The US Department of Commerce has imposed preliminary countervailing duties of 15.7% on drill pipe imports from China, the Wall Street Journal reported. The duties, which come in the wake of a similar ruling on steel pipe, may well increase trade tensions between the US and China. However, drilling contractors say there is about a year’s worth of stockpiled inventory, so it may take a while for the full impact of the duties to be felt. According to the Department of Commerce, Chinese manufacturers were dumping about US$200 million of drill pipes in the US for less than their market value. The petitioners in the case, TMK Ipsco, Rotary Drilling Tools, Texas Steel Conversions, VAM Drilling USA and the United Steelworkers Union have also launched a case claiming they suffered financial damage as a result of Chinese drill pipe imports. Drill pipe, which is typically used in oil and natural gas exploration, is a small yet profitable market niche.
Categories