingincomein2012thanin2010,butthatoperating
incomewasmuchlowerinJanuaryMarch2013thaninthesameperiodone
yearearlier.Operatingprofitasaratiotototalsalesdecreasedby3.8percentage
pointsfrom2010to2012andwaslowerby10.2percentagepointsinJanuary
March2013thaninJanuaryMarch2012.Operatingincomealsofellonaper
unitbasisfrom2010to2012andwasmuchlowerininterim2013thanininterim
2012.Thenumberoffirmsrecordingoperatinglossesdeclinedfrom5firmsin
2010to***firmsin2012,butwashigherinJanuaryMarch2013at4firms
comparedwith***firminthesameperiodoneyearearlier.Theoperating
incomeof***.

Netincomebeforetaxesandcashflowalsowerepositiveineachperiod.Both
increasedbetween2010and2011butdecreasedin2012.Anincreaseofinterest
chargesandotherexpensesbetween2010and2012(interestwasabout$48.7
millionhigherandotherexpensesalsoincreasedby$15.9million)weregreater
thantheincreaseinotherincome(about$3.4million)andledtothedecreasein
netincomeandcashflowcomparedwithoperatingincome.Netincomebefore
taxesandcashflowwerepositivebutweremuchlowerinJanuaryMarch2013
thaninthesameperiodoneyearearlier.Asintheyearlyperiods,bothfollowed
thechangeinoperatingincomeandincorporatedanincreaseinotherexpenses.
VI3
Table VI-1
OCTG: Results of operations of U.S. producers, fiscal years 2010-12, January-March 2012, and
January-March 2013
Item
Fiscal years
2011
2010
Total net sales
2,833,732
Total net sales
4,575,093
Cost of goods sold:

Raw materials
Direct labor
Other factory costs
Total COGS
Gross profit
SG&A expenses
Operating income
Total other income/(expense), net1
Net income
Depreciation/amortization
Cash flow
2,179,063
369,840
985,843
3,534,746
1,040,347
419,821
620,526
(147,504)
473,022
234,035
707,057
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

3,452,493
3,783,341
1,007,413
Value ($1,000)
5,856,742
6,540,357
1,761,115
2,832,490
3,152,967
829,360
467,061
527,693
140,345
1,478,546
1,735,334
397,144
4,778,097
5,415,994
1,366,849
1,078,645
1,124,363
394,266
433,528
485,412
113,218
645,117
638,951
281,048
(150,301)
(208,739)
(41,085)
494,816
430,212
239,963
223,105
223,217
52,527
717,921
653,429
292,490
Ratio to net sales (percent)
1,527,795
780,069
139,559
397,397
1,317,025
210,770
121,698
89,072
(63,396)
25,676
59,399
85,075
Total net sales
48.4
48.2
47.1
8.0
8.1
8.0
25.2
26.5
22.6
81.6
82.8
77.6
18.4
17.2
22.4
7.4
7.4
6.4
11.0
9.8
16.0
8.4
6.6
13.6
Average unit value (dollars per short ton)
1,615
1,696
1,729
1,748
1,568
Cost of goods sold:

Raw materials
Direct labor
Other factory costs
Total COGS
Gross profit
SG&A expenses
Operating income
769
131
348
1,247
367
148
219
801
143
408
1,352
216
125
91
Operating losses
Data
1
Principally interest expense.
47.6
8.1
21.5
77.3
22.7
9.2
13.6
10.3
974,262
5
11
820
833
823
135
139
139
428
459
394
1,384
1,432
1,357
312
297
391
126
128
112
187
169
279
Number of firms reporting:
3
***
***
12
11
11
VI4
51.1
9.1
26.0
86.2
13.8
8.0
5.8
1.7
4
12
Twofirmsreportedindependenttollingoperations.Oneofthesewas***,which
reportedtollingdatafor2012onlyof***,revenueof$***but***.***.Theotherfirm,***,
reporteddataduringeachoftheperiodsforwhichdatawerecollected.Togethertheyreported
tonstolledrangingfrom***.5
Table VI-2
OCTG: Results of operations of U.S. producers, by firm, fiscal years 2010-12, January-March 2012,
and January-March 2013
*
AsdepictedintablesVI1andVI2,totalCOGSincreasedindollarterms,asaratioto
totalnetsales,andonaperunitbasis,drivenbyrawmaterialandotherfactorycosts.Raw
materialcostsalsoareasubstantialshareofsalesandonaperunitbasis;rawmaterialcosts
werethelargestsinglecomponentofCOGS,anddeclinedfrom61.6percentin2010to58.2
percentin2012,andwas59.2percentinJanuaryMarch2013comparedwith60.7percentin
thesameperiodoneyearearlier.Thesteelindustryoftenusesthetermmetalspread,
definedasthedifferenceintotaldollarsorindollarspertonofproductbetweenthesalesprice
andthecostofafirmsrawmaterialinputs,primarilyhotrolledsheetorbillet.Anincreasing
metalspreadindicatesawideningbetweenafirmssalesvalueanditscostofrawmaterials,for
examplewhenafirmssalespriceisrisingfasterthanisthecostofitsrawmaterials,orthatthe
rawmaterialscostsaredecliningfasterthanafirmssalesprice,whereasadecreasingmetal
spreadindicatestheopposite.Themetalspreadwidenedduringthefullyearlyperiods($2.4
millionor$846pershorttonto$3.4millionor$895pershortton)butnarrowedbetweenthe
interimperiods($931,000or$925pershorttonto$747,000or$767pershortton).Theterm
metalmarginreferstothemetalspreadasapercentageoftheproductprice,whichisthe
ratioofthemetalspreadtototalnetsales.Likethemetalspread,changesinthemetalmargin
indicatesimilaraspectsofchangesintheunderlyingfactors.Themetalmargindeclinedfrom
52.4percentin2010to51.8percentin2012,andwaslowerat48.9percentinJanuaryMarch
2013comparedto52.9percentinJanuaryMarch2012.6
Athirdfirm,***,alsoreporteddatainsectionVoftheCommissionsU.S.producersquestionnaire,
butthedatawerenotusableandarenotincludedhereorintableC2.
6
Energycostsarevariablecostsandaretypicallyclassifiedinotherfactorycosts.Asvariablecosts,
theyvarywithproduction,androsewiththeincreasingvolumeofsalesbetween2010and2012.Other
factorycostsalsoincludechargessuchas***aswellasanincreasedallocatedshareoffactory
overheadcostsastheshareofproductionofOCTGroserelativetootherpipeandtubeproducts.
VI5
Varianceanalysis
ThevarianceanalysisshowingtheeffectsofpricesandvolumeonU.S.producersnet
salesofOCTG,andofcostsandvolumeontheirtotalexpenses,ispresentedintableVI3.7The
informationforthisvarianceanalysisisderivedfromtableVI1.Thevarianceanalysisprovides
anassessmentofchangesinprofitabilityasrelatedtochangesinpricing,cost,andvolume.The
varianceanalysisforthereportingfirmstogetherindicatesthattheincreaseinoperating
incomebetween2010and2012wasmainlyduetothecombinedeffectsoffavorablepriceand
volumevariancesonsales(salesvolumeincreasedandunitsalesvaluesincreased)thatwere
greaterthantheunfavorablenetcost/expensevariance(unitcostsincreased).Operating
incomewaslowerinJanuaryMarch2013thaninJanuaryMarch2012duetothecombined
effectsofunfavorableprice,netcost/expense,andvolumevariances.Thecompositionofnet
operatingvarianceissummarizedatthebottomoftableVI3.
TheCommissionsvarianceanalysisiscalculatedinthreeparts:Salesvariance,costofsales
variance(COGSvariance),andSG&Aexpensevariance.Eachpartconsistsofapricevariance(inthe
caseofthesalesvariance)oracostorexpensevariance(inthecaseoftheCOGSandSG&Aexpense
variance),andavolumevariance.Thesalesorcost/expensevarianceiscalculatedasthechangeinunit
priceorperunitcost/expensetimesthenewvolume,whilethevolumevarianceiscalculatedasthe
changeinvolumetimestheoldunitpriceorperunitcost/expense.Summarizedatthebottomofthe
table,thepricevarianceisfromsales;thecost/expensevarianceisthesumofthoseitemsfromCOGS
andSG&Avariances,respectively,andthevolumevarianceisthesumofthevolumecomponentsofthe
netsales,COGS,andSG&Aexpensevariances.Theoverallvolumecomponentofthevarianceanalysisis
generallysmall.
VI6
Table VI-3
OCTG: Variance analysis on the operations of U.S. producers, fiscal years 2010-12,
January-March 2012, and January-March 2013
Value ($1,000)
Between fiscal years
2010-12
2010-11
2011-12
Jan.-March
Item
2012-13
Total net sales:
Price variance
432,109
282,652
122,371
(175,367)
Volume variance
1,533,155
998,997
561,244
(57,953)
Total net sales variance
1,965,264
1,281,649
683,615
(233,320)
Cost of sales:
Cost variance
(696,723)
(471,520) (180,018)
4,845
Volume variance
(1,184,525)
(771,831) (457,879)
44,979
Total cost variance
(1,881,248)
(1,243,351) (637,897)
49,824
Gross profit variance
84,016
38,298
45,718
(183,496)
SG&A expenses:
Expense variance
75,095
77,963
(10,340)
(12,206)
Volume variance
(140,686)
(91,670)
(41,544)
3,726
Total SG&A variance
(65,591)
(13,707)
(51,884)
(8,480)
Operating income variance
18,425
24,591
(6,166)
(191,976)
Summarized as:
Price variance
432,109
282,652
122,371
(175,367)
Net cost/expense variance
(621,628)
(393,557) (190,358)
(7,361)
Net volume variance
207,944
135,495
61,821
(9,248)
Note.Unfavorable variances are shown in parentheses; all others are favorable. The data are
comparable to changes in operating income as presented in table VI-1.
Capitalexpendituresandresearchanddevelopmentexpenses
TableVI4presentscapitalexpendituresandresearchanddevelopment(R&D)
expensesbyfirm.Totalcapitalexpendituresroseirregularlybetween2010and2012butwere
lowerduringJanuaryMarch2013thaninthesameperiodoneyearearlier.TotalR&Dexpenses
werehigherineachconsecutiveperiodfromJanuary2010throughMarch2013.
VI7
Table VI-4
OCTG: Capital expenditures and research and development expenses of U.S. producers, fiscal
years 2010-12, January-March 2012, and January-March 2013
Item
Capital expenditures:
Boomerang
DPI
EnergeX
Evraz
Laguna
Maverick
Northwest
Paragon
Tejas
Texas Tubular
TMK IPSCO
U.S. Steel
Vallourec Star
Total
R&D expenses:
Boomerang
DPI
EnergeX
Evraz
Laguna
Maverick
Fiscal years
2011
2010
2012
Value ($1,000)
January-March
2012
2013
***
***
***
***
***
***
***
***
***
***
***
***
***
269,004
***
***
***
***
***
***
***
***
***
***
***
***
***
711,067
***
***
***
***
***
***
***
***
***
***
***
***
***
616,900
***
***
***
***
***
***
***
***
***
***
***
***
***
130,745
***
***
***
***
***
***
***
***
***
***
***
***
***
88,413
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
Northwest
***
***
***
Paragon
***
***
***
Tejas
***
***
***
Texas Tubular
***
***
***
TMK IPSCO
***
***
***
U.S. Steel
***
***
***
Vallourec Star
***
***
***
Total
2,105
3,474
6,422
***
***
***
***
***
***
***
1,130
***
***
***
***
***
***
***
1,828
VI8
Firmscommentedontheirexpansionefforts,includingopeningofplants,expansionof
capacity,andotherchangesintheirOCTGoperationsintheirquestionnaireresponses.8Their
commentsprovideinformationregardingthecapitalexpendituresprogramsofindividualfirms
andaresummarizedbelow.
x
***.9
***.
x
x
***.

***.
***.10
***.11***.12

***.

Assetsandreturnoninvestment
TableVI5presentsdataontheU.S.producerstotalassetsandtheirreturnon
investment(ROI).OperatingincomewasdividedbytotalnetassetsresultinginROI.Totalnet
assetsincreasedbyabout25percentfrom2010to2012.Becausetheincreaseindollarsof
investmentwasgreaterthanthatofoperatingincome,theratiodeclined.
SeealsotableIII2,presentedearlierinthisreport.
***.
10
***.
11
***.Additionally,***.
12
Ibid.
9
VI9
Table VI-5
OCTG: U.S. producers total assets and return on investment, fiscal years 2010-12
Item
2010
2011
Total assets:
Value ($1,000)
Boomerang
***
***
DPI
***
***
EnergeX
***
***
Evraz
***
***
Laguna
***
***
Maverick
***
***
Northwest
***
***
Paragon
***
***
Tejas
***
***
Texas Tubular
***
***
TMK IPSCO
***
***
U.S. Steel
***
***
Vallourec Star
***
***
Total
6,040,769
6,818,551
ROI:
Boomerang
DPI
EnergeX
Evraz
Laguna
Maverick
Northwest
Paragon
Tejas
Texas Tubular
TMK IPSCO
U.S. Steel
Vallourec Star
Average
1
Not applicable or not meaningful.
2012
***
***
***
***
***
***
***
***
***
***
***
***
***
7,530,863
Ratio of operating income to total assets (percent)

***
***
1
1
()
()
(1)
***
***
***
***
***
***
***
***
***
***
***
***
***
***
1
()
***
(1)
***
***
***
***
***
***
10.3
9.5
***
***
***
***
***
***
***
***
***
***
***
8.5
Capitalandinvestment
TheCommissionrequestedU.S.producersofOCTGtodescribeanyactualorpotential
negativeeffectsofimportsofOCTGfromIndia,Korea,Philippines,SaudiArabia,Taiwan,
Thailand,Turkey,Ukraine,andVietnamontheirfirmsgrowth,investment,abilitytoraise
capital,developmentandproductionefforts,orthescaleofcapitalinvestments.Their
responsesareshownonthefollowingpages.
VI10
Actualnegativeeffects13
Boomerang:***.

DPI:***.

EnergeX:***.

Evraz:***.

Laguna:***.

Maverick:***.

***.

Northwest:***.

Paragon:***.

Tejas:***.

TexasTubular:***.

TMKIPSCO:***.

U.S.Steel:***.
***.

***.

VallourecStar:***.
13
Whenaskedwhetherthefirmsresponsedifferedbycountry,***.
VI11
Anticipatednegativeeffects14
Boomerang:***.

DPI:***.

EnergeX:***.

Evraz:***.

Laguna:***.

Maverick:***.

***.

***.

Northwest:***.

Paragon:***.

Tejas:***.

TexasTubular:***.

TMKIPSCO:***.

U.S.Steel:***.

VallourecStar:***.
14
Whenaskedwhetherthefirmsresponsedifferedbycountry,***.
VI12

PARTVII: THREATCONSIDERATIONSANDINFORMATIONON
NONSUBJECTCOUNTRIES
Section771(7)(F)(i)oftheAct(19U.S.C.1677(7)(F)(i))providesthat
IndeterminingwhetheranindustryintheUnitedStatesisthreatened
withmaterialinjurybyreasonofimports(orsalesforimportation)ofthe
subjectmerchandise,theCommissionshallconsider,amongother
relevanteconomicfactors1

(I) ifacountervailablesubsidyisinvolved,suchinformationasmaybe
presentedtoitbytheadministeringauthorityastothenatureof
thesubsidy(particularlyastowhetherthecountervailablesubsidy
isasubsidydescribedinArticle3or6.1oftheSubsidies
Agreement),andwhetherimportsofthesubjectmerchandiseare
likelytoincrease,
(II) anyexistingunusedproductioncapacityorimminent,substantial
increaseinproductioncapacityintheexportingcountryindicating
thelikelihoodofsubstantiallyincreasedimportsofthesubject
merchandiseintotheUnitedStates,takingintoaccountthe
availabilityofotherexportmarketstoabsorbanyadditional
exports,
(III) asignificantrateofincreaseofthevolumeormarketpenetrationof
importsofthesubjectmerchandiseindicatingthelikelihoodof
substantiallyincreasedimports,
(IV)whetherimportsofthesubjectmerchandiseareenteringatprices
thatarelikelytohaveasignificantdepressingorsuppressing
effectondomesticprices,andarelikelytoincreasedemandfor
furtherimports,
(V) inventoriesofthesubjectmerchandise,

1
Section771(7)(F)(ii)oftheAct(19U.S.C.1677(7)(F)(ii))providesthatTheCommissionshall
consider{thesefactors}...asawholeinmakingadeterminationofwhetherfurtherdumpedor
subsidizedimportsareimminentandwhethermaterialinjurybyreasonofimportswouldoccurunless
anorderisissuedorasuspensionagreementisacceptedunderthistitle.Thepresenceorabsenceof
anyfactorwhichtheCommissionisrequiredtoconsider...shallnotnecessarilygivedecisiveguidance
withrespecttothedetermination.Suchadeterminationmaynotbemadeonthebasisofmere
conjectureorsupposition.
VII1

(VI)thepotentialforproductshiftingifproductionfacilitiesintheforeign
country,whichcanbeusedtoproducethesubjectmerchandise,
arecurrentlybeingusedtoproduceotherproducts,
(VII)
inanyinvestigationunderthistitlewhichinvolvesimportsofboth
arawagriculturalproduct(withinthemeaningofparagraph
(4)(E)(iv))andanyproductprocessedfromsuchrawagricultural
product,thelikelihoodthattherewillbeincreasedimports,by
reasonofproductshifting,ifthereisanaffirmativedetermination
bytheCommissionundersection705(b)(1)or735(b)(1)with
respecttoeithertherawagriculturalproductortheprocessed
agriculturalproduct(butnotboth),
(VIII)
theactualandpotentialnegativeeffectsontheexisting
developmentandproductioneffortsofthedomesticindustry,
includingeffortstodevelopaderivativeormoreadvancedversion
ofthedomesticlikeproduct,and
(IX) anyotherdemonstrableadversetrendsthatindicatetheprobability
thatthereislikelytobematerialinjurybyreasonofimports(or
saleforimportation)ofthesubjectmerchandise(whetherornotit
isactuallybeingimportedatthetime).2
Informationonthenatureoftheallegedsubsidieswaspresentedearlierinthisreport;
informationonthevolumeandpricingofimportsofthesubjectmerchandiseispresentedin
PartsIVandV;andinformationontheeffectsofimportsofthesubjectmerchandiseonU.S.
producersexistingdevelopmentandproductioneffortsispresentedinPartVI.Informationon
inventoriesofthesubjectmerchandise;foreignproducersoperations,includingthepotential
forproductshifting;anyotherthreatindicators,ifapplicable;andanydumpinginthird
countrymarkets,follows.Alsopresentedinthissectionofthereportisinformationobtained
forconsiderationbytheCommissiononnonsubjectcountries.

2
Section771(7)(F)(iii)oftheAct(19U.S.C.1677(7)(F)(iii))furtherprovidesthat,inantidumping
investigations,...theCommissionshallconsiderwhetherdumpinginthemarketsofforeigncountries
(asevidencedbydumpingfindingsorantidumpingremediesinotherWTOmembermarketsagainstthe
sameclassorkindofmerchandisemanufacturedorexportedbythesamepartyasunderinvestigation)
suggestsathreatofmaterialinjurytothedomesticindustry.
VII2

THEINDUSTRYININDIA
Thepetitionintheseinvestigationsidentified49producersand/orexportersofOCTGin
India. TheCommissionissuedforeignproducersquestionnairestothesefirmsandreceiveda
completedresponsefromnineproducersandoneexporter:GVNFuelsLimited(GVNFuels)
***,ISMT,Jindal(India),JindalPipes,JindalSawLtd.(JindalSaw),M/SUnitedSeamless
Tubulaar(UnitedSeamless),MaharashtraSeamlessLimited(Maharashtra),OilCountry
TubularLtd.(OilCountryTubular),SuryaGlobalSteelTubeLimited(Surya),andWelspun
Corp.Lt.(Welspun).GVNFuelsreportedthat***percentofitstotalsalesinthemostrecent
fiscalyearweresalesofOCTG.ISMTreportedthat***percentofitstotalsalesinthemost
recentfiscalyearweresalesofOCTG.Jindal(India)reportedthat***percentofitstotalsales
inthemostrecentfiscalyearweresalesofOCTG.JindalPipesreportedthat***percentofits
totalsalesinthemostrecentfiscalyearweresalesofOCTGreportedJindalSawreportedthat
***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.UnitedSeamless
reportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.
Maharashtrareportedthat***percentofitstotalsalesinthemostrecentfiscalyearwere
salesofOCTG.OilCountryTubularreportedthat***percentofitstotalsalesinthemost
recentfiscalyearweresalesofOCTG.Suryareportedthat***percentofitstotalsalesinthe
mostrecentfiscalyearweresalesofOCTG.Welspunreportedthat***percentofitstotalsales
inthemostrecentfiscalyearweresalesofOCTG.
Jindal(India)estimatedthatitsOCTGexportstotheUnitedStatesaccountedfor
approximately***percentofallsuchexportsofOCTGfromIndiain2012,whileJindalSaw
estimatedthatitexportstotheUnitedStatesaccountedforapproximately***percent,United
SeamlessestimatedthatitexportstotheUnitedStatesaccountedforapproximately***
percent,OilCountryTubularestimatedthatitexportstotheUnitedStatesaccountedfor
approximately***percent,andWelspunestimatedthatitsexportstotheUnitedStates
accountedfor***percent.4Acomparisonofthetenfirmsexportdatatoadjustedofficial
Commerceimportstatisticsshowsthatin2012theyaccountedforvirtuallyallU.S.importsof
OCTGfromIndia.5
***.6Severalfirmsreportedexperiencingplantexpansionsandinvestmentsin
equipment,machinery,andcapacity.***and***.7Twofirmsreportedinvestmentsforthe
3

3
Petition,exh.I5A.
4
QuestionnaireresponsesofJindal(India),JindalSaw,UnitedSeamless,andWelspun,II8.
5
ThreeIndianproducers,***,providedestimatesoftheirsharesofIndiastotalproductionofOCTG,
cumulativelyaccountingforapproximately***percentofproductionin2012.Indianrespondentsclaim
thatIndiahasapproximately***tonsofOCTGproductioncapacity.IndianRespondents
postconferencebriefat18.
6
***.Questionnaireresponseof***,II2a.
7
Questionnaireresponsesof***,II2a.***.Questionnaireresponseof***,II2b.
VII3

purposeofimprovingthequalityoftheirproducts.***and***.8Productioncurtailmentswere
reportedbyonefirm,***,whichreflected***.9
OperationsonOCTG
TableVII1presentsinformationontheOCTGoperationsofthenineresponding
producersandoneexporterinIndia.ReportedcapacityinIndiaincreasedby38.9percentfrom
2010to2012andwasaboutthesameinJanuaryMarch2013relativetoJanuaryMarch2012.
Reportedcapacityisprojectedtoincreaseby4.0percentfrom2012to2013andtobe10.5
percenthigherin2014thanin2012.ReportedproductioninIndiaincreasedby83.4percent
from2010to2012butwas44.7percentlowerinJanuaryMarch2013thaninJanuaryMarch
2012.Productionisprojectedtobe1.0percentlowerin2013thanin2012and18.7percent
higherin2014than2012.Capacityutilizationincreasedfrom37.6percentin2010to49.6
percentin2012,andwas34.2percentinJanuaryMarch2013comparedto61.7percentin
JanuaryMarch2012.10
In2012,45.6percentoftotalshipmentsofOCTGfromIndiawereexportedtothe
UnitedStates,and6.0percentwereexportedtoothermarkets.ExportsofOCTGfromIndiato
theUnitedStatesincreasedby43.6percentfrom2010to2012butwere40.5percentlowerin
JanuaryMarch2013thaninJanuaryMarch2012.

8
Questionnaireresponsesof***,II2a.
9
Questionnaireresponsesof***,II2a.
10
Withrespecttoproductionconstraints,ISMTreported***,Jindal(India)reported***,JindalPipes
reported***,JindalSawreported***,Maharashtrareported***,OilCountryTubularreported***,
Suryareported***,UnitedSeamlessreported***,andWelspunreported***.Questionnaire
responsesofIndianproducers,II4d.
VII4

Table VII-1
OCTG: Data for producers and exporter in India, 2010-12, January-March 2012, January-March
2013, and projected 2013-14
Actual experience
Projections
Calendar year
January-March
Calendar year
Item
2010
2011
2012
2012
2013
2013
2014
Capacity
555,217 748,850 771,354 194,455 194,376 802,406 852,406
Production
208,734 367,749 382,883 120,074
66,440 378,904 454,420
End-of-period inventories
18,666
18,706
21,541
23,394
21,666
16,005
12,915
Shipments:
Internal consumption/
transfers
289
868
2,525
471
194
2,010
1,724
Home market
56,401 161,324 179,121
46,155
27,909 197,451 247,302
Exports to:
United States
119,250 174,469 171,257
60,732
36,136 164,851 170,863
All other markets
21,748
29,729
22,357
7,156
1,874
41,916
66,916
Total exports
140,998 204,198 193,614
67,888
38,010 206,767 237,779
Total shipments
197,688 366,390 375,260 114,514
66,113 406,228 486,805
Ratios and shares (percent)
Capacity utilization
37.6
49.1
49.6
61.7
34.2
47.2
53.3
Inventories/production
8.9
5.1
5.6
4.9
8.2
4.2
2.8
Inventories/shipments
9.4
5.1
5.7
5.1
8.2
3.9
2.7
Share of total shipments:
transfers
0.1
0.2
0.7
0.4
0.3
0.5
0.4
Home market
28.5
44.0
47.7
40.3
42.2
48.6
50.8
Exports to:
United States
60.3
47.6
45.6
53.0
54.7
40.6
35.1
All other markets
11.0
8.1
6.0
6.2
2.8
10.3
13.7
Total exports
71.3
55.7
51.6
59.3
57.5
50.9
48.8
Alternativeproducts
TableVII2presentsinformationonthetotalweldedandtotalseamlesstubularcapacity
andproductionoftheninerespondingproducersinIndia.11

11
Withrespecttoconstraintsonproductshifting,ISMTreported***,Jindal(India)reported***,
JindalPipesreported***,JindalSawreported***,Maharashtrareported***,OilCountryTubular
reported***,Suryareported***,UnitedSeamlessreported***,andWelspunreported***.
QuestionnaireresponsesofIndianproducers,II4e.
VII5

Table VII-2
OCTG: Indian capacity, production, and capacity utilization of welded and seamless tubular
products, 2010-12, January-March 2012, and January-March 2013
*
THEINDUSTRYINKOREA
Korea. TheCommissionissuedforeignproducersquestionnairestothesefirmsandreceiveda
completedresponsefromsevenfirms:AJUBesteelCo.,Ltd.(AJU),DaewooInternational
Corp.(Daewoo)(***),Husteel,HyundaiHYSCO,ILJINSteelCorp.(ILJIN),NexteelCo.,Ltd.
(Nexteel),andSeAHSteelCorp.(SeAH).AJUreportedthat***percentofitstotalsalesinthe
mostrecentfiscalyearweresalesofOCTG.Daewooreportedthat***percentofitstotalsales
inthemostrecentfiscalyearweresalesofOCTG.Husteelreportedthat***percentofitstotal
salesinthemostrecentfiscalyearweresalesofOCTG.HyundaiHYSCOreportedthat***
percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.ILJINreportedthat
***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.Nexteelreported
that***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.SeAH
reportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.
ThesevenrespondingfirmsexportstotheUnitedStatesaccountedforvirtuallyallU.S.
importsofOCTGfromKoreaovertheperiodforwhichdatawerecollected.Accordingto
estimatesprovidedbytherespondingKoreanproducers,theproductionofOCTGinKorea
reportedbytherespondingproducersaccountsforvirtuallyallproductionofOCTGinKorea.
OneKoreanfirm,ILJIN,reportedaplantopening.ILJIN,thesoleproducerofseamless
OCTGinKorea,establisheditsproductionfacilityin***.13Severalotherfirmsinvestedintheir
OCTGoperationsandexperiencedexpansions.***,***.
12
OperationsonOCTG
TableVII3presentsinformationontheOCTGoperationsofthesixresponding
producersandexportersinKorea.CapacityinKoreaincreasedby21.1percentfrom2010to
2012andwas4.1percenthigherinJanuaryMarch2013thaninJanuaryMarch2012.Capacity
isprojectedtoincreaseby1.7percentfrom2012to2013andnottochangefrom2013to
2014.ProductioninKoreaincreasedby50.3percentfrom2010to2012andwas2.4percent
higherinJanuaryMarch2013thaninJanuaryMarch2012.Productionisprojectedtoincrease
by3.7percentfrom2012to2013andtobe4.0percenthigherin2014thanin2012.Capacity

12
Petition,exh.I5D.
13
Questionnaireresponsesof***,II2a.***.Questionnaireresponseof***,II2b.
VII6

utilizationincreasedfrom62.0percentin2010to77.0percentin2012,andwas74.9percentin
JanuaryMarch2013comparedto76.2percentinJanuaryMarch2012.14
In2012,96.9percentoftotalshipmentsofOCTGfromKoreawereexportedtothe
UnitedStates,and1.4percentwereexportedtoothermarkets.ExportsofOCTGfromKoreato
theUnitedStatesincreasedby45.9percentfrom2010to2012,andwere7.0percenthigherin
Table VII-3
OCTG: Data for producers in Korea, 2010-12, January-March 2012, January-March 2013, and
projected 2013-14
Actual experience
Projections
Calendar year
January-March
Calendar year
Item
2010
2011
2012
2012
2013
2013
2014
Capacity
955,761 1,089,878 1,157,437
282,722
294,273 1,177,090 1,177,090
Production
592,826
726,984
891,147
215,428
220,501
923,844
926,844
21,967
19,399
42,798
25,426
40,870
53,187
58,587
Shipments:
transfers
2,314
2,678
5,725
4,933
4,241
4,381
4,381
Home market
4,508
5,282
8,379
5,414
4,073
7,861
7,861
Exports to:
United States
576,732
703,194
841,256
196,327
210,026
870,801
866,301
All other markets
5,054
18,885
12,385
2,652
4,063
19,466
29,466
Total exports
581,786
722,079
853,641
198,979
214,089
890,267
895,767
Total shipments
588,608
730,039
867,745
209,326
222,403
902,509
908,009
62.0
66.7
77.0
76.2
74.9
78.5
78.7
3.7
2.7
4.8
3.0
4.6
5.8
6.3
3.7
2.7
4.9
3.0
4.6
5.9
6.5
transfers
0.4
0.4
0.7
2.4
1.9
0.5
0.5
Home market
0.8
0.7
1.0
2.6
1.8
0.9
0.9
Exports to:
United States
98.0
96.3
96.9
93.8
94.4
96.5
95.4
All other markets
0.9
2.6
1.4
1.3
1.8
2.2
3.2
Total exports
98.8
98.9
98.4
95.1
96.3
98.6
98.7

14
Withrespecttoproductionconstraints,AJUreported***,Husteelreported***,HyundaiHYSCO
reported***,ILJINreported***,Nexteelreported***,andSeAHreported***.Questionnaire
responsesofKoreanproducers,II4d.
VII7

Alternativeproducts
TableVII4presentsinformationonthetotalweldedandtotalseamlesstubularcapacity
andproductionoftherespondingproducersandexportersinKorea.1516
Table VII-4
Tubular products: Korean capacity, production, and capacity utilization of welded and seamless
tubular products, 2010-12, January-March 2012, and January-March 2013
*
THEINDUSTRYINTHEPHILIPPINES
Thepetitionintheseinvestigationsidentifiedoneproducerand/orexporterofOCTG,
HLDClarkSteelPipeCo.,Inc.(HLDClark).17TheCommissionissuedaforeignproducer
questionnairetoHLDClarkandreceivedacompletedresponse.HLDClarkreportedthat***
percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.18
HLDClarkestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor
approximately***percentofU.SimportsofOCTGfromthePhilippinesin2012.19A
comparisonofHLDClarksexportdatatoofficialCommerceimportstatisticsshowsthatin2012
itaccountedfor***U.S.importsfromthePhilippines.HLDClarkestimatesthatitaccountsfor
allproductionofOCTGinthePhilippines.20
HLDClarkwasestablishedin2009.21Thisfirmisaweldedpipemanufacturing
subsidiaryofHuludaoCitySteelPipeIndustrial,aChinesefirm.22HLDClarkadded***and
begantoproduceOCTGin2011.23HLDClark***.24

15
Withrespecttoconstraintsonproductshifting,AJUreported***,Husteelreported***,Hyundai
HYSCO***,ILJINreported***,Nexteel***,andSeAHreported***.Questionnaireresponsesof
Koreanproducers,II4e.
16
***notedthattheapparentincreaseinitscapacityinJanuaryJune2013comparedtoJanuary
June2012***.Questionnaireresponseof***,II2b.
17
Petition,exh.I5B.
18
QuestionnaireresponseofHLDClark,II6
19
QuestionnaireresponseofHLDClark,II8
20
Ibid.,II7
21
HLDClarkSteelPipeCo.,Inc.,AboutUs,http://www.hldphpipe.com/Item/list.asp?id=1,accessed
onJuly18,2013.
22
Petition,exhI8
23
QuestionnaireresponseofHLDClarkSteelPipeCo.,Inc.,II2
24
Ibid.,II4
VII8

OperationsonOCTG
TableVII5presentsinformationontheOCTGoperationsofthesoleproducerand
exporterinthePhilippines.CapacityinthePhilippinesincreasedfromnonein2010to***
shorttonsin2011.Capacityincreasedby***percentfrom2011to2012,butwas***percent
lowerinJanuaryMarch2013relativetoJanuaryMarch2012.Capacityisprojectedtodecrease
by***percentfrom2012to2013andto***from2013to2014.ProductioninthePhilippines
increasedby***percentfrom2011to2012,andwas***percenthigherinJanuaryMarch
2013thaninJanuaryMarch2012.Productionisprojectedto***from2013to2014.Capacity
utilizationincreasedfrom***percentin2011to***percentin2012,andwas***percentin
JanuaryMarch2013comparedto***percentinJanuaryMarch2012.25
In2012,***percentoftotalshipmentsofOCTGfromthePhilippineswereexportedto
theUnitedStates,and***percentwereexportedtoothermarkets,predominantly***.26
ExportsofOCTGfromthePhilippinestotheUnitedStatesincreasedby***percentfrom2011
to2012,andwere***percenthigherinJanuaryMarch2013thaninJanuaryMarch2012.
Table VII-5
OCTG: Data for the producer in the Philippines, 2010-12, January-March 2012, January-March
2013, and projected 2013-14
*
Alternativeproducts
TableVII6presentsinformationonthetotalweldedtubingcapacityandproductionof
HLDClarkthesoleproducerandexporterinthePhilippines.HLDClarkreportedthatit
produces***onthesameequipmentusedtoproduceOCTG.2728
Table VII-6
Tubular products: Filipino capacity, production, and capacity utilization of welded and seamless
*

25
Withrespecttoproductionconstraints,HLDClarkidentified***.QuestionnaireresponseofHLD
Clark,II4d.
26
Ibid.,II5.
27
Ibid.,II4.
28
Withrespecttoconstraintsonproductshifting,HLDClarkreported***.Questionnaireresponseof
HLDClark,II4e.
VII9

THEINDUSTRYINSAUDIARABIA
SaudiArabia.29TheCommissionissuedforeignproducersquestionnairestothesefirmsand
receivedacompletedresponsefromtwofirms,JubailEnergyServicesCompany(JESCO)and
SaudiSteelPipeCompany(SSP).JESCOreportedthat***percentofitstotalsalesinthemost
recentfiscalyearweresalesofOCTG.30SSPreportedthat***percentofitstotalsalesinthe
mostrecentfiscalyearweresalesofOCTG.31
JESCOestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor***percent
ofallsuchexportsofOCTGfromSaudiArabia(***).32Acomparisonof***exportdatato
adjustedofficialCommercestatisticsshowsthatin2012***percentofimportsfromSaudi
Arabia.AccordingtoestimatesrequestedoftherespondingSaudiArabianproducers,the
productionofOCTGinSaudiArabiareportedbytherespondingproducersaccountsfor
approximately***percentofoverallproductionofOCTGinSaudiArabia.
SSP,aproducerofweldedOCTG,reportedthatit***.SSPreportedthatitsinvestment
toproduceERW***OCTGwasinordertosupply***.33JESCO,aproducerofseamlessOCTG,
reportedthatitsmill***.34JESCOnotedthatitscapacityincreasesarenottheresultofnew
investments,butreflectthestartupprocessofthemillasitslowlyincreasedcapacityand
production.35
OperationsonOCTG
TableVII7presentsinformationontheOCTGoperationsoftherespondingproducersin
SaudiArabia.ReportedcapacityinSaudiArabiaincreasedby***percentfrom2010to2012
andwas***percenthigherinJanuaryMarch2013thaninJanuaryMarch2012.Capacityis
projectedtobe***percenthigherin2013comparedto2012and***percenthigherin2014
comparedto2012.ReportedproductioninSaudiArabiaincreasedby***percentfrom2010to
2012andwas***percenthigherinJanuaryMarch2013thaninJanuaryMarch2012.
Productionisprojectedtobe***percenthigherin2013comparedto2012and***percent
higherin2014comparedto2012.Capacityutilizationfluctuatedthroughtheperiodforwhich
datawereprovided,reflectingtheincreasesincapacityandrampingupofproductionby
JESCO.36

29
Petition,exh.I5C.
30
QuestionnaireresponseofJESCO,II6.
31
QuestionnaireresponseofSSP,II6.
32
QuestionnaireresponseofJESCO,II8.
33
QuestionnaireresponseofSSP,II2aandII2b.
34
QuestionnaireresponseofJESCO,II2a.
35
QuestionnaireresponseofJESCO,II2b.JESCOalsoreportedthatittook***monthstofully
commissionandaccepttheinstalledequipment.QuestionnaireresponseofJESCO,II2a.
36
Withrespecttoproductionconstraints,JESCOreported***,whileSSPreported***.
QuestionnaireresponsesofSaudiArabianproducers,II4d.
VII10

In2012,***percentoftotalshipmentsofOCTGfromSaudiArabiawereexportedto
theUnitedStates,and***percentwereexportedtoothermarkets,predominantlyin***.
ExportsofOCTGfromSaudiArabiatotheUnitedStatesincreasedby***percentfrom2010to
2012,butwere***percentlowerinJanuaryMarch2013thaninJanuaryMarch2012.

Table VII-7
OCTG: Data for producers in Saudi Arabia, 2010-12, January-March 2012, January-March 2013,
and projected 2013-14
*
Alternativeproducts
TableVII8presentsinformationonthetotalweldedandseamlesstubularcapacityand
productionofthetworespondingproducersinSaudiArabia.SSPreported***onthesame
equipmentandmachineryusedtoproduceweldedOCTG.37JESCOreported***onthesame
equipmentandmachineryusedtoproduceOCTG.3839
Table VII-8
Tubular products: Saudi capacity, production, and capacity utilization of welded and seamless
*
THEINDUSTRYINTAIWAN
Thepetitionintheseinvestigationsidentifiedfiveproducersand/orexportersofOCTG
inTaiwan.40TheCommissionissuedforeignproducerquestionnairestothesefirmsand
receivedacompletedresponsefromfourfirms:ChungHungSteelCorp.(ChungHung),Far
EastMachineryCo.Ltd.(FarEastMachinery),KaoHsingChangeIron&SteelCorp.(Kao
Hsing),andTensionSteelIndustriesCo.,Ltd.(TensionSteel).ChungHungreportedthat***
percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.41FarEastMachinery
reportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.42
KaoHsingreportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesof

37
QuestionnaireresponseofSSP,II4a.
38
QuestionnaireresponseofJESCO,II4a.
39
Withrespecttoproductshifting,JESCOreported***.QuestionnaireresponseofJESCO,II4e.
JESCOalsoreportedthat***.QuestionnaireresponseofJESCO,II5a.
40
Petition,exh.I5E.
41
QuestionnaireresponseofChungHung,II6.
42
QuestionnaireresponseofFarEastMachinery,II6.
VII11

OCTG.43TensionSteelreportedthat***percentofitstotalsalesinthemostrecentfiscalyear
weresalesofOCTG.44
ChungHungestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor
approximately***percentofallsuchexportsofOCTGfromTaiwanin2012,FarEastMachinery
estimatedthatitsexportstotheUnitedStatesaccountedforapproximately***percent,Kao
HsingestimatedthatitsexportstotheUnitedStatesaccountedforapproximately***percent,
andTensionSteelestimatedthatitsexportstotheUnitedStatesaccountedforapproximately
***percent.AcomparisonofthesefirmsexportdatatoofficialCommerceimportstatistics
showsthatin2012theyaccountedforvirtuallyallofU.S.importsofOCTGfromTaiwan.
AccordingtoestimatesrequestedoftherespondingTaiwanproducers,theproductionofOCTG
inTaiwanreportedbytherespondingproducersaccountsforapproximately***percentof
overallproductionofOCTGinTaiwan.
OneTaiwanfirm,ChungHung,reportedinvestinginanewplant.Thecurrentplant***.
Thenewplantisslatedtobegintrialproductions***.ChungHungreportedlyplans***.Chung
Hungreportedthatthenewmill***.45
OperationsonOCTG
TableVII9presentsinformationontheOCTGoperationsofthefourresponding
producersandexportersinTaiwan.ReportedcapacityinTaiwan***during201012.Capacity
isprojectedtodeclineby***percentin2013comparedto2012andtodeclineanadditional
***percentin2014.ReportedproductioninTaiwanincreasedby***percentfrom2010to
2012,butwas***percentlessinJanuaryMarch2013thaninJanuaryMarch2012.Production
isexpectedtobe***percentlowerin2013thanin2012and***percentlowerin2014thanin
2012.Capacityutilizationincreasedfrom***percentin2010to***percentin2012,andwas
***percentinJanuaryMarch2013comparedto***percentinJanuaryMarch2012.46
In2012,***percentoftotalshipmentsofOCTGfromTaiwanweretotheUnitedStates
and***percentwereexportedtoothermarkets,predominantly***.ExportsofOCTGfrom
TaiwantotheUnitedStatesincreasedby***percentfrom2010to2012butwere***percent
lowerinJanuaryMarch2013thaninJanuaryMarch2012.
Table VII-9
OCTG: Data for producers in Taiwan, 2010-12, January-March 2012, January-March 2013, and
projected 2013-14
*

43
QuestionnaireresponseofKaoHsing,II6.
44
QuestionnaireresponseofTensionSteel,II6.
45
QuestionnaireresponseofChungHung,II2a.
46
Withrespecttoproductionconstraints,ChungHungidentified***,FarEastMachineryidentified
***,KaoHsingidentified***,andTensionSteelidentified***.QuestionnaireresponsesofTaiwan
producers,II4d.
VII12

Alternativeproducts
TableVII10presentsinformationonthetotalweldedtubularcapacityandproduction
ofthefourrespondingproducersinTaiwan.47
Table VII-10
Tubular products: Taiwan capacity, production, and capacity utilization of welded and seamless
*
THEINDUSTRYINTHAILAND
Thepetitionintheseinvestigationsidentifiedthreeproducersand/orexportersof
OCTG. TheCommissionissuedforeignproducerquestionnairestothesefirmsandreceiveda
completedresponsefromonefirm,WSPPipeCo.,Ltd(WSP).WSPreportedthat***percent
ofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.49WSPestimatedthatits
exportstotheUnitedStatesaccountedforapproximately***percentofU.SimportsofOCTG
fromThailandin2012.50AcomparisonofWSPexportdatatoofficialCommerceimport
statisticsshowsthatin2012WSPaccountedfor***U.S.importsfromThailand.Accordingto
estimatesrequestedoftherespondingThaiproducer,theproductionofOCTGinThailand
reportedinthispartofthereportaccountsforapproximately***percentofoverallproduction
ofOCTGinThailand.51
WSPwasestablishedin2010andisthebranchenterpriseofWSPHoldingsLimited.52
WSPHoldingsLimitedisaChinesefirm.53WSPopeneditsfirstplantin2011,beginningwitha
singleproductionlineinAprilandexpandingtotwoproductionlinesinAugust.54WSPPipe
reportedinvesting***.55WSPonlyproducesseamlessOCTG.56
48

47
Withrespecttoproductshifting,ChungHungreported***,FarEastMachineryidentified***,Kao
Hsingidentified***,andTensionSteelidentified***.QuestionnaireresponsesofTaiwanproducers,II
4e.
48
Petition,exh.I5F.
49
Ibid.,II6.
50
QuestionnaireresponseofWSPPipeCo.,Ltd.,II8.
51
Ibid.,II7.
52
WSPPipeCo.,Ltd.,CompanyIntroduction,http://wspp.co.th/index.php/aboutus,accessedon
July19,2013.
53
WSPHoldingsLimited,ContactUs,http://www.wsphl.com/elxwm.asp,accessedonJuly19,
2013.
54
QuestionnaireresponseofWSPPipeCo.,Ltd.,II2.
55
Ibid.
56
Ibid.,II4.
VII13

OperationsonOCTG
TableVII11presentsinformationontheOCTGoperationsoftherespondingproducer
andexporterinThailand.ReportedcapacityinThailandincreasedby***percentfrom2011to
2012,andwas***fromJanuaryMarch2012relativetoJanuaryMarch2013.57Reported
capacityisprojected***.ReportedproductioninThailandincreasedby***percentfrom2011
to2012,andwas***higherinJanuaryMarch2013thaninJanuaryMarch2012.Capacity
utilizationincreasedfrom***percentin2011to***percentin2012,andwas***percentin
JanuaryMarch2013comparedto***percentinJanuaryMarch2012.58
In2012,***percentoftotalshipmentsofOCTGfromThailandwereexportedtothe
UnitedStates,and***percentwereexportedtoothermarkets,predominantly***.Exportsof
OCTGfromThailandtotheUnitedStatesincreasedby***percentfrom2011to2012,and
were***percenthigherinJanuaryMarch2013thaninJanuaryMarch2012.
Table VII-11
OCTG: Data for producers in Thailand, 2010-12, January-March 2012, January-March 2013, and
projected 2013-14
*
Alternativeproducts
TableVII12presentsinformationonthetotalseamlesstubularcapacityandproduction
oftherespondingproducerandexporterinThailand.WSPreportedthatitproduces***on
thesameequipmentusedtoproduceOCTG.59***accountsforabout***percentofWSPs
reportedproductioncapacity.60
Table VII-12
Tubular products: Thai capacity, production, and capacity utilization of welded and seamless
*
THEINDUSTRYINTURKEY
Thepetitionintheseinvestigationsidentifiedfiveproducersand/orexportersofOCTG
inTurkey.61TheCommissionissuedforeignproducersquestionnairestothesefirmsand

57
TheproductioncapacityreportedbyWSPPipeisbasedonoperating***hoursperweek,
***weeksperyear.
58
Withrespecttoproductionconstraints,WSPreported***.QuestionnaireresponseofWSP,II4e.
59
Ibid.,II4
60
Ibid.
61
Petition,exh.I5G.
VII14

receivedacompletedresponsefromthreefirms,BorusanMannesmannBoruSanayiVeTicaret
Tas(Borusan),ayirovaBoruSanayiVeTicaretA.b(ayirova),andToscelikProfilVeSac
EndustrisiA.S(Toscelik).Borusanreportedthat***percentofitstotalsalesinthemost
recentfiscalyearweresalesofOCTG.62ayirovareportedthat***percentofitstotalsalesin
themostrecentfiscalyearweresalesofOCTG.63Toscelikreportedthat***percentofitstotal
salesinthemostrecentfiscalyearweresalesofOCTG.64
BorusanestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor
approximately***percentofallsuchexportsofOCTGfromTurkeyin2012,whileayirova
estimatedthatitsexportstotheUnitedStatesaccountedforapproximately***percent,and
ToscelikestimatedthatitsexportstotheUnitedStatesaccountedforapproximately***
percent.AcomparisonofthesefirmsexportsdatatoofficialCommerceimportstatistics
showsthatin2012theyaccountedfor***percentofallU.S.importsfromTurkey.Accordingto
estimatesrequestedoftherespondingTurkishproducers,theproductionofOCTGinTurkey
reportedbytherespondingproducersaccountforapproximatelyallproductionofOCTGin
TurkeyandallexportstotheUnitedStates.65
ThethreerespondingTurkishproducersreportedchangesinoperationsthrough
investmentsinnewequipmentandplantcapabilities.Borusanreportedthatit***.66ayirova
reportedthatit***.67Toscelikreportedthatit***.68ToscelikbeganproductionofERWpipein
July2012andcapitalizedanadditionalpipemachinethatcanproduceOCTGinApril2013.69
OperationsonOCTG
TableVII13presentsinformationontheOCTGoperationsoftherespondingproducers
andexportersinTurkey.Capacityincreasedby***percentfrom2010to2012butwas***
percentlowerinJanuaryMarch2013thaninJanuaryMarch2012.Capacityisprojectedtobe
***percentlowerin2013thanin2012,and***percentlowerin2014thanin2012.
ProductioninTurkeyincreasedby***percentfrom2010to2012butwas***percentlowerin
JanuaryMarch2013thaninJanuaryMarch2012.Productionisprojectedto***by***from
2012to2013andby***percentin2014comparedto2012.70
In2012,***percentoftotalshipmentsofOCTGfromTurkeywereexportedtothe
UnitedStates,and***wereexportedtoothermarkets.ExportsofOCTGfromTurkeytothe

62
QuestionnaireresponseofTensionSteel,II6.
63
Questionnaireresponseofayirova,II6.
64
QuestionnaireresponseofToscelik,II6.
65
QuestionnaireresponsesofTurkishproducers,II7.
66
QuestionnaireresponseofBorusan,II2b.
67
QuestionnaireresponseofBorusan,II2b.
68
QuestionnaireresponseofToscelik,II2b.
69
QuestionnaireresponseofToscelik,II2a.
70
Withrespecttoproductionconstraints,Borusanidentified***,ayirovaidentified***,and
Toscelikidentified***.QuestionnaireresponsesofTurkishforeignproducers,II4d.
VII15

UnitedStatesincreasedby***percentfrom2010to2012,butwas***percentlowerin
Table VII-13
OCTG: Data for producers in Turkey, 2010-12, January-March 2012, January-March 2013, and
projected 2013-14
*
Alternativeproducts
TableVII14presentsinformationontheoverallweldedtubularcapacityandproduction
oftherespondingproducersinTurkey.71
Table VII-14
Tubular products: Turkish capacity, production, and capacity utilization of welded and seamless
*
THEINDUSTRYINUKRAINE
Thepetitionintheseinvestigationsidentifiedtwoproducersand/orexportersof
OCTG.72TheCommissionissuedforeignproducerquestionnairestothesefirmsandreceiveda
completedresponsefrombothfirms,InterpipeNizhnedneprovsky(InterpipeNTRP)and
InterpipeNikoTubeLimitedLiabilityCompany(InterpipeNiko).InterpipeNTRPreportedthat
***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.73InterpipeNiko
reportedthat***percentofitstotalsalesinthemostrecentfiscalyearweresalesofOCTG.74
InterpipeNTRPestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor
approximately***percentofallsuchexportsofOCTGfromUkrainein2012,whileInterpipe
NikosestimatedthatitsOCTGexportstotheUnitedStatesaccountedforapproximately***
percent.75AcomparisonofthesefirmsexportdatatoofficialCommerceimportstatistics
showsthatin2012theyaccountedfor***U.S.importsfromUkraine.Accordingtoestimates
requestedoftherespondingUkrainianproducers,theproductionofOCTGinUkrainereported

71
Withrespecttoconstraintsonproductshifting,Borusanidentified***,ayirovaidentified***,
Toscelikstated***.QuestionnaireresponsesofTurkishforeignproducers,II4e.
72
Petition,exh.I5H.
73
QuestionnaireresponseofInterpipeNizhnedneprovsky(InterpipeNTRP),II6.
74
QuestionnaireresponseofInterpipeNikoTubeLimitedLiabilityCompany,II6.
75
QuestionnaireresponsesofInterpipeNizhnedneprovsky(InterpipeNTRP)andInterpipeNikoTube
LimitedLiabilityCompany,II8.
VII16

bytherespondingproducersaccountsforapproximately***percentofoverallproductionof
OCTGinUkraine.76
InterpipeNTRPandInterpipeNikoaremillsbelongingtoInterpipeGroup.7778According
totheirwebsite,InterpipeGroupisoneofthebiggestemployersinUkraine.79***2010and
2012.80BothInterpipeNTRPandInterpipeNikoonlyproduceseamlessOCTG.81
OperationsonOCTG
TableVII15presentsinformationontheOCTGoperationsoftherespondingproducers
andexportersinUkraine.ReportedcapacityinUkraineremainedconstantfrom2010to2012,
andwasconstantfromJanuaryMarch2012relativetoJanuaryMarch2013.82Reported
capacityisprojected***.ProductioninUkraineincreasedby***percentfrom2010to2012,
butwas***percentlowerinJanuaryMarch2013thaninJanuaryMarch2012.Productionis
projectedtodecreaseby***percentfrom2013to2014.Capacityutilizationincreasedfrom
***percentin2010to***percentin2012,andwas***percentinJanuaryMarch2013
comparedto***percentinJanuaryMarch2012.83
In2012,***percentoftotalshipmentsofOCTGfromUkrainewereexportedtothe
UnitedStates,and***percentwereexportedtoothermarkets,predominantly***.84Exports
ofOCTGfromUkrainetotheUnitedStatesincreasedby***percentfrom2010to2012,but
were***percentlowerinJanuaryMarch2013thaninJanuaryMarch2012.

76
Ibid.,II7.
77
InterpipeGroup,InterpipeNTRPDnepropetrovsk,Ukraine,
http://interpipe.biz/en/company/productions/ntz/,accessedonJuly25,2013.
78
InterpipeGroup,InterpipeNIKOTUBENikopol,Ukraine,
http://interpipe.biz/en/company/productions/nikotube/,accessedonJuly25,2013.
79
InterpipeGroup,SocialPolicy,http://interpipe.biz/en/company/respons/social/,accessedon
July25,2013.
80
QuestionnaireresponsesofInterpipeNizhnedneprovsky(InterpipeNTRP)andInterpipeNikoTube
LimitedLiabilityCompany,II2.
81
Ibid.,II4.
82
TheproductioncapacityreportedbyInterpipeNTRPisbasedonoperating***hoursperweek,
***weeksperyear.TheproductioncapacityreportedbyInterpipeNikoTubeisbasedonoperating***
hoursperweek,***weeksperyear.
83
Withrespecttoproductionconstraints,InterpipeNTRPidentified***,andInterpipeNiko
identified***.QuestionnaireresponseofUkrainianproducers,II4d.
84
Ibid.,II5
VII17

Table VII-15
OCTG: Data for producers in Ukraine, 2010-12, January-March 2012, January-March 2013, and
projected 2013-14
*
Alternativeproducts
TableVII16presentsinformationonthetotalseamlesstubularcapacityandproduction
oftherespondingproducersandexportersinUkraine.85InterpipeNTRPreportedthatit
produces***onthesameequipmentusedtoproduceOCTG.86InterpipeNikoreportedthatit
produces***onthesameequipmentusedtoproduceOCTG.87
Table VII-16
Tubular products: Ukrainian capacity, production, and capacity utilization of welded and seamless
*
THEINDUSTRYINVIETNAM
Thepetitionintheseinvestigationsidentifiedeightproducersand/orexportersofOCTG
inVietnam.88TheCommissionissuedforeignproducerquestionnairestothesefirmsand
receivedacompletedresponsefromtwofirms,SeAHSteelVinaCorporationandHotRolling
PipeCo.,LtdVietnam.SeAHSteelVinareportedthat***percentofitstotalsalesinthemost
recentfiscalyearweresalesofOCTG.89HotRollingPipereportedthat***percentofitstotal
salesinthemostrecentfiscalyearweresalesofOCTG.90
SeAHSteelVinaestimatedthatitsOCTGexportstotheUnitedStatesaccountedfor
approximately***percentofallsuchexportsofOCTGfromVietnamin2012,whileHotRolling
PipeestimatedthatitsexportstotheUnitedStatesaccountedforapproximately***percent.91
AcomparisonofthesefirmsexportdatatoofficialCommerceimportstatisticsshowsthatin
2012theyaccountedfor***percentofallU.S.importsofOCTGfromVietnam.Accordingto
estimatesrequestedoftherespondingVietnameseproducers,theproductionofOCTGin

85
Withrespecttoconstraintsonproductshifting,InterpipeNTRPidentified***,InterpipeNiko
identified***,QuestionnaireresponsesofUkrainianproducers,II4e.
86
QuestionnaireresponseofInterpipeNizhnedneprovsky(InterpipeNTRP),II4.
87
QuestionnaireresponseofInterpipeNikoTubeLimitedLiabilityCompany,II4.
88
Petition,exh.I5I.
89
QuestionnaireresponseofSeAHSteelVinaCorporation,II6.
90
QuestionnaireresponseofHotRollingPipeCo.,LtdVietnam,II6.
91
QuestionnaireresponsesofSeAHSteelVinaCorporationandHotRollingPipeCo.,LtdVietnam,II
8.
VII18

Vietnamreportedbytherespondingproducersaccountforapproximately***percentof
overallproductionofOCTGinVietnam.92
SeAHSteelVinasfirstproductionlinescameonlineinMayof1999.93SeAHSteelVinais
asubsidiaryoftheSeAHGroup,whichisbasedinKorea.In2013,SeAHSteelVinainvested***
towardstheconstructionofanewproductionlinecapableofproducing***.94SeAHSteelVina
cited***.95SeAHSteelVinaonlyproducesweldedOCTG.96
HotRollingPipewasestablishedinAugust2011,openingitsplantinDecember2011.97
98
Atotalof***wasinvestedin***.99Accordingtotheirwebsite,HotRollingPipeistheonly
producerofseamlessOCTGinVietnam.100HotRollingPipeonlyproducesseamlessOCTG.101
OperationsonOCTG
TableVII17presentsinformationontheOCTGoperationsofthetworesponding
producersandexportersinVietnam.ReportedcapacityinVietnamincreasedby***percent
from2010to2012,andwasthesameinJanuaryMarch2013asintoJanuaryMarch2012.
Reportedcapacityisprojectedtoincreaseby***percentfrom2013to2014.Reported
productioninVietnamincreasedby***percentfrom2010to2012,andwas***percent
higherinJanuaryMarch2013thaninJanuaryMarch2012.Productionisprojectedtoincrease
by***percentfrom2013to2014.Capacityutilizationincreasedfrom***percentin2010to
***percentin2012,andwas***percentinJanuaryMarch2013comparedto***percentin
JanuaryMarch2012.102
In2012,***percentoftotalshipmentsofOCTGfromVietnamwereexportedtothe
UnitedStates,and***percentwereexportedtoothermarkets,predominantlyCanadaand
Columbia.103ExportsofOCTGfromVietnamtotheUnitedStatesincreasedby***percent

92
Ibid.,II7.
93
SeAHSteelVinaCorporation,CompanysHistory,http://seahvina.com.vn/gioithieu/companys
history.html,accessedonJuly26,2013.
94
QuestionnaireresponseofSeAHSteelVinaCorporation,II2.
95
Ibid.
96
Ibid.,II4.
97
HotRollingPipeCo.,LtdVietnam,AboutUs,http://www.hrpvietnam.com/about_us.php,
accessedonJuly26,2013.
98
QuestionnaireresponseofHotRollingPipeCo.,II2.
99
Ibid.
100
HotRollingPipeCo.,LtdVietnam,AboutUs,http://www.hrpvietnam.com/about_us.php,
accessedonJuly26,2013.
101
102
Withrespecttoproductionconstraints,SeAHSteelVinaidentified***,whileHotRollingPipeCo.
identified***.QuestionnaireresponsesofSeAHSteelVinaCorporationandHotRollingPipeCo.,II4.
103
QuestionnaireresponsesofSeAHSteelVinaCorporationandHotRollingPipeCo.,LtdVietnam,II
5.
VII19

from2010to2012,andwere***percenthigherinJanuaryMarch2013thaninJanuaryMarch
2012.
Table VII-17
OCTG: Data for producers in Vietnam, 2010-12, January-March 2012, January-March 2013, and
projected 2013-14
*
Alternativeproducts
TableVII18presentsinformationonthetotalweldedandseamlesstubularcapacity
andproductionoftherespondingproducersandexportersinVietnam.SeAHSteelVina
reportedthatit***.104HotRollingPipereported***.105
Table VII-18
Tubular products: Vietnamese capacity, production, and capacity utilization of welded and
seamless tubular products, 2010-12, January-March 2012, and January-March 2013
*

104
QuestionnaireresponseofSeAHSteelVinaCorporation,II4a.Withrespecttoconstraintson
productshifting,SeAHSteelVinaidentified***.QuestionnaireresponseofSeAHSteelVina
Corporation,II4e.
105
VII20

SUBJECTCOUNTRIESCOMBINED
TableVII19presentsinformationonOCTGoperationsofthereportingproducersand
exportersinthesubjectcountries.
Table VII-19
OCTG: Data for subject producers combined, 2010-12, January-March 2012, January-March 2013,
and projected 2013-14
Actual experience
Calendar year
Item
2010
2011
Projections
January-March
2012
2012
2013
Calendar year
2013
2014

Capacity
2,229,537
2,956,643
3,187,635
802,864
817,792
3,305,021
3,424,066
Production
1,307,186
1,950,005
2,226,441
565,727
553,758
2,351,563
2,485,608
74,683
77,959
111,867
81,960
113,564
111,981
107,810
5,972
6,917
23,646
10,134
18,569
66,351
70,771
110,587
312,190
325,530
75,234
90,171
453,341
565,482
United States
944,503
1,417,195
1,602,301
402,923
376,386
1,522,682
1,490,146
All other markets
211,595
220,068
238,174
74,178
67,311
297,941
361,020
1,156,098
1,637,263
1,840,475
477,101
443,697
1,820,623
1,851,166
1,272,657
1,956,370
2,189,651
562,469
552,437
2,340,315
2,487,419
Shipments:
Internal consumption/ transfers
Home market
Exports to:
Total exports
Total shipments
58.6
66.0
69.8
70.5
67.7
71.2
72.6
5.7
4.0
5.0
3.6
5.1
4.8
4.3
5.9
4.0
5.1
3.6
5.1
4.8
4.3

Internal consumption/ transfers
0.5
0.4
1.1
1.8
3.4
2.8
2.8
Home market
8.7
16.0
14.9
13.4
16.3
19.4
22.7
United States
74.2
72.4
73.2
71.6
68.1
65.1
59.9
All other markets
16.6
11.2
10.9
13.2
12.2
12.7
14.5
Total exports
90.8
83.7
84.1
84.8
80.3
77.8
74.4
Exports to:
VII21

U.S.INVENTORIESOFIMPORTEDMERCHANDISE
TableVII20presentsdataonU.S.importersreportedinventoriesofOCTG.
Table VII-20
OCTG: U.S. importers end-of-period inventories, 2010-12, January-March 2012, and January-March 2013
Item
2010
Calendar year
2011
2012
Imports from India

***
***
***
Ratio to U.S. imports (percent)
***
***
***
Ratio to U.S. shipments of imports (percent)
***
***
***
Imports from Korea
***
***
***
***
***
***
***
***
***
Imports from Philippines
***
***
***
***
***
***
***
***
***
Imports from Saudi Arabia
***
***
***
***
***
***
***
***
***
Imports from Taiwan
***
***
***
***
***
***
***
***
***
Imports from Thailand
***
***
***
***
***
***
***
***
***
Imports from Turkey
***
***
***
***
***
***
***
***
***
Imports from Ukraine
***
***
***
***
***
***
***
***
***
Imports from Vietnam
***
***
***
***
***
***
***
***
***
Imports from subject sources, subtotal
143,927
190,730
323,088
19.0
15.6
19.9
22.0
17.9
23.9
Imports from all other sources
202,132
188,563
263,085
18.0
15.1
17.4
17.1
15.0
18.6
Imports from all sources
346,059
379,293
586,173
18.4
15.3
18.7
18.9
16.4
21.2
VII22
January-March
2012
2013
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
252,892
15.9
18.9
349,916
22.0
25.4
216,211
15.1
16.5
221,781
21.4
19.8
469,103
15.5
17.7
571,697
21.8
22.9

U.S.IMPORTERSOUTSTANDINGORDERS
TheCommissionrequestedimporterstoindicatewhethertheyimportedorarrangedfor
theimportationofOCTGfromsubjectsourcesafterMarch31,2013.TableVII21presentsU.S.
importshipmentsofOCTGarrangedforimportationafterMarch31,2013.

Table VII-21
OCTG: U.S. importers arranged imports, 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, subject-Welded
Seamless
Total
April
May
June
July
August
September
OctoberDecember
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
90,133
19,709
109,842
93,233
20,278
113,511
72,007
18,924
90,931
87,227
12,860
100,087
89,674
5,939
95,613
106,723
17,443
124,166
167,213
24,748
191,961
VII23

ANTIDUMPINGORCOUNTERVAILINGDUTYORDERSINTHIRDCOUNTRYMARKETS
ExportsofcertainOCTGfromUkrainearesubjecttoantidumpingordersinthe
EuropeanUnion(EU)andRussia.IntheEU,exportsofcertainseamlesspipesandtubes,
includingseamlessironandalloycasingandtubing,fromUkrainearesubjecttoantidumping
dutiesrangingfrom12.325.7percent.106EffectiveSeptember9,2012,UkrainianOCTG
producerInterpipeissubjecttoanantidumpingdutyrateof13.8percent.107InRussia,
Ukrainianexportsofcertaincasingarereportedlysubjecttoanantidumpingdutyrateof18.9
percent,whileexportsofcertaintubingaresubjecttoarateof19.9percent.108Russian
antidumpingdutyorders***.109
INFORMATIONONNONSUBJECTCOUNTRIES
MostpublisheddataonsteelpipesandtubesdistinguishOCTGandlinepipefromother
formsofpipe(includingstandardpipeandvariousformsofstructuralandmechanicalpipe,
pressurepipe,andpipepiling).Thatis,intermsofdemandfactors,mostanalysisfocuseson
energyapplicationsorstructuralapplications,verybroadlydefined.Inaddition,published
analysesofsupplyfactorsareoftengroupedatanevenmoreaggregatedlevel,combiningall
formsofseamlesspipeandallformsofweldedpipe,reflecting,inpart,acommonalityamong
rawmaterialsandsomeoverlapofproductionfacilitiesandmethods.Accordingly,forthe
purposeofthissection,informationanddataareprovidedbasedontheiravailability,andmay
includebothsubjectandnonsubjectpipe.
OCTGisproducedinsubstantialquantitiesbypipeandtubeproducersthroughoutthe
world.TheWorldSteelAssociation(WSA)publishesdataontheglobalproductionofthelarger
productgroupingsofallpipeandtube.AsshownintablesVII22throughVII24,globalpipeand
tubeproductiondeclinedbetween2008and2009followingtheglobaleconomicdownturn,
thenreboundedandincreasedbetween2009and2011.Chinaaccountedforasubstantial
majorityofproductiongrowth,particularforweldedtubularproducts.

106
ThescopeoftheordersincludescertainironandalloycasingandtubingclassifiedunderHS
7304.29.
107
OfficialJournaloftheEuropeanUnion,CouncilImplementingRegulation(EU)No.795/2012of
August28,2012,September9,2012.
108
U.S.Steelpostconferencebrief,ex.54(MedvedevdecidesnottoextendquotasforUkraine
pipes,Ukrinform,July17,2013).
109
***.
VII24

Table VII-22
Welded and seamless steel pipe and fittings: Global production, by region, 200811
2008
2009
2010
2011
Region
Quantity (1,000 short tons)1
North America:
United States
4,985
2,347
3,880
4,816
Canada
2,908
1,680
2,679
2,800
Mexico
1,448
1,290
1,516
1,411
Subtotal
9,342
5,316
8,074
9,027
South America:
Argentina
(2)
(2)
(2)
(2 )
2
2
2
Others
()
4
()
()
2
2
Subtotal
()
4
()
(2 )
EU (27):
Germany
4,259
3,201
3,532
(2)
Italy
4,471
2,884
3,347
(2)
Spain
1,376
820
1,257
(2)
Others
8,429
5,928
6,580
1,476
Subtotal
18,535
12,833
14,715
1,476
CIS: 3
Ukraine
2,610
1,725
2,022
2,538
Others
8,527
7,248
10,527
11,355
Subtotal
11,138
8,973
12,549
13,892
Asia:
China
56,101
58,658
62,533
73,829
India
1,545
1,715
(2)
2,288
Japan
10,717
6,803
8,477
8,602
Korea
5,304
4,307
5,352
5,592
Philippines
152
64
55
99
Taiwan
1,164
977
1,265
1,338
Vietnam
606
626
742
806
Others
1,550
1,388
1,467
1,336
Subtotal
77,140
74,538
79,891
93,892
Others
409
268
277
299
Total
116,564
101,932
115,506
118,586
1
The data presented in this table are for all pipe and tube and, as a result, are substantially overstated with respect
to OCTG subject to these investigations.
2
Not available.
3
Belarus, Kazakhstan, Russia, and Ukraine.
Note.Production data for 2012 are not available. Production data for 2011 are substantially understated since many
countries, particularly EU member countries, did not report data for that year. Production data for Turkey are
unavailable. Original data were published in metric tons, which were converted to short tons by multiplying by
1.102311. Because of rounding, figures may not add to the totals shown.
Source: World Steel Association, Steel Statistical Yearbook, 2012, table 24, p. 47
VII25

Table VII-23
Seamless steel pipe: Global production, by region, 200811
2008
2009
2010
2011
Region
North America:
United States
2,338
1,053
1,919
2,443
Canada
280
168
268
280
Mexico
750
649
748
849
Subtotal
3,366
1,870
2,937
3,571
South America:
Argentina
1,006
553
859
936
2
2
Others
50
4
()
()
Subtotal
1,056
558
859
936
EU (27):
Germany
1,878
948
1,415
(2)
Italy
966
529
648
(2)
Spain
344
172
278
(2)
Others
2,928
1,983
2,241
1,402
Subtotal
6,116
3,632
4,582
1,402
CIS: 3
Ukraine
(2)
(2)
862
966
Others
(2)
(2)
3,176
3,497
Subtotal
(2)
(2)
4,038
4,462
Asia:
China
26,265
24,019
26,647
29,200
India
(2)
(2)
(2)
(2)
Japan
2,923
1,811
2,364
2,512
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
29,211
25,849
29,029
31,731
2
Others
(2)
(2)
(2 )
()
Total
39,749
31,909
41,444
42,103
1
The data presented in this table are for all seamless steel pipe and tube and, as a result, are substantially
overstated with respect to OCTG subject to these investigations.
2
Not available.
3
Source: World Steel Association, Steel Statistical Yearbook, 2012, table 25, p. 48.
VII26

Table VII-24
Welded steel pipe: Global production, by region, 200811
2008
2009
2010
2011
Region
North America:
United States
2,653
1,284
1,951
2,367
Canada
2,628
1,511
2,411
2,520
Mexico
699
640
767
562
Subtotal
5,981
3,436
5,129
5,449
South America:
Argentina
(2)
(2)
(2)
(2 )
2
2
2
2
Others
()
()
()
()
2
2
2
Subtotal
()
()
()
(2 )
EU (27):
Germany
2,394
2,143
2,116
(2)
Italy
3,505
2,368
2,698
(2)
Spain
1,032
635
979
(2)
Others
5,502
4,070
4,339
515
Subtotal
12,433
9,215
10,132
515
CIS: 3
Ukraine
(2)
(2)
1,160
1,572
Others
(2)
(2)
7,351
7,888
Subtotal
(2)
(2)
8,511
9,460
Asia:
China
29,837
34,640
35,886
44,629
India
(2)
(2)
(2)
(2)
Japan
7,094
4,464
5,492
5,452
Korea
5,280
4,288
5,334
5,574
Philippines
152
64
55
99
Taiwan
1,164
977
1,265
1,338
Vietnam
606
626
742
806
Others
1,551
1,386
1,467
1,335
Subtotal
45,685
46,445
50,241
59,234
Others
380
268
277
266
Total
64,480
59,364
74,290
74,921
1
The data presented in this table are for all pipe and tube and, as a result, are substantially overstated with respect
to OCTG subject to these investigations.
2
Not available.
3
Source: World Steel Association, Steel Statistical Yearbook, 2012, table 26, p. 49.
AccordingtoMetalBulletinResearch(MBR),globalOCTGconsumptionreboundedafter
theglobaleconomicdownturnin2009,andwasestimatedatapproximately19millionshort
tonsin2011.110Inrecentyears,thegrowthinOCTGconsumptionhasreportedlybeendriven
byextensivenewoilandgasdevelopmentsintheUnitedStatesandCanada,aswellasinthe

110
MetalBulletin,MetalBulletinResearch:OCTGMarketworth$33bnandgrowing,July10,
2013.
VII27

MiddleEastandAsia.111Inaddition,directionalandhorizontaldrilling,aswellasdrillinginmore
challengingenvironmentsforsourgradesofhydrocarbons,hasledtogreaterdemandfor
highervalue,heattreatedgradesofOCTG.112
However,decliningnaturalgaspricesintheUnitedStatesduetothenaturalgasboom
andensuingdomesticoversupply,coupledwithaslowdownintheChineseeconomyandthe
Europeandebtcrisis,hasreportedlytemperedOCTGdemandgrowthglobally,leadingto
weakerglobaldemandin2012comparedwith2011.Forinstance,accordingtoMetalBulletin
demandforOCTGinsomeregionsactuallydeclinedin2012,includinginLatinAmerica,the
MiddleEast,andtheCIS.OCTGconsumptioninotherregionalmarketsfaredbetter,including
theNorthAmericanandEuropeanmarkets,whereOCTGconsumptiongrewby1015percent
in2012comparedtothepreviousyear.113Lookingforward,MBRanticipatesglobalgrowthin
OCTGconsumptiontoslowdowninthenextfiveyears,averagingabout4percentannually.
AccordingtoMBR,LatinAmericaandAfricawillbeareasofthefastestgrowthinOCTG
consumption.114Onthesupplyside,MBRexpectsNorthAmericatoseethelargestadditionof
newOCTGcapacityinthenext35years.115
TableVII25showsglobalreportedexportsofOCTGduring201012.China,Korea,and
Japancollectivelyaccountedfor45percentofglobalOCTGexportsin2012.TablesVII26and
VII27provideinformationoninternationalrotaryrigcountsfortheperiod201012andfirst
half2013.Thefollowingsectionprovidesinformationontheleadingnonsubjectproducersand
exportersofOCTG;namely,Argentina,Canada,Germany,Japan,andMexico.

111
2013.
112
MetalBulletin,MBResearchViewOCTG:Marketsglobalvaluewillhit$40bnby2017,
November22,2012.
113
2013.
114
MetalBulletin,MBResearchViewOCTG:Marketsglobalvaluewillhit$40bnby2017,
November22,2012.
115
ForalistofrecentdevelopmentsintheU.S.market,includingOCTGcapacityexpansions,see
sectionIIIofthisreport.
VII28

Table VII-25
OCTG: Global exports by reporting countries, 201012
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
1,685,072
604,586
740,947
417,628
377,447
359,315
420,611
229,565
241,978
214,752
201,903
177,954
209,046
157,763
109,410
94,539
82,631
67,476
85,682
47,173
41,522
56,919
33,970
86,154
8,717
31,865
12,797
17,350
10,580
8,426
8,709
7,226
164
7,463
2,224
660
0
79
20,081
227
3
30,443
50
3
VII29
Calendar year
2011
1,926,801
661,559
761,705
497,643
458,228
454,571
418,174
200,104
266,547
249,126
251,029
256,618
228,716
156,032
89,063
142,478
60,206
110,334
75,134
52,683
61,219
53,142
105,867
82,370
14,629
47,770
16,017
23,303
23,663
8,734
4,488
4,618
338
10,016
29,337
168
0
1,324
2,304
823
56
68
91
0
2012
2,323,787
874,299
749,340
538,475
455,237
443,437
416,268
312,872
296,928
252,154
247,590
240,975
238,530
175,389
141,407
139,647
118,861
118,039
99,003
67,897
63,522
58,558
53,997
52,905
52,841
51,272
30,526
23,070
19,437
10,867
7,036
5,147
4,864
3,322
3,146
1,545
896
840
572
434
373
370
309
254

Table VII-25--Continued
OCTG: Global exports by reporting countries, 201012
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
2010
0
3,100
28
174
252
574
6
36
68
408
76
390
18,358
752
6
60
353
60
1,054
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
3,499
12
267
72
184
90
60
23
0
9
142
7
8
0
188
0
7
0
0
0
(1)
6,937,441
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)
7,814,039
8,698,141
Not available. Global Trade Atlas reported Vietnam OCTG exports during 2010 and 2011 in terms of
value, but did not report exports in terms of volume. Reporting countries imports of OCTG from Vietnam
totaled 1,215 short tons in 2010, 61,805 short tons in 2011, and 245,430 short tons in 2012.
Note.-- Original data were published in metric tons, which were converted to short tons by multiplying by
Note.-- Global exports of OCTG reported by the Philippines are ***.
Source: Global Trade Atlas (accessed July 24, 2013), HS subheadings 7304.29, 7305.20, 7306.29.
VII30

Table VII-26
OCTG: Baker Hughes International Rotary Rig Count, by country or region, 201012
Country or region
Calendar year
2011
Rig counts
2010
Country:
United States
1,541
Canada
351
Region:
Latin America
383
Europe
94
Africa
83
Middle East
265
Asia Pacific
269
Total
2,986
Note.Data include both onshore and offshore oil and gas rotary rigs.
2012
1,875
423
1,919
365
424
118
78
291
256
3,465
423
119
96
356
241
3,519
Source: Baker Hughes International Rig Count, June 2013, found at http://phx.corporateir.net/phoenix.zhtml?c=79687&p=irol-rigcountsintl, retrieved July 25, 2013.
Table VII-27
OCTG: Baker Hughes International Rotary Rig Count, by country or region, Jan.March 2012
through AprilJune 2013
Country or
region
Jan.March
2012
AprilJune
2012
Calendar quarter
JulySept.
Oct.Dec.
2012
2012
Rig counts
Country:
United States
1,991
1,970
1,906
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
3,771
3,368
3,491
Note.Data include both onshore and offshore oil and gas rotary rigs.
Jan.March
2013
AprilJune
2013
1,809
368
1,758
536
1,761
155
408
129
103
378
242
3,437
426
134
114
355
245
3,568
425
133
127
368
252
3,221
Source: Baker Hughes International Rig Count, June 2013, found at http://phx.corporateir.net/phoenix.zhtml?c=79687&p=irol-rigcountsintl, retrieved July 25, 2013.
Argentina
AlthoughArgentinaisSouthAmericaslargestnaturalgasconsumer,itsnaturalgas
productionhasdeclinedover10percentfrompeaklevelsin2006.116Moreover,oilproduction
inArgentinahasdeclinedinrecentyears,andconsequently,thecountryincreasinglyrelieson

116
EnergyInformationAdministration(EIA),ArgentinaEnergyProfile,July24,2012,foundat
http://www.eia.gov/countries/cab.cfm?fips=AR,retrievedJuly22,2013.
VII31

importsofbothproductstomeetitsdomesticenergyneeds.117Argentinapossessesthethird
largestendowmentofrecoverableshalegasintheworld,andtherearenumerousprojects
underdevelopmenttoexploittheseresources.118AsofJune2013,Argentinahad82active
rotaryoilandgasrigs.119In2012,ArgentinawasthesixthlargestexporterofOCTG(seetable
VII25).TheleadingmarketsforArgentinasexportsofOCTGin2012weretheUnitedStates,
Indonesia,andIraq(tableVII28).
Accordingto***120andtheAmericanPetroleumInstitute(API)CompositeList,121there
arefiveknownproducersofOCTGinArgentina:TenarisSiderca,M.Royo,DuralitteS.A.,Formar
S.A.andTubhier.TenarisSidercaisawhollyownedsubsidiaryofTenaris(Luxembourg),a
leadingglobaltubeproducer,withanannualproductioncapacityofover900,000shorttonsof
seamlesstubularproducts.122TenarisalsohasweldedsteeltubemillslocatedinBuenosAires
andSantaFeprovinces,whichtogetherhaveanannualcombinedproductioncapacityof
430,000shorttonsofweldedsteeltubes.123Tubhierproducesasmallamountofwelded
carbonandlowalloysteelOCTG,linepipe,andstandardpipeonitstwomillsinSanLuis.124

117
EIA,ArgentinaEnergyProfile,July24,2012,foundat
118
EIA,ArgentinaEnergyProfile,July24,2012,foundat
119
BakerHughesInc.,InternationalRigRotaryRigCount,foundathttp://phx.corporate
ir.net/phoenix.zhtml?c=79687&p=irolrigcountsintl,retrievedJuly17,2013.
120
***.
121
TheAPICompositeListisadirectoryof4,107companiesin78countriessupplyingtheoiland
naturalgasindustry.Itincludeslicensing,registration,andproductdetailsoftheorganizations
participatinginthevariousAPICertificationPrograms,includingfirmsthatarelicensedfortheAPI5CT
(oilandgascasingandtubing)Monogram.APICompositeList,foundathttp://compositelist.api.org,
retrievedJuly16,2013.
122
TenarisistheparentcompanyofU.S.OCTGproducerMaverickTube.
123
TenarisWebsite,ArgentinaProfile,foundat
http://www.tenaris.com/en/tenarisworldwide/southamerica/argentina.aspx,retrievedonJuly23,2013.
124
TubhierWebsite,CompanyProfile,foundathttp://www.tubhier.com.ar/,retrievedJuly23,
2013.
VII32

Table VII-28
OCTG: Argentinas reported exports, 201012
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
84,979
9,752
11,976
27,379
29,193
25,945
209
9,899
905
2,992
20,820
14,252
5,338
29,421
3,142
1,339
11,849
291
1,005
4,130
64,498
359,315
Calendar year
2011
132,273
45,733
12,671
25,628
29,102
27,097
21,211
4,885
6,089
5,149
17,121
7,934
7,642
27,996
6,626
1,587
13,793
9,915
648
3,734
47,736
454,571
2012
143,632
59,950
35,609
27,788
21,393
16,207
15,500
12,376
11,644
9,712
9,474
8,510
7,261
6,997
6,586
6,303
5,445
4,404
3,532
3,514
27,600
443,438
Note.Original data were published in metric tons, which were converted to short tons by multiplying by 1.102311. Because of
rounding, figures may not add to the totals shown.
Canada
Canadaistheworld'ssixthlargestoilproducer,andvirtuallyallofitscrudeoilexports
aredestinedfortheUnitedStates.125Canadaholdsarelativelysmallshareoftheworld's
provennaturalgasreserves,yetisthefourthlargestexporterofnaturalgas.126AsofJune
2013,Canadasrigcountwas183.127
In2012,CanadawastheseventhlargestexporterofOCTG(seetableVII25).The
UnitedStatesistheleadingmarketforCanadasexportsofOCTG(tableVII29).Several
Canadiancompaniesproducecasingandtubing.Someofthesefirmsareownedbynon
Canadianparentcompanies,includingEvrazNorthAmerica(asubsidiaryofRussiansteel

125
EIA,CanadaEnergyProfile,December10,2012,foundat
http://www.eia.gov/countries/cab.cfm?fips=CA,retrievedJuly22,2013.
126
EIA,CanadaEnergyProfile,December10,2012,foundat
http://www.eia.gov/countries/cab.cfm?fips=CA,retrievedJuly22,2013.
127
BakerHughesInc.,RigCountOverviewandSummaryCount,foundathttp://phx.corporate
ir.net/phoenix.zhtml?c=79687&p=irolrigcountsoverview,retrievedJuly22,2013.Canadasrigcount
typicallyfallsinthespringduetogroundthawing,whichmakesmovingdrillingequipmentmoredifficult
totransport.
VII33

producerEvraz);VallourecCanada(asubsidiaryofFrancebasedVallourecGroupandaffiliate
ofU.S.basedVallourecStar);Tenaris(Luxembourg),whichownsU.S.OCTGproducerMaverick;
andJMCSteelGroup,whichownsEnergeX,amergerofJMCsU.S.tubularassetsandCanadian
OCTGproducerLakesideSteel.InJuly2013,EvrazNorthAmericaannouncedplanstobuilda
tubularproductionfacilityinCalgaryby2014,whichwillincreaseitsheattreatmentcapacity
from80,000shorttonsto200,000shorttonsperyear.128InJanuary2013,VallourecCanada
wascreatedviaamergerbetweenVallourecTubesCanada,apipeandtubeproducer,andVAM
Canada,Inc.,amanufacturerofthreadedconnections.129JMCSteelGroupInc.(parent
companyofEnergeX)completeditsacquisitionofLakesideSteelCorporationinApril2012.130
Table VII-29
OCTG: Canadas reported exports, 201012
Calendar year
2011
2012
United States
417,270
410,871
412,867
Mexico
662
2,059
1,150
France
158
1,097
623
Albania
1,013
1,616
570
China
24
257
338
Cuba
190
486
243
Costa Rica
245
93
107
Singapore
43
19
69
Oman
8
14
65
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
1,291
29
Total
420,608
418,175
416,266
Note.Original data were published in metric tons, which were converted to short tons by multiplying by 1.102311.
Because of rounding, figures may not add to the totals shown.
Country
2010

128
EvraztoexpandheattreatcapacityatCalgarytubularplantby150%,ASMInternational,July
2013,foundat:
http://www.asminternational.org/portal/site/www/NewsItem/?vgnextoid=526e31605daef310VgnVCM
100000621e010aRCRD,retrievedonJuly22,2013,and;Evraz,AnnualReport,2012,p.21,foundat
http://www.evraz.com/investors/annual_reports/,retrievedJuly22,2013.
129
PrestonPipeandTubeReport,Volume31,No.1,January2013,p.22.
130
JMCSteelGroup,JMCSteelGroupAcquiresLakesideSteelInc.,ExpandingOfferingforOiland
GasIndustry,April3,2012,foundathttp://www.jmcsteelgroup.com/pressrelease/jmcsteelgroup
acquireslakesidesteelinc.
VII34

Germany
Germanyimportsnearlyallofitsoilandnaturalgas.OilisGermanysprimarysourceof
energy,accountingfor38percentofGermanystotalprimaryenergyconsumptionin2011.131
Inaddition,Germanyhasnoliquefiednaturalgasterminals,soitmustimportgasviapipeline
exclusivelyfromRussia,Norway,orotherEuropeancountries.132AsofJune2013,Germanyhas
5rigs.133Nonetheless,GermanyisthelargestOCTGproducerandexporterinEurope.In2012,
GermanywastheeighthlargestglobalexporterthelargestEuropeanexporterofOCTG(see
tableVII25).TheleadingmarketsforGermanysexportsofOCTGin2012weretheUnited
States,theUnitedKingdom,andFrance(tableVII30).
ThereareseveralOCTGproducersinGermany,includingV&MDeutschland,asubsidiary
ofVallourecGroup(France)andaffiliateofU.S.OCTGproducerVallourecStar;Benteler
Steel/Tube,whichin2012announcedplanstobuilda$900millionseamlessOCTGmillin
Caddo,Louisiana(slatedforcompletionin2015);134andTPSTechnitubeRohrenwerke.

131
EIA,GermanyEnergyProfile,May30,2013,foundathttp://www.eia.gov/countries/country
data.cfm?fips=GM&trk=m,retrievedonJuly22,2013.
132
EIA,GermanyEnergyProfile,May30,2013,foundathttp://www.eia.gov/countries/country
data.cfm?fips=GM&trk=m,retrievedonJuly22,2013.
133
BakerHughesInc.,InternationalRotaryRigCount,foundathttp://phx.corporate
134
PrestonPipeandTubeReport,Vol.30,No.11,November2012,p.25.
VII35

Table VII-30
OCTG: Germanys reported exports, 201012
Calendar year
2011
2012
United States
110,201
81,967
193,069
United Kingdom
14,552
14,548
21,050
France
26,278
12,592
15,115
Angola
5,579
6,103
12,596
Indonesia
15,737
11,908
12,501
Netherlands
4,360
3,142
6,551
Iraq
1,479
9,763
5,413
Saudi Arabia
5,916
13,847
4,470
Azerbaijan
3,535
2,039
3,957
Australia
140
47
3,523
Egypt
2,969
476
3,517
China
493
5,804
3,391
Poland
1,161
2,209
2,588
Nigeria
3,008
5,965
2,517
Canada
1,834
713
2,175
Pakistan
8
0
1,938
Belize
0
2,880
1,704
Hungary
420
26
1,681
Kazakhstan
2,810
1,942
1,607
Brazil
0
0
1,606
All other
29,087
24,132
11,903
Total
229,565
200,105
312,872
Country
2010
Japan
Japanistheworldslargestimporterofliquefiednaturalgasandthethirdlargest
importerofoil.135Japanreliesonoilimportstomeetabout42percentofitsenergyneeds.136
Withonly2rigsasofJune2013,Japanhasverylimiteddomesticenergyresourcesinitsown
country.137Asaresult,JapanexportsalmostallofitsOCTGproduction.Japanwasthethird
largestglobalexporterofOCTGin2012(seetableVII25).TheleadingmarketsforJapans
exportsofOCTGin2012weretheUnitedStates,Norway,andMalaysia(tableVII31).
JapaneseOCTGproducersincludeNipponSteelSumitomoMetals(NSSM)Corporation
(astheresultofamergerbetweenNipponSteelandSumitomoMetalIndustriesin2012),JFE
SteelCorporation,TenarisNKKTubes,asubsidiaryofTenaris(Luxembourg)andaffiliateofU.S.

135
EIA,JapanEnergyProfile,June4,2012,http://www.eia.gov/countries/country
data.cfm?fips=JA&trk=m,retrievedJuly22,2013.
136
EIA,JapanEnergyProfile,June4,2012,http://www.eia.gov/countries/country
data.cfm?fips=JA&trk=m,retrievedJuly22,2013.
137
VII36

OCTGproducerMaverick;andMaruichiSteelTube.Accordingto***,NSSMscombinedannual
productionoftubularproductsisalmost8millionshorttons(4.3millionshorttonsatNippon
Steeland3.3millionshorttonsatSumitomoMetalIndustries).TenarisNKKTubeshasan
annualsteeltubecapacityof287,000shorttons.138MaruichiSteelTubehasanannualsteel
tubecapacityof1,323,000shorttons.139
Table VII-31
OCTG: Japans reported exports, 201012
Calendar year
2011
2012
United States
144,670
125,731
186,479
Norway
30,730
85,420
67,164
Malaysia
16,306
60,787
62,508
Saudi Arabia
50,381
76,349
51,314
Oman
5,059
4,666
46,559
86,032
88,100
44,986
China
39,572
32,430
24,899
Iraq
1,753
21,196
23,661
Vietnam
23,351
14,687
22,995
Brunei Darussalam
12,895
14,316
22,625
Australia
12,151
27,388
20,855
Canada
27,429
14,881
17,014
Indonesia
29,394
22,741
16,589
Singapore
49,789
24,126
15,901
United Kingdom
15,228
18,487
15,824
Russia
27,503
14,692
11,568
Kuwait
47,120
39,367
11,514
Netherlands
17,012
6,856
10,417
Azerbaijan
13,665
11,089
7,331
Brazil
12,087
9,156
6,073
All other
78,817
49,241
63,064
Total
740,945
761,707
749,339
Country
2010

138
TenarisNKKTubes,CompanyProfile,foundat
http://www.tenaris.com/shared/documents/files/CB48.pdf,retrievedJuly23,2013;***.
139
***.
VII37

Mexico
Mexicoisoneofthetenlargestoilproducersintheworld,despiteoilproduction
steadilydecreasingsince2004.140DevelopmentofMexicosshalegasresourcesisslowdespite
Mexicosconsiderablenaturalgasresources.141Consequently,MexicomustrelyonU.S.natural
gasimportsandliquefiednaturalgasfromothercountriestosatisfyincreasingdomestic
demand.142AsofJune2013,Mexicohas99activerigs.143Mexicoisthefourthlargestglobal
exporterofOCTG(seetableVII25).TheleadingmarketsforMexicosexportsofOCTGin2012
weretheUnitedStates,Canada,andColombia(tableVII32).
ThelargemajorityofMexicosOCTGproductionisseamlesscasingandtubing.The
largestofMexicosOCTGproducersisTenarisTAMSA(TAMSA),awhollyownedsubsidiaryof
Tenaris(Luxembourg)andaffiliateofU.S.OCTGproducerMaverick.InMay2013,TAMSA
openedanewseamlesstuberollingmillinVeracruz,Mexico,withanannualproduction
capacityof450,000shorttons.144Accordingto***,TAMSAsannualseamlessproduction
capacityis860,000shorttons.145VAMMexico,asubsidiaryofVallourec(France)andaffiliate
ofU.S.OCTGproducerVallourecStar,producescouplingsandprovidesthreadingservicesfor
OCTGatitsVeracruzfacility.146

140
EIA,MexicoEnergyProfile,October17,2012,foundat
http://www.eia.gov/countries/cab.cfm?fips=MX,retrievedJuly23,2013.
141
142
143
144
TenarisopensanewrollingmillinMexico,NewEuropeOnline,July22,2013,foundat
http://www.neurope.eu/article/tenarisopensnewrollingmillmexico.
145
***.
146
VAMUSAWebsite,Facilities,foundathttp://www.vamusa.com/companyfacilities.aspx,
retrievedJuly23,2013.
VII38

Table VII-32
OCTG: Mexicos reported exports, 201012
Calendar year
2011
2012
United States
146,688
201,598
158,786
Canada
32,245
58,666
102,006
Colombia
46,413
67,546
42,937
Iraq
13,854
9,439
35,516
Ecuador
19,706
15,667
27,183
Venezuela
26,278
9,697
18,390
Russia
1,176
6,572
15,678
Norway
7,388
9,986
15,107
Saudi Arabia
582
29,895
13,654
Argentina
3,124
2,557
11,148
Egypt
7,987
7,139
10,100
Angola
4,039
8,287
10,094
4,376
5,561
9,990
United Kingdom
2,859
5,052
7,564
Italy
995
6,771
7,014
Denmark
622
3,243
4,752
Romania
0
2,048
3,997
Nigeria
11,346
3,067
3,985
Peru
2,061
3,778
3,857
Turkey
1,291
6,117
3,023
All other
84,599
34,955
33,694
Total
417,629
497,642
538,476
Country
2010
VII39
APPENDIXA
FEDERALREGISTERNOTICES
A1

TheCommissionmakesavailablenoticesrelevanttoitsinvestigationsandreviewsonits
website,www.usitc.gov.Inaddition,thefollowingtabulationpresents,inchronologicalorder,
FederalRegisternoticesissuedbytheCommissionandCommerceduringthecurrent
proceeding.
Citation
Title
Link
78FR41421
July10,2013
CertainOilCountryTubularGoods
http://www.gpo.gov/fdsys/pkg/FR
FromIndia,Korea,Philippines,Saudi 20130710/pdf/201316515.pdf
Arabia,Taiwan,Thailand,Turkey,
Ukraine,andVietnam;Institutionof
AntidumpingandCountervailingDuty
InvestigationsandSchedulingof
PreliminaryPhaseInvestigations
78FR45502
July29,2013
FromIndiaandTurkey:Initiationof
CountervailingDutyInvestigations
78FR45505
July29,2013
fromIndia,theRepublicofKorea,the
RepublicofthePhilippines,Saudi
Arabia,Taiwan,Thailand,the
RepublicofTurkey,Ukraine,andthe
SocialistRepublicofVietnam:
InitiationofAntidumpingDuty
Investigations
Source:https://www.federalregister.gov/
A3
20130729/pdf/201318165.pdf
20130729/pdf/201318164.pdf
APPENDIXB
CALENDAROFTHEPUBLICSTAFFCONFERENCE
B1
CALENDAROFPUBLICPRELIMINARYCONFERENCE

Those listed below appeared as witnesses at the United States International Trade
Commissionspreliminaryconference:

Subject:
Certain Oil Country Tubular Goods from India, Korea,
Philippines, Saudi Arabia, Taiwan, Thailand, Turkey,
Ukraine,andVietnam

Inv.Nos.:
701TA499500and731TA12151223(Preliminary)

DateandTime:
July23,20139:30a.m.

Sessions were held in connection with these preliminary phase investigations in the Main
hearingRoom(Room101),500EStreet,S.W.,Washington,DC.

CONGRESSIONALAPPEARANCE:

TheHonorableRickCrawford,U.S.Representative,1stDistrict,Arkansas

InSupportoftheImpositionof
AntidumpingandCountervailingDutyOrders:

SchagrinAssociates
Washington,DC
onbehalfof

BoomerangTube
EnergexTube,adivisionofJMCSteelGroup
NorthwestPipeCompany
TejasTubularProducts
TMKIPSCO
VallourecStar,L.P.
WeldedTubeUSA,Inc.
TheUnitedSteel,PaperandForestry,Rubber,

Manufacturing,Energy,AlliedIndustrial,

andServiceWorkersInternationalUnion(USW)

GreggEisenberg,PresidentandCEO,BoomerangTube

BillSnyder,VicePresidentofSalesandMarketing,

BoomerangTube

BobOkrzesik,VicePresidentofMarketing,EnergexTube

RobertMahoney,SeniorVicePresidentofStrategy&

BusinessDevelopment,NorthwestPipeCompany

MaximoTejeda,PresidentandCEO,TejasTubularProducts
B3

AntidumpingandCountervailingDutyOrdersContinued

SchagrinAssociates
Washington,DC
onbehalfof

DarrellBallinger,VIcePResidentofSalesandMarketing,

TejasTubularProducts

ScottBarnes,SeniorVicePresidentandChiefCommercial

Officer,TMKIPSCO

MartinMarini,DirectorofMarketIntelligence,TMKIPSCO

SkipHerald,ManageingDirectorNorthAmerica,

VallourecUSA

RonnyClark,GeneralManagerSalesandMaketing,

VallourecStap,L.P.

RobertButchMandel,ExecutiveVicePresident,

WeldedTube

LindaAndros,LegislativeCounsel,USW

SteveTait,President,Pipeco

RogerB.Schagrin

)

JohnW.Bohn

)OFCOUNSEL

PaulW.Jameson

)

WileyReinLLP
Washington,DC
onbehalfof

MaverickTubeCorporation(Maverick)

GermnCur,PresidentandCEO,Maverick;and

ManagingDirector,TenarisNorthAmerica

BradLowe,Director,Maverick;andPresident,

TenarisGlobalServices(USA)Inc.

AlanH.Price

)

)OFCOUNSEL

RobertE.DeFrancesco,III )

B4
AntidumpingandCountervailingDutyOrdersContinued

Skadden,Arps,Slate,Meagher&FlomLLP
Washington,DC
onbehalfof

UnitedStatesSteelCorporation

DouglasR.Matthews,SeniorVicePresidentNorthAmerican

FlatRolledOperations,UnitedStatesSteelCorporation

GeorgeH.Thompson,Jr.,VicePresidentTubularCommercial,

UnitedStatesSteelCorporation

ScottM.Dorn,GeneralManagerTubularMarketing,U.S.

SteelTubularProducts,Inc.

JohnB.Shoaff,President,SoonerPipe,LLC

ScottDuBois,President,PremierPipe,LLC

SteveMiller,CoChiefExecutiveOfficer,Cinco
Pipe&Supply

ProfessorMichaelWhinston,ProfessorofEconomics,

MassachusettsInstituteofTechnology

Dr.SethKaplan,SeniorEconomicAdvisor,Capital

Trade,Inc.

JamesC.Hecht

)

)OFCOUNSEL

StephenP.Vaughn
)

B5
InOppositiontotheImpositionof

ArentFoxLLP
Washington,DC
onbehalfof

DufercoSteelInc.(Duferco)
JubailEnergyServicesCompany(JESCO)

JohnBlomberg,DirectorofPipeandTube,DufercoSA

DavidEchavaria,VicePresidentofOCTG,Duferco

SteelInc.

JohnM.Gurley

)

)OFCOUNSEL

NancyA.Noonan

)

Steptoe&JohnsonLLP
Washington,DC
onbehalfof

ILJINSteelCorporation(ILJIN)

RichardO.Cunningham
)

)OFCOUNSEL

JoelD.Kaufman

)

Grunfeld,Desiderio,Lebowitz,Silverman,&KlestadtLLP
Washington,DC
onbehalfof

WSPPipeCo.,Ltd.(WSP)

MaxF.Schutzman
)

)OFCOUNSEL

NedH.Marshak

)

Mowry&Grimson,PLLC
Washington,DC
onbehalfof

HotRollingPipeCo,Ltd.Vietnam
HLDClarkSteelPipeCo.,Inc.

BruceMalashevich,President,EconomicConsultingServices

GaryHorlick,Counsel,LawOfficeofGaryHorlick

KristinMowry
)OFCOUNSEL
B6

HoganLovellsUSLLP
Washington,DC
onbehalfof

Interpipe
NorthAmericanInterpipe

MarkS.McConnell
)

)OFCOUNSEL

CraigA.Lewis

)

Morris,Manning&Martin,LLP
Washington,DC
onbehalfof

BorusanMannesmannBoruSanayiveTicaretAnoniumSirketi
AJUBesteelCo.,Ltd.
HusteelCo.,Ltd.
HyundaiHYSCO
NexteelCo.,Ltd.
SeAHSteelAmerica,Inc.
HusteelUSA,Inc.
HyundaiHYSCOUSA,Inc.
DeAHSteelAmerica,Inc.
ChungHungSteelCorporation
FarEastMachineryCo.,Ltd.
KaoHsingChangIronandSteelCorp.
ShinYangSteelCo.,Ltd.
TensionSteelIndustriesCo.,Ltd.

BuddyBrewer,PresidentandCEO,BorusanMannesmannPipe

U.S.Inc.

ZaferAtabey,ExecutiveVicePresident,Commercialand

SpecialPipesSales,BorusanMannesmannPipeU.S.Inc.

IvanLi,VicePresidentofSalesDepartment,ChungHung

SteelCorporation

KevinChang,VicePresidentofSalesDepartment,Tension

SteelIndustriesCo.,Ltd.

DongHeuiPi,Manager,MarketingStrategyTeam,Hyundai

HYSCO,Ltd.

SteveFowler,Principal,TubularSynergyGroup,LP

JimDougan,SeniorEconomist,EconomicConsultingService,LLC
B7
AntidumpingandCountervailingDutyOrdersContiued

Morris,Manning&Martin,LLP
Washington,DC
onbehalfof

JulieC.Mendoza

)

DonaldB.Cameron
)OFCOUNSEL

R.WillPlanert

)

KutakRockLLP
Washington,DC
onbehalfof

JindalIndiaLtd.(JindalIndia)
SuryaGlobalSteelTubesLtd.(SuryaGlobal)
MaharashtraSeamlessLtd.(Maharashtra)
JindalPipeLtd.(JindalPipes)
GVNFuelsLtd.(GVN)
JindalSawLtd.(India)(JindalSaw)
ISMTLimited(ISMT)
JindalSawLtd.(US)(JindalSawUS)
IndianSeamlessInc.(IndiaSeamless)

ManishKhandelwal,Director,Maharashtra

LizbethR.Levinson
)OFCOUNSEL

LawOfficesofDavidL.Simon
Washington,DC
onbehalfof

ayirovaBoruSanayiveTicaretA.S.(ayirova)and

itsafilliatedexporterYcelBoruIthalatIhracet

vePazarlamaA.S.(YIIP)
ToselikveSacEndustrisiA.S.(Toselik)anditsafilliated

exporterTosyaliDisTicaretA.S.(TDT)

AhmetSumer,ExportManager,ToselikProfilve

Sac.End.A.S./TosyaliDisTicaretA.S.

DavidL.Simon

)OFCOUNSEL

B8
AntidumpingandCountervailingDutyOrdersContiued

GreenbergTraurig,LLP
Washington,DC
onbehalfof

UnitedSeamlessTubulaarPvt.Ltd.
OilCountryTubularLtd.

PhilippeM.Bruno

RosaS.Jeong
B9
)
)OFCOUNSEL
)
APPENDIXC
SUMMARYDATA
C1
Table C-1
OCTG: 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, unit labor costs, and unit expenses=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.............................................................
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
Total imports...........................................
U.S. imports from:
India:
Quantity.........................................................
Value.............................................................
Unit value......................................................
Ending inventory quantity..............................
Korea:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
200
Philippines
Quantity.........................................................
IMPsta
IMPsta
Value.............................................................
200
Unit value......................................................
200
Saudi Arabia
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
200
Taiwan:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
200
Thailand:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
200
Turkey:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
200
Ukraine:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
200
Vietnam:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
200
Subtotal, subject sources:
Quantity.........................................................
IMPsta
IMPsta
Value.............................................................
200
Unit value......................................................
200
All other sources:
Quantity.........................................................
IMPsta
Value.............................................................
IMPsta
200
Unit value......................................................
200
Total imports:
IMPsta
Quantity.........................................................
Value.............................................................
IMPsta
200
Unit value......................................................
200
IMPsta
IMPsta
200
200
5,012,744
53.7
***
***
0.0
***
1.1
0.0
1.7
***
0.0
17.0
29.3
46.3
7,414,798
58.4
6,129,389
53.6
***
***
0.4
***
1.6
0.1
2.3
***
0.9
21.5
24.9
46.4
9,539,991
58.2
2012
January to March
2012
2013
7,160,696
50.0
1,875,302
50.5
***
***
1.0
***
1.5
0.4
2.1
***
3.1
25.3
24.7
50.0
***
***
1.0
***
1.8
0.1
2.6
***
3.2
25.4
24.1
49.5
11,270,780
54.9
2,951,979
56.0
Period changes
Calendar year
2010-11
2011-12
2010-12
1,665,657
55.1
***
***
0.7
***
1.6
0.2
1.5
***
2.3
26.4
18.5
44.9
2,411,262
59.7
Jan-Mar
2012-13
42.8
(3.7)
22.3
(0.1)
16.8
(3.6)
(11.2)
4.6
***
***
1.0
***
0.4
0.4
0.4
***
3.1
8.3
(4.6)
3.7
***
***
0.4
***
0.4
0.1
0.6
***
0.9
4.6
(4.4)
0.1
***
***
0.6
***
(0.1)
0.3
(0.2)
***
2.1
3.7
(0.2)
3.6
***
***
(0.3)
***
(0.2)
0.1
(1.2)
***
(0.9)
1.0
(5.6)
(4.6)
52.0
(3.5)
28.7
(0.2)
18.1
(3.4)
(18.3)
3.8
***
***
0.6
***
0.2
0.4
0.3
***
1.8
5.8
(2.3)
3.5
***
***
0.2
***
0.3
0.1
0.4
***
0.6
4.1
(3.9)
0.2
***
***
0.4
***
(0.1)
0.3
(0.1)
***
1.2
1.7
1.7
3.4
***
***
(0.2)
***
(0.2)
0.1
(0.7)
***
(0.6)
0.5
(4.3)
(3.8)
***
***
0.0
***
0.6
0.0
1.0
***
0.0
11.8
29.9
41.6
***
***
0.2
***
0.9
0.1
1.4
***
0.6
15.8
26.0
41.8
***
***
0.6
***
0.9
0.4
1.3
***
1.8
17.5
27.6
45.1
***
***
0.6
***
1.1
0.1
1.7
***
1.9
18.1
26.0
44.0
***
***
0.4
***
0.9
0.2
0.9
***
1.3
18.6
21.7
40.3
C
***
***
***
***
D
***
***
***
***
E
***
***
***
***
F
***
***
***
***
G
***
***
***
***
9
60
61
250
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
10
61
131
320
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
0
0
$0.00
***
C
***
***
***
***
23,933
21,542
$900.07
***
D
***
***
***
***
70,166
64,973
$925.99
***
E
***
***
***
***
17,900
16,992
$949.30
***
F
***
***
***
***
11,399
9,223
$809.13
***
G
***
***
***
***
11
62
201
390
fn2
fn2
fn2
***
fn2
fn2
fn2
***
193.2
201.6
2.9
***
(36.3)
(45.7)
(14.8)
***
12
63
271
460
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
56,594
47,697
$842.78
***
96,403
90,113
$934.76
***
106,576
98,124
$920.69
***
33,664
32,581
$967.81
***
25,973
20,643
$794.80
***
13
64
341
530
88.3
105.7
9.2
***
70.3
88.9
10.9
***
10.6
8.9
(1.5)
***
(22.8)
(36.6)
(17.9)
***
0
0
$0.00
***
C
85,222
76,626
$899.13
***
6,135
8,053
$1,312.51
***
D
140,806
133,698
$949.52
***
31,833
43,815
$1,376.41
***
E
152,444
145,153
$952.18
***
2,662
3,769
$1,415.97
***
F
49,481
48,923
$988.72
***
3,424
4,593
$1,341.35
***
G
24,217
22,480
$928.30
***
14
65
411
600
fn2
fn2
fn2
***
fn2
fn2
fn2
***
418.9
444.1
4.9
***
28.6
21.9
(5.3)
***
15
66
481
670
78.9
89.4
5.9
***
65.2
74.5
5.6
***
8.3
8.6
0.3
***
(51.1)
(54.0)
(6.1)
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
16
67
551
740
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
145
169
$1,163.46
***
56,697
53,923
$951.07
***
219,997
201,905
$917.76
***
59,659
55,386
$928.38
***
37,561
30,822
$820.57
***
17
68
621
810
151,705.0
119,647.3
(21.1)
***
39,022.5
31,880.9
(18.3)
***
288.0
274.4
(3.5)
***
(37.0)
(44.4)
(11.6)
***
850,067
871,927
$1,025.72
143,927
1,318,337
1,511,511
$1,146.53
190,730
1,808,662
1,976,638
$1,092.87
323,088
476,808
533,883
$1,119.70
252,892
440,036
448,046
$1,018.20
349,916
18
69
301
880
112.8
126.7
6.5
124.5
55.1
73.4
11.8
32.5
37.2
30.8
(4.7)
69.4
(7.7)
(16.1)
(9.1)
38.4
1,469,206
2,215,397
$1,507.89
202,132
1,525,975
2,475,629
$1,622.33
188,563
1,771,959
3,112,109
$1,756.31
263,085
451,279
766,201
$1,697.84
216,211
307,457
522,974
$1,700.97
221,781
53
104
401
950
20.6
40.5
16.5
30.2
3.9
11.7
7.6
-6.7
16.1
25.7
8.3
39.5
(31.9)
(31.7)
0.2
2.6
2,319,273
3,087,325
$1,331.16
346,059
2,844,313
3,987,139
$1,401.79
379,293
3,580,620
5,088,748
$1,421.19
586,173
928,087
1,300,084
$1,400.82
469,103
747,493
971,020
$1,299.04
571,697
54
105
501
1,090
54.4
64.8
6.8
69.4
22.6
29.1
5.3
9.6
25.9
27.6
1.4
54.5
(19.5)
(25.3)
(7.3)
21.9
C-3
Table C-1--continued
OCTG: 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, unit labor costs, and unit expenses=dollars per short ton; 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.S. producers':
Average capacity quantity.................................
Production quantity...........................................
Capacity utilization (fn1)...................................
U.S. shipments:
Quantity.........................................................
Value.............................................................
Unit value......................................................
Export shipments:
Quantity.........................................................
Value.............................................................
Unit value......................................................
Ending inventory quantity.................................
Inventories/total shipments (fn1).......................
Production workers...........................................
Hours worked (1,000s)......................................
Wages paid ($1,000)........................................
Productivity (short tons per 1,000 hours)...........
Unit labor costs.................................................
Net Sales:
Quantity.........................................................
Value.............................................................
Unit value......................................................
Cost of goods sold (COGS)..............................
Gross profit or (loss).........................................
SG&A expenses...............................................
Operating income or (loss)................................
Capital expenditures.........................................
Unit COGS.......................................................
Unit SG&A expenses........................................
Unit operating income or (loss).........................
COGS/sales (fn1).............................................
Operating income or (loss)/sales (fn1)..............
Calendar year
2011
2012
January to March
2012
2013
2010-12
Period changes
Calendar year
2010-11
2011-12
Jan-Mar
2012-13
5,498,058
2,885,247
52.5
5,744,456
3,484,953
60.7
5,987,827
3,772,030
63.0
1,510,530
1,052,237
69.7
1,557,600
1,018,330
65.4
274
276
222
8.9
30.7
10.5
4.5
20.8
8.2
4.2
8.2
2.3
3.1
(3.2)
(4.3)
2,693,471
4,327,473
$1,606.65
3,285,076
5,552,852
$1,690.33
3,580,076
6,182,032
$1,726.79
947,215
1,651,895
$1,743.95
918,164
1,440,242
$1,568.61
302
303
234
32.9
42.9
7.5
22.0
28.3
5.2
9.0
11.3
2.2
(3.1)
(12.8)
(10.1)
138,884
246,448
$1,774.49
376,911
13.3
6,002
12,664
345,473
227.8
$119.74
176,942
312,802
$1,767.82
406,604
11.7
6,731
14,286
392,447
243.9
$112.61
209,383
360,989
$1,724.06
382,718
10.1
7,453
16,115
468,398
234.1
$124.18
59,175
108,192
$1,828.34
448,792
11.1
7,314
4,051
120,805
259.7
$114.81
42,311
70,838
$1,674.22
439,450
11.4
7,460
4,098
120,087
248.5
$117.93
283
284
230
285
320
288
289
290
254
256
50.8
46.5
(2.8)
1.5
(3.2)
24.2
27.3
35.6
2.7
3.7
27.4
26.9
(0.4)
7.9
(1.6)
12.1
12.8
13.6
7.1
(6.0)
18.3
15.4
(2.5)
(5.9)
(1.6)
10.7
12.8
19.4
(4.0)
10.3
(28.5)
(34.5)
(8.4)
(2.1)
0.3
2.0
1.2
(0.6)
(4.3)
2.7
2,833,732
4,575,093
$1,614.51
3,534,745
1,040,347
419,820
620,526
269,004
$1,247.38
$148.15
$218.98
77.3
13.6
3,452,493
5,856,742
$1,696.38
4,778,097
1,078,645
433,528
645,117
711,067
$1,383.96
$125.57
$186.86
81.6
11.0
3,783,341
6,540,357
$1,728.73
5,415,994
1,124,363
485,412
638,951
616,900
$1,431.54
$128.30
$168.89
82.8
9.8
1,007,413
1,761,115
$1,748.16
1,366,849
394,266
113,217
281,048
130,745
$1,356.79
$112.38
$278.98
77.6
16.0
974,262
1,527,795
$1,568.16
1,317,025
210,770
121,698
89,072
88,413
$1,351.82
$124.91
$91.43
86.2
5.8
551
555
503
559
560
563
564
691
536
540
541
517
522
33.5
43.0
7.1
53.2
8.1
15.6
3.0
129.3
14.8
(13.4)
(22.9)
5.5
(3.8)
21.8
28.0
5.1
35.2
3.7
3.3
4.0
164.3
10.9
(15.2)
(14.7)
4.3
(2.5)
9.6
11.7
1.9
13.4
4.2
12.0
(1.0)
(13.2)
3.4
2.2
(9.6)
1.2
(1.2)
(3.3)
(13.2)
(10.3)
(3.6)
(46.5)
7.5
(68.3)
(32.4)
(0.4)
11.1
(67.2)
8.6
(10.1)
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-4
TableC2
OCTG(toll):SummarydataconcerningtheU.S.market,201012,JanuarytoMarch2012,andJanuary
toMarch2013

*
C5
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
Amount.............................................................
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
Total imports...........................................
Amount.............................................................
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
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......................................................
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
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
C
***
***
***
D
***
***
***
E
***
***
***
F
***
***
***
G
***
***
***
9
60
61
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
10
61
131
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
C
***
***
***
***
***
***
D
***
***
***
***
***
***
E
***
***
***
***
***
***
F
***
***
***
***
***
***
G
***
***
***
11
62
201
***
***
***
***
***
***
***
***
***
***
***
***
12
63
271
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
13
64
341
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
C
***
***
***
***
***
***
D
***
***
***
***
***
***
E
***
***
***
***
***
***
F
***
***
***
***
***
***
G
***
***
***
14
65
411
***
***
***
***
***
***
***
***
***
***
***
***
15
66
481
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
16
67
551
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
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
fn2.--Undefined.
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
Amount.............................................................
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
Total imports...........................................
Amount.............................................................
India..............................................................
Korea.............................................................
Philippines.....................................................
Saudi Arabia..................................................
Taiwan...........................................................
Thailand........................................................
Turkey...........................................................
Ukraine..........................................................
Vietnam.........................................................
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......................................................
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
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
C
***
***
***
D
***
***
***
E
***
***
***
F
***
***
***
G
***
***
***
9
54
55
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
10
55
125
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
C
***
***
***
***
***
***
D
***
***
***
***
***
***
E
***
***
***
***
***
***
F
***
***
***
***
***
***
G
***
***
***
11
56
195
***
***
***
***
***
***
***
***
***
***
***
***
12
57
265
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
13
58
335
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
C
***
***
***
***
***
***
D
***
***
***
***
***
***
E
***
***
***
***
***
***
F
***
***
***
***
***
***
G
***
***
***
14
59
***
***
***
***
***
***
***
***
***
***
***
***
15
60
70
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
16
61
140
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
17
62
210
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
18
63
295
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
47
92
395
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
48
93
495
***
***
***
***
***
***
***
***
***
***
***
***
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
fn2.--Undefined.
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
NONSUBJECTCOUNTRYPRICEDATA
D1
ThreeimportersreportedpricedatafornonsubjectcountryCanada(***)forproducts2
through6.Importerpricedataaccountedfor***percentofU.S.importsfromCanadaover
January2010March2013.Thesepriceitemsandaccompanyingdataarecomparabletothose
presentedintablesV5toV9.PriceandquantitydatafortheUnitedStates,therelevant
subjectcountries,andCanadaareshownintableD1andinfiguresD1toD5(withdomestic
andsubjectsources).
PricesforOCTGimportedfromCanadawerelowerthanpricesfordomestically
producedOCTGin44of52possiblecomparisonsbymarginsof1.5to27.9percent.Pricesfor
OCTGimportedfromCanadawerehigherthanpricesfordomesticallyproducedOCTGin8of
52comparisons,bymarginsof0.8to12.7percent.
PricesforimportedOCTGfromCanadawerelowerthanpricesforproductimported
fromsubjectcountriesin39of109possibleinstancesandhigherin70of109possible
instances.ThegreatestnumberofcomparisonswereavailablebetweenpricesofCanadian
productsandthosefromKoreaandTurkey.ImportsofOCTGfromCanadawerepricedbelow
thoseofOCTGfromKoreain10of42instancesandhigherin32of42instances.Importsof
OCTGfromCanadawerealsopricedbelowthosefromTurkeyin7of33instances,andabovein
26of33instances.
D3
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
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
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 " O.D., 17.0 lbs./ft., threaded and coupled, range 3, welded.
Product 4.-- Casing, Grade P-110, 5 " O.D., 17.0 lbs./ft., threaded and coupled, range 3, seamless.
D4
Figure D-1
OCTG: Weighted-average f.o.b. prices and quantities of domestic product 2,1 by quarter, January
2010-March 2013
Figure D-2
Figure D-3
Figure D-4
Figure D-5
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
Korea
10
32
Philippines
Saudi Arabia
Taiwan
Thailand
Turkey
26
Ukraine
Vietnam
Total
39
70
D5

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Certain Oil Country Tubular Goods

from India, Korea, The Philippines,

U.S. International Trade Commission

U.S. International Trade Commission

Address all communications to

U.S. International Trade Commission

Certain Oil Country Tubular Goods

July 23, 2013

August 16, 2013

ITA revoked 8/21/85

ITA revoked 7/31/85

ITA revoked 6/30/85

ITA revoked 7/10/91

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

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

No data were reported for imports from Taiwan and Thailand.

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

Factors influencing supply responsiveness

India was the third-largest source of subject

Korea has been the largest source of imports

Based on foreign producers data covering

Factors influencing supply responsiveness

The responding Thai producer had the fewest

Source: Prreston Publishin

Source: Prreston Publishin

Billion cubic feet per day

Million barrels per day

Demand in the United States:

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

Note.A=Always, F=Frequently, S=Sometimes, N=Never.

Number of U.S. producers

Number of U.S. importers

U.S. vs. Korea

U.S. vs. Philippines

U.S. vs. Saudi Arabia

U.S. vs. Taiwan

U.S. vs. Thailand

U.S. vs. Turkey

U.S. vs. Ukraine

U.S. vs. Vietnam

India vs. Philippines

India vs. Saudi Arabia

India vs. Taiwan

India vs. Thailand

India vs. Turkey

India vs. Ukraine

India vs. Vietnam

Korea vs. Philippines

Korea vs. Saudi Arabia

Korea vs. Taiwan

Korea vs. Thailand

Korea vs. Turkey

Korea vs. Ukraine

Korea vs. Vietnam

Philippines vs. Saudi Arabia

Philippines vs. Taiwan

Philippines vs. Thailand

Philippines vs. Turkey

Philippines vs. Ukraine

Philippines vs. Vietnam

Saudi Arabia vs. Taiwan

Saudi Arabia vs. Thailand

Saudi Arabia vs. Turkey