U.S. International Trade Commission

Publication 4106 November 2009

Washington, DC 20436

Certain Seamless Carbon and Alloy Steel

Standard, Line, and Pressure Pipe

from China

Investigation Nos. 701-TA-469 and 731-TA-1168 (Preliminary)
U.S. International Trade Commission

COMMISSIONERS

Shara L. Aranoff, Chairman 

Daniel R. Pearson, Vice Chairman 

Deanna Tanner Okun 

Charlotte R. Lane 

Irving A. Williamson 

Dean A. Pinkert

Staff assigned

Address all communications to 

Secretary to the Commission 

United States International Trade Commission 

Washington, DC 20436

Robert A. Rogowsky

Director of Operations

Joanna Lo, Investigator

Clark Workman, Economist

Charles Yost, Accountant/Auditor

Alan Treat, Industry Analyst

Patrick Gallagher, Attorney-Advisor

Douglas Corkran, Supervisory Investigator

Lita David-Harris, Statistician
U.S. International Trade Commission

Washington, DC 20436 

www.usitc.gov

Publication 4106 November 2009

Certain Seamless Carbon and Alloy Steel

Standard, Line, and Pressure Pipe

from China

Investigation Nos. 701-TA-469 and 731-TA-1168 (Preliminary)

i

CONTENTS

Page

Determinations ................................................................. 1

Views of the Commission ......................................................... 3

Part I: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1

Statutory criteria and organization of the report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2

Statutory criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2

Organization of the report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3

U.S. market summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3

Summary data and data sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-4

Previous and related investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-5

Previous and related Title VII investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-5

Previous and related global safeguard investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6

Nature and extent of alleged subsidies and sales at LTFV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-7

Alleged subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-7

Alleged sales at LTFV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-8

The subject merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-9

Commerce’s scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-9

Tariff treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-9

The product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-10

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-10

Description and applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-10

Production processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-12

Domestic like product issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-16

Physical characteristics and uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-16

Manufacturing facilities and employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-17

Interchangeability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-18

Customer and producer perceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-18

Channels of distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-18

Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19

Part II: Conditions of competition in the U.S. market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1-1

U.S. market characteristics and channels of distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1-1

Supply and demand considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1-1

U.S. supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1-1

Foreign supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1-4

U.S. demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1-5

Substitutability issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I1-7

Comparison of domestic products and subject and nonsubject imports . . . . . . . . . . . . . . . . . I1-8
ii

CONTENTS

Page

Part III: U.S. producers’ production, shipments, and employment ...................... III-1

U.S. producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1

U.S. capacity, production, and capacity utilization ................................... III-4

U.S. producers’ shipments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-4

Order books ................................................................. III-5

U.S. producers’ inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-5

U.S. producers’ imports and purchases ............................................ III-5

U.S. employment, wages, and productivity ......................................... III-6

Part IV: U.S. imports, apparent consumption, and market shares . . . . . . . . . . . . . . . . . . . . . . IV-1

U.S. importers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-1

U.S. imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-1

Primary ports of entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-14

Negligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-14

Apparent U.S. consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-15

U.S. market shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-18

Ratio of imports to U.S. production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-18

Part V: Pricing and related information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1

Factors affecting prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1

Raw material costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1

U.S. inland transportation costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1

Pricing practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-2

Price data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-2

Price trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-3

Price comparisons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-4

Lost sales and revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-5

Part VI: Financial condition of U.S. producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1

Operations on seamless SLP pipe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1

Capital expenditures and research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-5

Assets and return on investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-5

Capital and investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-5

Actual negative effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-6

Anticipated negative effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-6
iii

CONTENTS

Page

Part VII: Threat considerations and information on nonsubject countries ............... VII-1

The industry in China .......................................................... VII-1

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-1

Operations on seamless SLP pipe .............................................. VII-2

U.S. inventories of seamless SLP pipe ............................................. VII-4

U.S. importers’ current orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-5

Antidumping investigations in third-country markets ................................. VII-5

Global market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-6

Supply ................................................................... VII-6

Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-6

Leading suppliers in the U.S. market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-11

Appendixes

A. Federal Register notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1

B. Conference witnesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1

C. Summary data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-1

D. Comparison of small diameter and large diameter seamless SLP pipe . . . . . . . . . . . . . . . . . . . . D-1

E. Nonsubject country price data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E-1

Note.--Information that would reveal confidential operations of individual concerns may not be published

and therefore has been deleted from this report. Such deletions are indicated by asterisks.

 1

 The record is defined in sec. 207.2(f) of the Commission’s Rules of Practice and Procedure (19 CFR § 207.2(f)).

 2

 On September 25, 2009, the petition was amended to add TMK IPSCO and The United Steel, Paper and

Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Worker International Union (“USW”) as

additional petitioners.

UNITED STATES INTERNATIONAL TRADE COMMISSION

Investigation Nos. 701-TA-469 and 731-TA-1168 (Preliminary)

CERTAIN SEAMLESS CARBON AND ALLOY STEEL STANDARD, LINE, 

AND PRESSURE PIPE FROM CHINA

DETERMINATIONS

On the basis of the record1

 developed in the subject investigations, the United States International

Trade Commission (Commission) determines, pursuant to sections 703(a) and 733(a) of the Tariff Act of

1930 (19 U.S.C. § 1671b(a) and 1673b(a)) (the Act), that there is a reasonable indication that an industry

in the United States is threatened with material injury by reason of imports from China of certain

seamless carbon and alloy steel standard, line, and pressure pipe, provided for in subheadings 7304.19,

7304.31, 7304.39, 7304.51, and 7304.59 of the Harmonized Tariff Schedule of the United States, that are

alleged to be subsidized by the Government of China and sold in the United States at less than fair value

(LTFV).

COMMENCEMENT OF FINAL PHASE INVESTIGATIONS

Pursuant to section 207.18 of the Commission's rules, the Commission also gives notice of the

commencement of the final phase of its investigations. The Commission will issue a final phase notice of

scheduling, which will be published in the Federal Register as provided in section 207.21 of the

Commission's rules, upon notice from the Department of Commerce (Commerce) of affirmative

preliminary determinations in these investigations under sections 703(b) and 733(b) of the Act, or, if the

preliminary determinations are negative, upon notice of affirmative final determinations in these

investigations under sections 705(a) and 735(a) of the Act. Parties that filed entries of appearance in the

preliminary phase of the investigations need not enter a separate appearance for the final phase of the

investigations. Industrial users, and, if the merchandise under investigations is sold at the retail level,

representative consumer organizations have the right to appear as parties in Commission antidumping and

countervailing duty investigations. The Secretary will prepare a public service list containing the names

and addresses of all persons, or their representatives, who are parties to the investigations.

BACKGROUND

On September 16, 2009, counsel on behalf of U.S. Steel Corp., Pittsburgh, PA and V&M Star

L.P., Houston, TX, filed a countervailing duty and antidumping petition with both the Commission and

the Department of Commerce.2

 The petition alleges that an industry in the United States is materially

injured and threatened with material injury by reason of imports of certain seamless carbon and alloy steel

standard, line, and pressure pipe allegedly subsidized by the Government of China and sold at less than

fair value. Accordingly, effective September 16, 2009, the Commission instituted countervailing duty

investigation No. 701-TA-469 (Preliminary) and antidumping duty investigation No. 731-TA-1168

(Preliminary).

 1

 19 U.S.C. §§ 1671b(a), 1673b(a) (2000); see also American Lamb Co. v. United States, 785 F.2d 994, 1001-04

(Fed. Cir. 1986); Aristech Chemical Corp. v. United States, 20 CIT 353, 354 (1996). No party argued that the

establishment of an industry is materially retarded by reason of the allegedly unfairly traded imports.

 2 American Lamb, 785 F.2d at 1001; see also Texas Crushed Stone Co. v. United States, 35 F.3d 1535, 1543

(Fed. Cir. 1994).

 3

 Petitions, Vol. I at 2; Confidential Staff Report, Mem. INV-GG-101 at III-1 (October 26, 2009) (“CR”). On

September 25, 2009, the petition was amended to include TMK IPSCO, Ambridge, Pennsylvania, and The United

Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International

Union (“USW”) as additional petitioners.

 4

 V&M Star, TMK IPSCO, and the USW filed a joint postconference brief.

 5

 The Commission received usable responses from U.S. Steel, V&M Star, TMK IPSCO, The Timken Company

(“Timken”), and Wheatland Tube Co. (a subsidiary of The John Maneely Company that produces seamless SLP

pipe) (“Wheatland”). Evraz Rocky Mountain Steel reported that it did not produce the domestic like product during

the period for which data were collected. See CR at III-1, n.1, PR at III-1, n.1. 

 6

 CR at III-1, PR at III-1. Originally, it was believed that the five domestic producers accounted for 100 percent

of U.S. production of the domestic like product in 2008. According to staff interviews and follow-up

communications, however, another company, Wyman-Gordon Forgings, is now believed to produce the domestic

like product. The company estimates that it produces and sells *** of large diameter (*** inch seamless ***) pipe

annually. We will examine this issue in any final phase of these investigations.

3

VIEWS OF THE COMMISSION

Based on the record in the preliminary phase of these investigations, we find a reasonable

indication that an industry in the United States is threatened with material injury by reason of imports of

seamless carbon and alloy steel standard, line, and pressure pipe (“seamless SLP pipe”) from the People’s

Republic of China (“China”) that are allegedly sold in the United States at less than fair value and

subsidized by the Government of China.

I. THE LEGAL STANDARD FOR PRELIMINARY DETERMINATIONS

The legal standard for preliminary antidumping and countervailing duty determinations requires

the Commission to determine, based upon the information available at the time of the preliminary

determination, whether there is a reasonable indication that a domestic industry is materially injured,

threatened with material injury, or the establishment of an industry is materially retarded, by reason of the

allegedly unfairly traded imports.1

 In applying this standard, the Commission weighs the evidence before

it and determines whether “(1) the record as a whole contains clear and convincing evidence that there is

no material injury or threat of such injury; and (2) no likelihood exists that contrary evidence will arise in

a final investigation.”2

II. BACKGROUND

The petitions in these investigations were filed on September 16, 2009, by U.S. Steel Corporation

(“U.S. Steel”), Pittsburgh, Pennsylvania, and V&M Star L.P. (“V&M Star”), Houston, Texas

(“Petitioners”).3

 Representatives from U.S. Steel, V&M Star, and the USW appeared at the staff

conference accompanied by counsel and submitted postconference briefs.4

 The Commission sent

questionnaires to six firms identified in the petitions as producers of seamless SLP pipe and received five

usable questionnaire responses.5

 These domestic producers accounted for the large majority of U.S.

production of the domestic like product in 2008.6
 7

 CR at VII-5, PR at VII-2.

 8

 CR at VII-6, PR at VII-3 (as revised by Memorandum INV-GG-103, October 29, 2009).

 9

 19 U.S.C. § 1677(4)(A).

 10 19 U.S.C. § 1677(4)(A).

 11 19 U.S.C. § 1677(10).

 12 See, e.g., Cleo, Inc. V. United States, 501 F.3d 1291, 1299 (Fed. Cir. 2007); NEC Corp. v. Department of

Commerce, 36 F. Supp. 2d 380, 383 (Ct. Int’l Trade 1998); Nippon Steel Corp. v. United States, 19 CIT 450, 455

(1995); Torrington Co. v. United States, 747 F. Supp. 744, 749 n.3 (Ct. Int’l Trade 1990), aff’d, 938 F.2d 1278 (Fed.

Cir. 1991) (“every like product determination ‘must be made on the particular record at issue’ and the ‘unique facts

of each case’”). The Commission generally considers a number of factors including: (1) physical characteristics and

uses; (2) interchangeability; (3) channels of distribution; (4) customer and producer perceptions of the products;

(5) common manufacturing facilities, production processes, and production employees; and, where appropriate,

(6) price. See Nippon, 19 CIT at 455 n.4; Timken Co. v. United States, 913 F. Supp. 580, 584 (Ct. Int’l Trade 1996).

 13 See, e.g., S. Rep. No. 96-249 at 90-91 (1979).

 14 Nippon, 19 CIT at 455; Torrington, 747 F. Supp. at 748-49; see also S. Rep. No. 96-249 at 90-91 (1979)

(Congress has indicated that the like product standard should not be interpreted in “such a narrow fashion as to

permit minor differences in physical characteristics or uses to lead to the conclusion that the product and article are

not ‘like’ each other, nor should the definition of ‘like product’ be interpreted in such a fashion as to prevent

consideration of an industry adversely affected by the imports under consideration.”).

4

Counsel for a Chinese producer, Hengyang Valin Steel Tube Co., Ltd. (“Hengyang Valin”),

appeared at the staff conference and submitted a postconference brief.

The Commission sent questionnaires to 151 firms believed to be importers of subject seamless

SLP pipe, based on information provided in the petitions and information provided by U.S. Customs and

Border Protection. Usable questionnaire responses were received from 28 U.S. importers and accounted

for 65.4 percent of total subject seamless SLP pipe imports in 2008.

The Commission sent foreign producer questionnaires to 84 Chinese firms believed to be

producing seamless SLP pipe. Four firms provided usable responses.7

 These firms’ exports to the United

States accounted for 9.3 percent of seamless SLP pipe imported from China in 2008 as reported in official

Commerce import statistics.8

III. DOMESTIC LIKE PRODUCT

A. In General

In determining whether an industry in the United States is materially injured or threatened with

material injury by reason of imports of the subject merchandise, the Commission first defines the

“domestic like product” and the “industry.”9

 Section 771(4)(A) of the Tariff Act of 1930, as amended

(“the Act”), defines the relevant domestic industry as the “producers as a whole of a domestic like

product, or those producers whose collective output of a domestic like product constitutes a major

proportion of the total domestic production of the product.”10 In turn, the Act defines “domestic like

product” as “a product which is like, or in the absence of like, most similar in characteristics and uses

with, the article subject to an investigation ....”11

The decision regarding the appropriate domestic like product(s) in an investigation is a factual

determination, and the Commission has applied the statutory standard of “like” or “most similar in

characteristics and uses” on a case-by-case basis.12 No single factor is dispositive, and the Commission

may consider other factors it deems relevant based on the facts of a particular investigation.13 The

Commission looks for clear dividing lines among possible like products and disregards minor variations.14

Although the Commission must accept the determination of the U.S. Department of Commerce
 15 See, e.g., USEC, Inc. v. United States, Slip Op. 01-1421at 9 (Fed. Cir. April 25, 2002) (“The ITC may not

modify the class or kind of imported merchandise examined by Commerce.”); Algoma Steel Corp. v. United States,

688 F. Supp. 639, 644 (Ct. Int’l Trade 1988), aff’d, 865 F.3d 240 (Fed. Cir.), cert. denied, 492 U.S. 919 (1989).

 16 Hosiden Corp. v. Advanced Display Mfrs., 85 F.3d 1561, 1568 (Fed. Cir. 1996) (Commission may find a

single like product corresponding to several different classes or kinds defined by Commerce); Cleo, 501 F.3d at

1298 n.1 (“Commerce’s {scope} finding does not control the Commission’s {like product} determination.”);

Torrington, 747 F. Supp. at 748-52 (affirming Commission determination of six like products in investigations where

Commerce found five classes or kinds).

 17 See, e.g., Acciai Speciali Terni S.p.A. v. United States, 118 F. Supp. 2d 1298, 1304-05 (Ct. Int’l Trade 2000);

Nippon, 19 CIT at 455; Asociacion Colombiana de Exportadores de Flores v. United States, 693 F. Supp. 1165,

1169 n.5 (Ct. Int’l Trade 1988); Citrosuco Paulista, S.A. v. United States, 704 F. Supp. 1075, 1087-88 (Ct. Int’l

Trade 1988).

 18 74 Fed. Reg. 52744, 52748 (October 14, 2009) (initiation of antidumping investigation) and 74 Fed. Reg.

52945, 52948 (October 15, 2009) (initiation of countervailing duty investigation).

5

(“Commerce”) as to the scope of the imported merchandise that is subsidized or sold at less than fair

value,15 the Commission determines what domestic product is like the imported articles Commerce has

identified.16 The Commission must base its domestic like product determination on the record in these

investigations. The Commission is not bound by prior determinations, even those pertaining to the same

imported products, but may draw upon previous determinations in addressing pertinent like product

issues.17 Each like product determination made by the Commission is sui generis, and starts with the

scope of the investigation.

B. Product Description

Commerce’s notices of initiation defined the imported merchandise within the scope of these

investigations as follows:

The merchandise covered by this investigation is certain seamless carbon and alloy steel

(other than stainless steel) pipes and redraw hollows, less than or equal to 16 inches

(406.4 mm) in outside diameter, regardless of wall-thickness, manufacturing process (e.g.

hot-finished or cold-drawn), end finish (e.g. plain end, beveled end, upset end, threaded,

or threaded and coupled), or surface finish (e.g.. bare, lacquered or coated). Redraw

hollows are any unfinished carbon or alloy steel (other than stainless steel) pipe or

‘‘hollow profiles’’ suitable for cold finishing operations, such as cold drawing, to meet

the American Society for Testing and Materials (‘‘ASTM’’) or American Petroleum

Institute (‘‘API’’) specifications referenced below, or comparable specifications. 

Specifically included within the scope are seamless carbon and alloy steel (other than

stainless steel) standard, line, and pressure pipes produced to the ASTM A–53, ASTM

A–106, ASTM A–333, ASTM A–334, ASTM A–335, ASTM A–589, ASTM A–795,

ASTM A–1024, and the API 5L specifications, or comparable specifications, and

meeting the physical parameters described above, regardless of application, with the

exception of the exclusion discussed below.

Specifically excluded from the scope of the investigation are unattached

couplings.18
 19 CR at I-11 to I-12, PR at I-10 to I-11. Seamless standard pipes are most commonly produced to the ASTM

A-53 specification and generally are not intended for high temperature service. If exceptionally low temperature

uses or conditions are anticipated, standard pipe may be manufactured to ASTM A-333 or ASTM A-334

specifications.

 20 CR at I-12, PR at I-10.

 21 Seamless pressure pipes sold in the United States are commonly produced to the ASTM A-106 standard. 

Alloy pipes made to the ASTM A-335 standard must be used if temperatures and stress levels exceed those allowed

for ASTM A-106. CR at I-13, n.25, PR at I-11, n.25.

 22 CR at I-12 and n.24, PR at I-11 and n.24.

 23 Quadruple certification is referred to as a “quad stencil,” whereby manufacturers put four stencils, or markings,

on the pipe to show that it has been produced to meet the requirements and tests of the respective specifications

(ASTM A-53, ASTM A-106, API 5L grade B, and API 5L X-42). CR at I-12 to I-13 and n.24, PR at I-11 and n.24.

 24 U.S. Steel Postconference Brief at Exhibit 1; V&M Star Postconference Brief at 2-8; and Petitions, Vol. I at 5. 

Petitioners request that the Commission find one domestic like product comprised of all seamless SLP pipe less than

or equal to 16 inches in outside diameter. Id.

 25 Hengyang Valin Postconference Brief at 4-10. In support of its proposed definitions, Hengyang Valin cites the

Commission’s like product findings in Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe

from Japan and South Africa, USITC Pub. 3311, 731-TA-847 and 850 (Final) (June 2000). We note, however, that

Commission determinations are sui generis in nature, and like product determinations are based on the record of each

investigation. See e.g., Citrosuco Paulista, S.A. v. United States, 704 F. Supp. 1075, 1087-88 (CIT 1988);

Asociacion Colombiana de Exportadores de Flores v. United States, 693 F. Supp 1165, 1669 n.5 (CIT 1988).

6

Seamless SLP pipe is used for the transmission of oil and natural gas; in chemical, petrochemical,

and refinery facilities; and in mechanical applications for general construction. Seamless standard pipe is

intended for the low temperature and pressure conveyance of water, steam, natural gas, air, and other

liquids and gases in plumbing and heating systems, air conditioning units, automatic sprinkler systems,

and other related uses.19 Seamless line pipe is produced to the API 5L specification and is intended for

the conveyance of oil and natural gas or other fluids in pipe lines, transmission lines, or gathering lines.20

Seamless pressure pipe is commonly produced to the ASTM A-106 specification (covering seamless

carbon steel pipe for higher temperature service) and is intended for the conveyance of water, steam,

petrochemicals, chemicals, oil products, natural gas, and other liquids and gases in industrial piping

systems. Seamless pressure pipe may carry these substances at elevated pressures and temperatures and

may be subject to the application of external heat.21 Seamless SLP pipes are commonly produced and

certified to meet all of the most common standard, line, and pressure pipe requirements (i.e.,

multiple-certified or multiple-stenciled)22 to avoid separate production runs and to allow distributors to

maintain a single inventory of “quad-stenciled”23 pipe for multiple applications.

C. Domestic Like Product Analysis

Petitioners argue that the Commission should find a single seamless SLP pipe domestic like

product that is co-extensive with the scope of the investigations as defined by Commerce.24 Hengyang

Valin disagrees with Petitioners and argues that the Commission should define two domestic like products

comprised of “small diameter” seamless SLP pipe less than or equal to 4.5 inches in outside diameter and

“large diameter” seamless SLP pipe greater than 4.5 inches and less than or equal to 16 inches in outside

diameter.25
 26 CR at D-3, PR at D-3. See also Petitions, Vol. I at 15-16; U.S. Steel Postconference Brief, Exhibit 1 at 6.

 27 Petitions, Vol. I at 15-16; U.S. Steel Postconference Brief, Exhibit 1 at 6.

 28 CR at D-5 to D-6, PR at D-3.

 29 CR at D-3, PR at D-3.

 30 CR at D-6, PR at D-3.

 31 CR/PR at Table I-3. U.S. Steel Postconference Brief, Exhibit 1 at 7-8; V&M Postconference Brief at 7; and

Hengyang Valin Postconference Brief at 8.

 32 CR at D-7, PR at D-3; CR/PR at Table II-1.

 33 CR at D-3 to D-4, PR at D-3.

 34 *** Staff Correspondence (e-mail from ***), dated October 12, 2009.

 35 CR at D-3, PR at D-3.

7

Physical Characteristics and Uses

Small and large diameter seamless SLP pipes share nearly all the same physical characteristics

and are made to common specifications from identical grades of carbon and alloy steel. Size is the only

physical difference between small and large diameter pipes, and the difference in pipe sizes can

correspond to different end uses.26 Small diameter SLP pipe generally is used in industrial applications

such as refineries and chemical plants to carry liquids or gases under pressure, while large diameter SLP

pipe generally is used in pipeline applications to convey large volumes of oil and gas over longer

distances. Petitioners claim that small and large diameter SLP pipes have some overlapping end uses and

that both are used in standard, line, and pressure pipe applications.27 Nearly all reporting importers stated

that the characteristics and uses of small and large diameter seamless SLP pipes are either the same or

similar, while several also noted that the only physical difference was size.28

Interchangeability

Small and large diameter seamless SLP pipes are not generally interchangeable because the size

of the pipe is a function of the design requirements. Producers report that seamless SLP pipes of different

sizes are not interchangeable regardless of whether they are small or large diameter pipes.29 Importers

report generally that small and large diameter seamless SLP pipes are not interchangeable because of

differences in engineering requirements and design factors (end uses).30

Channels of distribution

All parties agree that the channels of distribution for all sizes of seamless SLP pipe less than or

equal to 16 inches in outside diameter are the same, with *** percent of domestic producers’ U.S.

shipments sold to distributors and the remainder to end users.31 Moreover, virtually all importers reported

that the channels of distribution for small and large diameter seamless SLP pipe are the same or similar,

again with the majority of shipments being made to distributors.32

Common Manufacturing Facilities, Production Processes, and Production Employees

Producers stated that the manufacturing processes used to make small and large diameter pipes

are the same – using the rotary piercing process and steel billets (for seamless SLP pipe greater than 2.0

inches in outside diameter).33 Only two of the five U.S. producers, ***, currently manufacture both small

and large diameter seamless SLP pipes, but four of the U.S. producers reported using the same rotary

piercing manufacturing processes, regardless of the diameter of the pipe.34 ***.35 Virtually all
 36 CR at I-21 to I-22, PR at I-17; and CR at D-3 to D4 and D-6 to D-7, PR at D-3. Small diameter seamless SLP

pipe of 2 inches or less in outside diameter often is produced using the cold drawn method because hot-rolling (used

in the rotary piercing method) of small diameter pipe is often not possible. CR at I-17, PR at I-14. Gulf States Tube

Division, a producer of seamless SLP pipe of 2.5 inches or less in outside diameter, ceased operations in 2002. The

exit of this producer from the domestic seamless SLP pipe industry resulted in a significantly greater share of U.S.

producers manufacturing both small and large diameter seamless SLP pipe. V&M Star Postconference Brief at 4.

 37 CR at D-4, PR at D-3.

 38 CR at D-8, PR at D-3.

 39 See CR/PR at Tables I-4 and V-1 through V-4.

 40 CR/PR at Tables V-1 to V-4 (as compared to product of 2" in outside diameter and 4" in outside diameter,

product that is 8" in outside diameter is lower priced, but product that is 12" in outside diameter is higher priced, on

a per short ton basis). The average unit values (“AUVs”) for small diameter seamless SLP pipe were somewhat

higher than the AUVs of the large diameter pipe over the period examined. Nevertheless, we do not find the

difference in AUVs to be significant. CR/PR at Tables C-1 and C-2.

 41 CR/PR at Table I-4; CR at D-8 to D-9, PR at D-3.

8

responding importers stated that small and large diameter seamless SLP pipes are produced using the

same or similar manufacturing process, the rotary piercing process.36

Producer and Customer Perceptions

Producers generally reported that customers and producers do not perceive small and large

diameter pipes as distinct products, but rather perceive the full range of sizes as similar. Producers note

that ASTM and API specifications – which they report reflect the perceptions of producers and customers

alike – do not establish bright-line distinctions between small and large diameter SLP pipes.37 *** also

reports that it does not market “small” and “large” diameter SLP pipes, nor do its customers purchase

from *** on the basis of that distinction. Importers generally reported that customers and producers

perceive small and large diameter SLP pipes as similar.38

Price

Producers reported that prices were similar throughout the size ranges, consistent with average

unit value and price data collected by the Commission.39 Pricing data collected by the Commission do not

show the larger diameter product to be consistently lower priced than the smaller diameter product.40

Importers report generally that prices are similar across all seamless SLP pipe, but can vary based on a

variety of factors such as size, quantity, tolerances, and thickness.41

Conclusion

The record indicates that small diameter and large diameter seamless SLP pipes possess

similarities and differences with respect to uses and common manufacturing facilities/employees, but

mostly similarities with respect to physical characteristics, channels of distribution, manufacturing

methods, customer and producer perceptions, and price.

Both small and large diameter SLP pipes are seamless and made of carbon or alloy steel, are

manufactured to ASTM or API specifications using the same production methods (with the exception of

small diameter pipe generally 2.0 inches or less in outside diameter), and are generally used for the

transmission of fluids or gas under pressure. There remains some question as to the extent to which small

diameter and large diameter seamless SLP pipes may be used for applications other than industrial and

pipeline applications. Domestic producers accounting for a substantial portion of seamless SLP pipe
 42 The combined share of domestic production of the two domestic producers that manufacture both small and

large diameter seamless SLP pipes, ***, was *** percent of total seamless SLP pipe, *** percent of small diameter

pipe, and *** percent of large diameter pipe in 2008. CR/PR at Table III-1.

 43 CR at D-5 to D-6, PR at D-3.

 44 CR/PR at Table I-3.

 45 In any final phase of these investigations, we intend to seek further data to better assess the extent to which the

end uses for seamless SLP pipe vary with diameter, as argued by Hengyang Valin, in order to determine whether end

use presents a clear dividing line between small and large diameter seamless SLP pipes.

 46 19 U.S.C. § 1677(4)(A).

 47 The domestic industry is U.S. Steel, V&M Star, TMK IPSCO, Timken, and Wheatland. 

 48 We find no basis to exclude any producer from the domestic industry pursuant to the statute’s related party

provision. 19 U.S.C. § 1677(4)(B). In these investigations, one domestic producer, ***, is a related party because it

directly imported subject merchandise during the period examined. See CR/PR at Table at III-10. *** from China

in 2006 and 2007, in order to ***. CR/PR at Table III-10, n.2 and *** Importer Questionnaire. The quantity of ***

subject imports was much lower than its production of the domestic like product in 2006 and 2007. CR/PR at Table

III-8. The ratio of its subject imports to its domestic production was *** percent in 2006 and *** percent in 2007. 

CR/PR at Table III-10. *** the petitions, and its interests appear to be primarily in domestic production,

particularly given that it ceased importing the subject merchandise in 2007. CR at Tables III-1 and III-10. Notably,

no party argued for the exclusion from the domestic industry of any related party. Based on the information

discussed above, we do not find that appropriate circumstances exist to exclude any member of the domestic industry

in the preliminary phase of these investigations.

9

production in 2008 manufactured both small and large diameter pipe, with one producer manufacturing

both size ranges in one mill on the same equipment.42 Because purchasers generally seek seamless SLP

pipe that meets a particular ASTM/API or proprietary specification, seamless SLP pipes with different

diameters generally will not be substitutable for each other in particular end uses.43 All seamless SLP

pipe is sold through the same channels of distribution, principally through distributors, with the remainder

to end users.44 Prices for seamless SLP pipe vary based on a number of factors, although the data are

mixed regarding the existence of any relationship between price and diameter. Although customers and

producers perceive small and large pipes as different insofar as they are not generally interchangeable,

they do not perceive small and large seamless SLP pipes as two distinct product groups with a clear

dividing line at 4.5 inches in outside diameter.

Overall, the record indicates that seamless SLP pipe represents a continuum of products with no

clear dividing line between different sizes of seamless SLP pipe. Therefore, we find a single domestic

like product, consisting of all seamless SLP pipe less than or equal to 16 inches in outside diameter, that

is co-extensive with the scope of the investigations.45

IV. DOMESTIC INDUSTRY

The domestic industry is defined as the “producers as a whole of a domestic like product, or those

producers whose collective output of a domestic like product constitutes a major proportion of the total

domestic production of the product.”46 In defining the domestic industry, the Commission’s general

practice has been to include in the industry all domestic production of the domestic like product, whether

toll-produced, captively consumed, or sold in the domestic merchant market. Based on our finding of a

single domestic like product that is co-extensive with the scope of these investigations, we find that the

domestic industry includes all domestic producers of seamless carbon and alloy steel standard, line, and

pressure pipe with an outside diameter of 16 inches or less.47 48
 49 Negligibility under 19 U.S.C. § 1677(24) is not an issue in these investigations. Official statistics from

Commerce indicate that subject imports from China, by quantity, accounted for 53.2 percent of total seamless SLP

pipe imports from August 2008 to July 2009, the most recent 12-month period preceding the filing of the petition for

which data were available. CR at IV-15, PR at IV-14. Therefore, the volume of subject imports was well above the

statute’s three percent negligibility level.

 50 19 U.S.C. §§ 1671b(a), 1673b(a).

 51 19 U.S.C. § 1677(7)(B)( i). The Commission “may consider such other economic factors as are relevant to the

determination” but shall “identify each {such} factor ... {and} explain in full its relevance to the determination.” 

19 U.S.C. § 1677(7)(B).

 52 19 U.S.C. § 1677(7)(A).

 53 19 U.S.C. § 1677(7)(C)(iii).

 54 19 U.S.C. § 1677(7)(C)(iii).

 55 19 U.S.C. §§ 1671b(a), 1673b(a).

 56 Angus Chemical Co. v. United States, 140 F.3d 1478, 1484-85 (Fed. Cir. 1998) (“{T}he statute does not

‘compel the commissioners’ to employ {a particular methodology}.”), aff’g 944 F. Supp. 943, 951 (Ct. Int’l Trade

1996).

 57 The Federal Circuit, in addressing the causation standard of the statute, observed that “{a}s long as its effects

are not merely incidental, tangential, or trivial, the foreign product sold at less than fair value meets the causation

requirement.” Nippon Steel Corp. v. USITC, 345 F.3d 1379, 1384 (Fed. Cir. 2003). This was further ratified in

Mittal Steel Point Lisas Ltd. v. United States, 542 F.3d 867, 873 (Fed. Cir. 2008), where the Federal Circuit, quoting

Gerald Metals, Inc. v. United States, 132 F.3d 716, 722 (Fed. Cir. 1997), stated that “this court requires evidence in

the record ‘to show that the harm occurred “by reason of” the LTFV imports, not by reason of a minimal or

tangential contribution to material harm caused by LTFV goods.’” See also Nippon Steel Corp. v. United States, 458

10

V. REASONABLE INDICATION OF THREAT OF MATERIAL INJURY BY REASON OF

SUBJECT IMPORTS49

A. Legal Standard

In the preliminary phase of antidumping or countervailing duty investigations, the Commission

determines whether there is a reasonable indication that an industry in the United States is materially

injured or threatened with material injury by reason of the imports under investigation.50 In making this

determination, the Commission must consider the volume of subject imports, their effect on prices for the

domestic like product, and their impact on domestic producers of the domestic like product, but only in

the context of U.S. production operations.51 The statute defines “material injury” as “harm which is not

inconsequential, immaterial, or unimportant.”52 In assessing whether there is a reasonable indication that

the domestic industry is materially injured or threatened with material injury by reason of subject imports,

we consider all relevant economic factors that bear on the state of the industry in the United States.53 No

single factor is dispositive, and all relevant factors are considered “within the context of the business

cycle and conditions of competition that are distinctive to the affected industry.”54

Although the statute requires the Commission to determine whether there is a reasonable

indication that the domestic industry is materially injured or threatened with material injury “by reason

of” unfairly traded imports,55 it does not define the phrase “by reason of,” indicating that this aspect of the

injury analysis is left to the Commission’s reasonable exercise of its discretion.56 In identifying a causal

link, if any, between subject imports and material injury to the domestic industry, the Commission

examines the facts of record that relate to the significance of the volume and price effects of the subject

imports and any impact of those imports on the condition of the domestic industry. This evaluation under

the “by reason of” standard must ensure that subject imports are more than a minimal or tangential cause

of injury and that there is a sufficient causal, not merely a temporal, nexus between subject imports and

material injury.57
F.3d 1345, 1357 (Fed. Cir. 2006); Taiwan Semiconductor Industry Ass’n v. USITC, 266 F.3d 1339, 1345 (Fed. Cir.

2001).

 58 Statement of Administrative Action (“SAA”) on Uruguay Round Agreements Act (“URAA”), H.R. Rep. 103-

316, Vol. I at 851-52 (1994) (“{T}he Commission must examine other factors to ensure that it is not attributing

injury from other sources to the subject imports.”); S. Rep. 96-249 at 75 (1979) (the Commission “will consider

information which indicates that harm is caused by factors other than less-than-fair-value imports.”); H.R. Rep. 96-

317 at 47 (1979) (“in examining the overall injury being experienced by a domestic industry, the ITC will take into

account evidence presented to it which demonstrates that the harm attributed by the petitioner to the subsidized or

dumped imports is attributable to such other factors;” those factors include “the volume and prices of nonsubsidized

imports or imports sold at fair value, contraction in demand or changes in patterns of consumption, trade restrictive

practices of and competition between the foreign and domestic producers, developments in technology and the

export performance and productivity of the domestic industry”); accord Mittal Steel, 542 F.3d at 877.

 59 SAA at 851-52 (“{T}he Commission need not isolate the injury caused by other factors from injury caused by

unfair imports.”); Taiwan Semiconductor Industry Ass’n v. USITC, 266 F.3d 1339, 1345 (Fed. Cir. 2001) (“{T}he

Commission need not isolate the injury caused by other factors from injury caused by unfair imports ... . Rather, the

Commission must examine other factors to ensure that it is not attributing injury from other sources to the subject

imports.” (emphasis in original)); Asociacion de Productores de Salmon y Trucha de Chile AG v. United States, 180

F. Supp. 2d 1360, 1375 (Ct. Int’l Trade 2002) (“{t}he Commission is not required to isolate the effects of subject

imports from other factors contributing to injury” or make “bright-line distinctions” between the effects of subject

imports and other causes.); see also Softwood Lumber from Canada, Inv. Nos. 701-TA-414 and 731-TA-928

(Remand), USITC Pub. 3658 at 100-01 (Dec. 2003) (Commission recognized that “{i}f an alleged other factor is

found not to have or threaten to have injurious effects to the domestic industry, i.e., it is not an ‘other causal factor,’

then there is nothing to further examine regarding attribution to injury”), citing Gerald Metals, Inc. v. United States,

132 F.3d 716, 722 (Fed. Cir. 1997) (the statute “does not suggest that an importer of LTFV goods can escape

countervailing duties by finding some tangential or minor cause unrelated to the LTFV goods that contributed to the

harmful effects on domestic market prices.”). 

 60 S. Rep. 96-249 at 74-75; H.R. Rep. 96-317 at 47.

 61 See Nippon Steel Corp., 345 F.3d at 1381 (“an affirmative material-injury determination under the statute

requires no more than a substantial-factor showing. That is, the ‘dumping’ need not be the sole or principal cause of

injury.”).

11

In many investigations, there are other economic factors at work, some or all of which may also

be having adverse effects on the domestic industry. Such economic factors might include nonsubject

imports; changes in technology, demand, or consumer tastes; competition among domestic producers; or

management decisions by domestic producers. The legislative history explains that the Commission must

examine factors other than subject imports to ensure that it is not attributing injury from other factors to

the subject imports, thereby inflating an otherwise tangential cause of injury into one that satisfies the

statutory material injury threshold.58 In performing its examination, however, the Commission need not

isolate the injury caused by other factors from injury caused by unfairly traded imports.59 Nor does the

“by reason of” standard require that unfairly traded imports be the “principal” cause of injury or

contemplate that injury from unfairly traded imports be weighed against other factors, such as nonsubject

imports, which may be contributing to overall injury to an industry.60 It is clear that the existence of

injury caused by other factors does not compel a negative determination.61

Assessment of whether material injury or threat of material injury to the domestic industry is “by

reason of” subject imports “does not require the Commission to address the causation issue in any

particular way” as long as “the injury to the domestic industry can reasonably be attributed to the subject

imports” and the Commission “ensure{s} that it is not attributing injury from other sources to the subject
 62 Mittal Steel, 542 F.3d at 877-78; see also id. at 873 (“While the Commission may not enter an affirmative

determination unless it finds that a domestic industry is materially injured ‘by reason of’ subject imports, the

Commission is not required to follow a single methodology for making that determination ... . {and has} broad

discretion with respect to its choice of methodology.”) citing United States Steel Group v. United States, 96 F.3d

1352, 1362 (Fed. Cir. 1996) and S. Rep. 96-249 at 75.

 63 Commissioner Pinkert does not join this paragraph or the following three paragraphs. He points out that the

Federal Circuit, in Bratsk, 444 F.3d 1369, and Mittal, held that the Commission is required, in certain circumstances,

when considering present material injury, to undertake a particular kind of analysis of nonsubject imports. Mittal

explains as follows:

What Bratsk held is that “where commodity products are at issue and fairly traded, price-competitive, nonsubject imports are in the market,” the Commission would not fulfill its obligation to consider an important

aspect of the problem if it failed to consider whether non-subject or non-LTFV imports would have

replaced LTFV subject imports during the period of investigation without a continuing benefit to the

domestic industry. 444 F.3d at 1369. Under those circumstances, Bratsk requires the Commission to

consider whether replacement of the LTFV subject imports might have occurred during the period of

investigation, and it requires the Commission to provide an explanation of its conclusion with respect to

that factor.

542 F.3d at 878.

 64 Nucor Corp. v. United States, 414 F.3d 1331, 1336, 1341 (Fed. Cir. 2005); see also Mittal Steel, 542 F.3d at

879 (“Bratsk did not read into the antidumping statute a Procrustean formula for determining whether a domestic

injury was ‘by reason’ of subject imports.”).

 65 Mittal Steel, 542 F.3d at 875-79.

 66 Mittal Steel, 542 F.3d at 873 (quoting from Gerald Metals, 132 F.3d at 722), 875-79 & n.2 (recognizing the

Commission’s alternative interpretation of Bratsk as a reminder to conduct a non-attribution analysis).

12

imports.”62 63 Indeed, the Federal Circuit has examined and affirmed various Commission methodologies

and has disavowed “rigid adherence to a specific formula.”64

The Federal Circuit’s decisions in Gerald Metals, Bratsk, and Mittal Steel all involved cases

where the relevant “other factor” was the presence in the market of significant volumes of pricecompetitive nonsubject imports. The Commission interpreted the Federal Circuit’s guidance in Bratsk as

requiring it to apply a particular additional methodology following its finding of material injury in cases

involving commodity products and a significant market presence of price-competitive nonsubject

imports.65 The additional “replacement/benefit” test looked at whether nonsubject imports might have

replaced subject imports without any benefit to the U.S. industry. The Commission applied that specific

additional test in subsequent cases, including the Carbon and Certain Alloy Steel Wire Rod from Trinidad

and Tobago determination that underlies the Mittal Steel litigation.

Mittal Steel clarifies that the Commission’s interpretation of Bratsk was too rigid and makes clear

that the Federal Circuit does not require the Commission to apply an additional test nor any one specific

methodology; instead, the court requires the Commission to have “evidence in the record ‘to show that

the harm occurred ‘by reason of’ the LTFV imports,’” and requires that the Commission not attribute

injury from nonsubject imports or other factors to subject imports.66 Accordingly, we do not consider

ourselves required to apply the replacement/benefit test that was included in Commission opinions

subsequent to Bratsk.

The progression of Gerald Metals, Bratsk, and Mittal Steel clarifies that, in cases involving

commodity products where price-competitive nonsubject imports are a significant factor in the U.S.
 67 Commissioner Lane also refers to her dissenting views in Polyethylene Terephthalate Film, Sheet, and Strip

from Brazil, China, Thailand, and the United Arab Emirates, Inv. Nos. 731-TA-1131-1134 (Final), USITC Pub.

4040 (Oct. 2008), for further discussion of Mittal Steel.

 68 To that end, after the Federal Circuit issued its decision in Bratsk, the Commission began to present published

information or send out information requests in final phase investigations to producers in nonsubject countries that

accounted for substantial shares of U.S. imports of subject merchandise (if, in fact, there were large nonsubject

import suppliers). In order to provide a more complete record for the Commission’s causation analysis, these

requests typically seek information on capacity, production, and shipments of the product under investigation in the

major source countries that export to the United States. The Commission plans to continue utilizing published or

requested information in final phase investigations in which there are substantial levels of nonsubject imports.

 69 Mittal Steel, 542 F.3d at 873; Nippon Steel Corp., 458 F.3d at 1350, citing U.S. Steel Group, 96 F.3d at 1357;

S. Rep. 96-249 at 75 (“The determination of the ITC with respect to causation is ... complex and difficult, and is a

matter for the judgment of the ITC.”).

 70 We provide in the discussion of impact below an analysis of other factors alleged to have caused any threat of

material injury that likely would be experienced by the domestic industry. 

 71 19 U.S.C. § 1677(7)(F)(ii).

 72 19 U.S.C. § 1677(7)(F)(ii).

 73 These factors are as follows:

(I) if a countervailable subsidy is involved, such information as may be presented to it by the administering

authority as to the nature of the subsidy (particularly as to whether the countervailable subsidy is a subsidy

described in Article 3 or 6.1 of the Subsidies Agreement) and whether imports of the subject merchandise

are likely to increase,

(II) any existing unused production capacity or imminent, substantial increase in production capacity in the

exporting country indicating the likelihood of substantially increased imports of the subject merchandise

into the United States, taking into account the availability of other export markets to absorb any additional

exports,

(III) a significant rate of increase of the volume or market penetration of imports of the subject merchandise

indicating the likelihood of substantially increased imports,

(IV) whether imports of the subject merchandise are entering at prices that are likely to have a significant

depressing or suppressing effect on domestic prices and are likely to increase demand for further imports,

(V) inventories of the subject merchandise,

13

market, the Court will require the Commission to give full consideration, with adequate explanation, to

non-attribution issues when it performs its causation analysis.67 68

The question of whether the material injury threshold for subject imports is satisfied

notwithstanding any injury from other factors is factual, subject to review under the substantial evidence

standard. Congress has delegated this factual finding to the Commission because of the agency’s

institutional expertise in resolving injury issues.69 70

Section 771(7)(F) of the Tariff Act directs the Commission to determine whether the U.S.

industry is threatened with material injury by reason of the subject imports by analyzing whether “further

dumped or subsidized imports are imminent and whether material injury by reason of imports would

occur unless an order is issued or a suspension agreement is accepted.”71 The Commission may not make

such a determination “on the basis of mere conjecture or supposition,” and considers the threat factors “as

a whole” in making its determination whether dumped or subsidized imports are imminent and whether

material injury by reason of subject imports would occur unless an order is issued.72 In making our

determination, we consider all statutory threat factors that are relevant to these investigations.73
(VI) the potential for product-shifting if production facilities in the foreign country, which can be used to

produce the subject merchandise, are currently being used to produce other products,

* * *

(IX) any other demonstrable adverse trends that indicate the probability that there is likely to be material

injury by reason of imports (or sale for importation) of the subject merchandise (whether or not it is actually

being imported at the time).

19 U.S.C. § 1677(7)(F)(i). To organize our analysis, we discuss the applicable statutory threat factors using the

same volume/price/impact framework that applies to our material injury analysis. Statutory threat factors (I), (II),

(III), (V), and (VI) are discussed in the analysis of subject import volume. Statutory threat factor (IV) is discussed in

the price effects analysis, and statutory threat factor (IX) is discussed in the impact analysis. Statutory threat factor

(VII) is inapplicable, as no imports of agricultural products are involved in these investigations. No party has argued

that the domestic industry is currently engaging or will imminently engage in any efforts to develop a derivative or

more advanced version of the domestic like product, which would implicate statutory threat factor (VIII).

 74 CR/PR at Table IV-1; CR at VII-5 to VII-6, PR at VII-2 to VII-3.

 75 Commissioner Okun notes that the statute authorizes the Commission to take adverse inferences in injury

investigations, but such authorization does not relieve the Commission of its obligation to consider the record

evidence as a whole in making its determination. 19 U.S.C. § 1677e. She generally gives credence to the facts

supplied by the participating parties and certified by them as true, but bases her decision on the evidence as a whole,

and does not automatically accept participating parties’ suggested interpretations of the record evidence. Regardless

of the level of participation and the interpretations urged by participating parties, the Commission is obligated to

consider all evidence relating to each of the statutory factors and may not draw adverse inferences that render such

analysis superfluous. “In general, the Commission makes determinations by weighing all of the available evidence

regarding a multiplicity of factors relating to the domestic industry as a whole and by drawing reasonable inferences

from the evidence it finds most persuasive.” SAA at 869.

14

As noted above, the Commission has nearly complete data coverage for the domestic industry. 

The Commission also received questionnaire responses from 28 importers that accounted for 65.4 percent

of total subject imports in 2008. The Commission received questionnaire responses from four subject

producers in China that accounted for 9.3 percent of subject imports in 2008.74 When appropriate in these

investigations, we have relied on the facts otherwise available, including official import statistics from

Commerce and information available from published sources, as well as information submitted in these

investigations.75

For the reasons stated below, we find there is a reasonable indication that the domestic industry

producing certain seamless carbon and alloy steel standard, line, and pressure pipe is threatened with

material injury by reason of subject imports from China that are allegedly sold in the United States at less

than fair value and subsidized by the Government of China.

B. Conditions of Competition and the Business Cycle

The following conditions of competition inform our analysis in the preliminary phase of these

investigations.
 76 CR/PR at Figure II-1 (crude oil spot prices and monthly summary of natural gas prices and volumes).

 77 CR at II-7, PR at II-5.

 78 CR/PR at Figure II-2 (total monthly active drilling rigs for oil and gas exploration).

 79 CR at II-7, PR at II-5. The majority of questionnaire respondents reported that there are no viable substitutes

for seamless pipe. Some firms, however, reported that welded pipe can be substituted for either small or large

diameter seamless SLP pipe in certain applications. One firm reported that plastic pipe is a potential substitute. CR

at II-9, PR at II-7.

 80 Conference Transcript at 64 (Lindgren) (“In 2007, business decreased in relation to OCTG, for example, the

drilling decreased in 2007, and so there was some destocking, which could have an affect {sic} o{n} market

prices.”).

 81 CR at II-9, PR at II-7. The domestic producers generally acknowledged an overall increase in demand through

mid-2008 followed by a decline in demand beginning in October 2008 and continuing through January-June 2009. 

U.S. Steel Postconference Brief at 13-16; V&M Star Postconference Brief at 11-12; Conference Transcript at 66-67

(Lindgren); at 102-103 (Durham); and at 103 (Gilleland).

 82 Conference Transcript at 104-105 (Durham) (failure to anticipate demand); Conference Transcript at 106

(Gilleland) (“The problem is a lot of people have gotten into this business because of price that never really

historically were in this business. And they saw opportunities to get into the business and do things strictly because

of the price involved. And so, traders became more speculative buyers of the product, rather than just buying for

orders and working on small margins, as they had in the past.”); Conference Transcript at 68 (Thompson) (“ I think

any speculation in the marketplace was caused by excessive availability of very low-priced product out of China that

led speculators into the business that may or may not have been in the pipe business before. I think what it was the

opportunity to move product from China and the lack of any discernability as to who they would sell to. If you have

a check, and you want pipe, you can buy pipe from China.”).

 83 CR/PR at Table C-3.

 84 CR at II-5, PR at II-4; CR/PR at Table VII-10; Conference Transcript at 44 (Gilleland) and 110 (Durham).

15

1. Demand Considerations

Overall U.S. demand for seamless SLP pipe is influenced by demand in the energy industry,

including such factors as oil and natural gas prices and the extent of drilling activities. Monthly prices of

oil and gas increased irregularly from January 2006 though June 2008, decreased sharply by the end of

2008, then rebounded somewhat in early 2009.76 Some increases in oil and gas prices are expected in

2010 as U.S. and world economic conditions improve.77 Drilling activity, as measured by the number of

active drilling rigs, increased irregularly from January 2006 to September 2008 and then declined sharply,

before recovering slightly from July to September 2009.78 Seamless SLP pipe is also used extensively in

the construction and repair of refining and other energy facilities, in the chemical industry, in power

generation, and in mechanical applications for general construction.79

Most producers and importers reported that demand fluctuated over the period examined, with

demand generally strong in 2006, weakening in 2007,80 strengthening in 2008, then declining sharply

beginning in 2009.81 The strong demand in 2008 appears to have been amplified by speculative

purchases, which then contributed to the sudden decline in orders that occurred as many market

participants failed to anticipate the collapse in demand.82

When measured by apparent U.S. consumption, U.S. seamless SLP pipe demand increased by

*** percent on a quantity basis and *** percent on a value basis during 2006-2008. Apparent U.S.

consumption was to *** short tons in January-June 2008 compared to *** short tons in January-June

2009.83 The data on apparent U.S. consumption, however, do not fully factor in seamless SLP pipe still

being held in inventory by distributors. Those inventories surged toward the end of the period examined

as demand declined, and this overhang of inventory is likely to dampen demand for seamless SLP pipe in

the imminent future.84
 85 CR at VII-16, PR at VII-7.

 86 CR/PR at Table IV-16. Domestic producers’ market share, based on quantity, decreased over the period

examined from *** percent in 2006 to *** percent in 2007 and *** percent in 2008, and was *** percent in JanuaryJune 2008 compared to *** percent in January-June 2009. Subject imports’ share of apparent U.S. consumption

increased from *** percent in 2006 to *** percent in 2007 and to *** percent in 2008. Subject imports’ share of

apparent U.S. consumption was *** percent in January-June 2008 compared to *** percent in January-June 2009. 

Nonsubject imports’ share of apparent U.S. consumption, based on quantity, decreased from *** percent in 2006 to

*** percent in 2007 and *** percent in 2008, and was *** percent in January-June 2008 compared to *** percent in

January-June 2009. CR/PR at Table C-3.

 87 CR/PR at Table IV-7.

 88 According to one distributor, “{w}e normally would carry an inventory that would be three months supply,

maybe four, but four would be tops. And, of course, now, we've got probably 12 to 14 months supply.” Conference

Transcript at 110 (Durham). Another distributor has stated that his firm has not purchased any seamless SLP pipe

for inventory for an entire year. Conference Transcript at 44 (Gilleland).

 89 Average lead times for delivery of seamless SLP pipe depend on whether the product is sold from inventory or

produced to order. Among U.S. producers, average lead times range from 1 day to 1 week if the product is held in

inventory and from 2 to 10 weeks if the product is produced to order. Among importers, lead times range from 2 to

10 days if the product is held in inventory and 2 to 6 months if made to order. The majority of producers and

importers reported that all or most of their seamless SLP pipe is produced to order. CR/PR at II-1.

 90 Hengyang Valin Postconference Brief at 43; Conference Transcript at 101 (Durham) (“{I}t's more difficult to

do that with imports than it is with domestic because the lead times extend out more with imports. And we were not

successful really in canceling much at all. There were some cancellations and, of course, those cancellations, that

material just came into the market unsold.”).

16

The currently weak seamless SLP pipe market is not unique to the United States. The global

economic downturn has caused a general decline in global demand for oil and gas since the third quarter

of 2008, which has led to a weakening global seamless SLP pipe market.85

2. Supply Considerations

There are three sources of supply in the U.S. market: domestic shipments, imports of subject

merchandise from China, and imports from non-subject countries. At the beginning of the period

examined, domestic producers accounted for the largest share of the U.S. market, followed by non-subject

imports, then subject imports. By 2008, the three sources of seamless SLP pipe each supplied roughly

one-third of the U.S. market, with subject imports holding the largest share. In January-June 2009, as

demand for seamless SLP plunged, the domestic industry’s market share dwindled substantially, and nonsubject imports accounted for the largest share of the market.86 Since 2006, nonsubject imports have been

supplied by many countries, including Argentina, Russia, Italy, and Germany.87

End-of-period inventories held by U.S. distributors increased over the period examined.88 The

Petitioners and Hengyang Valin differ as to why the inventory increase occurred. Hengyang Valin

contends that the subject producers in China and the U.S. importers were surprised by the sudden decline

in demand in the fourth quarter of 2008. They assert that there is a substantial lag between when orders

for seamless SLP pipe are placed with Chinese producers and when delivery occurs,89 such that subject

imports continued to enter the United States for several months after demand began to decline at volumes

that reflected the prior period of high demand, causing excess import volumes to enter inventories.90

Petitioners, however, contend that the volume of subject imports was well in excess of the volume the
 91 U.S. Steel Postconference Brief at 14-18; V&M Star Postconference Brief at 11-12; Conference Transcript at

43 (Gilleland) (“Even if the market had remained strong, the market simply could not handle so much pipe.”).

 92 CR/PR at Tables III-9 and VII-10; Conference Transcript at 100-101 (Durham) and at 101-102 (Gilleland). In

any final phase of these investigations, we will explore further the factors that may have led to the rapid and

unanticipated decline in demand in 2009. We also intend to explore how the market was affected by the lag between

the time that orders were placed with producers of the subject merchandise and the time those imports arrived in the

U.S. market.

 93 CR/PR at Tables II-2 and II-3.

 94 CR at II-10 to II-11, PR at II-9 to II-10.

 95 CR at II-12, PR at II-9.

 96 Calculated from CR/PR at Table II-1.

 97 Commerce initiated a countervailing duty investigation based on 41 alleged subsidy programs, including seven

preferential loan programs, four equity programs, four direct tax benefit programs, nine indirect and tax exemption

programs, seven remuneration programs, eight grant programs, and two other regional programs. CR at I-8 to I-9,

PR at I-7 to I-8; Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe from the People’s

Republic of China: Initiation of Countervailing Duty Investigation, 74 Fed. Reg. 52945, 52947 (October 15, 2009). 

As required by section 771(7)(F)(i)(I) of the Act, we examined the nature of the subsidies in determining whether

imports of the subject merchandise are likely to increase as a result of these subsidies. 19 U.S.C. § 1677(7)(F)(i)(I). 

Several of the alleged subsidies are intended to benefit exportation and, thereby, to encourage exports. See 74Fed.

Reg. at 52947. 

17

market would have required even if demand had remained strong.91 Whatever the reasons for the

inventory buildup, inventories currently constitute a significant source of supply in the U.S. market.92

3. Substitutability

Although factors such as differences in lead times and product quality may limit substitutability

somewhat, the record indicates that there is a moderately high degree of substitutability among the

domestic like product, subject imports, and nonsubject imports.93 Petitioners, Hengyang Valin, and

importers mostly agree that domestic seamless SLP pipe, subject imports, and nonsubject imports are of

comparable quality, and the questionnaire responses confirm that the domestic like product, subject

imports, and nonsubject imports are ***.94 A majority of importers, however, frequently consider factors

other than price (such as quality and availability) to be important when comparing domestic seamless SLP

pipe with subject imports. Thus, price is an important sales factor, but quality and availability are also

important.95

4. Other Conditions

Whether domestically produced or imported, seamless SLP pipe is sold mainly through

distributors. In 2008, *** percent of domestic seamless SLP pipe was sold to distributors, while ***

percent of U.S. imports of seamless SLP pipe from China and *** percent of nonsubject imports were

sold to distributors.96

C. Likely Volume of the Subject Imports97

We consider the likely future volume of subject imports both in absolute terms and relative to

domestic consumption and production. For the reasons stated below, we find that, although the absolute

volume of subject imports may not increase over current levels, subject imports are likely to continue to

increase substantially relative to domestic consumption and production.
 98 CR/PR at Table C-3.

 99 The ratio of subject imports to domestic production, measured by quantity, increased even more substantially,

from *** percent in 2006 to *** percent in 2007 and *** percent in 2008. The ratio of subject imports to domestic

production was *** percent in January-June 2009 compared to *** percent in January-June 2008. CR/PR at Table

IV-19.

 100 The record in this preliminary phase of these investigations does not contain sufficient information to draw

conclusions as to the size and makeup of inventories held by purchasers. We intend to explore this issue in any final

phase of these investigations.

 101 CR/PR at Table C-3.

 102 CR/PR at Table VII-10.

 103 Hengyang Valin Postconference Brief at 18.

 104 CR/PR at Table III-8 and CR at VII-13, PR at VII-5.

18

Our analysis begins with the trends observed over the period examined. In absolute terms, the

volume of subject imports increased from 158,126 short tons in 2006 to 366,088 short tons in 2008, an

increase of 131.5 percent. Subject imports were 43.5 percent lower in January-June 2009, at 66,458 short

tons, than in January-June 2008, at 117,601 short tons.98

In terms of market penetration, subject imports’ share of apparent U.S. consumption increased

from 2006 to 2008 regardless of whether demand was increasing or decreasing. From 2006 to 2007,

apparent U.S. consumption decreased by *** percent, while the volume of subject imports increased by

9.0 percent. From 2007 to 2008, apparent U.S. consumption increased *** percent, while the volume of

subject imports increased by 112.4 percent. Apparent U.S. consumption was *** percent lower in

January-June 2009 compared to January-June 2008, but subject import volumes were only 43.5 percent

lower during that time. As a result, the market share held by subject imports increased from *** percent

in 2006 to *** percent in 2007 and *** percent in 2008 and, despite the steep decline in demand

beginning in late 2008, was higher in January-June 2009, at *** percent, than in January-June 2008,

when it was *** percent. As subject imports’ market share rose, domestic producers’ market share

declined from *** percent in 2006 to *** percent in 2007 and *** percent in 2008. Domestic producers’

market share was significantly lower in January-June 2009, at only *** percent, than in January-June

2008, at *** percent.99

The increased volume of subject imports contributed to a sharp increase in inventories held by

importers.100 The volume of subject imports held in importers’ inventories increased from 17,701 short

tons at the end of 2006 to 29,326 short tons at the end of 2008, and was higher at the end of January-June

2009, at 32,433 short tons, than at the end of January-June 2008, at 17,326 short tons.101 Importers’

inventories of subject merchandise were sharply higher at the end of 2008 and the end of June 2009 than

they were at other points during the period examined.102

Hengyang Valin argues that the higher volumes of imports entering the United States,

notwithstanding low demand, occurred because importers had to place orders with producers in China

months before the imports actually arrived in the United States.103 Thus, Chinese product ordered when

demand conditions were strong did not reach the United States until after the market had declined in late

2008. Based on the available data, this lag does not appear to account adequately for the increase. 

During periods of both increasing and declining apparent U.S. consumption, market penetration by

subject imports was increasing sharply even prior to the sudden drop in demand. Moreover, as of June

30, 2009, the volume of orders for subject imports booked with U.S. importers was substantially greater

than the volume of orders booked with domestic producers.104 Thus, the currently available information

indicates that the market penetration of subject imports has continued to increase notwithstanding lower

demand and irrespective of lags associated with trans-Pacific shipping.

In addition to examining the most recent trends, we have analyzed the likely future volume of

imports in the context of demand for seamless SLP pipe in the U.S. market in the imminent future. As
 105 The WSA, formerly known as the International Iron and Steel Institute, is an international organization

representing approximately 180 steel producers, national and regional steel industry associations, and steel research

institutes. WSA members produce about 85 percent of the world’s steel. WSA provides data for all seamless

tubular products, a much broader category than the subject product. CR at VII-2, PR at VII-1.

 106 CR/PR at Table VII-1.

 107 CR at VII-1, PR at VII-1.

 108 CR at VII-1 to VII-2, PR at VII-1.

 109 CR at VII-1 to VII-2, PR at VII-1.

 110 See, e.g., CR/PR at table VII-7 (production of other seamless tubular products more than *** times the level

of production of seamless SLP pipe on shared equipment in 2008. See also ***, which provides a detailed

examination of the Chinese seamless pipe mills capable of producing both line pipe and OCTG.

 111 CR/PR at Table VII-13 (trade data reported at the HS 6-digit subheading level for subheadings 7304.10,

7304.19, 7304.39, 7304.59). These subheadings include nonsubject products and, therefore, likely overstate the

volume of imports and exports of seamless SLP pipe. CR/PR at VII-5, PR at VII-2.

 112 CR/PR at Table VII-6.

 113 CR/PR at Table VII-6.

 114 ***. *** provides data for seamless line pipe, a category that is narrower than the subject products. 

According to ***, there are reportedly *** producers of seamless line pipe in China, with a combined annual

capacity of *** short tons (for all API products). Between 2005 and 2007, China’s production of seamless line pipe

increased by *** percent to *** short tons. In 2007, China was the world’s leading producer of seamless line pipe,

19

previously noted, the demand for seamless SLP pipe declined sharply in late 2008 and early 2009 and is

projected to remain at low levels in the imminent future. Particularly given high distributor inventory

levels and a sharply reduced volume of booked orders, we believe that the volume of overall U.S. market

purchases of seamless SLP pipe will remain low in the imminent future.

Given the limited cooperation by Chinese producers in responding to our questionnaires, precise

data on the Chinese seamless pipe industry are limited. Published data suggest that likely available

supply from China will be very high. China is the world’s largest producer of seamless tubular products,

a category that includes seamless SLP pipe and other products, such as oil country tubular goods

(“OCTG”) as well. According to the World Steel Association (“WSA”),105 China was the leading global

producer of seamless tubular products in 2007, accounting for 62 percent (20.0 million short tons) of

global production of seamless pipe and tube.106 According to ***, China’s annual production of seamless

tubular products increased by more than *** percent in 2000-2008 to almost *** short tons, accounting

for approximately half of global production.107 China reportedly has more than *** seamless pipe and

tube producers with a combined annual capacity of *** short tons.108 China’s total annual seamless

tubular production capacity is projected to increase to *** short tons by the end of 2009 as new

production facilities come online.109 Seamless tubular capacity is often shared, rather than dedicated

solely to standard, line, or pressure pipe. Even from the limited responses provided by the Chinese

producers of seamless SLP pipe, it is clear that substantial amounts of seamless tubular capacity can be

used to produce seamless SLP pipe.110

According to Global Trade Atlas, China surpassed Germany in 2007 to become the world’s

leading exporter of seamless pipe (excluding OCTG). Between 2007 and 2008, China’s exports of

seamless pipe (excluding OCTG) increased by approximately 1 million short tons, accounting for 26

percent (2.4 million short tons) of global exports of seamless pipe.111 The limited data from questionnaire

responses show the Chinese producers’ seamless SLP pipe capacity increased from *** short tons in

2006 to *** short tons in 2007 and more than *** short tons in 2008.112 The Chinese industry’s capacity

was higher in January-June 2009, at *** short tons, than in January-June 2008, at *** short tons.113 Thus,

the available data show that the Chinese industry has a demonstrated ability to increase capacity in a short

period of time.114
accounting for more than *** of the world’s total seamless line pipe production. CR/PR at Table VII-2; CR/at VII2, PR at VII-1 to VII-2.

 115 CR/PR at Table VII-6.

 116 CR/PR at Tables VII-6, C-3. Chinese producers forecast that they will decrease their seamless SLP

production in 2010 slightly compared to the level they forecast for 2009. CR/PR at Table VII-6.

 117 CR/PR at Table VII-3, nn. 1 & 4 (***).

 118 The United States was by far the largest import consumer of seamless pipe in 2008. CR at VII-17, PR at VII7; CR/PR at Tables VII-12 and VII-13. In 2008, Chinese producers exported approximately five to seven times as

much seamless tubular product to the United States as they did to two other major export regions, the European

Union (“EU”) and Korea. U.S. Steel Postconference Brief at 33 and Exhibit 7.

 119 CR at VII-13, PR at VII-5. In March 2008, the Canadian Government imposed antidumping and

countervailing duty remedies on seamless OCTG casing from China. CR at VII-13 to VII-14 and n.22, PR at VII-5

and n.22.

 120 CR at VII-13, PR at VII-5. 

 121 CR at VII-15 to VII-16, PR at VII-6 to VII-7; and CR/PR at Figure II-1.

 122 CR/PR at Tables VII-6 and C-3.

20

Based on questionnaire responses, Chinese producers reported that their production of the subject

merchandise increased from *** short tons in 2006 to *** short tons in 2008, and was slightly lower in

January-June 2009, at *** short tons, than in interim 2008, at *** short tons.115 Moreover, *** percent of

Chinese producers’ capacity was unused in 2008, meaning that, just from existing 2008 capacity, these

producers have the ability to increase production by almost *** short tons.116

Chinese producers reported that ***.117 Based on the available data, the Chinese producers view

the U.S. seamless SLP pipe market as highly attractive and, therefore, have an incentive to shift

production from other products to seamless SLP pipe.118

Chinese producers also would have some incentive to shift exports of seamless SLP pipe from

certain other markets because of trade restrictions in those markets. In September 2009, the EU imposed

antidumping duties on certain seamless pipe and tube from China.119 The Government of India has

reportedly placed imports of seamless pipes and tubes on a list of “Restricted” imported products in order

to reduce the potential volume of seamless pipe and tube imports from China.120 In addition, the global

financial crisis and reduced global demand for oil and gas consumption121 have the effect of limiting the

extent to which the Chinese home market and third country markets will be able to absorb Chinese

seamless SLP pipe.

Chinese producers’ inventories would also permit them to increase exports to the United States

substantially. Chinese producers’ end-of-period inventories were *** short tons in 2006, increased to ***

short tons in 2007, then declined to *** short tons in 2008, and were *** short tons in January-June 2008

compared to *** short tons in January-June 2009. Notably, in January-June 2009, Chinese producers’

reported end-of-period inventories exceeded the domestic producers’ shipments (*** short tons).122

Despite the large and increasing supply of subject merchandise, and the incentive for Chinese

producers to ship to the United States, we find that, due to lower demand and high domestic inventory

levels, the absolute volume of subject imports from China will likely not increase substantially beyond

the levels observed during the January-June 2009 period. Relative to domestic consumption and

production, however, subject imports will likely increase significantly in the imminent future. As noted

above, subject imports increased in market share during the period examined, regardless of whether

apparent U.S. consumption increased or decreased. Available record data indicate that the market

penetration of subject imports will continue to increase, given that orders for subject merchandise pending

with importers are far greater than those booked with domestic producers. 
 123 CR/PR at Table II-1.

 124 CR at V-3 to V-4, PR at V-2 to V-3.

 125 CR at V-3 to V-4, PR at V-3.

 126 CR at V-14, PR at V-4; and CR/PR at Table V-6.

 127 CR/PR at Tables V-1 to V-4. 

 128 CR/PR at Tables V-1 to V-6.

 129 Petitioners did not identify any evidence of specific sales or revenues lost to the subject imports. They claim

that such evidence is elusive because sales in the seamless SLP pipe industry are made primarily to distributors and

rarely to end users. U.S. Steel Postconference Brief at 22. We intend to examine this issue in any final phase of

these investigations.

 130 CR/PR at Tables V-1 to V-4. The exception was Product 4 which increased through the first quarter of 2009.

 131 CR/PR at Figure II-1.

 132 CR/PR at Figure II-2.

 133 CR/PR at Table IV-16.

 134 CR at II-7 and n.10, PR at II-5 to II-7 and n.10; CR/PR at Figures II-1 and II-2.

21

For the foregoing reasons, we find, for purposes of the preliminary phase of these investigations,

that the volume of subject imports is likely to be significant within the imminent future, both in absolute

terms and relative to consumption and production in the United States.

D. Likely Price Effects of the Subject Imports

In assessing the likely price effects of subject imports, we consider pricing developments during

the period examined and likely developments in the imminent future in light of key conditions of

competition in the U.S. market. The record indicates that subject imports from China and domestic

seamless SLP pipe are highly substitutable and that most sales of the domestic like product and subject

imports are made to distributors.123

The Commission collected quarterly pricing data for four seamless SLP pipe products.124 Usable

pricing data were provided by 4 domestic producers, accounting for *** percent of domestic producers’

shipments during the period examined, and 10 importers, accounting for 27.9 percent of shipments of

subject imports during the period examined.125 Subject imports undersold the domestic like product in all

56 quarterly pricing comparisons by an average margin of 37.4 percent, with some of the highest margins

of underselling occurring at the end of the period examined.126

For each of the four products, the prices of both the Chinese and domestic products were

substantially higher at the end of the period examined than at the beginning.127 The subject imports,

however, undersold the domestic like product by high margins in each comparison in the January-June

2009 period, a time during which demand was declining precipitously.128 Given that subject imports

undersold the domestic like product to a significant degree throughout the period, we find that

underselling is likely to be significant in the imminent future.129

In addition, we find that subject imports are entering at prices that are likely to have significant

adverse effects on U.S. prices and will likely increase demand for subject imports relative to domestic

consumption and production. The prices of U.S.-produced seamless SLP pipe increased through the

fourth quarter of 2008, before declining in the first or second quarter of 2009.130 We attribute the rise in

seamless SLP pipe prices in 2008 to a combination of sharp increases in demand driven by the energy

sector and to rapidly rising raw materials costs. The conditions that drove prices higher in 2008 are not

likely to re-emerge in the imminent future. Demand, whether measured by oil and gas prices,131 rig

count,132 or apparent U.S. consumption,133 increased significantly in 2008 relative to 2006 and 2007, but

had already declined dramatically in early 2009 and is likely to remain at depressed levels in the

imminent future.134 Consistent with these declines, the peak levels of seamless SLP pipe on order with
 135 CR/PR at Table III-8.

 136 Production was *** short tons in 2006, *** short tons in 2007, and *** short tons in 2008. Domestic

shipments were *** short tons in 2006, *** short tons in 2007, and *** short tons in 2008. Production related

workers totaled *** in 2006, *** in 2007, and *** in 2008. Production capacity decreased from *** short tons in

2006 to *** short tons in 2008. Hours worked totaled *** in 2006, *** in 2007, and *** in 2008. Wages paid were

$*** in 2006, $*** in 2007, and $*** in 2008. Hourly wages were $*** in 2006, $*** in 2007, and $*** in 2008. 

Capacity utilization was *** percent in 2006, *** percent in 2007, and *** percent in 2008. CR/PR at Table C-3.

 137 Domestic producers’ share of apparent U.S. consumption was *** percent in 2006, *** percent in 2007, and

*** percent in 2008. CR/PR at Table C-3. 

 138 The domestic industry’s operating profit was $*** in 2006, $*** in 2007, and $*** in 2008. The domestic

industry’s ratio of operating income to net sales was *** percent in 2006, *** percent in 2007, and *** percent in

2008. CR/PR at Tables VI-1 and C-3.

 139 Production was *** short tons in January-June 2008 and *** short tons in January-June 2009, a decline of

*** percent. Capacity utilization was *** percent in January-June 2008 and *** percent in January-June 2009, a

decline of *** percentage points. U.S. shipments were *** short tons in January-June 2008 and *** short tons in

January-June 2009, a decline of *** percent. The number of production workers was *** in January-June 2008 and

*** in January-June 2009, a decline of *** percent. Hours worked were *** in January-June 2008 and *** in

January-June 2009, a decline of *** percent. Productivity (tons per 1,000 hours worked) was *** in January-June

2008 and *** in January-June 2009, a decline of *** percent. CR/PR at Table C-3. 

 140 Calculated from CR/PR at Table III-8. Order book volumes were *** percent lower as of June 30, 2009,

compared to June 30, 2008. Id. In 2008, order book volume was *** short tons at the end of the first quarter and

*** short tons at the end of the second quarter; in 2009, it was *** short tons at the end of the first quarter and ***

short tons at the end of the second quarter. CR/PR at Table III-8.

22

U.S. mills in March and June 2008 (more than *** short tons respectively) collapsed to *** short tons as

of June 2009.135 With fewer sales available in the market in the imminent future, the significant volume

of subject imports at low prices is likely to place substantial downward pressure on domestic prices. 

Accordingly, we find adverse price effects to be likely in the imminent future given the likely significant

volume of subject imports from China.

E. Likely Impact of the Subject Imports

Between 2006 and 2008, apparent U.S. consumption of seamless SLP pipe fluctuated, declining

from 2006 to 2007, then increasing from 2007 to 2008. Many indicators of the domestic seamless SLP

pipe industry’s performance – such as production, shipments, and employment – fluctuated in the same

manner. Unlike apparent U.S. consumption, however, which were substantially higher in 2008 than in

2006 (by *** percent), the domestic industry’s volume-based performance indicators generally were

lower in 2008 than in 2006.136 These declines were due in large part to the industry’s loss of market share

from 2006 to 2008, mainly to subject imports.137 The domestic industry’s financial results also fluctuated

over the 2006-2008 period, but due to steadily rising unit sales values the industry was solidly profitable

in each year from 2006 to 2008.138

As described above, U.S. market demand for seamless SLP pipe plunged starting in the latter part

of 2008 and remained anemic through January-June 2009. As a result, many domestic industry

performance indicators were dramatically lower in January-June 2009 than in January-June 2008. 

Domestic production was *** percent lower, capacity utilization was *** percentage points lower, U.S.

shipments were *** percent lower, domestic producers’ market share was *** percentage points lower,

the number of production workers was *** percent lower, hours worked were *** percent lower, wages

paid were *** percent lower, and productivity was *** percent lower.139 In particular, the volume of

orders for seamless SLP pipe deliveries on the books of domestic producers was *** percent lower in

June 30, 2009 relative to June 30, 2008.140 In contrast, the domestic industry’s operating income in
 141 The domestic industry’s operating income was $*** in January-June 2008 compared to $*** in January-June

2009. CR/PR at Tables VI-1 and C-3. Domestic prices for each of the pricing products declined from the first

quarter of 2009 to the second quarter of 2009, but remained at levels well above prices in January-June 2008. 

CR/PR at Tables V-1 to V-4. Domestic producers assert that many sales in January-June 2009 were made at prices

agreed to during 2008 when demand conditions were much stronger. See e.g., V&M Star Postconference Brief at

16; Conference Transcript at 80 (Schagrin).

 142 Chairman Aranoff, Vice Chairman Pearson, and Commissioner Okun note that, throughout much of the period

examined, the SLP industry has maintained strong financial returns by curtailing production while selling on very

favorable pricing terms. The domestic industry's operating income increased *** percent from 2006 to 2008. 

Indeed, the profitability of the U.S. industry reached record levels in 2008, at *** percent, even as subject import

volumes were at their highest level. Further, U.S. prices rose significantly during the period examined, and the

average unit values of U.S. producers’ U.S. shipments remained very high in the most recent period, January-June

2009. Moreover, the domestic industry has been able to increase its prices to cover increases in costs. On the other

hand, in light of current economic conditions, the domestic industry is unlikely to perform as well in the near term as

it did during the period examined. Nonetheless, given the industry’s robust performance throughout the period, they

do not find that the domestic industry is currently in a vulnerable state. For purposes of the preliminary phase of

these investigations, however, they find a reasonable indication that the continued or increased presence of subject

imports at low prices will likely result in material injury to the domestic industry unless antidumping and

countervailing duty orders are issued.

 143 Commissioners Lane, Williamson, and Pinkert note that, notwithstanding the strong performance of the

industry through 2008, it has experienced a severe curtailment of operations in 2009. Second quarter 2009 data,

confirmed by more recent information, reveal an industry that is on the verge of shutting down due to lack of

demand for its seamless SLP pipe products. Thus, they find that the domestic industry is in a weakened state and,

therefore, vulnerable to the likely volume and price effects of subject imports.

The dire nature of the domestic industry’s financial condition becomes more evident when the first and

second quarters of 2009 are compared. Based on quarterly 2009 data from U.S. Steel, V&M Star, and TMK IPSCO,

the combined operating margin for the three firms for the first quarter of 2009 was *** percent compared to ***

percent in the second quarter of 2009. The operating income for the three firms for the first quarter of 2009 was

$*** compared to *** in the second quarter of 2009. The ratio of COGS to net sales was *** percent in the first

quarter of 2009 compared to *** percent in the second quarter of 2009. Calculated from U.S. Steel Postconference

Brief at Exhibit 21 and staff correspondence with V&M Star and TMK IPSCO. These data suggest that the

industry’s financial performance in the first quarter of 2009 masks the industry’s dismal financial performance in the

second quarter of 2009.

 144 Commissioner Lane notes that the industry’s financial performance, although apparently still strong in

January-June 2009, has dropped significantly from overall 2008 levels and even more significantly when measured

against the last quarter of 2008. Moreover, even if the domestic industry’s financial performance is viewed as good,

the same cannot be said for the condition of workers in the domestic industry. The number of production workers

dropped significantly in 2009 and the hours worked have dropped even more, indicating fewer payroll hours for

those workers that remained employed. 

23

January-June 2009, though lower than in January-June 2008, remained positive.141 The industry

benefitted from unit sales values that were much higher in January-June 2009 than in January-June 2008,

despite a significantly lower volume of sales in 2009.142 143 144

For purposes of these preliminary phase investigations, we find that there likely will be a causal

nexus between the subject imports and an imminent adverse impact on the domestic industry. This

conclusion is based on the declines in the industry’s trade and employment data discussed above, our

finding that the volume of subject imports is likely to increase significantly in relative terms in an

imminent time frame, and our conclusion that underselling by subject imports will likely continue and

will likely have significant adverse effects on domestic prices. Significant volumes of subject imports at

low prices are likely to negatively affect the industry’s sales volumes and prices, thereby reducing the

industry’s levels of production, employment, and profitability.
 145 We also recognize that nonsubject imports were a factor in the U.S. market during the period examined. The

market share of nonsubject imports declined from 2006 to 2008, but was substantially higher in January-June 2009

than in January-June 2008. Nonsubject imports’ market share was *** percent in January-June 2009 compared to

*** percent in January-June 2008. CR/PR at Table C-3. The sudden increase in market share for nonsubject

imports in January-June 2009 reportedly is attributable to the importation from Germany of special, heavy-walled

line pipe designed specifically for two projects in the Gulf of Mexico. Conference Transcript at 105 (Pogonec); U.S.

Steel Postconference Brief at n.139; and V&M Postconference Brief at 9. This type of pipe reportedly is not

produced by the domestic industry, and the Chinese industry does not compete for the Gulf projects. Nonsubject

imports had average unit values that were substantially higher than those of subject imports over the period

examined. CR/PR at Table C-3. In any final phase of these investigations, we will further examine the role of

nonsubject imports.

24

We have considered whether there are other factors that will likely have an imminent impact on

the domestic industry. We recognize that the decline in demand for seamless SLP pipe played a role in

the downturn in the domestic industry’s performance at the end of the period examined, particularly in the

second quarter of 2009. Moreover, as discussed above, demand is likely to remain at suppressed levels in

the imminent future. In any final phase investigations, we intend to explore further the role that any

changes in demand would play in the performance of the domestic industry to ensure that we do not

attribute to subject imports the effects of any future adverse demand conditions.145

Consequently, we conclude for purposes of the preliminary phase of these investigations that

there is a likely causal nexus between the subject imports and an imminent adverse impact on the

domestic industry, which demonstrates a reasonable indication that the domestic industry is threatened

with material injury by reason of subject imports.

CONCLUSION

For the reasons stated above, and based on the record in the preliminary phase of these

investigations, we find that there is a reasonable indication that the domestic industry producing seamless

SLP pipe is threatened with material injury by reason of subject imports from China that are allegedly

sold in the United States at less than fair value and allegedly subsidized by the Government of China.
 1

 On September 25, 2009, the petition was amended to add TMK IPSCO and The United Steel, Paper and

Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Worker International Union (“USW”) as

additional petitioners.

 2

 See the section entitled “The Subject Merchandise” in Part I of this report for a complete description of the

merchandise subject to these investigations.

 3 Federal Register notices cited in the tabulation are presented in app. A.

I-1

PART I: INTRODUCTION

BACKGROUND

These investigations result from a petition filed with the U.S. Department of Commerce

(“Commerce”) and the U.S. International Trade Commission (“USITC” or “Commission”) by U.S. Steel

Corp., Pittsburgh, PA and V&M Star L.P., Houston, TX on September 16, 2009,1

 alleging that an industry

in the United States is materially injured and threatened with material injury by reason of subsidized and

less-than-fair-value (“LTFV”) imports of certain seamless carbon and alloy steel standard, line, and

pressure pipe (“seamless SLP pipe”)2

 from China. Information relating to the background of the

investigations is provided below.3

Effective date Action

September 16, 2009 Petition filed with Commerce and the Commission; institution of Commission

investigations (74 FR 48282, September 22, 2009)

October 7, 2009 Commission’s conference1

October 14, 2009 Commerce’s antidumping notice of initiation (74 FR 52744)

October 15, 2009 Commerce’s countervailing duty notice of initiation (74 FR 52945)

October 30, 2009 Commission’s vote

November 2, 2009 Commission’s determinations transmitted Commerce

November 9, 2009 Commission’s views transmitted Commerce

 1 A list of witnesses appearing at the conference is presented in app. B.
I-2

STATUTORY CRITERIA AND ORGANIZATION OF THE REPORT

Statutory Criteria

Section 771(7)(B) of the Tariff Act of 1930 (the “Act”) (19 U.S.C. § 1677(7)(B)) provides that in

making its determinations of injury to an industry in the United States, the Commission--

shall consider (I) the volume of imports of the subject merchandise, (II)

the effect of imports of that merchandise on prices in the United States

for domestic like products, and (III) the impact of imports of such

merchandise on domestic producers of domestic like products, but only

in the context of production operations within the United States; and . . .

may consider such other economic factors as are relevant to the

determination regarding whether there is material injury by reason of

imports.

Section 771(7)(C) of the Act (19 U.S.C. § 1677(7)(C)) further provides that--

In evaluating the volume of imports of merchandise, the Commission

shall consider whether the volume of imports of the merchandise, or any

increase in that volume, either in absolute terms or relative to production

or consumption in the United States is significant.

. . .

In evaluating the effect of imports of such merchandise on prices, the

Commission shall consider whether . . . (I) there has been significant

price underselling by the imported merchandise as compared with the

price of domestic like products of the United States, and (II) the effect of

imports of such merchandise otherwise depresses prices to a significant

degree or prevents price increases, which otherwise would have

occurred, to a significant degree.

. . .

In examining the impact required to be considered under subparagraph

(B)(i)(III), the Commission shall evaluate (within the context of the

business cycle and conditions of competition that are distinctive to the

affected industry) all relevant economic factors which have a bearing on

the state of the industry in the United States, including, but not limited to

. . . 

(I) actual and potential declines in output, sales, market share, profits,

productivity, return on investments, and utilization of capacity, (II)

factors affecting domestic prices, (III) actual and potential negative

effects on cash flow, inventories, employment, wages, growth, ability to

raise capital, and investment, (IV) actual and potential negative effects

on the existing development and production efforts of the domestic

industry, including efforts to develop a derivative or more advanced

version of the domestic like product, and (V) in {an antidumping

investigation}, the magnitude of the margin of dumping.
 4

 ***.

 5

 The term “small diameter seamless SLP pipe” refers to seamless SLP pipe up to and including 4.5 inches in

outside diameter.

 6

 The term “large diameter seamless SLP pipe” refers to seamless SLP pipe greater than 4.5 inches and less than

or equal to 16 inches in outside diameter.

 7

 ***.

I-3

Organization of the Report

Part I of this report presents information on the subject merchandise, alleged subsidy and

dumping margins, and domestic like product. Part II of this report presents information on conditions of

competition and other relevant economic factors. Part III presents information on the condition of the

U.S. industry, including data on capacity, production, shipments, inventories, and employment. Parts IV

and V present the volume and pricing of imports of the subject merchandise, respectively. Part VI

presents information on the financial experience of U.S. producers. Part VII presents the statutory

requirements and information obtained for use in the Commission’s consideration of the question of threat

of material injury as well as information regarding nonsubject countries.

U.S. MARKET SUMMARY

Seamless standard pipe’s end-use applications include the low pressure conveyance of water,

steam, natural gas, air, and other liquids and gases in plumbing and heating systems, air conditioning

units, automatic sprinklers, and other related uses; seamless line pipe is intended for the conveyance of oil

and natural gas and other fluids in pipe lines, transmission lines, or gathering lines; and seamless pressure

pipe is intended for the conveyance of water, steam, petrochemicals, chemicals, oil products, natural gas,

and other liquids and gases at elevated temperatures or pressures, or both, in industrial piping systems. 

The leading U.S. producers of seamless SLP pipe include The Timken Co. ("Timken"); TMK Ipsco

("IPSCO"); U.S. Steel Corp. ("U.S. Steel"); V&M Star, L.P. ("V&M Star"); and Wheatland Tube Co.

("Wheatland").4

 U.S. Steel is the largest producer of seamless SLP pipe in both small and large

diameters. By far the largest responding producer of seamless SLP pipe in China is ***. The leading

U.S. importers of seamless SLP pipe from China are ***. U.S. purchasers of seamless SLP pipe include

distributors that typically purchase directly from U.S. mills and U.S. importers.

Apparent U.S. consumption of small diameter seamless SLP pipe5

 totaled *** short tons ($***)

in 2008. Currently, four firms *** are known to produce small diameter seamless SLP pipe in the United

States. U.S. producers' U.S. shipments of small diameter seamless SLP pipe totaled *** short tons ($***)

in 2008, and accounted for *** percent of apparent U.S. consumption by quantity and *** percent by

value. U.S. imports from China totaled 197,022 short tons ($221.0 million) in 2008 and accounted for

*** percent of apparent U.S. consumption by quantity and *** percent by value. U.S. imports of small

diameter seamless SLP pipe from nonsubject sources totaled 105,551 short tons ($172.0 million) in 2008

and accounted for *** percent of apparent U.S. consumption by quantity and *** percent by value.

Apparent U.S. consumption of large diameter seamless SLP pipe6

 totaled *** short tons ($***) in

2008. Currently, three firms *** reported producing large diameter seamless SLP pipe in the United

States.7

 U.S. producers’ U.S. shipments of large diameter seamless SLP pipe totaled *** short tons

($***) in 2008, and accounted for *** percent of apparent U.S. consumption by quantity and *** percent

by value. U.S. imports from China totaled 169,066 short tons ($191.0 million) in 2008 and accounted for

*** percent of apparent U.S. consumption by quantity and *** percent by value. U.S. imports of large

diameter seamless SLP pipe from nonsubject sources totaled 242,269 short tons ($425.2 million) in 2008

and accounted for *** percent of apparent U.S. consumption by quantity and *** percent by value.
 8

 The term “total seamless SLP pipe” refers to the combination of both small diameter and large diameter

seamless SLP pipe.

 9

 ***.

I-4

Apparent U.S. consumption of total seamless SLP pipe8

 reached *** short tons ($***) in 2008. 

Currently, five firms reported producing seamless SLP pipe (either small or large diameter) in the United

States.9

 U.S. producers’ U.S. shipments of total seamless SLP pipe totaled *** short tons ($***) in 2008,

and accounted for *** percent of apparent U.S. consumption by quantity and *** percent by value. U.S.

imports from China totaled 366,088 short tons ($412.1 million) in 2008 and accounted for *** percent of

apparent U.S. consumption by quantity and *** percent by value. U.S. imports from nonsubject sources

totaled 348,420 short tons ($597.2 million) in 2008 and accounted for *** percent of apparent U.S.

consumption by quantity and *** percent by value.

SUMMARY DATA AND DATA SOURCES

A summary of data collected in the investigations is presented in appendix C, tables C-1 through

C-3. Except as noted, U.S. industry data are based on questionnaire responses of five firms that

accounted for the large majority of U.S. production of seamless SLP pipe during 2008 (see Part III of this

report). U.S. imports are based on official Commerce statistics (see Part IV of this report). Foreign

producers’ and exporters’ data are based on questionnaire responses of four producers and exporters in

China (see Part VII of this report). Additional information regarding a comparison of small diameter and

large diameter seamless SLP pipe appears in appendix D. Further information regarding price data --

specifically incorporating prices of small diameter and large diameter seamless SLP pipe from nonsubject

countries -- appears in appendix E.
I-5

PREVIOUS AND RELATED TITLE VII INVESTIGATIONS

Seamless SLP pipe has been the subject of several Commission investigations and reviews. A

listing of these proceedings is presented in table I-1. Of the three antidumping duty orders in place, two

cover small diameter seamless SLP pipe only (Germany, Romania) whle one covers small diameter and

large diameter seamless SLP pipe (Japan).

Table I-1

Seamless SLP pipe: Previous and related investigations, 1980-2009

Original Investigation Review

Current status

Date1 Number Country Outcome Date1 Outcome

1980 731-TA-15 Japan Negative2 3 -- -

1982 731-TA-87 Japan

Affirmative/

Negative4 - -

ITA revoked effective

10/29/85

1994 701-TA-362 Italy Affirmative 2000 Negative ITA revoked effective 8/8/00

1994 731-TA-707 Argentina Affirmative

2000 Affirmative

2006 Negative ITA revoked effective 7/16/06

1994 731-TA-708 Brazil Affirmative

2000 Affirmative

2006 Negative ITA revoked effective 7/16/06

1994 731-TA-709 Germany Affirmative

2000 Affirmative

2006 Affirmative Continuation order 5/18/07

1994 731-TA-710 Italy Affirmative 2000 Negative ITA revoked effective 8/3/00

2000 731-TA-846

The Czech

Republic Affirmative 2005 Negative ITA revoked effective 8/14/05

2000 731-TA-847 Japan Affirmative 2005 Affirmative Continuation order 5/8/06

2000 731-TA-848 Mexico Affirmative 2005 Negative ITA revoked effective 8/14/05

2000 731-TA-849 Romania Affirmative 2005 Affirmative Continuation order 5/8/06

2000 731-TA-850 South Africa Affirmative 2005 Negative ITA revoked effective 8/14/05

 1 “Date” refers to the year in which the investigation or review was instituted by the Commission.

 2

 Preliminary determination.

 3 See Determination of the Commission After Reconsideration of Imports Provided for in Item 610.3205 of the Tariff Schedule

of the United States Annotated, 45 FR 47769, July 16, 1980.

 4

 The Commission made an affirmative determination with respect to seamless heat-resisting and seamless stainless pipes

and tubes, and a negative determination with respect to seamless “other alloy" pipes and tubes.

Source: Compiled from U.S. International Trade Commission publications.
 10 19 U.S.C. § 2252.

 11 Steel, Inv. No. TA-201-73, USITC Publication 3479, December 2001, volume 1, p. 155.

 12 Institution and Scheduling of an Investigation under Section 202 of the Trade Act of 1974 (19 U.S.C. 2252) (the

Act), 66 FR 35267, July 3, 2001.

 13 19 U.S.C. § 2251.

 14 Consolidation of Senate Finance Committee Resolution Requesting a Section 201 Investigation with the

Investigation Requested by the United States Trade Representative on June 22, 2001, 66 FR 44158, August 22,

2001.

 15 Steel, Inv. No. TA-201-73, Publication No. 3479, volume 1, p. 188 (“In summary, the data present a mixed

picture as to whether the domestic industry is seriously injured. There were annual fluctuations in many of the

factors examined. . . Nevertheless, one facet of domestic industry performance remained consistent throughout the

period examined: profitability. The domestic industry maintained strong operating margins throughout the period,

other than in 1999.”).

I-6

Previous and Related Global Safeguard Investigations

Following receipt of a request from the Office of the United States Trade Representative

(“USTR”) on June 22, 2001, the Commission instituted investigation No. TA-201-73, Steel, under section

202 of the Trade Act of 197410 to determine whether certain steel products, which included seamless

carbon and alloy steel SLP pipe,11 were being imported into the United States in such increased quantities

as to be a substantial cause of serious injury, or the threat thereof, to the domestic industries producing

articles like or directly competitive with the imported article.12 On July 26, 2001, the Commission

received a resolution adopted by the Committee on Finance of the U.S. Senate (“Senate Finance

Committee” or “Committee”) requesting that the Commission investigate certain steel imports under

section 201 of the Trade Act of 1974.13 Consistent with the Senate Finance Committee’s resolution, the

Commission consolidated the investigation requested by the Committee with the Commission’s

previously instituted investigation No. TA-201-73.14 On December 20, 2001, the Commission issued its

determinations and remedy recommendations. With regard to this product category, the Commission

made a negative determination, concluding that the U.S. seamless pipe industry was not seriously injured

by increased U.S. imports, citing the profitability of the U.S. industry during the period examined.15
 16 Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe from the People’s Republic of

China: Initiation of Countervailing Duty Investigation, 74 FR 52945, October 15, 2009.

I-7

NATURE AND EXTENT OF ALLEGED SUBSIDIES AND SALES AT LTFV

Alleged Subsidies

On October 15, 2009, Commerce published a notice in the Federal Register of the initiation of its

countervailing duty investigation on seamless SLP pipe from China.16 Commerce identified the following

government programs in China:

A. Preferential Loans

1. Policy Loans to the Seamless Pipe Industry

2. Export Loans

3. Treasury Bond Loans

4. Preferential Loans for State–Owned Enterprises (‘‘SOEs’’)

5. Preferential Loans for Key Projects and Technologies

6. Preferential Lending to Seamless Pipe Producers and Exporters Classified as

‘‘Honorable Enterprises”

7. Loans and Interest Subsidies Provided Pursuant to the Northeast Revitalization

Program

B. Equity Programs

1. Debt–to-Equity Swaps

2. Equity Infusions

3. Exemptions for SOEs from Distributing Dividends to the State

4. Loan and Interest Forgiveness for SOEs

C. Tax Benefit Programs

1. Income Tax Credits for Domestically Owned Companies Purchasing Domestically

Produced Equipment

2. Preferential Income Tax Policy for Enterprises in the Northeast Region

3. Forgiveness of Tax Arrears for Enterprises in the Old Industrial Bases of Northeast

China

4. Reduction in or Exemption from Fixed Assets Investment Orientation Regulatory Tax

D. Subsidies for Foreign Invested Enterprises (‘‘FIEs’’)

1. ‘‘Two Free, Three Half’’ Program

2. Local Income Tax Exemption and Reduction Programs for ‘‘Productive’’ FIEs

3. Preferential Tax Programs for FIEs Recognized as High or New Technology

Enterprises

4. Income Tax Reductions for Export-Oriented FIEs
 17 Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe From the People’s Republic of

China: Initiation of Antidumping Duty Investigation, 74 FR 52744, October 14, 2009.

I-8

E. Tariff and Indirect Tax Programs

1. Stamp Exemption on Share Transfers Under Non–Tradable Share Reform

2. Value Added Tax (‘‘VAT’’) and Tariff Exemptions for Purchases of Fixed Assets

Under the Foreign Trade Development Fund Program

3. Import Tariff and VAT Exemptions for FIEs and Certain Domestic Enterprises Using

Imported Equipment in Encouraged Industries

4. Deed Tax Exemption For SOEs Undergoing Mergers or Restructuring

5. Export Incentive Payments Characterized as ‘‘VAT rebates’’

F. Government Provision of Goods and Services for Less Than Adequate Remuneration

1. Provision of Land to SOEs for Less Than Adequate Remuneration

2. Provision of Land Use Rights for Less Than Adequate Remuneration

3. Provision of Steel Rounds for Less Than Adequate Remuneration

4. Provision of Electricity for Less Than Adequate Remuneration

5. Provision of Electricity and Water for Less Than Adequate Remuneration to Seamless

Pipe Producers Located in Jiangsu Province

6. Export Restrictions on Coke

7. Provision of Coking Coal for Less Than Adequate Remuneration

G. Grant Programs

1. The State Key Technology Project Fund

2. Foreign Trade Development Fund (Northeast Revitalization Program)

3. Export Assistance Grants

4. Program to Rebate Antidumping Duties

5. Subsidies for Development of Famous Export Brands and China World Top Brands

6. Sub-Central Government Programs to Promote Famous Export Brands and China

World Top Brands

7. Grants to Loss–Making SOEs

8. Export Interest Subsidies

H. Other Regional Programs

1. Subsidies Provided in the Tianjin Binhai New Area and the Tianjin Economic and

Technological Development Area

2. High–Tech Industrial Development Zones

Alleged Sales at LTFV

On October 14, 2009, Commerce published a notice in the Federal Register of the initiation of its

antidumping duty investigations on seamless SLP pipe from China.17 Commerce has initiated

antidumping duty investigation based on estimated dumping margins of 98.37 percent for seamless SLP

pipe from China.
 18 Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe From the People’s Republic of

China: Initiation of Antidumping Duty Investigation, 74 FR 52744, October 14, 2009.

 19 The merchandise covered by these investigations is currently imported under following HTS statistical

reporting numbers: 7304.19.1020, 7304.19.1030, 7304.19.1045, 7304.19.1060, 7304.19.5020, 7304.19.5050,

7304.31.3000, 7304.31.6050, 7304.39.0016, 7304.39.0020, 7304.39.0024, 7304.39.0028, 7304.39.0032,

7304.39.0036, 7304.39.0040, 7304.39.0044, 7304.39.0048, 7304.39.0052, 7304.39.0056, 7304.39.0062,

7304.39.0068, 7304.39.0072, 7304.51.5005, 7304.51.5060, 7304.59.6000, 7304.59.8010, 7304.59.8015,

7304.59.8020, 7304.59.8025, 7304.59.8030, 7304.59.8035, 7304.59.8040, 7304.59.8045, 7304.59.8050,

7304.59.8055, 7304.59.8060, 7304.59.8065, 7304.59.8070. As of February 3, 2007, statistical reporting numbers

7304.10.1020, 7304.10.1030, 7304.10.1045, 7304.10.1060, 7304.10.5020, and 7304.10.5050 were replaced by

statistical reporting numbers 7304.19.1020, 7304.19.1030, 7304.19.1045, 7304.19.1060, 7304.19.5020,

7304.19.5050.

I-9

THE SUBJECT MERCHANDISE

Commerce’s Scope

Commerce has defined the scope of its investigation as follows:

Certain seamless carbon and alloy steel (other than stainless steel) pipes and redraw

hollows, less than or equal to 16 inches (406.4 mm) in outside diameter, regardless of

wall-thickness, manufacturing process (e.g., hot-finished or cold-drawn), end finish (e.g.,

plain end, beveled end, upset end, threaded, or threaded and coupled), or surface finish

(e.g., bare, lacquered or coated). Redraw hollows are any unfinished carbon or alloy steel

(other than stainless steel) pipe or ‘‘hollow profiles’’ suitable for cold finishing

operations, such as cold drawing, to meet the American Society for Testing and Materials

(‘‘ASTM’’) or American Petroleum Institute (‘‘API’’) specifications referenced below,

or comparable specifications. Specifically included within the scope are seamless carbon

and alloy steel (other than stainless steel) standard, line, and pressure pipes produced to

the ASTM A–53, ASTM A–106, ASTM A–333, ASTM A–334, ASTM A–335, ASTM

A–589, ASTM A–795, ASTM A–1024, and the API 5L specifications, or comparable

specifications, and meeting the physical parameters described above, regardless of

application. Specifically excluded from the scope of the investigation are unattached

couplings.18

Tariff Treatment

The imported seamless standard, line, and pressure pipes subject to these investigations are

classified in the 2009 Harmonized Tariff Schedule of the United States (“HTS”) in subheadings 7304.19,

7304.31, 7304.39, 7304.51, and 7304.59.19 The HTS statistical reporting numbers are provided for

convenience and customs purposes only; the written description of the scope of the investigations is

dispositive. The column-1 general (normal trade relations) rates of duty for the subject product under all

covered subheadings are free.
 20 Except where noted, information presented in this section is drawn from Certain Seamless Carbon and Alloy

Steel Standard, Line, and Pressure Pipe from Argentina, Brazil, and Germany, Inv. Nos. 731-TA-707-709 (Second

Review), USITC Publication 3918, May 2007.

 21 Included in alloy grades are heat-resisting, stainless, and “other” alloy grades.

 22 Standard, line, and pressure pipe is generally intended to convey liquids and is typically tested and rated for its

ability to withstand hydrostatic pressure. Structural pipe and tubing is used for load-bearing purposes and

construction, although only small amounts of seamless pipe are used in structural applications. Seamless mechanical

tubing is typically a custom-designed product employed within the automotive industry and by equipment

manufacturers. OCTG are steel pipes and tubes used in the drilling of oil and gas wells and in the conveying of oil

and gas from within the well to ground level.

 23 Particular specifications to which pipe products are produced are commonly marked on each pipe and are

referred to as a “stencil.”

I-10

THE PRODUCT20

Overview

Steel pipes and tubes are made in circular, rectangular, or other cross sections, and are generally

manufactured by either the welded or seamless production process. Steel pipe and tube manufactured by

either process can be categorized by the grades of steel (e.g., carbon and alloy grades) used in steel

production.21 In addition, steel pipe and tube can be further categorized by end-use. The American Iron

and Steel Institute (AISI) has defined six such end-use categories: standard pipe, line pipe, structural pipe

and tubing, mechanical tubing, pressure tubing, and oil country tubular goods (OCTG).22

Steel pipes and tubes are generally produced according to standards and specifications published

by a number of organizations, including the American Society for Testing and Materials (ASTM), the

American Society of Mechanical Engineers (ASME), and the American Petroleum Institute (API). 

Comparable organizations in the United Kingdom, Japan, Russia, and other countries also have developed

standard specifications for steel pipes and tubes.23 The imported products subject to these investigations

are certain seamless SLP pipe and are produced from carbon or alloy (other than stainless) steel.

Description and Applications

Seamless standard pipe is most commonly produced to the ASTM A-53 specification, and

generally is not intended for high temperature or high pressure service. Rather, typical end-use

applications include the low pressure conveyance of water, steam, natural gas, air, and other liquids and

gases in plumbing and heating systems, air conditioning units, automatic sprinklers, and other related

uses. Depending on the type and grade, however, standard pipe may carry liquids at elevated

temperatures but must not exceed relevant ASME code requirements. If exceptionally low temperature

end uses or conditions are anticipated, seamless standard pipe may be produced to meet ASTM A-333

and A-334 specifications (covering carbon and alloy seamless pipe and tube for low temperature service).

Seamless line pipe is produced to the API 5L specification, and is intended for the conveyance of

oil and natural gas and other fluids in pipe lines, transmission lines, or gathering lines.

Seamless pressure pipe is commonly produced to the ASTM A-106 specification (covering

seamless carbon steel pipe for higher temperature service), and is intended for the conveyance of water,

steam, petrochemicals, chemicals, oil products, natural gas, and other liquids and gases at elevated

temperatures or pressures, or both, in industrial piping systems. Seamless pressure pipe may carry

substances at elevated temperatures and pressures and may be subjected to external heat. Seamless

pressure pipe meeting the ASTM A-106 specification may be used in temperatures of up to 1,000 degrees

Fahrenheit at various ASME code stress levels. Seamless alloy pipes made to the ASTM A-335
 24 Quadruple certification is referred to as a “quad stencil,” whereby manufacturers put four stencils, or markings,

on the pipe to show that it has been produced to meet the requirements and tests pursuant to the respective

specifications.

 25 Principal differences among standard pipe made to the ASTM A-53 specification, pressure pipe made to the

ASTM A-106 specification, and line pipe made to the API 5L X-42 or grade B specifications include differences in

minimum yield strength, chemical composition, and variation in permissible weight and dimensional tolerances. 

Line pipe made to the API 5L X-42 specification has a higher minimum yield strength (42,000 pounds per square

inch (psi)) than line pipe made to the API grade B specification (35,000 psi), pressure pipe made to the ASTM A-06

grade B specification (35,000 psi), and standard pipe made to the ASTM A-53 grade B specification (35,000 psi). 

Alloying elements such as Columbian (niobium) and titanium may be included in line pipe made to the API 5L X-42

or grade B specifications to achieve a higher minimum yield strength than that of standard pipe made to the ASTM

A-53 specification. Line pipe made to the API 5L X-42 specification may also contain more manganese, which

increases tensile strength and hardness, than either standard pipe (ASTM A-53) or pressure pipe (ASTM A-106).

Variations in permissible weight and dimensional tolerances are more stringent for pressure pipe (ASTM A-106) and

line pipe (API 5L grade B or X-42), than those for standard pipe (ASTM A-53). However, all of these specifications

overlap, so that pipe may be produced to comply with all them, allowing for duel, triple, or quadruple certification. 

 26 Conference transcript, p. 29 (Lindgren).

 27 Although seamless SLP pipe may be quad-stenciled to meet the ASTM A-53, ASTM A-106, and API 5L X-42

or grade B specifications, seamless SLP pipe produced to the ASTM A-333 and A-334 (covering carbon and alloy

seamless pipe and tube for lower temperature service), and ASTM A-335 (covering alloy steel pipe for high

temperature service) is not duel, triple, or quadruple certified with ASTM A-53, ASTM A-106, and API 5L X-42 or

grade B because of the inclusion of higher levels of alloying elements such as nickel, chromium, and molybdenum,

and higher requirements for minimum tensile and yield strengths that surpass those of ASTM A-53, ASTM A-106,

and API 5L X-42 or grade B.

 28 Certain Seamless Carbon and Alloy Standard, Line, and Pressure Pipe from Japan and South Africa, Inv. Nos.

731-TA-847 and 850 (Final), USITC Publication 3311, June 2000, p. 7.

 29 Conference transcript, p. 57 (Pognonec).

I-11

specification (covering alloy steel pipe for high temperature service) must be used if temperatures and

stress levels exceed those allowed for ASTM A-106.

Seamless SLP pipe is commonly produced and certified to meet multiple specifications in order

to avoid separate production runs and maintaining inventories for pipe sold for different applications.

Manufacturers often quadruple certify pipe made to the ASTM A-53, ASTM A-106, API 5L grade B, and

API 5L X-42 specifications,24 25 thus allowing distributors to maintain a single inventory of quad stenciled

pipe for use in multiple applications.26 27 Likewise, small diameter (i.e., less than or equal to 4.5 inches

outside diameter) and large diameter (i.e., greater than 4.5 inches up to and including 16 inches outside

diameter) seamless SLP pipes have overlapping end uses (i.e., standard pipe applications; line pipe

applications; and pressure pipe applications).28

Seamless SLP pipe less than 2 inches in outside diameter is commonly pressure pipe produced to

the ASTM A-106 specification, and is frequently used in high pressure or high temperature applications--

for example, in the construction or repair of refineries and chemical plants. Seamless SLP pipe with

outside diameters greater than 2 inches and less than or equal to 4.5 inches is commonly produced and

certified to the quad stencil certification and used in more general high pressure applications in industrial

piping systems. However, seamless SLP pipe that is 2-3 inches in outside diameter may also be used as

gathering lines connecting oil and natural gas wells to transmission lines.29 Seamless SLP pipe with

outside diameters greater than 4.5 inches is typically line pipe used in gas transmission, as well as in
 30 In addition, gathering and distribution lines are commonly less than 16 inches in outside diameter, while

transmission lines are commonly greater than 16 inches in outside diameter. Preston Publishing Co., Preston Pipe

and Tube Report (January 2009), p. 28.

 31 Conference transcript, pp. 56–57 (Pognonec).

 32 Manganese primarily increases tensile strength and hardness, while reducing ductility and weldability.

 33 Alloy steels achieve a high degree of strength and toughness while maintaining weldability—attributes that

carbon steels can achieve, though not always to the same degree.

 34 Nickel primarily increases toughness, especially at lower temperatures. Nickel also increases tensile strength

and hardness, while slightly reducing weldability. Chromium partly increases tensile strength and hardness, and

reduces weldability. Higher concentrations of chromium can improve corrosion and abrasion resistance. 

Molybdenum primarily increases tensile strength and hardness, but reduces weldability.

 35 ASTM A-333 and A-334 cover several grades of steel used for low temperature applications. Grades 1, 6, and

10 are carbon steel grades. Grades 3, 4, 7, 8, 9, and 11 are alloy steel grades containing nickel and additional

alloying elements. The most common alloy steel grade is grade 3, which contains approximately 3.5 percent nickel.

 36 ASTM A-335 covers 12 different alloy steel grades containing varying levels of chromium and molybdenum

and additional alloying elements used for high temperature service. 

 37 ***.

 38 ***.

I-12

pipeline construction.30 Oil and natural gas producers often specify the diameter of seamless SLP pipe

needed according to the type of flow of oil or natural gas achieved from a particular well.31

Most steel products, including those subject to these investigations, are produced from carbon

steel, which contains controlled amounts of carbon and manganese.32 Alloy steels, which provide

physical properties not achievable to the same degree as carbon steels,33 contain controlled amounts of

alloying elements—usually nickel, chromium, and molybdenum.34 ASTM specifications that include

alloy steel and that are referred to in these investigations are ASTM A-333 and A-334 (covering carbon

and alloy seamless pipe and tube for low temperature service),35 and ASTM A-335 (covering alloy steel

pipe for high temperature service).36

Production Processes 

In the United States, steel used to produce seamless SLP pipe is made by either the basic-oxygen

process, in which scrap is added to molten pig iron and alloying materials to convert into molten steel, or

by the electric-arc furnace process, in which steel scrap, direct-reduced iron, cold pig iron, and alloying

materials are melted to convert into molten steel. The chemical composition of steel, including level of

carbon, manganese, and other alloying materials is controlled in the melting process. Molten steel

produced by either steelmaking process is continuously cast into either round or square billets, which are

the starting materials for the production of seamless SLP pipe. Seamless SLP producers that do not

maintain steelmaking operations use purchased billets or redraw hollows as their raw material. Of the

five U.S. producers that reported producing seamless SLP pipe, four use billets produced in their own

steelmaking facilities,37 and one is a finisher of pipe using purchased semifinished pipe or redraw

hollows.38

Seamless SLP pipe is manufactured by either of two high temperature processes to form a central

cavity in a solid steel billet. In the rotary piercing process, a heated billet is gripped by angled rolls that

cause the billet to rotate and advance over a piercer point, forming a hole through the billet’s length

(figure I-1). In the extrusion process, the billet is hot-punch pierced and then extruded axially through a
 39 In addition to billets, steel ingots may be forged on a forging press to form a steel round, which is then hotpunched pierced and extruded axially in an extrusion press to form a hollow shell. 

I-13

die and over a mandrel, forming a hollow shell (figure I-2).39 The hollow shell produced by either

process is then rolled with either a fixed plug or a continuous mandrel inside the shell to reduce the wall

thickness and increase the length. The shell is then rolled in a sizing mill or a stretch reduction mill

where the shell is formed into a true round and sized to the specified diameter.

Figure I-1

Seamless pipe: Sequence of operations used to produce seamless pipe products by piercing and

rolling

Source: AISI, Steel Products Manual: Steel Specialty Tubular Products, October 1980, p. 17.
 40 The minimum diameter for hot rolling differs from producer to producer because of differences in equipment

capabilities.

 41 Alloy steel pipe and carbon steel pipe may require heat treating, which may involve one or more heating cycles

in either a continuous furnace or a batch furnace, with controlled rates of cooling. Specific heat treating

requirements are dependent upon the grade of steel being processed and the specification to which the steel is

produced. The same processes and equipment are used to heat treat carbon and alloy SLP. There are no additional

processes that alloy SLP pipe must undergo compared to carbon SLP pipe.

I-14

Figure I-2

Seamless pipe: Cycle of operations in the production of an extruded tubular section

Source: AISI, Steel Products Manual: Steel Specialty Tubular Products, October 1980, p. 19.

Whereas seamless SLP pipe is normally produced hot-finished, small diameter pipe of less than

two inches in outside diameter is often cold drawn because hot-rolling of small diameter pipe is often not

possible.40 Pipe also may be cold drawn to provide a smoother surface and closer dimensional tolerances

than that which can be produced by hot finishing. When pipe is to be cold drawn, seamless hollows

(redraw hollows) are first pickled in acid to remove scale and oxides from both the outside and inside

surfaces. Redraw hollows are then rinsed in water and coated with a lubricant for cold drawing. The

hollow is pulled through a die and over an internal mandrel, which reduces the outside diameter and

increases the length (figure I-3). The mandrel inside the hollow controls the inside diameter and the wall

thickness. Following cold drawing, the hollows are annealed (heat treated).41
I-15

Figure I-3

Seamless pipe: Diagram of the cold drawing process

Source: AISI, Steel Products Manual: Steel Specialty Tubular Products, October 1980, p. 25. 

Finishing operations on subject seamless SLP pipe include straightening, cutting to length,

inspection, testing, end finishing (e.g., beveling or threading), and coating. Pipes may be furnished

galvanized (hot-dip zinc coated for additional corrosion resistance) and may be threaded and coupled.

Other steel seamless tubular products that are produced on the same equipment as subject

seamless SLP pipe include mechanical tubing, OCTG, pressure tubing, and structural pipe and tubing. 

Table I-2 shows the quantity of shipments in the United States of all seamless tubular products from 2006

through 2008, as reported by AISI. These data may not include shipments of all producers. However,

they indicate that seamless SLP pipe declined as a share of seamless tubular products from reporting

companies, from 20.4 percent in 2006 to 15.4 percent in 2008. OCTG, in contrast, increased from 60.3

percent to 66.9 percent. Reported domestic shipments of all seamless tubular products were substantially

lower during the first half of 2009 than in the first half of 2008. Overall, reported domestic shipments of

seamless pipe were 55.6 percent lower in January-June 2009 than in January-June 2008, with lower

shipments in all categories but particularly in SLP pipe (69.4 percent) and OCTG (54.5 percent).
 42 Petition, p. 15; conference transcript, p. 15 (Vaughn).

 43 Conference transcript, pp. 132–135 (Mills); Respondent Hengyang’s postconference brief, p. 6.

 44 Petition, pp. 15-16; V&M Star, TMK IPSCO, and USW’s postconference brief, p. 4.

I-16

Table I-2

Seamless carbon and alloy steel tubular products: Domestic shipments by U.S. producers, 2006–08,

January-June 2008, and January-June 2009

Item

Calendar year

2006 2007 2008

Jan.-June

2008

Jan.-June

2009

Quantity (short tons)

Seamless SLP pipe 435,522 294,091 334,590 167,636 51,234

OCTG 1,286,908 1,099,106 1,454,715 649,871 295,845

Mechanical tubing 346,541 320,279 308,859 163,370 81,940

Pressure tubing 46,670 31,689 51,348 23,915 14,438

Structural pipe and

tubing, pipe for piling 19,833 21,937 25,369 12,269 8,182

Total 2,135,474 1,767,102 2,174,881 1,017,061 451,639

Note.–Data include shipments of pipe with outside diameters greater than 16 inches.

Source: AISI, 10P Report, 2006 through June 2009.

DOMESTIC LIKE PRODUCT ISSUES

The Commission’s decision regarding the appropriate domestic product(s) that are “like” the

subject imported product is based on a number of factors including: (1) physical characteristics and uses;

(2) common manufacturing facilities and production employees; (3) interchangeability; (4) customer and

producer perceptions; (5) channels of distribution; and (6) price. Information regarding these factors is

discussed below.

Petitioners argue that the Commission should find that seamless SLP pipe up to and including 16

inches in outside diameter constitutes one domestic like product.42 Respondents argue that seamless SLP

pipe up to and including 4.5 inches in outside diameter should constitute one domestic like product

(“small diameter SLP pipe”), while seamless SLP pipe greater than 4.5 inches and less than or equal to 16

inches in outside diameter should constitute a separate domestic like product (“large diameter SLP

pipe”).43

Physical Characteristics and Uses

Petitioners argue that the only difference in the physical characteristics of small diameter and

large diameter SLP pipe is the diameter of the products and that both small diameter and large diameter

SLP pipe are made to identical specifications from the same grades of carbon and alloy steel.44

Petitioners argue that such a size difference, by itself, cannot form the basis for a finding of multiple like
 45 Petition, pp. 15-16; U.S. Steel’s postconference brief, Exhibit 1, p. 6.

 46 Conference transcript, p. 133 (Mills).

 47 Conference transcript, pp. 133-134 (Mills); Hengyang’s postconference brief, p. 7.

 48 *** importer questionnaire response, section II-7.

 49 Petition, p. 17.

 50 ***. E-mail from ***, October 12, 2009; staff telephone interview with ***.

 51 U.S. Steel’s producer questionnaire response, section II-14, attachment 16A.

 52 ***. Staff telephone interview with ***.

 53 U.S. Steel’s producer questionnaire response, section II-14, attachment 16A.

 54 Hengyang’s postconference brief, pp. 8–9.

 55 Hengyang’s postconference brief, p. 9.

I-17

products.45 Petitioners argue that small diameter and large diameter SLP pipe have overlapping end uses

and that both are used in standard pipe, line pipe, and pressure pipe applications. Respondents argue that

small diameter SLP pipe and large diameter SLP pipe often have distinct and separate end uses.46

Respondents argue that small diameter SLP pipe is primarily used in industrial applications, such as

refineries and chemical plants, to carry small amounts of liquids or gases under pressure, while large

diameter SLP pipe is primarily used in pipeline applications to convey large volumes of oil or gas over

longer distances.47 Based on U.S. importer questionnaires, 13 responding U.S. importers of seamless SLP

pipe indicated that the characteristics and uses are either the same or similar for small diameter and large

diameter seamless SLP pipe. Five U.S. importers responded that the only difference between small

diameter and large diameter SLP pipe is the difference in outside diameter. One U.S. importer indicated

that the physical characteristics of small diameter and large diameter SLP pipe are similar for the same

grade of carbon or alloy steel, but that end uses are determined by the end-use application.48

Manufacturing Facilities and Employees

Petitioners argue that small diameter and large diameter seamless SLP pipe is produced in

common manufacturing facilities using the same manufacturing equipment and employees.49 Petitioners

state that TMK IPSCO is capable of producing seamless SLP pipe up to 5.5 inches in outside diameter on

the same equipment as that used to produce small diameter SLP pipe.50 Timken and U.S. Steel are the

other two U.S. producers of seamless SLP pipe capable of producing both small diameter and large

diameter SLP pipe. U.S. Steel states that the processes used to make small diameter pipe and large

diameter pipe are the same.51 U.S. Steel produces large diameter seamless SLP pipe (4.5-9.875 inches

outside diameter) at its facility in Fairfield, AL.52 U.S. Steel produces both small diameter and large

diameter seamless SLP pipe at its facility in Lorain, OH, but in different mills on different equipment at

that location.53 Respondent argues that small diameter and large diameter seamless SLP pipe is generally

manufactured in different mills using different equipment.54 Respondent argues that ***.55 Based on

U.S. importer questionnaires, 13 responding U.S. importers indicated that the manufacturing process of

small diameter and large seamless SLP pipe is either the same or similar. One U.S. importer reported that

there are various processes to manufacture seamless SLP pipe, and two U.S. importers reported that

smaller diameter (i.e. less than 2 inches) SLP pipe is usually cold drawn, whereas larger diameter

seamless SLP pipe is hot finished.
 56 Two (***) produce both small diameter and large diameter seamless SLP pipe.

 57 See appendix D for details on U.S. producers and U.S. importers’ responses.

 58 See appendix D for details on U.S. producers and U.S. importers’ responses.

 59 Both petitioners and respondents agree that the channels of distribution are generally the same for both small

diameter and large diameter seamless SLP pipe. Petitioners’ IPSCO, V&M Star, and USW postconference brief, p.

7 and respondent’s postconference brief, p. 8.

I-18

Interchangeability

Both U.S. producers56 and U.S. importers responding to Commission questionnaires noted that

small diameter and large diameter seamless SLP pipe are not interchangeable due to size requirements of

the finished pipe.57

Customer and Producer Perceptions

U.S. producers responded that the perceptions are similar for both small diameter and large

diameter seamless SLP. Responding U.S. importers note that the perception of small diameter and large

diameter seamless SLP pipe is dependent upon the dimensions required for the end use application.58

Channels of Distribution

Both small diameter and large diameter seamless SLP pipe are sold in the same channels of

distribution, with all products sold through distributors and/or end users.59 Table I-3 presents data on

channels of distribution for U.S. producers’ U.S. shipments of the two products.

Table I-3

Seamless SLP pipe: Channels of distribution for U.S. producers’ U.S. shipments of small diameter 

and large diameter seamless SLP pipe, 2006-08, January-June 2008, and January-June 2009

* * * * * * *
 60 Petitioners IPSCO, V&M Star, and USW assert that there is no consistent pricing differential between small

and large diameter seamless SLP pipe. Petitioners’ IPSCO, V&M Star, and USW postconference brief, p. 7. 

 61 Respondent argues that small diameter seamless SLP pipe has a higher average unit price than large diameter

seamless SLP pipe for the products examined during the investigative period. Respondent’s postconference brief, p.

10.

I-19

Price

Certain dimensions of small diameter seamless SLP pipe are priced higher than large diameter

seamless SLP pipe while large diameter seamless SLP pipe were priced higher overall from 2006 to

2008.60 61 Details for pricing practices and prices reported for domestically produced and imported

seamless SLP pipe in response to the Commission’s questionnaires are presented in Part V of this report,

Pricing and Related Information. Table I-4 presents data on the average unit values of U.S. producers’

U.S. shipments of the two products.

Table I-4

Seamless SLP pipe: Average unit values of U.S. producers’ U.S. shipments of small diameter and

large diameter, 2006-08, January-June 2008, and January-June 2009

* * * * * * *

 1

 Most importers reported importing and selling both small diameter and large diameter pipe during the

investigation period. 

 2

 During 2006-08, capacity utilization rates for U.S. producers of small diameter SLP pipe ranged from a low of

*** percent in *** to a high of *** percent in ***. During January-June of 2009 the rate was just *** percent as

compared level of *** percent in January-June 2008. During 2006-08, capacity utilization rates for U.S. producers

of large diameter SLP pipe ranged from a low of *** percent in *** to a high of *** percent in *** . During

January-June of 2009 the rate was just *** percent as compared level of *** percent in January-June 2008.

II-1

PART II: CONDITIONS OF COMPETITION IN THE U.S. MARKET

U.S. MARKET CHARACTERISTICS AND CHANNELS OF DISTRIBUTION

Seamless SLP pipe is used for the transmission of oil and natural gas; in chemical, petrochemical,

and refinery facilities; and in mechanical applications for general construction. As shown in table II-1,

the majority of shipments of seamless SLP pipe by both producers and importers from China and other

sources went to distributors throughout the period for which data were collected. 

Seamless SLP pipe is sold nationally by both producers and importers of Chinese product. All

five responding U.S. producers reported that they sell nationally. For the 21 responding firms that import

from China, 7 reported that they sell nationally while the others reported that their sales are limited to one

or more specific regions of the United States. Regions frequently cited were the Southwest and the West

Coast.

Average lead times for delivery of seamless SLP pipe depend upon whether the product is sold

from inventory or produced to order.1

 Among U.S. producers, average lead times ranged from 1 day to 1

week if the item is in inventory and from 2 to 10 weeks if the item is produced to order. Among

importers, lead times ranged from 2 to 10 days if the item is in inventory and from 2 to 6 months if the

item is produced to order. The majority of producers and importers reported that all or most of their

seamless SLP pipe is produced to order.

SUPPLY AND DEMAND CONSIDERATIONS

U.S. Supply

Domestic Production

Based on available information, U.S. seamless SLP pipe producers have the ability to respond to

changes in demand with large changes in the quantity of shipments of U.S.-produced U.S. seamless SLP

pipe to the U.S. market. The main contributing factors to the high degree of responsiveness of supply are

the availability of unused capacity at least in 2009 and the existence of large inventories. 

Industry capacity

During 2006-08, aggregate capacity utilization rates for U.S. producers of small diameter and

large diameter SLP pipe ranged from a low of *** percent in *** to a high of *** percent in ***. During

January-June of 2009 the rate was just *** percent as compared a level of *** percent in January-June

2008.2

 This indicates that the U.S. producers could expand output in response to a change in market

conditions.
II-2

Table II-1

Seamless SLP pipe: Channels of distribution for U.S. producers’ and U.S. importers’ U.S.

shipments of small diameter, large diameter, and combined seamless SLP pipe, 2006-08, JanuaryJune 2008, and January-June 2009

Item

Calendar year January-June

2006 2007 2008 2008 2009

Share of U.S. producers’ reported U.S. shipments (percent)

Small Diameter:

Distributors *** *** *** *** ***

End users *** *** *** *** ***

 Total 100.0 100.0 100.0 100.0 100.0

Large Diameter:

Distributors *** *** *** *** ***

End users *** *** *** *** ***

 Total 100.0 100.0 100.0 100.0 100.0

Combined:

Distributors *** *** *** *** ***

End users *** *** *** *** ***

 Total 100.0 100.0 100.0 100.0 100.0

Share of U.S. importers’ reported U.S. shipments 

of imports from China (percent)

Small Diameter:

Distributors 100.0 99.2 98.0 96.9 91.1

End users 0.0 0.8 2.0 3.1 8.9

 Total 100.0 100.0 100.0 100.0 100.0

Large Diameter:

Distributors 99.7 99.4 95.5 95.7 78.1

End users 0.3 0.6 4.5 4.3 21.9

 Total 100.0 100.0 100.0 100.0 100.0

Combined:

Distributors 99.9 99.3 96.8 96.3 83.4

End users 0.1 0.7 3.2 3.7 16.6

 Total 100.0 100.0 100.0 100.0 100.0

Table continued on the following page.
 3

 During 2006-08, exports as a percentage of total small diameter pipe shipments by producers ranged from a low

of *** percent in *** to a high of *** percent in *** . During January-June of 2009 they accounted for *** percent

of total shipments. During 2006-08, exports as a percentage of total large diameter pipe shipments by producers

ranged from a low of *** percent in *** to a high of *** percent in *** . During January-June of 2009 they

accounted for *** percent of total shipments.

II-3

Table II-1 – Continued

Seamless SLP pipe: Channels of distribution for U.S. producers’ and U.S. importers’ U.S.

shipments of small diameter, large diameter, and combined seamless SLP pipe, 2006-08, JanuaryJune 2008, and January-June 2009

Item

Calendar year January-June

2006 2007 2008 2008 2009

Share of U.S. importers’ reported U.S. shipments 

of imports from countries other than China (percent)

Small Diameter:

Distributors 85.5 88.7 100.0 100.0 100.0

End users 14.5 11.3 0.0 0.0 0.0

 Total 100.0 100.0 100.0 100.0 100.0

Large Diameter:

Distributors 86.4 75.9 65.8 52.4 19.2

End users 13.6 24.1 34.2 47.6 80.8

 Total 100.0 100.0 100.0 100.0 100.0

Combined:

Distributors 86.2 77.6 70.9 59.9 52.1

End users 13.8 22.4 29.1 40.1 47.9

 Total 100.0 100.0 100.0 100.0 100.0

 Note.--***. 

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

Alternative markets

During 2006-08, exports as a percentage of total shipments by small diameter and large diameter

seamless SLP pipe producers ranged from a low of *** percent in *** to a high of *** percent in ***. 

During January-June of 2009 exports accounted for *** percent of total shipments.3

 
 4

 During 2006-08, the ratio of inventories to total shipments of small diameter pipe by producers ranged from a

low of *** percent in *** to a high of *** percent in *** . During January-June 2009, it was *** percent as

compared to *** percent in January-June 2008. During 2006-08, the ratio of inventories to total shipments of large

diameter pipe by producers ranged from a low of *** percent in *** to a high of *** percent in ***. During

January-June 2009, it was *** percent as compared to *** percent in January-June 2008. 

 5

 During 2006-08, capacity utilization rates for the Chinese industry producing small diameter pipe ranged from a

low of *** percent in *** to a high of *** percent in *** . During January-June of 2009 the rate was *** percent as

compared to a level of *** percent in January-June 2008. During 2006-08, capacity utilization rates for the Chinese

industry producing large diameter pipe ranged from a low of *** percent in *** to a high of *** percent in *** . 

During January-June of 2009 the rate was *** percent as compared to a level of *** percent in January-June 2008.

 6

 Home market shipments of small diameter pipe accounted for *** percent of the total in 2006, *** percent in

2007 and *** percent 2008. Exports to markets other than the United States accounted for *** percent of total

shipments in 2006, *** percent in 2007, and *** percent in 2008. Home market shipments of large diameter pipe

accounted for *** percent of the total in 2006, *** percent in 2007 and *** percent in 2008. Exports to markets

other than the United States accounted for *** percent of total shipments in 2006, *** percent in 2007, and ***

percent in 2008.

II-4

Inventory levels

During 2006-08, the ratio of inventories to total shipments by small diameter and large diameter

seamless SLP pipe producers ranged from a low of *** percent in *** to a high of *** percent in ***.4

During January-June 2009, this ratio was *** percent as compared to *** percent in January-June 2008. 

This also indicates that domestic producers could respond to a change in market conditions.

Production alternatives

All five domestic producers reported that they make other products on the equipment and

machinery used to produce seamless SLP pipe. The products listed included ***. 

Foreign Supply

Subject Imports

Based on available information, the Chinese producers have the ability to respond to changes in

demand with potentially large changes in the quantity of shipments of seamless SLP pipe to the U.S.

market. The main contributing factor to the high degree of responsiveness of supply is the availability of

unused capacity. 

Industry capacity

During 2006-08, capacity utilization rates for the Chinese industry ranged from a low of ***

percent in *** to a high of *** percent in ***.5

 During January-June of 2009 the rate was ***

percent as compared to a level of *** percent in January-June 2008. Capacity utilization is projected to

be *** percent for all of 2009 and *** percent for 2010. This indicates that the Chinese industry could

expand output in response to a change in market conditions.

Alternative markets

Home market shipments accounted for *** percent of total shipments in 2006, and *** percent in

2007 and 2008.6

 They are projected to be *** percent of total shipments for all of 2009 and *** percent

for 2010. Exports to markets other than the United States accounted for *** percent of total shipments in
 7

 During 2006-08, the ratio of inventories of small diameter pipe to total shipments ranged from a low of ***

percent in *** to a high of *** percent in ***. During January-June 2009, this ratio was *** percent as compared to

*** percent in January-June 2008. During 2006-08, the ratio of inventories of large diameter pipe to total shipments

ranged from a low of *** percent in *** to a high of *** percent in ***. During January-June 2009, this ratio was

*** percent as compared to *** percent in January-June 2008.

 8

 The respondent has argued that the U. S. recession has reduced the demand for both U.S.-produced and

imported seamless SLP pipe during 2009 (see respondent’s postconference brief, pp. 2-3). 

 9 Short Term Energy Outlook, eia.doe.gov. 

 10 At the conference, the petitioners argued that recent rig counts are near historic averages while the respondent

argued that the counts are extremely low (see Conference transcript p. 19 (Vaughan) and p. 127(Cameron)). 

During 1987 through 2007, the average U.S. annual rig count was 985 as compared to an average of 1,880 in 2008

(Baker Hughes, rig count annual averages, 1987 through 2007).

II-5

2006, *** percent in 2007, and *** percent in 2008. They are projected to be *** percent of total

shipments in 2009 and *** percent in 2010. 

Inventory levels

During 2006-08, the ratio of inventories to total shipments ranged from a low of *** percent in

*** to a high of *** percent in ***.7

 During January-June 2009, the ratio was *** percent as compared

to *** percent in January-June 2008. Inventories are projected to be equivalent to *** percent of total

shipments in 2009 and *** percent in 2010.

Production alternatives

Other products produced by the Chinese industry on the machinery and equipments used to

produce seamless SLP pipe include ***. 

U.S. Demand

Demand Characteristics

The overall U.S. demand for seamless SLP pipe is a derived demand that depends on the energy

industry and thus to some extent upon such factors as the level of prices of oil and natural gas and the

extent of drilling activity.8

 Figure II-1 shows that monthly prices of oil and natural gas both increased

irregularly from January 2006 through June 2008, and then generally declined during the next year. 

According to the Energy Information Administration, natural gas prices (Henry Hub) are project to reach

$3.85 per thousand cubic feet in 2009, and $5.02 per thousand cubic feet in 2010, while oil prices, (WTI)

are expected to average about $70 per barrel this winter, a $19 increase over last winter. The forecast for

average WTI prices rises gradually to about $75 per barrel by December 2010 as U.S. and world

economic conditions improve.9

 As shown in figure II-2, drilling activity, as measured by the number of

rigs, increased irregularly during January 2006 through September 2008 and then declined sharply,

followed by a slight recovery in July through September of 2009.10 In addition to energy applications,

seamless SLP pipe is used extensively in the construction and repair of refining facilities, the chemical

industry, in power generation, and in mechanical applications for general construction. The demand for

seamless SLP pipe as measured by apparent U.S. consumption in quantity terms decreased from *** 
II-6

Figure ll-1

Crude oil and natural gas: Monthly indexed prices, January 2006-May 2009 for oil and January

2006-July 2009 for natural gas 

Source: Energy Information Administration, crude oil spot prices and monthly summary of natural gas

prices and volumes. 

Figure II-2

Rig counts: Number of drilling rigs actively exploring for or developing oil and natural gas in the 

United States, by month, January 2006- September 2009

Source: Compiled from Baker Hughes data, U.S. monthly averages, 2006-08 and January-September 

2009.
 11 Producers and importers were also asked whether demand outside of the United States for small and large

diameter seamless SLP pipe had increased, remained the same or decreased since January 1 2006. The majority of

firms that responded to this question reported that demand had decreased or remained unchanged. 

II-7

short tons in 2006 to *** short tons in 2007 and then increased to over *** short tons in 2008. During

January-June 2009, apparent consumption was *** short tons as compared to *** short tons in JanuaryJune 2008. Apparent consumption increased by about one-quarter between 2006 and 2008, but fell by

one-half in interim 2009 compared to interim 2008. These trends were the same for both small diameter

and large diameter seamless SLP pipe.

Producers and importers were asked whether the demand for small and large diameter seamless

pipe had increased, remained unchanged, or decreased in the United States since January 1, 2006. Among

the responding U.S. producers, questionnaire comments were varied. One producer reported 

had declined since 2006. Another producer reported that demand for both small and large diameter pipe

had both increased and decreased since 2006. Another producer reported that U.S. demand was generally

strong in 2006, weakened somewhat in 2007, grew stronger in 2008, and then collapsed later in the year

and remained lower. In the responses by the 19 importers that commented on the U. S. demand for small

diameter pipe since January 1, 2006, 7 reported that demand had decreased, 4 reported that demand was

unchanged, 7 reported that demand had increased, and 1 reported that demand had both increased and

decreased.11 In the responses by the 18 importers that commented on the U.S. demand for large diameter

pipe since January 1, 2006, 8 reported that demand had decreased, 4 reported that demand was

unchanged, 5 reported that demand had increased, and 1 reported that demand had both increased and

decreased. 

Producers and importers were also asked to describe the ability of their firms to forecast and

respond to changes in demand. Some firms noted that the demand for seamless SLP pipe is closely linked

to conditions in the oil and gas industries. Firms also reported that they base demand forecasts on 

contacts with their customers, current market conditions, sales forecasts and future outlooks in specialized

trade publications. 

Substitute Products

When asked whether substitutes for seamless SLP pipe exist, the majority of questionnaire

respondents answered no. However, some firms did report that welded pipe can be substituted for either

small or large diameter seamless SLP pipe, and one firm reported that plastic pipe can be substituted. 

Cost Share

When asked to estimate the cost of seamless SLP as a percentage of the cost of end use products,

none of the producers, and only a few importers provided estimates. One importer (***) estimated that

the large diameter pipe accounts for 30 to 40 percent of the cost of natural gas transmission lines. 

Another importer (***) estimated that both the large and small diameter pipe account for 40 percent of

the cost of pipe fittings. Another firm (***) reported that large and small diameter pipe account for 100

percent of the cost of fence posts and framing. A fourth, (***), reported that small diameter pipe

accounts for 20 to 25 percent of the cost of welded steel chain links. 

SUBSTITUTABILITY ISSUES

The degree of substitutability between domestic products and subject imports, between domestic

products and nonsubject imports, and between subject and nonsubject imports is examined in this section. 

Much of the discussion is based on information obtained from questionnaire responses.
 12 Similarly, a majority of questionnaire respondents reported that both small diameter and large diameter

produced in the United States and imported from nonsubject sources can “always” or “frequently be used

interchangeably, and imports of both small diameter and large diameter from China and nonsubject imports can also

be used interchangeably.

II-8

Comparisons of Domestic Products and Subject and Nonsubject Imports

To determine whether U.S.-produced small diameter pipe and large diameter pipe can

generally can be used in the same applications as imports from China and nonsubject sources, producers

and importers were asked whether the product can “always,” “frequently,” “sometimes,” or “never” be

used interchangeably. The results are shown in tables II-2 and II-3. 

Table II-2

Small diameter seamless SLP pipe: Perceived degree of interchangeability of product produced in

the United States and in other countries1

Country comparison

U.S. producers U.S. importers

AFSNAFSN

U.S. vs. China 4 0 0 0 8 3 5 0

U.S. vs. nonsubject 4 0 0 0 6 2 5 0

China vs. nonsubject 4 0 0 0 6 3 5 0

 1

 Producers and importers were asked if small diameter seamless SLP pipe produced in the United States and in other

countries is used interchangeably.

Note: “A” = Always, “F” = Frequently, “S” = Sometimes, and “N” = Never.

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

Table II-3

Large diameter seamless SLP pipe: Perceived degree of interchangeability of product produced in

the United States and in other countries1

Country comparison

U.S. producers U.S. importers

AFSNAFSN

U.S. vs. China 3 0 0 0 7 4 5 0

U.S. vs. nonsubject 3 0 0 0 6 3 5 0

China vs. nonsubject 3 0 0 0 6 4 5 0

 1 Producers and importers were asked if large diameter seamless SLP pipe produced in the United States and in other

countries is used interchangeably.

Note: “A” = Always, “F” = Frequently, “S” = Sometimes, and “N” = Never.

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

The majority of questionnaire respondents reported that both small diameter and large diameter

pipe produced in the United States and imported from China can “always” or “frequently” be used

interchangeably.12 One U.S. producer (***) reported that while not all purchasers accept Chinese small

and large diameter pipe for all applications, Chinese pipe is generally interchangeable with domestic pipe

in the same applications and has steadily become more and more accepted for more and more uses. One

importer (***) reported that quality and certification are the factors that determine interchangeability for

both small and large diameter pipe. Another importer (***) reported that certain jobs require an approved
 13 As recently as 2007, there was evidence that Chinese-produced seamless SLP pipe was not yet on “approved

manufacturers lists.” At that time, approved manufacturers lists were commonly used when considering supply

sources. Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe from Argentina, Brazil, and

Germany, Inv. Nos. 731-TA-707-709 (Second Review), USITC Publication 3908, May 2007, p. 17.

 14 Similarly, in comparing the U.S.-produced small and large diameter pipe with nonsubject imports, and

comparing the Chinese small and large diameter pipe with nonsubject imports, responding producers consider factors

other than price unimportant in the sales, while a majority of importers consider factors other than price always or

frequently important. 

II-9

manufacturing list for both small and large diameter pipe.13 Another importer (***) reported that some

end users prefer using “non-Chinese” product for small diameter pipe. This importer also reported that

large diameter imported pipe is not interchangeable with the U.S. product for offshore applications, but is

interchangeable for some inshore applications. Another importer (***) reported that some end users of

both small and large diameter pipe might not accept Chinese pipe for their projects due to inconsistent

quality. Another importer (***) reported that during a period when U.S. producers are unable to offer

enough quantity to satisfy needs for small and large diameter pipe, product from alternative sources such

as China is accepted. 

In addition to questions concerning interchangeability, producers and importers were also asked

to compare U.S.-produced products with imports from China and nonsubject imports in terms of product

differences other than price such as quality, availability, product range, and other characteristics, as a

factor in their sales of seamless SLP pipe. Responses shown in tables II-4 and II-5 indicate that all

responding producers consider factors other than price unimportant in their sales, while a majority of

importers consider factors other than price always or frequently important when comparing seamless SLP

pipe from the United States with imports from China.14 One importer (***) reported that perceived

quality differences and brand names influence sales for both small and large diameter pipe. Another

importer (***) reported that availability can sometimes be a consideration for both small and large

diameter pipe. Another importer (***) reported that one factor influencing sales was that U.S. Steel and V

& M Star were on allocation for large diameter pipe during 2006-08. Another importer (***) reported

that for small diameter pipe, many end users place country of origin restrictions on manufactures, fearing

that Chinese origin may be of sub-standard quality. Another importer (***) reported that delivery

considerations and a policy of no Chinese pipe may be a consideration in some projects.

Table II-4

Small diameter seamless SLP pipe: U.S. producers’ and importers’ perceived importance of

factors other than price in sales of products produced in the United States and in other countries1

Country comparison

U.S. producers U.S. importers

AFSNAFSN

U.S. vs. China 0 0 0 4 2833

U.S. vs. nonsubject 0004 1542

China vs. nonsubject 0004 1442

 1 Producers and importers were asked if differences other than price between small diameter seamless SLP pipe produced in

the United States and in other countries are a significant factor in their firms’ sales of small diameter seamless SLP pipe. 

Note: “A” = Always, “F” = Frequently, “S” = Sometimes, “N” = Never, and “0” = No familiarity.

Source: Compiled from data submitted in response to Commission questionnaires.
II-10

Table II-5

Large diameter seamless SLP pipe: U.S. producers’ and importers’ perceived importance of

factors other than price in sales of products produced in the United States and in other countries1

Country comparison

U.S. producers U.S. importers

AFSNAFSN

U.S. vs. China 0 0 0 3 2932

U.S. vs. nonsubject 0003 1732

China vs. nonsubject 0003 1542

 1 Producers and importers were asked if differences other than price between large diameter seamless SLP pipe produced in

the United States and in other countries are a significant factor in their firms’ sales of large diameter seamless SLP pipe. 

Note: “A” = Always, “F” = Frequently, “S” = Sometimes, “N” = Never, and “0” = No familiarity.

Source: Compiled from data submitted in response to Commission questionnaires.
 1

 ***.

 2

 Evraz Rocky Mountain Steel reportedly did not produce seamless SLP pipe during the period for which data

were collected.

 3 See table III-9.

III-1

PART III: U.S. PRODUCERS’ PRODUCTION, SHIPMENTS, AND

EMPLOYMENT

The Commission analyzes a number of factors in making injury determinations (see 19 U.S.C. §§

1677(7)(B) and 1677(7)(C)). Information on the alleged subsidies and margin of dumping was presented

earlier in this report and information on the volume and pricing of imports of the subject merchandise is

presented in Parts IV and V. Information on the other factors specified is presented in this section and/or

Part VI and (except as noted) is based on the questionnaire responses of five firms that accounted for the

large majority of U.S. production of seamless SLP pipe during 2008.1

U.S. PRODUCERS

The Commission sent producer questionnaires to six firms identified in the petition as domestic

producers of seamless SLP pipe and received five usable questionnaire responses.2

 Presented in table III1 is a list of reporting domestic producers of seamless SLP pipe and each company’s position on the

petition, production location(s), related and/or affiliated firms, and share of reported production of

seamless SLP pipe in 2008.

As indicated in table III-1, while two U.S. producers are related to foreign producers of seamless

SLP pipe, none are related to U.S. importers of seamless SLP pipe. However, as discussed in greater

detail below, three U.S. producers (***) directly import seamless SLP pipe while two U.S. producers

(***) purchased such pipe from U.S. importers during the period for which data were collected.3
III-2

Table III-1

Seamless SLP pipe: Reporting U.S. producers, positions on the petition, U.S. production

locations, related and/or affiliated firms, and shares of 2008 reported U.S. production

Firm

Position on

petition

U.S.

production

location(s)

Related and/or

affiliated firms

Share of production (percent)

Small

diameter

Large

diameter Total

Timken *** Canton, OH None *** *** ***

TIMK IPSCO1 Petitioner

Ambridge, PA

Baytown, TX

Houston, TX

Koppel, PA

Odessa, TX

Volzhsky Pipe

Plant, Volgograd,

Russia

Sinarsky Pipe

Plant, Sverdlovsk,

Russia

Seversky Tube

Works, Sverdlovsk,

Russia

TagMet, Postov,

Russia *** 0.0 ***

U.S. Steel Petitioner Lorain, OH None *** *** ***

V&M Star2 Petitioner Houston, TX

V&M France

V&M Deutchland

V&M do Brasil SA 0.0 *** ***

Wheatland3 *** Sharon, PA None *** 0.0 ***

 Total 100.0 100.0 100.0

 1 Wholly owned by OAO TMK.

 2

 Owned by Vallourec & Mannesmann Tubes (*** percent) and Sumitomo Corporation of America (*** percent).

 3

 Wholly owned by DBO Holdings, Inc.

Note.–Because of rounding, shares may not total to 100.0 percent.

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

Each firm was asked if it experienced any plant openings, relocations, expansions, acquisitions,

consolidations, closures, or prolonged shutdowns because of strikes or equipment failure; curtailment of

production because of shortages of materials; or any other change in the character of their operations or

organization relation to the production of seamless SLP pipe since January 1, 2006. These are included in

table III-2.
III-3

Table III-2

Seamless SLP pipe: Important industry events, 2006–09

Year Company

Description of event (merger, shutdown, bankruptcy, change in

production capacity level, etc.)

2006 IPSCO (Canada/U.S.) Merger: IPSCO acquires NS Steel (parent company of former seamless

SLP producer Koppel Steel), Newport, KY, in December 2006.

2007

IPSCO Acquisition: SSAB (Sweden) purchases IPSCO for approximately $7.7

billion in July 2007.

Wheatland Tube Acquisition: John Maneely Co. (parent company of Wheatland Tube)

acquires seamless SLP pipe producer Sharon Tube, Sharon, PA, in

January 2007. John Maneely is a subsidiary of the Carlyle Group (a

Washington, DC-based investment firm).

2008

Evraz Group SA and TMK

(Russia)

Acquisition: Evraz Group SA and TMK purchase SSAB’s IPSCO

tubular facilities in North America for $4 billion in June 2008. TMK

obtains all of IPSCO’s U.S. tubular operations and 51 percent of NS

Group for approximately $1.2 billion. IPSCO’s tubular operations are

renamed TMK IPSCO.

Wheatland Tube Acquisition cancelled: Russian steel producer OJSC Novolipestk

Steel stops efforts to acquire John Maneely Co.

V&M Star Investment: V&M Star (acquired seamless tubular assets of North Star

Steel in 2002) plans to invest $639 million to increase liquid steel

production by up to 70 percent to 1.4 million short tons, expand billet

casting operations, and add a second pipe mill to make smaller-diameter

seamless pipe.

2009

TMK IPSCO Acquisition: TMK IPSCO acquires the remaining shares of NS Group

from Evraz for $508 million in February 2009, becoming sole owner.

V&M Star Investment delay: V&M Star delays decision on $600 million to $1

billion investment to increase steel production and expand seamless

tubular production at its Youngstown, OH, facility.

U.S. Steel Plant idling: U.S. Steel idles its small diameter seamless pipe mill in

Lorain, OH, in March 2009. In May 2009, U.S. Steel temporarily idles

the blast furnace and caster, but continues operating its large diameter

seamless pipe mill at reduced levels at its Fairfield, AL, facility. Both

facilities continue to operate at reduced levels.

Sources: American Metal Market, various articles; conference transcript.
III-4

U.S. CAPACITY, PRODUCTION, AND CAPACITY UTILIZATION

U.S. producers’ capacity, production, and capacity utilization data for seamless SLP pipe are

presented in table III-3.

Table III-3

Seamless SLP pipe: U.S. capacity, production, and capacity utilization, 2006-08, January-June

2008, and January-June 2009

* * * * * * *

Table III-4 presents data on U.S. seamless SLP producers’ capacity, production, and capacity

utilization data for all seamless pipe products produced using the same machinery and equipment as the

subject pipe. Responding firms reported that subject small diameter seamless SLP pipe accounted for ***

percent of their total small diameter seamless pipe (including nonsubject pipe) production in 2008 and

that subject large diameter seamless SLP pipe accounted for *** percent of their total large diameter

seamless pipe production in 2008. Nonsubject OCTG was the largest of U.S. producers’ overall seamless

pipe production, for both small and large diameter pipe.

Table III-4

Seamless pipe: U.S. capacity, production, and capacity utilization of seamless pipe products,

2006-08, January-June 2008, and January-June 2009

* * * * * * *

U.S. PRODUCERS’ SHIPMENTS

Tables III-5, III-6, and III-7 present data on U.S. producers’ shipments of small diameter

seamless SLP pipe, large diameter seamless SLP pipe, and total seamless SLP pipe, respectively. 

Table III-5

Small diameter seamless SLP pipe: U.S. producers’ shipments, by types, 2006-08, January-June

2008, and January-June 2009

* * * * * * *

Table III-6

Large diameter seamless SLP pipe: U.S. producers’ shipments, by types, 2006-08, January-June

2008, and January-June 2009

* * * * * * *
 4

 ***’s producer questionnaire, sections II-12a, II-12b, II-13a, and II-13b.

III-5

Table III-7

Total seamless SLP pipe: U.S. producers’ shipments, by types, 2006-08, January-June 2008, and

January-June 2009

* * * * * * *

ORDER BOOKS

Table III-8 presents reported quantity of small diameter, large diameter, and total seamless SLP

pipe, entered in reporting firm’s “order books” at the close of specified months.4

 Reported lead times

ranged from 20 to 100 days for small diameter and 35 days to a year for large diameter seamless SLP

pipe.

Table III-8

Seamless SLP pipe: Seamless SLP pipe entered into order books, March 31, 2006 - June 30, 2009

* * * * * * *

U.S. PRODUCERS’ INVENTORIES

As shown in table III-9, end-of-period inventories for small diameter seamless SLP pipe declined

continuously in absolute terms, but as a result of reduced operations were *** higher relative to

production and shipments in interim 2009 than in any other period. Inventories of large diameter

seamless SLP pipe increased in absolute terms until interim 2009, when they declined in absolute terms

but rose *** relative to production and shipments. Aggregate inventories were stable until 2009.

Table III-9

Seamless SLP pipe: U.S. producers’ end-of-period inventories, 2006-08, January-June 2008, and

January-June 2009

* * * * * * *

U.S. PRODUCERS’ IMPORTS AND PURCHASES

U.S. producers’ imports and purchases of seamless SLP pipe are presented in table III-10.

Table III-10

Seamless SLP pipe: U.S. producers’ imports and purchases, 2006-08, January-June 2008, and

January-June 2009

* * * * * * *
III-6

U.S. EMPLOYMENT, WAGES, AND PRODUCTIVITY

The U.S. producers’ aggregate employment data for seamless SLP pipe are presented in table III11.

Table III-11

Seamless SLP pipe: U.S. producers’ employment-related data, 2006-08, January-June 2008, and

January-June 2009

* * * * * * *
 1

 The Commission sent questionnaires to those firms identified in the petition, along with firms that, based on a

review of data provided by U.S. Customs and Border Protection (“Customs”), may have imported at least $1 million

dollars of seamless SLP pipe under HTS subheadings 7304.10.10, 7304.10.50, 7304.19.10, 7304.19.50, 7304.39.00,

7304.59.80, 7304.10.10, 7304.10.50, 7304.19.10, 7304.19.50, 7304.39.00, and 7304.59.80 in 2008.

 2

 Thirty-one other importers responded by certifying that they did not import the subject product during the period

for which data were collected.

IV-1

PART IV: U.S. IMPORTS, APPARENT CONSUMPTION, AND

MARKET SHARES

U.S. IMPORTERS

Importer questionnaires were sent to 151 firms believed to be importers of subject seamless SLP

pipe, as well as to all known U.S. producers of seamless SLP pipe.1

 Usable questionnaire responses were

received from 28 companies.2

 Questionnaire responses from U.S. importers accounted for 61.8 percent of

small diameter, 69.6 percent of large diameter, and 65.4 percent of total seamless SLP pipe U.S. imports

in 2008. Table IV-1 lists all responding U.S. importers of seamless SLP pipe from China and other

sources, their locations, and their shares of reported U.S. imports, in 2008. As shown in the table below,

two out of 28 companies imported only small diameter seamless SLP pipe, 1 out of 28 companies

imported only large diameter, and 25 out of 28 companies imported both.

Table IV-1

Seamless SLP pipe: U.S. importers, U.S. headquarters, source(s) of imports, and shares of

imports in 2008

* * * * * * *

U.S. IMPORTS

Tables IV-2, IV-3, and IV-4 present data for U.S. imports of small diameter, large diameter, and

total seamless SLP pipe from China and all other sources, respectively. Imports from China of both small

and large diameter seamless SLP pipe increased from 2006 to 2008 in quantity, value, and unit value. 

Imports from nonsubject sources increased less noticeably, as greater quantities of large diameter pipe

offset a reduction in small diameter pipe.
IV-2

Table IV-2

Small diameter seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and January-June

2009

Source

Calendar year January-June

2006 2007 2008 2008 2009

Quantity (short tons)

China 91,932 103,677 197,022 63,846 35,641

Nonsubject 109,130 79,677 105,551 50,159 30,631

Total 201,061 183,354 302,573 114,005 66,273

Value (1,000 dollars)

1

China 75,441 86,290 221,020 54,419 44,597

Nonsubject 124,028 104,510 171,996 71,048 66,115

Total 199,469 190,800 393,016 125,467 110,713

Unit value (per short ton)

1

China $821 $832 $1,122 $852 $1,251

Nonsubject 1,137 1,312 1,629 1,416 2,158

Average 992 1,041 1,299 1,101 1,671

Share of quantity (percent)

China 45.7 56.5 65.1 56.0 53.8

Nonsubject 54.3 43.5 34.9 44.0 46.2

Total 100.0 100.0 100.0 100.0 100.0

Share of value (percent)

China 37.8 45.2 56.2 43.4 40.3

Nonsubject 62.2 54.8 43.8 56.6 59.7

Total 100.0 100.0 100.0 100.0 100

1

 Landed, U.S. port of entry, duty-paid. 

Source: Compiled from official Commerce statistics.
 3

 U.S. imports of large diameter project line pipe with greater wall thickness slowed the overall decline in

nonsubject imports. Conference transcript, pp. 56-57 and 104-105 (Pognonec); official Commerce statistics.

IV-3

Table IV-3

Large diameter seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and

January-June 2009

Source

Calendar year January-June

2006 2007 2008 2008 2009

Quantity (short tons)

China 66,195 68,642 169,066 53,754 30,817

Nonsubject 183,691 149,633 242,869 99,814 70,781

Total 249,885 218,275 411,934 153,569 101,598

Value (1,000 dollars)

1

China 54,722 56,368 191,031 46,192 43,502

Nonsubject 256,816 247,822 425,231 170,213 177,345

Total 311,538 304,191 616,262 216,405 220,847

Unit value (per short ton)

1

China $827 $821 $1,130 $859 $1,412

Nonsubject 1,398 1,656 1,751 1,705 2,506

Average 1,247 1,394 1,496 1,409 2,174

Share of quantity (percent)

China 26.5 31.4 41.0 35.0 30.3

Nonsubject 73.5 68.6 59.0 65.0 69.7

Total 100.0 100.0 100.0 100.0 100.0

Share of value (percent)

China 17.6 18.5 31.0 21.3 19.7

Nonsubject 82.4 81.5 69.0 78.7 80.3

Total 100.0 100.0 100.0 100.0 100.0

1

 Landed, U.S. port of entry, duty-paid. 

Source: Compiled from official Commerce statistics.

U.S. imports from subject and nonsubject sources were lower, on a quantity basis, in JanuaryJune 2009 than in January-June 2008, albeit with substantitally higher unit values.3
IV-4

Table IV-4

Total seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and JanuaryJune 2009

Source

Calendar year January-June

2006 2007 2008 2008 2009

Quantity (short tons)

China 158,126 172,319 366,088 117,601 66,458

Nonsubject 292,820 229,310 348,420 149,973 101,413

Total 450,946 401,629 714,508 267,574 167,871

Value (1,000 dollars)

1

China 130,163 142,658 412,051 100,611 88,099

Nonsubject 380,844 352,332 597,227 241,261 243,461

Total 511,006 494,991 1,009,278 341,872 331,560

Unit value (per short ton)

1

China $823 $828 $1,126 $856 $1,326

Nonsubject 1,301 1,536 1,714 1,609 2,401

Average 1,133 1,232 1,413 1,278 1,975

Share of quantity (percent)

China 35.1 42.9 51.2 44.0 39.6

Nonsubject 64.9 57.1 48.8 56.0 60.4

Total 100.0 100.0 100.0 100.0 100.0

Share of value (percent)

China 25.5 28.8 40.8 29.4 26.6

Nonsubject 74.5 71.2 59.2 70.6 73.4

Total 100.0 100.0 100.0 100.0 100.0

1

 Landed, U.S. port of entry, duty-paid. 

Source: Compiled from official Commerce statistics.

Tables IV-5, IV-6, and IV-7 present data on U.S. imports of small diameter, large diameter, and

total seamless SLP pipe by source, respectively. As discussed in Part I, U.S. imports of small diameter

seamless SLP pipe from Germany and Romania are subject to antidumping duty orders, as are U.S.

imports of small diameter and large diameter seamless SLP pipe from Japan.
IV-5

Table IV-5

Small diameter seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and

January-June 2009

Country

Calendar year January - June

2006 2007 2008 2008 2009

Quantity (short tons)

China 91,932 103,677 197,022 63,846 35,641

Spain 17,666 6,564 15,092 7,024 4,636

Ukraine 16,876 12,080 12,302 3,534 991

France 18,602 6,720 10,057 5,629 4,240

Germany 15,687 11,728 9,058 3,134 1,137

Russia 5,562 12,473 10,448 8,117 4,674

Austria 9,519 1,651 9,489 3,042 4,926

Slovak Republic 4,517 6,865 4,076 1,918 628

Czech Republic 491 5,449 7,243 4,443 2,638

Japan 400 5,440 7,381 4,166 2,081

Argentina 745 1,333 7,222 3,411 1,073

Canada 2,479 2,183 3,951 2,078 346

Brazil 6,850 1,967 34 10 22

All other 9,736 5,222 9,200 3,653 3,240

 Total 201,061 183,354 302,573 114,005 66,273

Value ($1,000)

China 75,441 86,290 221,020 54,419 44,597

Spain 22,541 10,575 28,245 11,230 10,097

Ukraine 15,007 11,585 17,944 3,898 1,583

France 23,519 9,061 16,333 7,484 11,163

Germany 16,764 20,625 17,591 6,546 3,307

Russia 4,410 10,442 8,726 6,189 7,478

Austria 11,458 1,886 15,727 4,185 11,125

Slovak Republic 5,061 8,446 6,032 2,521 1,136

Czech Republic 575 5,679 10,209 5,727 5,208

Japan 966 9,380 14,967 8,202 5,596

Argentina 750 2,002 11,417 4,708 2,807

Canada 4,736 4,528 9,727 4,383 939

Brazil 5,683 1,909 128 50 68

All other 12,557 8,393 14,950 5,925 5,608

 Total 199,469 190,800 393,016 125,467 110,713

Table continued on next page.
IV-6

Table IV-5--Continued

Small diameter seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and

January-June 2009

Country

Calendar year January - June

2006 2007 2008 2008 2009

Unit value (dollars per short ton)

China 821 832 1,122 852 1,251

Spain 1,276 1,611 1,871 1,599 2,178

Ukraine 889 959 1,459 1,103 1,598

France 1,264 1,348 1,624 1,330 2,633

Germany 1,069 1,759 1,942 2,089 2,909

Russia 793 837 835 763 1,600

Austria 1,204 1,142 1,657 1,376 2,259

Slovak Republic 1,120 1,230 1,480 1,314 1,808

Czech Republic 1,171 1,042 1,409 1,289 1,974

Japan 2,417 1,724 2,028 1,969 2,689

Argentina 1,007 1,501 1,581 1,380 2,617

Canada 1,911 2,074 2,462 2,109 2,716

Brazil 830 970 3,787 4,842 3,094

All other 1,290 1,607 1,625 1,622 1,731

 Average 992 1,041 1,299 1,101 1,671

Note.--Countries ranked by import quantity during 2006-June 2009.

Source: Compiled from official Commerce statistics (HTS 7304.10.1020, 7304.10.1030, 7304.10.1045,

7304.10.1060, 7304.10.5020, 7304.10.5050, 7304.19.1020, 7304.19.1030, 7304.19.1045, 7304.19.1060,

7304.19.5020, 7304.19.5050, 7304.39.0016, 7304.39.0020, 7304.39.0024, 7304.39.0036, 7304.39.0048,

7304.39.0062, 7304.59.8010, 7304.59.8015, 7304.59.8030, 7304.59.8045, and 7304.59.8060).
IV-7

Table IV-6

Large diameter seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and

January-June 2009

Country

Calendar year January - June

2006 2007 2008 2008 2009

Quantity (short tons)

China 66,195 68,642 169,066 53,754 30,817

Argentina 18,413 35,024 37,186 11,853 8,555

Italy 21,681 20,823 32,419 13,041 10,630

Russia 29,773 18,416 22,885 2,582 5,179

Czech Republic 21,430 18,024 24,556 12,688 3,952

Japan 27,821 23,360 6,292 3,293 2,973

Germany 6,987 6,847 16,189 11,544 23,200

Mexico 2,367 5,946 39,298 22,050 2,669

Brazil 22,431 6,079 13,083 5,426 1,273

Ukraine 3,154 4,119 21,377 3,092 631

Romania 15,641 1,198 1,554 116 2,759

France 630 267 8,058 6,570 4,839

Austria 4,396 2,473 3,267 1,291 2,084

All other 8,968 7,058 16,704 6,270 2,039

 Total 249,885 218,275 411,934 153,569 101,598

Value ($1,000)

China 54,722 56,368 191,031 46,192 43,502

Argentina 28,529 65,460 62,449 14,751 22,513

Italy 39,471 43,380 70,145 28,951 32,818

Russia 26,182 18,603 29,928 2,641 7,490

Czech Republic 20,637 19,804 30,501 12,157 7,843

Japan 52,084 46,985 11,862 6,850 7,617

Germany 13,248 15,044 31,076 21,906 63,974

Mexico 3,205 9,891 77,429 43,389 7,827

Brazil 36,371 8,579 29,526 13,828 3,096

Ukraine 2,595 3,832 29,934 2,597 968

Romania 15,158 1,430 2,779 124 5,250

France 1,071 513 15,133 12,304 8,927

Austria 5,502 2,464 4,607 1,327 4,472

All other 12,763 11,835 29,863 9,390 4,551

 Total 311,538 304,191 616,262 216,405 220,847

Table continued on next page.
IV-8

Table IV-6--Continued

Large diameter seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and

January-June 2009

Country

Calendar year January - June

2006 2007 2008 2008 2009

Unit value (dollars per short ton)

China 827 821 1,130 859 1,412

Argentina 1,549 1,869 1,679 1,244 2,632

Italy 1,821 2,083 2,164 2,220 3,087

Russia 879 1,010 1,308 1,023 1,446

Czech Republic 963 1,099 1,242 958 1,984

Japan 1,872 2,011 1,885 2,080 2,562

Germany 1,896 2,197 1,920 1,898 2,758

Mexico 1,354 1,663 1,970 1,968 2,933

Brazil 1,621 1,411 2,257 2,549 2,433

Ukraine 823 930 1,400 840 1,535

Romania 969 1,194 1,788 1,072 1,903

France 1,699 1,923 1,878 1,873 1,845

Austria 1,252 997 1,410 1,027 2,146

All other 1,423 1,677 1,788 1,498 2,232

 Average 1,247 1,394 1,496 1,409 2,174

Note.--Countries ranked by import quantity during 2006-June 2009.

Source: Compiled from official Commerce statistics (HTS 7304.10.1030, 7304.10.1045, 7304.10.1060,

7304.10.5050, 7304.19.1030, 7304.19.1045, 7304.19.1060, 7304.19.5050, 7304.39.0036, 7304.39.0048,

7304.39.0062, 7304.59.8030, 7304.59.8045, and 7304.59.8060).
IV-9

Table IV-7

Total seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and JanuaryJune 2009

Country

Calendar year January - June

2006 2007 2008 2008 2009

Quantity (short tons)

China 158,126 172,319 366,088 117,601 66,458

Argentina 19,158 36,357 44,409 15,264 9,627

Russia 35,334 30,889 33,333 10,699 9,853

Italy 22,823 21,136 36,176 14,637 11,663

Germany 22,674 18,576 25,247 14,678 24,337

Czech Republic 21,921 23,473 31,799 17,131 6,590

Japan 28,220 28,800 13,673 7,459 5,053

Ukraine 20,030 16,199 33,679 6,626 1,622

France 19,232 6,987 18,115 12,199 9,079

Spain 22,370 7,066 17,807 7,033 5,504

Brazil 29,281 8,047 13,117 5,436 1,295

Mexico 2,830 5,953 39,332 22,085 2,675

Austria 13,915 4,124 12,756 4,333 7,010

All other 35,032 21,705 28,978 12,395 7,105

 Total 450,946 401,629 714,508 267,574 167,871

Value ($1,000)

China 130,163 142,658 412,051 100,611 88,099

Argentina 29,279 67,462 73,867 19,459 25,320

Russia 30,592 29,046 38,654 8,831 14,968

Italy 40,854 44,072 76,632 31,669 34,599

Germany 30,012 35,669 48,667 28,452 67,282

Czech Republic 21,212 25,483 40,710 17,884 13,051

Japan 53,049 56,365 26,828 15,052 13,213

Ukraine 17,602 15,417 47,877 6,495 2,551

France 24,590 9,573 31,466 19,787 20,090

Spain 29,649 11,766 33,186 11,238 12,198

Brazil 42,054 10,488 29,654 13,878 3,164

Mexico 3,653 9,910 77,578 43,538 7,884

Austria 16,961 4,350 20,334 5,512 15,597

All other 41,337 32,731 51,775 19,468 13,545

 Total 511,006 494,991 1,009,278 341,872 331,560

Table continued on next page.
IV-10

Table IV-7--Continued

Total seamless SLP pipe: U.S. imports, by sources, 2006-08, January-June 2008, and

January-June 2009

Country

Calendar year January - June

2006 2007 2008 2008 2009

Unit value (dollars per short ton)

China $823 $828 $1,126 $856 $1,326

Argentina 1,528 1,856 1,663 1,275 2,630

Russia 866 940 1,160 825 1,519

Italy 1,790 2,085 2,118 2,164 2,967

Germany 1,324 1,920 1,928 1,938 2,765

Czech Republic 968 1,086 1,280 1,044 1,980

Japan 1,880 1,957 1,962 2,018 2,615

Ukraine 879 952 1,422 980 1,573

France 1,279 1,370 1,737 1,622 2,213

Spain 1,325 1,665 1,864 1,598 2,216

Brazil 1,436 1,303 2,261 2,553 2,444

Mexico 1,291 1,665 1,972 1,971 2,947

Austria 1,219 1,055 1,594 1,272 2,225

All other 1,180 1,508 1,787 1,571 1,906

 Total 1,133 1,232 1,413 1,278 1,975

Note.--Countries ranked by import quantity during 2006-June 2009.

Source: Compiled from official Commerce statistics (HTS 7304.10.1020, 7304.10.1030, 7304.10.1045,

7304.10.1060, 7304.10.5020, 7304.10.5050, 7304.19.1020, 7304.19.1030, 7304.19.1045, 7304.19.1060,

7304.19.5020, 7304.19.5050, 7304.39.0016, 7304.39.0020, 7304.39.0024, 7304.39.0036, 7304.39.0048,

7304.39.0062, 7304.59.8010, 7304.59.8015, 7304.59.8030, 7304.59.8045, 7304.59.8060, 7304.10.1030,

7304.10.1045, 7304.10.1060, 7304.10.5050, 7304.19.1030, 7304.19.1045, 7304.19.1060, 7304.19.5050,

7304.39.0036, 7304.39.0048, 7304.39.0062, 7304.59.8030, 7304.59.8045, and 7304.59.8060).

Tables IV-8, IV-9, and IV-10 present data on U.S. imports of small diameter, large diameter, and

total seamless SLP pipe by source and month from January 2006 to July 2009, respectively.
IV-11

Table IV-8Small diameter seamless SLP pipe: U.S. imports, by source and month, 2006-08 and January-July 2009

Source January February March April May Jun July August September October N

Quantity (short tons)

2006China 5,370 3,685 6,266 11,976 7,139 8,521 9,076 8,100 4,267 9,400 Nonsubject 7,508 5,619 3,731 9,473 11,950 18,377 10,586 8,778 4,798 7,574  Total 12,878 9,304 9,998 21,449 19,089 26,898 19,662 16,878 9,066 16,975 2007China 9,887 14,125 5,610 5,370 16,314 7,566 10,619 6,537 5,932 11,117 Nonsubject 9,516 5,309 5,375 11,325 4,870 5,377 3,760 6,169 8,371 8,895  Total 19,403 19,434 10,985 16,695 21,184 12,943 14,379 12,706 14,304 20,012 2008China 14,086 7,213 8,877 11,143 11,372 11,155 9,962 13,717 24,854 27,761 Nonsubject 8,142 5,881 10,130 8,067 7,520 10,419 11,368 5,136 9,251 7,521  Total 22,228 13,094 19,007 19,210 18,893 21,574 21,330 18,853 34,105 35,282 2009China 13,515 6,218 7,327 5,506 2,360 715 4,909 

Nonsubject 11,987 8,786 5,828 1,401 1,691 938 1,555  Total 25,502 15,004 13,155 6,908 4,050 1,653 6,463 Source: Compiled from official Commerce statistics (HTS 7304.10.1020, 7304.10.1030, 7304.10.1045, 7304.10.1060, 7304.10.5020, 7304.10.5050, 7304.19.10207304.19.1060, 7304.19.5020, 7304.19.5050, 7304.39.0016, 7304.39.0020, 7304.39.0024, 7304.39.0036, 7304.39.0048, 7304.39.0062, 7304.59.8010, 7304.59.807304.59.8060).
IV-12

Table IV-9Large diameter seamless SLP pipe: U.S. imports, by source and month, 2006-08 and January-July 2009

Source January February March April May Jun July August September October N

Quantity (short tons)

2006China 645 2,429 1,005 10,103 4,516 1,983 7,278 5,143 7,070 12,336 Nonsubject 11,621 16,217 14,632 15,114 25,386 16,614 14,845 19,245 13,337 17,710  Total 12,265 18,646 15,636 25,217 29,902 18,598 22,123 24,389 20,407 30,046 2007China 5,160 12,335 5,361 5,858 11,116 3,929 4,098 4,881 5,776 3,251 Nonsubject 10,852 11,868 3,247 20,771 10,967 18,952 19,484 3,237 10,971 17,533  Total 16,012 24,203 8,608 26,629 22,083 22,881 23,582 8,117 16,748 20,783 2008China 9,158 5,419 9,164 2,491 12,576 14,945 11,584 18,878 20,583 22,821 Nonsubject 11,878 10,186 18,087 23,984 20,779 14,901 31,783 19,669 20,412 31,068  Total 21,036 15,605 27,251 26,475 33,354 29,847 43,367 38,547 40,995 53,889 2009China 14,720 4,550 2,710 6,684 1,469 684 2,405 

Nonsubject 18,142 9,317 17,049 13,700 3,204 9,370 6,311  Total 32,862 13,867 19,758 20,384 4,672 10,055 8,716 Source: Compiled from official Commerce statistics (HTS 7304.10.1030, 7304.10.1045, 7304.10.1060, 7304.10.5050, 7304.19.1030, 7304.19.1045, 7304.19.10607304.39.0048, 7304.39.0062, 7304.59.8030, 7304.59.8045, and 7304.59.8060).
IV-13

Table IV-10Total seamless SLP pipe: U.S. imports, by source and month, 2006-08 and January-July 2009

Source January February March April May Jun July August September October N

Quantity (short tons)

2006China 6,015 6,114 7,271 22,079 11,655 10,505 16,354 13,243 11,338 21,737 Nonsubject 19,129 21,837 18,363 24,587 37,336 34,991 25,431 28,024 18,135 25,284  Total 25,143 27,951 25,634 46,666 48,992 45,496 41,785 41,267 29,473 47,021 2007China 15,047 26,460 10,972 11,228 27,430 11,496 14,717 11,418 11,709 14,367 Nonsubject 20,367 17,177 8,622 32,096 15,837 24,329 23,245 9,406 19,343 26,428  Total 35,415 43,637 19,593 43,324 43,267 35,824 37,962 20,823 31,051 40,795 2008China 23,244 12,632 18,042 13,634 23,948 26,100 21,546 32,594 45,437 50,582 Nonsubject 20,021 16,067 28,217 32,051 28,299 25,320 43,151 24,805 29,663 38,590  Total 43,264 28,699 46,259 45,685 52,247 51,420 64,697 57,400 75,100 89,171 2009China 28,235 10,768 10,037 12,190 3,829 1,399 7,313 Nonsubject 30,129 18,102 22,877 15,101 4,894 10,308 7,866  Total 58,364 28,871 32,914 27,291 8,723 11,708 15,179 

Source: Compiled from official Commerce statistics (HTS 7304.10.1020, 7304.10.1030, 7304.10.1045, 7304.10.1060, 7304.10.5020, 7304.10.5050, 7304.19.10207304.19.1060, 7304.19.5020, 7304.19.5050, 7304.39.0016, 7304.39.0020, 7304.39.0024, 7304.39.0036, 7304.39.0048, 7304.39.0062, 7304.59.8010, 7304.59.807304.59.8060 ).
 4

 Sections 703(a)(1), 705(b)(1), 733(a)(1), and 735(b)(1) of the Act (19 U.S.C. §§ 1671b(a)(1), 1671d(b)(1),

1673b(a)(1), and 1673d(b)(1)).

 5

 Section 771(24) of the Act (19 U.S.C. § 1677(24)).

IV-14

Primary Ports of Entry

Houston-Galveston, TX was by far the largest port of entry for both small and large diameter

seamless SLP pipe from China during the period for which data were collected. The second largest port

of entry was Los Angeles, CA. For imported seamless SLP pipe generally, Houston-Galveston and Los

Angeles were the leading ports of entry, followed distantly by New Orleans, Philadelphia, and Mobile.

NEGLIGIBILITY

The statute requires that an investigation be terminated without an injury determination if imports

of the subject merchandise are found to be negligible.4

 Negligible imports are generally defined in the

Tariff Act of 1930, as amended, as imports from a country of merchandise corresponding to a domestic

like product seamless SLP pipe where such imports account for less than 3 percent of the volume of all

such merchandise imported into the United States in the most recent 12-month period for which data are

available that precedes the filing of the petition or the initiation of the investigation. However, if there are

imports of such merchandise from a number of countries subject to investigations initiated on the same

day that individually account for less than 3 percent of the total volume of the subject merchandise, and if

the imports from those countries collectively account for more than 7 percent of the volume of all such

merchandise imported into the United States during the applicable 12-month period, then imports from

such countries are deemed not to be negligible.5

 Imports from China accounted for 68.2 percent of total

imports of small diameter seamless SLP pipe by quantity from August 2008 to July 2009; imports from

China accounted for 42.1 percent of total imports of large diameter seamless SLP pipe by quantity from

August 2008 to July 2009; and imports from China accounted for 53.2 percent of total imports of

seamless SLP pipe by quantity from August 2008 to July 2009. 
IV-15

APPARENT U.S. CONSUMPTION

Data concerning apparent U.S. consumption of small diameter, large diameter, and total seamless

SLP pipe during the period for which data were collected are shown in tables IV-11, IV-12, and IV-13,

respectively.

Table IV-11

Small diameter seamless SLP pipe: U.S. shipments of domestic product, U.S. imports, and

apparent U.S. consumption, 2006-08, January-June 2008, and January-June 2009

Item

Calendar year January-June

2006 2007 2008 2008 2009

Quantity (short tons)

U.S. producers’ U.S. shipments *** *** *** *** ***

U.S. imports from–

China 91,932 103,677 197,022 63,846 35,641

Nonsubject countries 109,130 79,677 105,551 50,159 30,631

Total U.S. imports 201,061 183,354 302,573 114,005 66,273

Apparent U.S. consumption *** *** *** *** ***

Value (1,000 dollars)

U.S. producers’ U.S. shipments *** *** *** *** ***

U.S. imports from–

China 75,441 86,290 221,020 54,419 44,597

Nonsubject countries 124,028 104,510 171,996 71,048 66,115

Total U.S. imports 199,469 190,800 393,016 125,467 110,713

Apparent U.S. consumption *** *** *** *** ***

Note.–Because of rounding, figures may not add to the totals shown.

Source: Compiled from official import statistics of Commerce and data submitted in response to Commission

questionnaires. 
IV-16

Table IV-12

Large diameter seamless SLP pipe: U.S. shipments of domestic product, U.S. imports, and

apparent U.S. consumption, 2006-08, January-June 2008, and January-June 2009

Item

Calendar year January-June

2006 2007 2008 2008 2009

Quantity (short tons)

U.S. producers’ U.S. shipments *** *** *** *** ***

U.S. imports from–

China 66,195 68,642 169,066 53,754 30,817

Nonsubject countries 183,691 149,633 242,869 99,814 70,781

Total U.S. imports 249,885 218,275 411,934 153,569 101,598

Apparent U.S. consumption *** *** *** *** ***

Value (1,000 dollars)

U.S. producers’ U.S. shipments *** *** *** *** ***

U.S. imports from–

China 54,722 56,368 191,031 46,192 43,502

Nonsubject countries 256,816 247,822 425,231 170,213 177,345

Total U.S. imports 311,538 304,191 616,262 216,405 220,847

Apparent U.S. consumption *** *** *** *** ***

Note.–Because of rounding, figures may not add to the totals shown.

Source: Compiled from official import statistics of Commerce and data submitted in response to Commission

questionnaires.
IV-17

Table IV-13

Total seamless SLP pipe: U.S. shipments of domestic product, U.S. imports, and apparent U.S.

consumption, 2006-08, January-June 2008, and January-June 2009

Item

Calendar year January-June

2006 2007 2008 2008 2009

Quantity (short tons)

U.S. producers’ U.S. shipments *** *** *** *** ***

U.S. imports from–

China 158,126 172,319 366,088 117,601 66,458

Nonsubject countries 292,820 229,310 348,420 149,973 101,413

Total U.S. imports 450,946 401,629 714,508 267,574 167,871

Apparent U.S. consumption *** *** *** *** ***

Value (1,000 dollars)

U.S. producers’ U.S. shipments *** *** *** *** ***

U.S. imports from–

China 130,163 142,658 412,051 100,611 88,099

Nonsubject countries 380,844 352,332 597,227 241,261 243,461

Total U.S. imports 511,006 494,991 1,009,278 341,872 331,560

Apparent U.S. consumption *** *** *** *** ***

Note.–Because of rounding, figures may not add to the totals shown.

Source: Compiled from official import statistics of Commerce and data submitted in response to Commission

questionnaires.
IV-18

U.S. MARKET SHARES

U.S. market share data for small diameter, large diameter, and total seamless SLP pipe are

presented in tables IV-14, IV-15, and IV-16, respectively.

Table IV-14

Small diameter seamless SLP pipe: U.S. consumption and market shares, 2006-08, January-June

2008, and January-June 2009

* * * * * * *

Table IV-15

Large diameter seamless SLP pipe: U.S. consumption and market shares, 2006-08, January-June

2008, and January-June 2009

* * * * * * *

Table IV-16

Total seamless SLP pipe: U.S. consumption and market shares, 2006-08, January-June 2008, and

January-June 2009

* * * * * * *

RATIO OF IMPORTS TO U.S. PRODUCTION

Information concerning the ratio of imports to U.S. production of small diameter, large diameter,

and total seamless SLP pipe is presented in tables IV-17, IV-18, and IV-19, respectively.

Table IV-17

Small diameter seamless SLP pipe: U.S. production, U.S. imports, and ratios of imports to U.S.

production, 2006-08, January-June 2008, and January-June 2009

* * * * * * *

Table IV-18

Large diameter seamless SLP pipe: U.S. production, U.S. imports, and ratios of imports to U.S.

production, 2006-08, January-June 2008, and January-June 2009

* * * * * * *

Table IV-19

Total seamless SLP pipe: U.S. production, U.S. imports, and ratios of imports to U.S. production,

2006-08, January-June 2008, and January-June 2009

* * * * * * *
 1

 For small diameter seamless SLP pipe these costs ranged from a low of *** percent of the cost of goods sold in

*** to a high of *** percent in ***. During January-June 2009, raw material costs accounted for *** percent of the

cost of goods sold for such pipe. For the large diameter seamless SLP pipe these costs ranged from a low of ***

percent of the cost of goods sold in *** to a high of *** percent in ***. During January-June 2009, raw material

costs accounted for *** percent of the cost of goods sold for such pipe.

V-1

PART V: PRICING AND RELATED INFORMATION

FACTORS AFFECTING PRICES

Raw Material Costs

Raw materials account for a large share of the cost of seamless SLP pipe. During 2006-08 these

costs ranged from a low of *** percent of the cost-of-goods in *** to a high of *** percent in ***. 

During January-June 2009 raw material costs accounted for *** percent of the cost-of-goods sold.1

Ferrous scrap is a major input used in the production of seamless SLP pipe. As shown in figure V-1, the

price of ferrous scrap rose irregularly to peak levels during in mid-2008 and then declined sharply during

the latter portion of the year, before stabilizing and beginning to increase in the second half of 2009.

Figure V-1

Ferrous scrap prices: Number 1 heavy melt, Chicago average, monthly, January 2006-October

2009

Source: American Metal Market.

U.S. Inland Transportation Costs

Inland shipping charges comprise a relatively small share of delivered prices for U.S. producers

and importers of seamless SLP pipe. For producers, estimated costs ranged from 3 to 5 percent. For

those importers that provided estimates, costs ranged from 2 to 5 percent. Questionnaire responses show
V-2

that U.S. producers’ sales typically involve longer distances than importers. For the 5 producers, 80 to

100 percent of sales involve distances of 101 miles or more from their storage or production facilities. In

contrast, for the 14 importers that provided estimates, 8 reported that 95 to 100 percent of their sales

involved distances of 100 miles or less from their storage facilities. 

PRICING PRACTICES

U.S. producers and importers commonly establish seamless SLP prices through by transactionby-transaction negotiations, although they rely on other methods as well. Among U.S. producers, two

rely completely on transaction-by-transaction negotiations, two rely on price lists, and one relies on a

combination of transaction-by-transaction negotiations and contracts for multiple shipments. Among 21

responding importers, 13 reported that prices are determined solely by transaction-by-transaction

negotiations. Other methods reported included price lists and markups based upon import costs 

Discounts on seamless SLP pipe vary. Three of the five U.S. producers reported that they

provide volume discounts. One producer reported that it does not have a discount policy, and one

reported that in past years it has provided a discount of up to $*** per ton to its major distributor. Among

the 21 responding importers, 17 reported that they do not provide volume discounts, while 3 reported that

they do use such discounts. All five of the producers reported that they offer discounts of *** percent for

the early payment of accounts. Among importers, only one firm reported that it offers a discount for early

payment (***). 

 U.S. producers quote prices for seamless SLP pipe on both an f.o.b. and delivered basis. Among

importers methods for price quotes included f.o.b. warehouse, f.o.b. loaded truck port, delivered, c.i.f.

duty paid, and direct discharge at port. 

The majority of producers and importers sell entirely on a spot basis. The single U.S. producer

*** that reported using contract sales stated that contracts are for *** months or until further notice with

prices and quantities fixed during the contract period. Importers that sell under contract reported contract

periods ranging from 3 to 12 months with prices and quantities both typically fixed during the contract

period. U.S. producers and importers reported that meet-or-release provisions normally do not apply. 

PRICE DATA

The Commission requested U.S. producers and importers of seamless SLP pipe to provide

quarterly data for the total quantity and value of two small diameter and two large diameter seamless SLP

pipe products shipped to unrelated distributors in the U.S. market during the period January 2006 through

June 2009. The products for which pricing data were requested are as follows:

Product 1.–Seamless pipe quad stenciled to meet ASTM A-106 grade B, ASTM A-53 grade

B, API 5L and APL 5L grade X-42 specifications; 2" nominal size (2 3/8 inch OD x 0.154

wall thickness); plain ends.

Product 2.--Seamless pipe quad stenciled to meet ASTM A-106 grade B, ASTM A-53 grade

B, API 5L and APL 5L grade X-42 specifications; 4" nominal size (4 1⁄2 inch OD x 0.237 wall

thickness); plain ends.

Product 3.--Seamless pipe quad stenciled to meet ASTM A-106 grade B, ASTM A-53 grade

B, API 5L and APL 5L grade X-42 specifications; 8" nominal size (8 5/8 inch OD x 0.322

wall thickness); plain ends.

Product 4.--Seamless pipe quad stenciled to meet ASTM A-106 grade B, ASTM A-53 grade
 2

 For small diameter pipe, price data accounted for approximately *** percent of U.S. producers’ shipments of

seamless SLP pipe and 24.2 percent of U.S. shipments of subject imports from China during 2006 through JanuaryJune 2009. For large diameter pipe, price data accounted for approximately *** percent of U.S. producers’

shipments of seamless SLP pipe and 31.9 percent of U.S. shipments of subject imports from China during 2006

through January-June 2009.

 3

 Price data for U.S.-produced seamless SLP pipe and imports from both China and nonsubject sources are

presented in Appendix E. Nonsubject country pricing data were reported for Brazil, Croatia, Czech Republic,

France, India, Poland, and Russia. In comparing nonsubject country pricing data with U.S. producer pricing data,

nonsubject prices were lower than U.S. producer prices in 85 instances and higher than U.S. producer prices in 14

instances. In comparing nonsubject country pricing data with subject country pricing data, nonsubject prices were

lower than subject prices in 7 instances and higher than subject prices in 92 instances.

 

V-3

B, API 5L and APL 5L grade X-42 specifications; 12" nominal size (12 3/4 inch OD x 0.375

wall thickness); plain ends.

Four U.S. producers and ten importers of seamless SLP from China provided usable pricing data

for sales of the requested products, although not all firms reported pricing for all products for all quarters. 

Pricing data reported by these firms accounted for approximately *** percent of U.S. producer’s

shipments of seamless SLP pipe and 27.9 percent of U.S. shipments of subject imports from China during

2006 through January-June 2009.2

Price Trends

Quarterly weighted-average prices for all four products for the United States and China are

presented in tables V-1 and V-4 and figure V-2 for the period January-March 2008 through April-June

2009.3

 The data show that prices of all four U.S.-produced products increased overall during the period

for which data were collected. U.S. prices for all four products increased sharply during 2008, with small

diameter seamless SLP pipe prices peaking in the fourth quarter and large diameter seamless SLP pipe

prices peaking in the first quarter of 2009. By the second quarter of 2009 prices of all products had

declined to levels that were well below their peaks but were comparable to the price levels observed in the

third quarter of 2008. U.S. shipment quantities fluctuated during the period, but declined to very low

levels for all four products in the second quarter of 2009. Trends in prices of imports from China showed

a similar increase in 2008 but for three of the four products no substantial price decline occurred in 2009. 

Shipments quantities for imports from China for all 4 products fluctuated during the period. A summary

of price ranges and percentage changes in prices is presented in table V-5.

Table V-1

Seamless SLP pipe: Weighted-average f.o.b. prices and quantities of domestic and imported

product 1 and margins of underselling/(overselling), by quarters, January 2006-June 2009

* * * * * * *

Table V-2

Seamless SLP pipe: Weighted-average f.o.b. prices and quantities of domestic and imported

product 2 and margins of underselling/(overselling), by quarters, January 2006-June 2009

* * * * * * *
V-4

Table V-3

Seamless SLP pipe: Weighted-average f.o.b. prices and quantities of domestic and imported

product 3 and margins of underselling/(overselling), by quarters, January 2006-June 2009

* * * * * * *

Table V-4

Seamless SLP pipe: Weighted-average f.o.b. prices and quantities of domestic and imported

product 4 and margins of underselling/(overselling), by quarters, January 2006-June 2009

* * * * * * *

Figure V-2

Seamless SLP pipe: Weighted-average prices and quantities of domestic and imported product,

by quarters, January 2006-June 2009

* * * * * * *

Table V-5

Seamless SLP pipe: Summary of weighted-average f.o.b. prices for products 1-4 from the United

States and China, January 2006-June 2009

* * * * * * *

Price Comparisons

Margins of underselling and overselling for the period are presented in table V-6. As can be seen

from the table, prices for seamless SLP pipe imported from China were below those for U.S.-produced

seamless SLP pipe in all 56 instances; margins of underselling ranged from 7.8 to 59.6 percent. The

margins of underselling exceeded 33 percent in 36 observations.

Table V-6

Seamless SLP pipe: Instances of underselling/overselling and the range and average of margins,

January 2006-March 2009

Country

Underselling Overselling

Number of

instances

Range

(percent)

Average

margin

(percent)

Number of

instances

Range

(percent)

Average

margin

(percent)

China 56 7.8-59.6 37.4 0 - -

Source: Compiled from data submitted in response to Commission questionnaires.
 4

 Conference transcript, p. 80 (Schagrin) and Postconference Brief of V&M Star, TMK IPSO and the USW, p. 16.

V-5

LOST SALES AND LOST REVENUES

None of the firms provided detailed information and purchaser contacts needed to directly

investigate lost sales or lost revenue allegations. The petitioners have argued that since most producer

sales are made to distributors, the companies are not well positioned to trace a specific lost sale to a

specific import. Nonetheless, petitioners attribute declining market shares, declining revenues due to

falling prices, and the inability to make further sales to U.S. imports of seamless SLP pipe from China.4

 

 1

 The firms are: Timken; TMK IPSCO; U.S. Steel; V&M Star; and Wheatland. ***.

 2

 Conference transcript, p. 64 (Lindgren).

 3

 Conference transcript, p. 17 (Vaughn).

 4

 Conference transcript, p. 94 (Schagrin).

VI-1

PART VI: FINANCIAL EXPERIENCE OF U.S. PRODUCERS

BACKGROUND

Five U.S. firms provided usable financial data on their operations producing seamless SLP pipe.1

These reported data are believed to represent the large majority of U.S. seamless SLP pipe production

during 2008.

OPERATIONS ON SEAMLESS SLP PIPE

Income-and-loss data for the reporting U.S. producers of seamless SLP pipe combined for small

and large diameter are presented in table VI-1; income-and-loss data for U.S. producers of small diameter

seamless SLP pipe and large diameter seamless SLP pipe are presented in tables VI-2 and VI-3,

respectively. Table VI-1 data are briefly summarized as follows:

• Total industry net sales fell from 2006 to 2007, attributed by industry witnesses to “destocking”

and decreased drilling.2

 Sales increased by approximately *** percent on a quantity basis and by

*** percent on a value basis in 2008, which substantially exceeded sales in 2006. Total net sales

in interim 2009 were much lower (termed “a collapse”3

) than in interim 2008. The average unit

value (“AUV”) of sales increased during the full year periods (the greatest amount of the increase

occurred in 2008), which led to the *** increase in sales value; this was ascribed to high energy

prices for oil and gas, high scrap prices, and the “hot market”4

 during the latter half of that year. 

Sales were lower by *** percent on a quantity basis and *** percent on a value basis in interim

2009 compared with interim 2008. Despite the reduction in shipments, the industry sales AUVs

were higher in interim 2009 than in interim 2008.

• Cost of goods sold (“COGS”) tended to follow sales volume and was driven by raw material costs

during 2006-08. Although the AUVs of raw material costs were slightly lower in interim 2009,

the fixed cost components of direct labor and other factory costs led those two cost categories to

much higher levels, particularly in interim 2009 when sales volume fell ***.

• Selling, general and administrative (“SG&A”) expenses increased from 2006 to 2008 in dollar

terms as well as in terms of their AUV. Because SG&A expenses tend to have a higher

proportion of fixed costs, these expenses were higher as a ratio to sales and as an AUV when

sales volume fell in interim 2009.

• Operating income fell from 2006 to 2007 but rose in 2008 to a level that was much greater than in

2006 (for an increase of nearly *** percent from 2006 to 2008). Operating margins for the

industry as a whole averaged more than *** percent during 2006-08. Operating income was ***

percent lower on a value basis in interim 2009 compared with interim 2008, and the operating

margin was *** percentage points lower at *** percent. Petitioners attributed the industry’s

interim 2009 profitability to sales made early in 2009 at prices reflecting 2008 values. They

distinguished the first quarter from the second quarter of 2009, stating that the second quarter was
 5 See U.S. Steel’s postconference brief, p. 21 and exh. 21. ***. V&M Star and TMK IPSCO likewise provided

staff with first and second quarter 2009 financial data separately. ***. E-mail to staff from ***, October 20, 2009.

 6

 Raw materials in seamless SLP pipe include the costs of making and processing steel less cost recovery. In the

integrated steelmaking process, iron ore pellets are combined with coke in a blast furnace. Process costs include the

cost of natural gas, electricity, labor, and other indirect input costs. The molten iron is transferred to a basic oxygen

furnace (BOF), combined with steel scrap and other additives (aluminum, ferro alloys, fluxes and the like), to

produce liquid steel. The liquid steel is transferred from the BOF to a ladle, where the steel’s chemistry may be finetuned, and thence to a casting unit where billets of circular cross section (“rounds”) are continuously cast. For a

description of ***, see Petition, exh. II-15. U.S. Steel is an integrated producer; the other producers are electric arc

furnace scrap-based producers.

 7

 Conference transcript, pp. 72 (Schagrin, with regard to natural gas, scrap, and input costs), 72 (Schagrin,

relationship between input costs and sales prices), and 94 (Schagrin, with regard to “hot” market).

VI-2

buoyed by first quarter operating results and generally was negative, and that third quarter results

would likely be equally poor.5

• Net income before taxes (adjusted for interest and other expenses and other income items) and

cash flows followed operating income.

Table VI-1

Combined small and large diameter seamless SLP pipe: Results of operations of U.S. producers,

2006-08, January-June 2008, and January-June 2009

* * * * * * *

Tables VI-2 and VI-3 present financial for the firms producing small and large diameter seamless

SLP pipe (a detailed presentation of U.S. producers’ prices and sales volumes for representative small and

large diameter seamless SLP pipe products may be found in tables V-1 through V-4).

Table VI-2

Small diameter seamless SLP pipe: Results of operations of U.S. producers, 2006-08, JanuaryJune 2008, and January-June 2009

* * * * * * *

Table VI-3

Large diameter seamless SLP pipe: Results of operations of U.S. producers, 2006-08, JanuaryJune 2008, and January-June 2009

* * * * * * *

Raw materials utilized in the production of seamless SLP pipe by electric furnace steelmakers are

mostly steel scrap, while the integrated steelmaking process utilize such inputs as molten iron, coke, steel

scrap, and other additives.6

 COGS were mostly affected by changes in raw material costs during the full

year periods; raw material costs increased as a share of total COGS, from *** percent in 2006 to ***

percent in 2008, but were *** percent in interim 2009 compared with *** percent in interim 2008

because other cost categories increased. Raw material costs declined *** from 2006 to 2007, because of

the lower sales volume, but rose in absolute value, as a percentage of net sales, and on a per-unit basis

from 2007 to 2008. This was ascribed to high natural gas costs, scrap, and other input costs in 2008.7

 For

example, raw material costs averaged $*** per short ton of sales in 2008 for the five reporting U.S.

producers (up *** from $*** per short ton in 2006. Overall and for large diameter seamless SLP pipe the

AUVs of raw material costs were lower in interim 2009 than in interim 2008, but higher for small
 8

 The data for small diameter indicates that this product is ***. Petitioners stated that ***. See U.S. Steel’s

postconference brief, exh. 1, pp. 11-12.

 9

 Timken’s questionnaire response, II-12a.

 10 As of March 31, 2009 and June 30, 2009, TMK IPSCO’s order book for small diameter seamless SLP pipe was

*** percent and *** compared to its order book on the same dates one year earlier, respectively. TMK IPSCO’s

producers’ questionnaire, II-12a. The effect of reduced sales volume on unit fixed costs ***. 

 11 TMK IPSCO’s producers’ questionnaire, II-2. In its postconference brief (exh. 1, ***), IPSCO stated that it

sold only ***. TMK IPSCO provided data for first and second quarter 2009 separately. These data indicate that

sales ***. E-mail to staff from ***, October 20, 2009.

 12 Both facilities produce small and large diameter seamless SLP pipe. Other types of seamless pipe are produced

in those facilities as well, including OCTG, which ***. In terms of the subject products, small diameter SLP

seamless pipe accounted for *** percent and large diameter accounted for *** percent of total production in 2008. 

In general, the OCTG production accounts for *** share of both facilities’ total production. U.S. Steel producers’

questionnaire response, II-3 and III-5.

 13 See U.S. Steel’s postconference brief, exh. 21 and footnote 2 in this section of the report.

VI-3

diameter seamless SLP pipe. However, overall and for small and large diameter seamless SLP pipe, the

absolute value and ratio to sales of raw material costs were lower because of lower volume and because

many inputs were lower in cost in the January-June 2009 time frame.

Table VI-4 depicts operating data on a firm-by-firm basis for small diameter SLP pipe while table

VI-5 provides that data for large diameter SLP pipe.8

Table VI-4

Small diameter seamless SLP pipe: Selected results of operations of U.S. producers, by firm,

2006-08, January-June 2008, and January-June 2009

* * * * * * *

Table VI-5

Large diameter seamless SLP pipe: Selected results of operations of U.S. producers, by firm,

2006-08, January-June 2008, and January-June 2009

* * * * * * *

Timken, ***, provided data for its production facility in Canton, OH, where it produces both

small (accounting for *** percent of total production in 2008) and large diameter seamless SLP pipe (***

percent of total production in 2008). Mechanical tube (*** percent) and OCTG (*** percent) also were

produced at the Canton, OH, facility. Timken was *** in both small and large diameter seamless SLP

pipe and in each period for which data were gathered. The firm noted that it does not maintain historical

data on booking levels and lead times but was able to determine that ***.9

TMK IPSCO, ***, reported for its production facilities in Ambridge and Koppel, PA and for its

processing facilities in Baytown, Houston, and Odessa, TX. It produces only small diameter seamless

SLP pipe, which accounted for *** percent of its production in 2008 (OCTG accounted for *** percent of

production in that year by comparison). TMK IPSCO was ***;10 it also noted ***.11

U.S. Steel, which produces seamless SLP pipe at Fairfield, AL and Lorain, OH,12 was the ***

producer and accounted for about *** percent, by quantity and value of U.S. producers’ total sales in

2008. U.S. Steel reported for both small and large diameter SLP pipe. It was *** of the periods for

which data were gathered, although ***.13 U.S. Steel reported in late 2008 and 2009 that its order book
 14 Orders for small diameter seamless SLP pipe as of March 31, 2009 and June 30, 2009, were approximately ***

percent and *** of the level one year earlier, respectively. Orders for large diameter seamless SLP pipe as of March

31, 2009 and June 30, 2009, were approximately *** percent and *** percent of the level one year earlier,

respectively. U.S. Steel producers’ questionnaire response, II-12a and II-12b.

 15 U.S. Steel’s questionnaire response, II-9, attachment 9A and 9B, and U.S. Steel’s postconference brief, p. 2.

 16 Conference transcript, p. 30 (Lindgren). In its questionnaire response, the firm stated that it ***. V&M Star’s

questionnaire response, III-16b.

 17 As of March 31, 2009 and June 30, 2009, V&M Star’s order book was *** percent and *** percent of the order

book on the same dates one year earlier, respectively. It also noted that some orders ***. V&M Star’s producers’

questionnaire, II-12b. In its postconference brief (exh. 1, ***), V&M Star stated that it shipped only ***. V&M

Star also provided its financial data separately for the first and second quarters of 2009: during April-June 2009, the

firm’s sales were ***. E-mail to staff from ***, October 20, 2009.

 18 Wheatland’s ***. The ratio of ***.

 19 A variance analysis is calculated in three parts: sales variance, cost of sales variance, and SG&A expense

variance. Each part consists of a price variance (in the case of the sales variance) or a cost variance (in the case of

the cost of sales and SG&A expense variance) and a volume variance. The sales or cost variance is calculated as the

change in unit price times the new volume, while the volume variance is calculated as the change in volume times

the old unit price. Summarized at the bottom of the table, the price variance is from sales; the cost/expense variance

is the sum of those items from COGS and SG&A variances, respectively, and the volume variance is the sum of the

lines under price and cost/expense variance. The volume component of price variance is nearly always negative

because of the way in which the spreadsheet is constructed.

VI-4

***,14 which it attributed to increased imports and inventories at distributors, and that it slashed

production: the firm idled the ***.15 

V&M Star produces only large diameter seamless SLP pipe at its plant in Youngstown, OH; its

processing operating is located at Houston, TX. In 2008, large diameter seamless SLP pipe accounted for

approximately *** percent of total production (OCTG production accounted for a *** share in that year,

*** percent. In 2008, it was the *** producer of seamless SLP pipe, accounting for about *** percent, by

value, of U.S. producers’ sales. It was *** of the periods for which data were collected. The firm stated

it previously did not lay off any of its workers, even when demand conditions were depressed, but has

been forced to lay off half of its workforce;16 also, like other producers, V&M Star reported that is order

book was greatly reduced in 2009 from earlier periods.17

Wheatland produces only small diameter seamless SLP pipe; its facilities are located in Sharon,

PA, and Wheatland, PA. Small diameter seamless SLP pipe production accounted for *** percent of its

2008 production, whereas drawn over mandrel mechanical tubing accounted ***. Wheatland ***.18

Summary variance analyses for the operations of U.S. producers on small and large diameter

seamless SLP pipe are presented in table VI-6. The information for these variance analyses is derived

from tables VI-1, VI-2, and VI-3.19 The analysis shows that the increase of $*** in operating income

from 2006 to 2008 was attributable to the favorable price variance (unit sales values increased) that was

greater than the unfavorable net cost/expense variance (unit costs increased). Operating income fell by

$*** in interim 2009 compared to interim 2008 because a favorable price variance (unit prices increased)

was overwhelmed by unfavorable variances on net cost/expense (unit costs and expenses increased) and

volume.

Table VI-6

Combined, small, and large diameter seamless SLP pipe: Summary of variance analysis on the

operations of U.S. producers, 2006-08, and January-June 2008 to January-June 2009

* * * * * * *
 20 V&M Star also has stated that ***. Postconference brief of V&M Star, TMK IPSCO, and the USWA, p. 6.

VI-5

CAPITAL EXPENDITURES AND RESEARCH AND DEVELOPMENT EXPENSES

Each of the U.S. producers was asked about the nature of their capital expenditures and research

and development (“R&D”) expenses. As shown in table VI-7, capital expenditures and R&D expenses

increased between 2006 and 2008, but were lower in interim 2009 than in interim 2008.

Table VI-7

Seamless SLP pipe: Capital expenditures and research and development expenses of U.S.

producers, 2006-08, January-June 2008, and January-June 2009

* * * * * * *

Timken reported that its capital expenditures and R&D expenses were directed at ***. TMK

IPSCO reported that its capital expenditures were made ***. U.S. Steel stated that its capital investments

were focused on ***. V&M Star responded that its capital expenditures were ***.20 Wheatland stated

that its capital expenditures were focused ***.

ASSETS AND RETURN ON INVESTMENT

Data on the U.S. producers’ total assets and their return on investment (“ROI”) are presented in

table VI-8. Total assets utilized in the production, warehousing, and sale of seamless SLP pipe for

reporting U.S. producers increased by *** percent from 2006 to 2008 led by ***, which nearly ***. ROI,

which is calculated as the ratio of operating income to total assets, therefore followed the trend of

operating income, and was higher in 2007 from 2006 but fell back in 2008 to a lower level than in 2006. 

This was due to increased values in certain asset categories, like “other non-current” assets as well as the

book value of property, plant, and equipment.

Table VI-8

Seamless SLP pipe: Value of assets and return on investment of U.S. producers, fiscal years

2006–08

* * * * * * *

CAPITAL AND INVESTMENT

The Commission requested U.S. producers of seamless SLP pipe to describe any actual or

potential negative effects of imports of seamless SLP pipe from China on their firms’ growth, investment,

ability to raise capital, development and production efforts, or the scale of capital investments. Their

responses are shown below.
VI-6

Actual Negative Effects

Timken:

***.

TMK IPSCO:

***.

U.S. Steel:

***.

V&M Star:

***.

Wheatland:

***.

Anticipated Negative Effects

Timken:

***.

TMK IPSCO:

***.

U.S. Steel:

***.

V&M Star: 

***.

Wheatland:

***.
 1

 In this section, “seamless pipe” refers to a broader range of seamless tubular products, including OCTG.

 2

 The WSA, formerly known as the International Iron and Steel Institute (IISI), is an international organization

representing approximately 180 steel producers, national and regional steel industry associations, and steel research

institutes. WSA members produce about 85 percent of the world’s steel. WSA provides data for all seamless

tubular products, a much broader category than the subject products.

 3

 ***, in V&M Star, TMK IPSCO, and USW postconference brief, exh. 2.

 4

 ***, in V&M Star, TMK IPSCO, and USW postconference brief, exh. 2.

 5

 ***, in V&M Star, TMK IPSCO, and USW postconference brief, exh. 2.

 6

 ***, in V&M Star, TMK IPSCO, and USW postconference brief, exh. 2. See also U.S. Steel’s postconference

brief, exh. 1, pp. 14-18.

 7

 ***. 

 8

 ***. 

VII-1

PART VII: THREAT CONSIDERATIONS AND INFORMATION ON

NONSUBJECT COUNTRIES

The Commission analyzes a number of factors in making threat determinations (see 19 U.S.C. §

1677(7)(F)(i)). Information on the nature of the alleged subsidies was presented earlier in this report;

information on the volume and pricing of imports of the subject merchandise is presented in Parts IV and

V; and information on the effects of imports of the subject merchandise on U.S. producers’ existing

development and production efforts is presented in Part VI. Information on inventories of the subject

merchandise; foreign producers’ operations, including the potential for “product-shifting;” any other

threat indicators, if applicable; and any dumping in third-country markets, follows. Also presented in this

section of the report is information obtained for consideration by the Commission on nonsubject countries

and the global market.

THE INDUSTRY IN CHINA

Overview

China is the largest producer of seamless tubular products in the world.1

 According to the World

Steel Associations (WSA),2

 China was the leading global producer of seamless tubular products in 2007,

accounting for nearly 62 percent (20.0 million short tons) of global production of seamless pipe and tube

(table VII-1). Regionally, Asia accounted for almost 70 percent of global production of seamless tubular

products in 2007. According to ***, during 2000-08, China’s annual production of seamless tubular

products increased by more than *** percent to almost *** short tons, accounting for approximately half

of global production.3

 China reportedly has more than *** seamless pipe and tube producers with a

combined annual capacity of *** short tons.4

 The top 5 seamless pipe and tube producers in China

accounted for *** percent of production.5

 China’s total annual seamless tubular production capacity is

projected to increase to *** short tons by the end of 2009 as new production facilities come online.6

More specific to the subject merchandise, *** publishes historical estimates of seamless line pipe

production and capacity.7

 *** identified *** producers of seamless line pipe in China, with a combined

annual capacity of *** short tons (for all API products).8

 Between 2005 and 2007, China’s production of

seamless line pipe nearly *** from *** short tons to more than *** short tons. In 2007, China was the
 9

 ***. *** provides data for seamless line pipe, a category that is narrower than the subject products.

 10 Global Trade Information Services, Inc., Global Trade Atlas online database. Trade data reported at the HS 6-

digit subheading level for subheadings 7304.10, 7304.19, 7304.39, and 7304.59. These subheadings include

nonsubject products and therefore likely overstate the volume of imports and exports of seamless SLP pipe.

 11 The United States is a net importer of seamless pipe (excluding OCTG), accounting for 4 percent of global

exports of seamless SLP pipe, and approximately 15.5 percent of global imports.

 12 U.S. Department of Energy, Energy Information Administration (EIA), “China Energy Profile,” July 2009.

 13 ***, in V&M Star, TMK IPSCO, and USW postconference brief, exh. 2.

 14 Petition, exh. I-11.

 15 Petioner U.S. Steel argues that China recognizes itself that it has “high” seamless pipe capacity due to “heavy”

investments. Petitioner U.S. Steel’s postconference brief, pp. 27-28.

VII-2

world’s leading producer of seamless line pipe, accounting for more than *** of the world’s total

seamless line pipe production (table VII-2).9

Table VII-1

Seamless pipe and tube: Global production, by region, 2005–07

* * * * * * *

Table VII-2

Seamless line pipe: Historical production estimates, by region, 2005–07

* * * * * * *

According to Global Trade Atlas, China surpassed Germany in 2007 to become the world’s

leading exporter of seamless pipe (excluding OCTG).10 Between 2007 and 2008, China’s exports of

seamless pipe (excluding OCTG) increased by approximately 1 million short tons, accounting for 26

percent (2.4 million short tons) of global exports of seamless pipe (excluding OCTG).11

With respect to home market prospects, most Chinese oil and natural gas exploration activities

have been concentrated in the onshore fields in the western provinces of Xinjiang, Sichuan, Gansu, and

Inner Mongolia.12 China reportedly plans to build *** kilometers of new oil and natural gas pipelines

over the next decade, requiring approximately *** metric tons (*** short tons) of large diameter line

pipe, *** metric tons (*** short tons) of which are forecasted to be used in the construction of natural gas

pipelines.13

Operations on Seamless SLP Pipe

The petition in these investigations identified 84 foreign producers in China allegedly producing

seamless SLP pipe.14 15 The Commission sent foreign producer questionnaires to all firms that were

identified and received four completed foreign producer questionnaire responses. The names of the

foreign firms, production, subject exports to the United States (by quantity) in 2008 are presented in table

VII-3. In response to a question on capacity changes and inventory, no Chinese producer reported plans

to change production capacity or production of seamless SLP pipe in China and no inventories of the
 16 Responding Chinese producers reported accounting for *** percent of small diameter seamless SLP pipe and

*** percent of large diameter seamless SLP pipe exported to the United States in 2008.

 17 According to their questionnaire responses, other export markets reported by Chinese producers included

Australia, Brazil, Canada, European Union, India, Italy, Japan, Mexico, New Zealand, and Thailand.

VII-3

subject product. Reported exports to the United States (33,945 short tons) accounted for 9.3 percent of

official Commerce imports (366,088 short tons) in 2008.16 17 

Table VII-3

Seamless SLP pipe: Reporting manufacturers/exporters in China, and quantities and shares of

reported production and exports to the United States, 2008

* * * * * * *

Responding Chinese producers increased capacity and production of small diameter seamless

SLP pipe, and decreased capacity slightly but increased production of large seamless SLP pipe during the

period examined, but reported no plans to change capacity or production in China. Capacity for

responding firms was based on a range of 40 to 164 hours per week, 48 to 52 weeks per year. Reported 

exports of small diameter seamless SLP pipe to the United States fell from 2006-08 while reported

exports of large diameter seamless SLP pipe grew from 2006-08. Chinese exports of seamless SLP pipe

(in both small and large diameter) to other markets grew during 2006-08. Home market shipments in

both quantity and shares were the majority component of shipments during the period examined. Table

VII-4 presents information on responding Chinese producers’ and exporters’ production and exports of

small diameter seamless SLP pipe and table VII-5 presents information on responding Chinese producers’

and exporters’ production and exports of large diameter seamless SLP pipe. Table VII-6 presents

information of both small and large diameter seamless SLP pipe operations for the responding producers

and exporters in China. 

Table VII-4

Small diameter seamless SLP pipe: Chinese producers’ operations, 2006-08, January-June 2008,

January-June 2009, and projected 2009-10

* * * * * * *

Table VII-5

Large diameter seamless SLP pipe: Chinese producers’ operations, 2006-08, January-June 2008,

January-June 2009, and projected 2009-10

* * * * * * *

Table VII-6

Total seamless SLP pipe: Chinese producers’ operations, 2006-08, January-June 2008, JanuaryJune 2009, and projected 2009-10

* * * * * * *

In addition to the subject seamless SLP pipe, all four Chinese producers reported producing

nonsubject seamless pipe using the same equipment and machinery. Table VII-7 presents information on
 18 Respondent asserts that “there is no evidence that the subject producers will shift any significant production

from machinery that is currently being used to produce other pipe products to the production of seamless SLP

pipe...because OCTG is the highest value pipe product it is far more likely that with the rebound in the oil and gas

sector Chinese producers would shift available SLP pipe capacity to producing OCTG.” Respondent’s

postconference brief, p. 45.

 19 According to one distributor, “In my entire career, I've never seen an inventory situation as bad as the one that

exists today. At the moment, Dixie is stocking inventories on 40 acres of land that we own as well as two other

locations that we lease. Our competitors are in a similar situation. There is enough inventory out there to fully serve

the market for at least 12 months.” Conference transcript, p. 38 (Durham). Dixie Pipe typically carries a “three,

maybe four month” supply of seamless pipe in inventory. Conference transcript, p. 110 (Durham).

 20 Respondent argued that “while U.S. importers’ inventories were somewhat high in relations to shipments at the

end of June, this is a function of the dramatic decline in demand that occurred in late 2008 and early 2009...due in

large part of the fact that, given the lead times involved in the sales from China, imports were ‘caught in the water’

when market demand abruptly deteriorated.” Respondent’s postconference brief, p. 43.

VII-4

the types of products produced using the same equipment and machinery by responding Chinese

producers from 2006 to June 2009.18

Table VII-7

Seamless SLP pipe: Chinese capacity, production, and capacity utilization of seamless pipe

products on same machinery and equipment used to produce seamless SLP pipe, 2006-08,

January-June 2008, and January-June 2009

* * * * * * *

U.S. INVENTORIES OF SEAMLESS SLP PIPE

Data collected in these investigations on U.S. importers’ end-of-period inventories of seamless

SLP pipe are presented in tables VII-8, VII-9, and VII-10. For both small and large diameter seamless

SLP pipe, responding U.S. importers’ reported inventories from China increased from 2006 to 2008 and

also in the interim periods. U.S. importers also reported increased inventories from nonsubject sources for

small diameter seamless SLP pipe between 2006 and 2008, but a decline in large diameter inventories.19 20

Table VII-8

Small diameter seamless SLP pipe : U.S. importers’ end-of-period inventories of imports, by

source, 2006-08, January-June 2008, and January-June 2009

* * * * * * *

Table VII-9

Large diameter seamless SLP pipe : U.S. importers’ end-of-period inventories of imports, by

source, 2006-08, January-June 2008, and January-June 2009

* * * * * * *
 21 “Govt imposes curbs on imports of more steel items,” Press Trust of India, November 25, 3008, cited in USS’s

postconference brief, pp. 34–35 and exh. 41.

 22 Council Regulation (EC) No. 926/2009 of September 24, 2009, imposing a definitive anti-dumping duty and

collecting definitively the provisional duty imposed on imports of certain seamless pipes and tubes of iron or steel

originating in the People’s Republic of China, Official Journal of the European Union, L 262/19.

 23 “Mexico launches anti-dumping investigation into Chinese seamless,” China Metals Weekly, September 11,

2009, as cited in USS’s postconference brief, exh. 42

 24 See generally Canadian International Trade Tribunal, Dumping and Subsidizing Finding and Reasons, Inquiry

No. NQ-2007-001, Seamless Carbon or Alloy Steel Oil and Gas Well Casing, findings issued March 10, 2008 and

Reasons issued March 25, 2008. The report noted that the Canada Border Services Agency (CBSA) had previously

determined that the weighted average margin of dumping was 62 percent and that the weighted average amount of

subsidy was 19 percent. 

VII-5

Table VII-10

Total seamless SLP pipe: U.S. importers’ end-of-period inventories of imports, by source, 2006-08,

January-June 2008, and January-June 2009

* * * * * * *

U.S. IMPORTERS’ CURRENT ORDERS

The Commission requested importers to indicate whether they imported or arranged for the

importation of seamless SLP pipe from China after June 30, 2009. Importer questionnaire respondents

reported there were approximately 15,719 short tons of Chinese small diameter seamless SLP pipe and

approximately 25,030 short tons of Chinese large diameter seamless SLP pipe scheduled for delivery after

June 30, 2009.

ANTIDUMPING INVESTIGATIONS IN THIRD-COUNTRY MARKETS

In November 2008, the government of India reportedly placed imports of seamless pipes and

tubes on a list of “restricted” imported products in order to reduce the potential volume of imports of

seamless pipes and tubes from China.21

In September 2009, the European Union imposed antidumping duties on imports of certain

seamless pipes and tubes from China. The European Union’s investigation covered certain seamless

pipes and tubes, or iron or steel, or circular cross section, or an external diameter not exceeding 16 inches

(406.4 mm) (also including OCTG used for drilling, casing, and tubing in the oil industry). Definitive

antidumping duty rates range from 17.7 percent to 39.2 percent.22

On September 4, 2009, Mexico initiated antidumping investigations concerning imports of certain

seamless pipe from China.23

With respect to seamless OCTG, on March 10, 2008, the Canadian International Trade Tribunal

(CITT) issued a finding that “the dumping and subsidizing of seamless carbon or alloy steel oil and gas

well casing originating in or exported from the People’s Republic of China have not caused injury but are

threatening to cause injury to the domestic industry.” The CITT’s inquiry covered seamless carbon or

alloy seamless carbon or alloy steel oil and gas well casing, whether plain end, beveled, threaded or

threaded and coupled, heat-treated or not heat-treated, meeting API specification 5CT, with an outside

diameter not exceeding 11.75 inches (298.5 mm), in all grades, including proprietary grades.24 In August

2009, Canada initiated investigations into the dumping and subsidizing of certain seamless or welded

OCTG from China. The CITT’s inquiry covers carbon or alloy steel, welded or seamless, heat-treated or

not heat-treated, regardless of end finish, having an outside diameter from 2-3/8 inches to 13-3/8 inches
 25 Canadian International Trade Tribunal, Statement of Reasons, Inquiry 421-26, Certain Oil Country Tubular

Goods Originating In Or Exported From The People’s Republic of China, issued September 8, 2009.

 26 Metal Bulletin Research, Seamless Steel and Pipe Monthly, Issue 1 (October 2005), p. 2; conference transcript,

p. 57 (Pognonec).

VII-6

(60.3 mm to 339.7 mm), meeting the API specification 5CT, in all grades, excluding drill pipe and

excluding seamless casing up to 11-3/4 inches (298.5 mm) in outside diameter.25 

GLOBAL MARKET

Most published data on steel pipes and tubes generally distinguish welded from seamless and

generally distinguish OCTG and line pipe from other forms of pipe, including standard pipe and various

forms of structural and mechanical pipe, pressure pipe and tube, and piling. However, most published

data on steel pipes and tubes do not distinguish seamless SLP pipe as a separate category of seamless

tubular products. Accordingly, for the purpose of this market review, information and data are provided

based on their availability, and may include both subject and nonsubject pipe.

Supply

Seamless pipe and tube, including seamless SLP pipe, is produced throughout the world, as noted

previously in table VII-1. Between 2005 and 2007, global production of all seamless tubular products

increased by 30 percent to 32.4 million short tons. China’s growth in the production of seamless pipe and

tube has eclipsed that of all other global producers. China’s share of world seamless tubular production

increased from 50 percent in 2005 to 62 percent in 2008. 

*** publishes historical and forecasted production of seamless line pipe, by region. According to

this source, world seamless line pipe production is projected to decline in 2009 from 2008 levels as a

result of the world economic downturn before increasing moderately in 2010 (table VII-11).

Table VII-11

Seamless line pipe: Projected production, by region, 2008–2010

* * * * * * *

Demand

Worldwide demand for seamless standard, line, and pressure pipe is derived from its use for the

conveyance of liquids and gases in a diverse array of end-use markets, including as line pipe or gathering

lines in oil and natural gas production and transmission; its use in chemical, petrochemical, or other nonpipeline applications; its use in high pressure construction applications, such as in refineries or chemical

plants; as well as its use as steam lines in manufacturing or factory applications.

Because seamless pipe is used in gathering lines and in oil and gas transportation, demand for

seamless SLP pipe is influenced by drilling activity, although not as directly and predictably as demand

for OCTG. Demand for seamless line pipe, for example, is largely influenced by energy prices and

increased drilling activity in new areas that require additional gathering lines.26 As shown in table VII-12,

worldwide drilling increased by almost 10 percent between 2006 and 2008, led primarily by growth in

drilling in the United States. However, worldwide rig counts declined substantially in first half 2009

compared with first half 2008, coinciding with the global economic downturn and falling oil and gas

prices. Drilling activity in the United States decreased by 38 percent in first half 2009 compared with

first half 2008.
 27 Tenaris S.A., “Half-Year Report 2009—Interim Management Report,” p. 5.

 28 Tenaris S.A., “Half-Year Report 2009—Interim Management Report,” p. 7. 

 29 Tenaris S.A., “Half-Year Report 2009—Interim Management Report,” pp. 1-7; Metal Bulletin Research,

Seamless Steel Tube and Pipe Monthly, Issues 40–48 (January–September 2009).

VII-7

Table VII-12

Worldwide rig count: Global and regional annual averages of operating rigs, 2006–08, 1H 2008

and 2009

Region

2006 2007 2008 1H 2008 2H 2009

Quantity (number of rigs)

Latin America 324 355 384 377 360

Europe 77 78 98 94 86

Africa 58 66 65 67 61

Middle East 238 265 280 275 259

Far East 228 241 252 252 238

Canada 470 343 379 338 210

United States 1,648 1,768 1,878 1,817 1,131

 Total 3,043 3,116 3,336 3,221 2,344

Source: Baker Hughes, Inc., Worldwide Rig Count, Sept. 8, 2009.

Demand for seamless SLP pipe used in energy applications declined substantially across almost

all geographic markets as a result of the global economic downturn that began in the latter half of 2008. 

More specifically, according to Tenaris S.A. (Luxembourg), a global producer of seamless tubular

products, the worldwide economic downturn resulted in a significant decline in oil and natural gas prices,

thereby prompting lower levels of drilling activity, efforts to reduce inventories of seamless pipe and

tube, and decreased demand for seamless pipe and tube.27 In the United States, demand for pipes from the

industrial and power generation sectors remain at low levels.28 Similar weak demand in 2009 has been

reported in South America, Europe, the C.I.S. and Asia.29

Table VII-13 shows the net trade positions of major global importers and exporters of seamless

pipe (excluding OCTG). The United States was the leading import market for seamless pipe (excluding

OCTG) in 2008, while China is both the largest exporter and net exporter.
VII-8

Table VII-13

Seamless SLP pipe (excluding OCTG): Net trade positions of major subject and nonsubject

countries, 2006-08

Country

Calendar year

2006 2007 2008

Quantity (short tons)

Imports into:

 China 319,894 249,607 296,110 

 Germany 413,895 466,116 421,622 

 Italy 559,588 736,780 658,097 

 Japan 15,735 10,957 7,278 

 Ukraine 9,019 14,976 16,111 

 France 181,247 184,074 184,343 

 United States 779,829 723,685 1,159,864 

 Romania 26,428 20,646 25,865 

 Czech Republic 73,569 87,896 72,990 

 Russia 349,979 317,780 273,150 

 Argentina 22,402 25,615 27,823 

 Spain 149,984 277,052 197,507 

 Austria 118,855 121,385 103,961 

 Belgium 144,223 213,967 214,515 

 Slovakia 46,192 50,108 62,881 

 Netherlands 289,471 328,064 193,352 

 Mexico 108,667 109,775 123,787 

 All others 3,814,452 3,728,631 3,377,850 

 Total 7,423,428 7,667,109 7,415,835 

Table continued on next page.
VII-9

Table VII-13--Continued

Seamless SLP pipe (excluding OCTG): Net trade positions of major subject and nonsubject

countries, 2006-08

Country

Calendar year

2006 2007 2008

Quantity (short tons)

Exports from:

 China 634,517 1,387,397 2,403,736 

 Germany 1,070,703 1,010,561 1,072,594 

 Italy 629,729 648,869 685,804 

 Japan 622,223 643,663 653,750 

 Ukraine 712,028 729,647 628,561 

 France 393,843 465,146 394,350 

 United States 254,973 276,176 371,133 

 Romania 342,111 381,638 362,652 

 Czech Republic 355,099 356,598 334,074 

 Russia 429,550 426,526 333,710 

 Argentina 238,164 274,032 262,024 

 Spain 167,978 177,972 182,121 

 Austria 208,707 154,907 178,768 

 Belgium 102,317 169,993 164,853 

 Slovakia 120,308 128,059 137,117 

 Netherlands 135,948 101,605 115,207 

 Mexico 59,714 92,362 102,483 

 All others 1,038,557 1,251,496 780,964 

 Total 7,516,469 8,676,646 9,166,554 

Table continued on next page.
VII-10

Table VII-13--Continued

Seamless SLP pipe (excluding OCTG): Net trade positions of major subject and nonsubject

countries, 2006-08

Country

Calendar year

2006 2007 2008

Quantity (short tons)

Trade balance of:

 China 314,623 1,137,790 2,107,626 

 Germany 656,808 544,445 650,914 

 Italy 70,140 (87,911) 27,706 

 Japan 606,488 632,706 646,471 

 Ukraine 703,009 714,671 612,450 

 France 212,596 281,072 213,989 

 United States (524,856) (447,510) (788,731)

 Romania 315,683 360,992 336,787 

 Czech Republic 281,531 268,702 261,084 

 Russia 79,571 108,746 60,560 

 Argentina 215,762 248,417 234,201 

 Spain 17,994 (99,080) (15,386)

 Austria 89,852 33,522 74,806 

 Belgium (41,906) (43,974) (49,662)

 Slovakia 74,116 77,950 74,237 

 Netherlands (153,523) (226,460) (78,145)

 Mexico (48,953) (17,413) (21,304)

 All others (2,775,895) (2,477,135) (2,596,885)

 Total 93,041 1,009,537 1,750,718 

Note.–The data presented in this table include nonsubject product (e.g., boiler tube), and therefore are likely

overstated with respect to the seamless SLP pipe subject to these investigations. Positive numbers presented for

“trade balance” show net exports and numbers with parentheses for “trade balance” show net imports. Based on

top exporting countries to the world in 2008. In some cases, data were modified to account for certain

discrepancies in reported country imports and exports (e.g., Malaysia and Egypt).

Source: Compiled from Global Trade Atlas database, HS subheadings 7304.10 (prior to Feb. 2007), 7304.19

(after Feb. 2007), 7304.39, and 7304.59.
 30 Global Trade Information Services, Inc., Global Trade Atlas online database. Trade data reported at the HS 6-

digit subheading level for subheadings 7304.10, 7304.19, 7304.39, 7304.59. These subheadings include nonsubject

products and therefore likely overstate the volume of exports of seamless pipe (excluding OCTG).

 31 Tenaris is also affiliated with seamless pipe producers Dalmine (Italy), Algoma Tubes (Canada), TAVSA

(Venezuela), TAMSA (Mexico), Silcotub (Romania), and NKK Tubes (Japan).

 32 Staff Report, Inv. Nos. 731-TA-711 and 713-716 (Second Review): Oil Country Tubular Goods from

Argentina, Italy, Japan, Korea, and Mexico, p. IV-14.

 33 WSA, Steel Statistical Yearbook 2008, 2009, table 25, p. 62.

 34 ***.

 35 Global Trade Information Services, Inc., Global Trade Atlas online database. Trade data reported at the HS 6-

digit subheading level for subheadings 7304.10, 7304.19, 7304.39, 7304.59, and exclude OCTG. These subheadings

include nonsubject products, including mechanical tubing and boiler tubing, and therefore substantially overstate the

volume of exports of seamless SLP pipe.

 36 ArcelorMittal Ostrava is a wholly owned subsidiary of ArcelorMittal (Luxembourg), and is affiliated seamless

pipe producers ArcelorMittal South Africa and ArcelorMittal Romania.

 37 ArcelorMittal company website, found at http://www.arcelormittal.com/tubular/ostrava-53.html, retrieved

October 23, 2009.

VII-11

Leading Suppliers to the U.S. Market

Argentina

According to WSA, Argentina produced 925,000 short tons of seamless pipe and tube in 2007, as

noted in table VII-1. *** estimates that the country produced *** short tons of seamless line pipe that

year, as noted in table VII-2I. According to Global Trade Atlas, Argentina exported 262,000 short tons of

seamless pipe (excluding OCTG) in 2008, a decrease of 4 percent compared with 2007.30 The United

States is Argentina’s largest export market for seamless pipe (excluding OCTG). In 2008, U.S. imports of

seamless SLP pipe from Argentina were 52,278 short tons.

Tenaris Siderca (“Siderca”) is the only known producer of seamless pipe (excluding OCTG) in

Argentina. Siderca is a wholly-owned subsidiary of Tenaris, a leading global producer of seamless pipe

and tube.31 OCTG casing and tubing are believed to account for the largest share of the company’s

seamless production operations.32

Czech Republic

According to WSA, the Czech Republic produced approximately 502,000 short tons of seamless

pipe and tube in 2007.33 *** estimates that the country produced *** short tons of seamless line pipe that

year.34 According to Global Trade Atlas, the Czech Republic exported approximately 334,000 short tons

of seamless pipe and tube (excluding OCTG) in 2008, a decrease of 6 percent compared with 2007.35

Germany is the Czech Republic’s largest export market for seamless pipe and tube. In 2008, U.S. imports

of seamless SLP pipe from the Czech Republic were 33,614 short tons.

There are two known producers of seamless SLP pipe in the Czech Republic: ArcelorMittal

Ostrava and Valcovna Trub TZ (“Valcovna”).36 ArcelorMittal Ostrava has an annual production capacity

of 285,000 short tons of finished seamless tubular products, which include OCTG and line pipe.37

Valcovna’s annual seamless pipe and tube production capacity is 125,000 short tons. The company
 38 Metal Bulletin Directories, Iron and Steel Works of the World Directory 2009, 18th Edition, January 2009, p.

70; Valcovna Trub TZ, Annual Report 2008, p. 7; and Valcovna Trub TZ company website, found at

http://www.tube.cz, retrieved October 21, 2009. 

 39 Global Trade Information Services, Inc., Global Trade Atlas online database. Trade data reported at the HS 6-

digit subheading level for subheadings 7304.10, 7304.19, 7304.39, 7304.59. These subheadings include nonsubject

products and therefore likely substantially overstate the volume of exports of seamless pipe (excluding OCTG).

 40 VMD is affiliated with seamless pipe producers V&M Star (United States), V&M Brazil (Brazil), V&M France

(France), and V&M Tubes (wholly-owned by Groupe Vallourec (France)).

 41 Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe from Argentina, Brazil, and

Germany, Inv. Nos. 731-TA-707-709 (Second Review), USITC Publication 3918, May 2007, p. IV-15.

 42 Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe from Argentina, Brazil, and

Germany, Inv. Nos. 731-TA-707-709 (Second Review), USITC Publication 3918, May 2007, p. IV-16.

 43 Global Trade Information Services, Inc., Global Trade Atlas online database. Trade data reported at the HS 6-

digit subheading level for subheadings 7304.10, 7304.19, 7304.39, 7304.59. These subheadings include nonsubject

products and therefore likely overstate the volume of exports of seamless pipe (excluding OCTG).

 44 Tenaris Dalmine information sheet, found at http://www.tenaris.com/Italy/en/files/Dalmine_ing_02.pdf,

retrieved October 19, 2009. 

VII-12

reportedly produced 89,000 short tons of seamless pipes and tubes in 2008, including seamless line pipe,

OCTG casing, and couplings.38 

Germany

According to WSA, Germany produced approximately 2 million short tons of seamless pipe and

tube in 2007, as noted in table VII-1. *** estimates that the country produced *** short tons of seamless

line pipe that year, as noted in table VII-2. According to Global Trade Atlas, Germany exported

approximately 1.1 million short tons of seamless pipe (excluding OCTG) in 2008, a 6 percent increase

compared with 2007.39 France is Germany’s largest export market for seamless pipe (excluding OCTG). 

In 2008, U.S. imports of seamless SLP pipe from Germany were 25,678 short tons.

There are three known producers of seamless pipe (excluding OCTG) in Germany: Benteler

Stahl/Rohr GmbH, Rohrwerk Neue Maxhutte GmbH, and V&M Deutschland GmbH (“VMD”).40 These

producers reportedly account for all known seamless pipe (excluding OCTG) production in Germany.41

All three Germany producers of seamless pipe produce other seamless pipes, including OCTG, stainless

SLP pipe, boiler tubing, tubing suitable for ball or roller bearings, mechanical tubing, structural tubing,

and tube hollows on the same equipment.42

Italy

 According to WSA, Italy produced 933,000 short tons of seamless pipe and tube in 2007, as

noted in table VII-1. *** estimates that the country produced *** short tons of seamless line pipe that

year, as noted in table VII-2. According to Global Trade Atlas, Italy exported approximately 686,000

short tons of seamless pipe (excluding OCTG) in 2008, an increase of 6 percent compared with 2007.43

The United States is Italy’s largest export market for seamless pipe (excluding OCTG). In 2008, U.S.

imports of seamless SLP pipe from Italy were 44,721 short tons.

Tenaris Dalmine (“Dalmine”) is the only known producer of seamless pipe (excluding OCTG) in

Italy. Dalmine has an annual production capacity of approximately 1 million short tons of finished

products, which include seamless pipe (excluding OCTG), OCTG, mechanical tubing, and structural

tubing.44
 45 Global Trade Information Services, Inc., Global Trade Atlas online database. Trade data reported at the HS 6-

digit subheading level for subheadings 7304.10, 7304.19, 7304.39, 7304.59. These subheadings include nonsubject

products and therefore likely overstate the volume of exports of seamless pipe (excluding OCTG).

 46 Tenaris Dalmine information sheet, found at http://www.tenaris.com/shared/documents/files/CB286.pdf,

retrieved October 19, 2009; Steel Guru, “Production pruning—Tenaris Tamsa operating at 80% capacity,” March 12,

2009.

 47 Tenaris, Annual Report 2008, p. 9; Tenaris press release, “Tenaris to expand production capacity, September 2,

2008).

 48 Metal Bulletin, “Tenaris plans to build $1.6B pipe mill in Mexico,” September 3, 2008. Steel Guru, “Tenaris

Tamsa to continue pursuing its investment plans,” March 15, 2009.

 49 Steel Guru, “Production pruning—Tenaris Tamsa operating at 80% capacity,” March 12, 2009; Steel Guru,

“Tenaris Tamsa to continue pursuing its investment plans,” March 15, 2009.

 50 Global Trade Information Services, Inc., Global Trade Atlas online database. Trade data reported at the HS 6-

digit subheading level for subheadings 7304.10, 7304.19, 7304.39, 7304.59. These subheadings include nonsubject

products and therefore likely overstate the volume of exports of seamless pipe (excluding OCTG).

VII-13

Mexico

According to WSA, Mexico produced 732,000 short tons of seamless pipe and tube in 2007, as

noted in table VII-1. *** estimates that the country produced *** short tons of seamless line pipe that

year, as noted in table VII-2. According to Global Trade Atlas, Mexico exported approximately 102,000

short tons of seamless pipe (excluding OCTG) in 2008, an increase of 11 percent compared with 2007.45

The United States is Mexico’s largest export market for seamless pipe (excluding OCTG). In 2008, U.S.

imports of seamless SLP pipe from Mexico were 43,374 short tons.

Tubos de Acero de Mexico (“TAMSA”), wholly owned by Tenaris, is reportedly the only

seamless pipe (excluding OCTG) producer in Mexico. TAMSA has an annual production capacity of

approximately 875,000 short tons of finished products, which include seamless pipe, OCTG casing, drill

pipe, fittings, mechanical tubing, and automotive components.46 In September 2008, TAMSA announced

plans to increase production capacity by installing a new seamless pipe facility capable of producing

seamless pipe up to 7 inches in outside diameter.47 The new $1.6 billion pipe mill, which will reportedly

include iron and steelmaking facilities, will have an annual production capacity of approximately 500,000

short tons of finished tubular products, and is expected to begin production in 2011.48 In March 2009,

TAMSA was reportedly running at 70-80 percent capacity as a result of decreased demand for seamless

tubular products due to falling oil prices, delayed drilling projects, and credit restrictions, although the

company stated that would continue to pursue its planned investment.49

Russia

Although estimates of seamless tube production in Russia are unavailable from WSA, ***

estimates that the country produced approximately *** short tons of seamless line pipe in 2007, as noted

in table VII-2. According to Global Trade Atlas, Russia exported approximately 334,000 short tons of

seamless pipe (excluding OCTG) in 2008, a decrease of 21 percent compared with 2007.50 Turkey,

Kazakhstan, and the United States are Russia’s largest export markets for seamless pipe (excluding

OCTG). In 2008, U.S. imports of seamless SLP pipe from Russia were approximately 32,941 short tons.

Chelyabink Tube Rolling Company and TMK Group (“TMK”) are the only known producers of

seamless pipe (excluding OCTG) in Russia. TMK produces seamless and welded tubular products at the

following subsidiaries: Seversky Tube Works (approximately 700,000 short tons seamless pipe
 51 Metal Bulletin Directories, Iron & Steel Works of the World Directory 2009, 18th edition, January 2009, pp.

214–216; TMK Group, Technical Catalogue, found at http://www.tmk-group.com/files/tmk_katalog_eng.pdf,

retrieved October 19, 2009. 

 52 Global Trade Information Services, Inc., Global Trade Atlas online database. Trade data reported at the HS 6-

digit subheading level for subheadings 7304.10, 7304.19, 7304.39, 7304.59. These subheadings include nonsubject

products and therefore likely overstate the volume of exports of seamless pipe (excluding OCTG).

 53 Metal Bulletin, “Interpipe reduces production,” November 4, 2008.

VII-14

production capacity), Sinarksy Pipe Plant, Taganrog Metallurgical Works (675,000 short tons crude steel

making capacity), and Volzhsky Pipe Plant (1 million short tons crude steel making capacity).51

Ukraine

Although estimates of seamless tube production in Ukraine are unavailable from WSA, ***

estimates that the country produced approximately *** short tons of seamless line pipe in 2007, as noted

in table VII-2. According to Global Trade Atlas, Ukraine exported approximately 629,000 short tons of

seamless pipe (excluding OCTG) in 2008, a decrease of 14 percent compared with 2007.52 Russia, the

United States, and the United Arab Emirates are Ukraine’s largest export markets for seamless pipe

(excluding OCTG). In 2008, U.S. imports of seamless SLP pipe from Ukraine were 28,758 short tons.

There are an estimated 4 producers of seamless pipe (excluding OCTG) in Ukraine: 

Dniepropetrovsk Tube Works, Ilyich Iron & Steel Works, Interpipe, and Steelprom. In 2006, Interpipe’s

seamless pipe and tube mill NTRP reportedly produced 840,000 short tons of seamless pipe and tube,

while its Niko Tube facility produced 238,000 short tons. In late 2008, Interpipe reportedly reduced

production levels because of weak demand. Interpipe’s NTRP facility reportedly was operating at 60

percent of normal production levels, while Niko Tube was operating at 20 percent of capacity.53 In 2009,

Russia reportedly introduced a five-year antidumping duty on imports of pipe from Ukraine. Interpipe

reportedly had negotiated with Russia an export quota of 470,000 short tons of pipe into Russia.
A-1

APPENDIX A

FEDERAL REGISTER NOTICES

48292 Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices 

an Indian burial place/Martha’s 

Vineyard.’’ No known individual was 

identified. No associated funerary 

objects are present. 

This burial is described in museum 

sources as being in an ‘‘erect posture.’’ 

An extended or erect burial posture is 

characteristic of post-contact burial 

practices in the Martha’s Vineyard area. 

Therefore, this interment most likely 

dates to the Historic/Contact Period 

(post 500 BP). During this period, the 

geographic area from which these 

human remains came is within the area 

considered to be Wampanoag aboriginal 

homelands according to historic 

documentation and Wampanoag 

NAGPRA representatives. Descendants 

of the Wampanoag are members of the 

Mashpee Wampanoag Tribe, 

Massachusetts; Wampanoag Tribe of 

Gay Head (Aquinnah) of Massachusetts; 

and Assonet Band of the Wampanoag 

Nation, a non-Federally recognized 

Indian group. 

Officials of the Peabody Museum of 

Archaeology and Ethnology and Warren 

Anatomical Museum have determined 

that, pursuant to 25 U.S.C. 3001 (9–10), 

the human remains described above 

represent the physical remains of one 

individual of Native American ancestry. 

Officials of the Peabody Museum of 

Archaeology and Ethnology and Warren 

Anatomical Museum also have 

determined that, pursuant to 25 U.S.C. 

3001 (2), there is a relationship of 

shared group identity that can be 

reasonably traced between the Native 

American human remains and the 

Mashpee Wampanoag Tribe, 

Massachusetts; Wampanoag Tribe of 

Gay Head (Aquinnah) of Massachusetts; 

and Assonet Band of the Wampanoag 

Nation, a non-Federally recognized 

Indian group. 

Representatives of any other Indian 

tribe that believes itself to be culturally 

affiliated with the human remains 

should contact Patricia Capone, 

Repatriation Coordinator, Peabody 

Museum of Archaeology and Ethnology, 

Harvard University, 11 Divinity Ave., 

Cambridge, MA 02138, telephone (617) 

496–2047, before October 22, 2009. 

Repatriation of the human remains to 

the Wampanoag Confederation 

representing the Mashpee Wampanoag 

Tribe, Massachusetts; Wampanoag Tribe 

of Gay Head (Aquinnah) of 

Massachusetts; and Assonet Band of the 

Wampanoag Nation, a non-Federally 

recognized Indian group, may proceed 

after that date if no additional claimants 

come forward. 

The Peabody Museum of Archaeology 

and Ethnology, Harvard University is 

responsible for notifying the Mashpee 

Wampanoag Tribe, Massachusetts; 

Wampanoag Tribe of Gay Head 

(Aquinnah) of Massachusetts; and 

Assonet Band of the Wampanoag 

Nation, a non-Federally recognized 

Indian group, that this notice has been 

published. 

Dated: September 1, 2009 

Sherry Hutt, 

Manager, National NAGPRA Program. 

[FR Doc. E9–22776 Filed 9–21–09; 8:45 am] 

BILLING CODE 4312–50–S 

INTERNATIONAL TRADE 

COMMISSION 

[Investigation Nos. 701–TA–469 and 731– 

TA–1168 (Preliminary)] 

Certain Seamless Carbon and Alloy 

Steel Standard, Line, and Pressure 

Pipe From China 

AGENCY: United States International 

Trade Commission. 

ACTION: Institution of countervailing 

duty and antidumping investigations 

and scheduling of preliminary phase 

investigations. 

SUMMARY: The Commission hereby gives 

notice of the institution of investigation 

and commencement of preliminary 

phase countervailing duty investigation 

No. 701–TA–469 (Preliminary) under 

section 703(a) of the Tariff Act of 1930 

(19 U.S.C. 1671b(a)) (the Act) to 

determine whether there is a reasonable 

indication that an industry in the 

United States is materially injured or 

threatened with material injury, or the 

establishment of an industry in the 

United States is materially retarded, by 

reason of imports from China of certain 

seamless carbon and alloy steel 

standard, line, and pressure pipe, 

provided for in subheadings 7304.10, 

7304.19, 7304.31, 7304.39, 7304.51, and 

7304.59 of the Harmonized Tariff 

Schedule of the United States (HTSUS), 

that are alleged to be subsidized by the 

Government of China. The Commission 

also hereby gives notice of the 

institution of investigation and 

commencement of preliminary phase 

antidumping investigation No. 731–TA– 

1168 (Preliminary) under section 733(a) 

of the Tariff Act of 1930 (19 U.S.C. 

1673b(a)) (the Act) to determine 

whether there is a reasonable indication 

that an industry in the United States is 

materially injured or threatened with 

material injury, or the establishment of 

an industry in the United States is 

materially retarded, by reason of 

imports from China of certain seamless 

carbon and alloy steel standard, line, 

and pressure pipe from China, currently 

provided for in the HTSUS subheadings 

identified above, that are alleged to be 

sold in the United States at less than fair 

value. Unless the Department of 

Commerce extends the time for 

initiation pursuant to section 

702(c)(1)(B) or 732(c)(1)(B) of the Act 

(19 U.S.C. 1671a(c)(1)(B) or 

1673a(c)(1)(B)), the Commission must 

reach preliminary determinations in 

antidumping and countervailing duty 

investigations within 45 days, or in this 

case by November 2, 2009. The 

Commission’s views are due at 

Commerce within five business days 

thereafter, or by Monday, November 9, 

2009. 

For further information concerning 

the conduct of these investigations and 

rules of general application, consult the 

Commission’s Rules of Practice and 

Procedure, part 201, subparts A through 

E (19 CFR part 201), and part 207, 

subparts A and B (19 CFR part 207). 

DATES: Effective Date: September 16, 

2009. 

FOR FURTHER INFORMATION CONTACT: 

Joanna Lo (202–205–1888), Office of 

Investigations, U.S. International Trade 

Commission, 500 E Street, SW., 

Washington, DC 20436. Hearingimpaired persons can obtain 

information on this matter by contacting 

the Commission’s TDD terminal on 202– 

205–1810. Persons with mobility 

impairments who will need special 

assistance in gaining access to the 

Commission should contact the Office 

of the Secretary at 202–205–2000. 

General information concerning the 

Commission may also be obtained by 

accessing its Internet server (http:// 

www.usitc.gov). The public record for 

these investigations may be viewed on 

the Commission’s electronic docket 

(EDIS) at http://edis.usitc.gov. 

SUPPLEMENTARY INFORMATION: 

Background.—These investigations 

are being instituted in response to a 

petition filed on September 16, 2009, by 

U.S. Steel Corp., Pittsburgh, PA and 

V&M Star L.P., Houston, TX. 

Participation in the investigations and 

public service list.—Persons (other than 

petitioners) wishing to participate in 

these investigations as parties must file 

an entry of appearance with the 

Secretary to the Commission, as 

provided in sections 201.11 and 207.10 

of the Commission’s rules, not later than 

seven days after publication of this 

notice in the Federal Register. 

Industrial users and (if the merchandise 

under investigation is sold at the retail 

level) representative consumer 

organizations have the right to appear as 

parties in Commission countervailing 

duty and antidumping investigations. 

The Secretary will prepare a public 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices 48293 

service list containing the names and 

addresses of all persons, or their 

representatives, who are parties to these 

investigations upon the expiration of the 

period for filing entries of appearance. 

Limited disclosure of business 

proprietary information (BPI) under an 

administrative protective order (APO) 

and BPI service list.—Pursuant to 

section 207.7(a) of the Commission’s 

rules, the Secretary will make BPI 

gathered in these investigations 

available to authorized applicants 

representing interested parties (as 

defined in 19 U.S.C. 1677(9)) who are 

parties to the investigations under the 

APO issued in the investigations, 

provided that the application is made 

not later than seven days after the 

publication of this notice in the Federal 

Register. A separate service list will be 

maintained by the Secretary for those 

parties authorized to receive BPI under 

the APO. 

Conference.—The Commission’s 

Director of Operations has scheduled a 

conference in connection with these 

investigations for 9:30 a.m. on October 

7, 2009, at the U.S. International Trade 

Commission Building, 500 E Street, 

SW., Washington, DC. Parties wishing to 

participate in the conference should 

contact Joanna Lo (202–205–1888) not 

later than October 2, 2009, to arrange for 

their appearance. Parties in support of 

the imposition of countervailing or 

antidumping duties in these 

investigations and parties in opposition 

to the imposition of such duties will 

each be collectively allocated one hour 

within which to make an oral 

presentation at the conference. A 

nonparty who has testimony that may 

aid the Commission’s deliberations may 

request permission to present a short 

statement at the conference. 

Written submissions.—As provided in 

sections 201.8 and 207.15 of the 

Commission’s rules, any person may 

submit to the Commission by noon on 

October 13, 2009, a written brief 

containing information and arguments 

pertinent to the subject matter of these 

investigations. Parties may file written 

testimony in connection with their 

presentation at the conference no later 

than three days before the conference. If 

briefs or written testimony contain BPI, 

they must conform with the 

requirements of sections 201.6, 207.3, 

and 207.7 of the Commission’s rules. 

The Commission’s rules do not 

authorize filing of submissions with the 

Secretary by facsimile or electronic 

means, except to the extent permitted by 

section 201.8 of the Commission’s rules, 

as amended, 67 FR 68036 (November 8, 

2002). Even where electronic filing of a 

document is permitted, certain 

documents must also be filed in paper 

form, as specified in II (C) of the 

Commission’s Handbook on Electronic 

Filing Procedures, 67 FR 68168, 68173 

(November 8, 2002). 

In accordance with sections 201.16(c) 

and 207.3 of the rules, each document 

filed by a party to these investigations 

must be served on all other parties to 

the investigations (as identified by 

either the public or BPI service list), and 

a certificate of service must be timely 

filed. The Secretary will not accept a 

document for filing without a certificate 

of service. 

Authority: These investigations are being 

conducted under authority of title VII of the 

Tariff Act of 1930; this notice is published 

pursuant to section 207.12 of the 

Commission’s rules. 

Issued: September 17, 2009. 

By order of the Commission. 

Marilyn R. Abbott, 

Secretary to the Commission. 

William R. Bishop, 

Acting Secretary to the Commission. 

[FR Doc. E9–22798 Filed 9–21–09; 8:45 am] 

BILLING CODE P 

SUMMARY: OSHA solicits comments 

concerning its proposal to obtain OMB 

approval of the information collection 

requirements contained in the OSHA 

Training Institute Education Centers 

Program and the OSHA Outreach 

Training Program. 

DATES: Comments must be submitted 

(postmarked, sent, or received) by 

November 23, 2009. 

ADDRESSES: Electronically: You may 

submit comments and attachments 

electronically at http:// 

www.regulations.gov, which is the 

Federal eRulemaking Portal. Follow the 

instructions online for submitting 

comments. 

Facsimile: If your comments, 

including attachments, are not longer 

than ten (10) pages, you may fax them 

to the OSHA Docket Office at (202) 693– 

1648. 

Mail, hand delivery, express mail, 

messenger, or courier service: When 

using this method, you must submit 

three copies of your comments and 

attachments to the OSHA Docket Office, 

Docket No. OSHA–2009–0022, U.S. 

Department of Labor, Occupational 

Safety and Health Administration, 

Room N–2625, 200 Constitution 

Avenue, NW., Washington, DC 20210. 

Deliveries (hand, express mail, 

messenger, and courier service) are 

accepted during the Department of 

Labor’s and Docket Office’s normal 

business hours, 8:15 a.m. to 4:45 p.m., 

e.t. 

Instructions: All submissions must 

include the Agency name and OSHA 

docket number for the Information 

Collection Request (ICR) (OSHA–2009– 

0022). All comments, including any 

personal information you provide, are 

placed in the public docket without 

change, and may be made available 

online at http://www.regulations.gov. 

For further information on submitting 

comments see the ‘‘Public 

Participation’’ heading in the section of 

this notice titled ‘‘SUPPLEMENTARY

INFORMATION.’’ 

Docket: To read or download 

comments or other material in the 

docket, go to http://www.regulations.gov 

or the OSHA Docket Office at the 

address above. All documents in the 

docket (including this Federal Register 

notice) are listed in the http:// 

www.regulations.gov index; however, 

some information (e.g., copyrighted 

material) is not publicly available to 

read or download through the Web site. 

All submissions, including copyrighted 

material, are available for inspection 

and copying at the OSHA Docket Office. 

You may contact Jim Barnes, Director, 

Office of Training and Educational 

Programs, or Kimberly Newell, Program 

Analyst, OSHA Training Institute 

Education Centers Program at the 

address below to obtain a copy of the 

ICR. 

FOR FURTHER INFORMATION CONTACT: Jim 

Barnes, Director, Office of Training and 

Educational Programs, or Kimberly 

Newell, Program Analyst, OSHA 

Training Institute Education Centers 

Program, Directorate of Training and 

Education, OSHA, U.S. Department of 

Labor, 2020 S. Arlington Heights Rd., 

Arlington Heights, IL 60005–4102; 

Phone: (847) 297–4810. 

SUPPLEMENTARY INFORMATION: 


sroberts on DSKD5P82C1PROD with NOTICES
52744 Federal Register / Vol. 74, No. 197 / Wednesday, October 14, 2009 / Notices 

1See Petition for the Imposition of Antidumping 

Duties: Certain Seamless Carbon and Alloy Steel 

Standard, Line, and Pressure Pipe from the People’s 

Republic of China, dated September 16, 2009 

(‘‘Petition’’). 

review period. Failure to comply with 

this requirement could result in the 

Secretary’s presumption that 

reimbursement of antidumping duties 

occurred and the subsequent assessment 

of doubled antidumping duties. 

Notification Regarding Administrative 

Protective Orders 

This notice also serves as a reminder 

to parties subject to administrative 

protective orders (APO) of their 

responsibility concerning the return or 

destruction of proprietary information 

disclosed under APO in accordance 

with 19 CFR 351.305(a)(3). Timely 

written notification of the return or 

destruction of APO materials or 

conversion to judicial protective order is 

hereby requested. Failure to comply 

with the regulations and terms of an 

APO is a violation that is subject to 

sanction. 

We are issuing and publishing this 

notice in accordance with sections 

751(a)(1) and 777(i)(1) of the Act. 

Dated: October 7, 2009. 

Ronald K. Lorentzen, 

Acting Assistant Secretary for Import 

Administration. 

Appendix I 

Comment in the Issues and Decision 

Memorandum: 

Comment 1: The Department’s Use of 

Factoring Discounts 

[FR Doc. E9–24700 Filed 10–13–09; 8:45 am] 

BILLING CODE 3510–DS–S 

DEPARTMENT OF COMMERCE 

International Trade Administration 

[A–570–956] 

Certain Seamless Carbon and Alloy 

Steel Standard, Line, and Pressure 

Pipe From the People’s Republic of 

China: Initiation of Antidumping Duty 

Investigation 

AGENCY: Import Administration, 

International Trade Administration, 

Department of Commerce 

DATES: Effective Date: October 14, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Drew Jackson at (202) 482–4406 or 

Melissa Blackledge at (202) 482–3518, 

AD/CVD Operations, Office 4, Import 

Administration, International Trade 

Administration, U.S. Department of 

Commerce, 14th Street and Constitution 

Avenue, NW., Washington, DC 20230. 

SUPPLEMENTARY INFORMATION: 

The Petition 

On September 16, 2009, the 

Department of Commerce 

(‘‘Department’’) received an 

antidumping duty (‘‘AD’’) petition 1

concerning imports of certain seamless 

pipe (‘‘seamless pipe’’) from the 

People’s Republic of China (‘‘PRC’’) 

filed in proper form by United States 

Steel Corporation and V&M Star L.P. (on 

September 28, 2009, TMK IPSCO, and 

United Steel, Paper and Forestry, 

Rubber, Manufacturing, Energy, Allied 

Industrial and Service Workers 

International Union also entered the 

proceeding as petitioners). On 

September 21, 2009, the Department 

issued a request to United States Steel 

Corporation, V&M Star L.P., TMK 

IPSCO, and the United Steel, Paper and 

Forestry, Rubber, Manufacturing, 

Energy, Allied Industrial and Service 

Workers International Union, 

(collectively, ‘‘Petitioners’’) for 

additional information and for 

clarification of certain areas of the 

Petition. Based on the Department’s 

request, Petitioners filed two 

supplements to the Petition, one 

regarding general issues and one 

addressing AD-specific issues, on 

September 25, 2009 (‘‘Supplement 

Regarding General Issues to the AD/CVD 

Petition’’ and ‘‘Supplement to the AD 

Petition,’’ respectively). On September 

25, 2009, the Department requested 

further information from Petitioners, 

including suggested refinements to the 

scope. On September 29, 2009, 

Petitioners filed a second supplement to 

the Petition in response to the 

Department’s September 25, 2009 

request (‘‘Second Supplement Regarding 

General Issues to the AD/CVD 

Petition’’). Also, on September 29, 2009, 

the Department issued additional 

requests to Petitioners for further 

information and clarification of certain 

areas of the Petition. Based on the 

Department’s request, Petitioners again 

filed two supplements to the Petition, 

one regarding general issues and one 

addressing AD-specific issues, on 

October 1, 2009 (‘‘Third Supplement 

Regarding General Issues to the AD/CVD 

Petition’’ and ‘‘Second Supplement to 

the AD Petition’’). On September 30, 

2009, the Department requested 

comments from Petitioners on revisions 

made by the Department to the 

proposed scope language. In response to 

the Department’s request, Petitioners 

reiterated their scope comments filed in 

the Second Supplement Regarding 

General Issues to the AD/CVD Petition. 

See memorandum to the file from Drew 

Jackson regarding ‘‘Initiation of the 

Antidumping Duty Investigation of 

Certain Seamless Carbon and Alloy 

Steel Standard, Line, and Pressure Pipe 

from the People’s Republic of China 

(‘‘Scope Memorandum’’). 

In accordance with section 732(b) of 

the Tariff Act of 1930, as amended 

(‘‘Act’’), Petitioners allege that imports 

of seamless pipe from the PRC are being, 

or are likely to be, sold in the United 

States at less than fair value, within the 

meaning of section 731 of the Act, and 

that such imports materially injure, and 

threaten further material injury to, an 

industry in the United States. 

The Department finds that Petitioners 

filed the Petition on behalf of the 

domestic industry and unions because 

Petitioners are interested parties, as 

defined in section 771(9)(C) and (D) of 

the Act, and have demonstrated 

sufficient industry support with respect 

to the investigation that they request the 

Department to initiate (see 

‘‘Determination of Industry Support for 

the Petition’’ below). 

Scope of Investigation 

The products covered by this 

investigation are seamless pipe from the 

PRC. For a full description of the scope 

of the investigation, please see the 

‘‘Scope of the Investigation’’ in 

Appendix I of this notice. 

Comments on the Scope of Investigation 

During our review of the Petition, we 

discussed the scope of the investigation 

with Petitioners and suggested a number 

of revisions to the scope language, 

including the removal from the scope of 

all language that relies on end-use to 

define covered merchandise. While 

Petitioners made a number of the 

suggested revisions to the scope, they 

did not remove end-use language from 

the scope. See Supplement Regarding 

General Issues to the AD/CVD Petition 

at 4; Second Supplement Regarding 

General Issues to the AD/CVD Petition, 

Item 3; and Scope Memorandum. The 

Department has inherent authority to 

define the scope of the investigation and 

may depart from the scope as proposed 

by a petition. NTN Bearing Corp. v. 

U.S., 747 F. Supp. 726, 731 (CIT 1990). 

In this case, consistent with the position 

taken in circular welded carbon quality 

steel pipe from the PRC, we have 

revised the scope by removing all enduse language from it. See Notice of Final 

Determination of Sales at Less Than 

Fair Value and Affirmative Final 

Determination of Critical 

Circumstances: Circular Welded Carbon 

Quality Steel Pipe from the People’s 

Republic of China, 73 FR 31970 (June 5, 

2008) (‘‘Circular Welded Pipe’’) at 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 197 / Wednesday, October 14, 2009 / Notices 52745 

2See USEC, Inc. v. United States, 132 F. Supp. 

2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. 

v. United States, 688 F. Supp. 639, 644 (CIT 1988), 

aff’d 865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 

U.S. 919 (1989). 

3For a discussion of the domestic like product 

analysis in this case, see Antidumping Duty 

Investigation Initiation Checklist: Certain Seamless 

Pipe from the PRC (‘‘Initiation Checklist’’) at 

Attachment II (‘‘Industry Support’’), dated 

concurrently with this notice and on file in the 

Central Records Unit, Room 1117 of the main 

Department of Commerce building. 

4See Initiation Checklist at Attachment II. 

Comment 1 (‘‘* * * the Department 

prefers to define product coverage by 

the physical characteristics of the 

merchandise subject to investigation.’’). 

As noted in Circular Welded Pipe, 

excluding end-use language from the 

scope provides certainty with respect to 

product coverage and will enable any 

potential future orders to be effectively 

administered by the Department and 

enforced by U.S. Customs and Border 

Protection. Further, clarity with respect 

to scope will ensure that respondents in 

the investigation will know precisely 

what is included in the definition of 

subject merchandise. 

As discussed in the preamble to the 

Department’s regulations (Antidumping 

Duties; Countervailing Duties; Final 

Rule, 62 FR 27296, 27323 (May 19, 

1997)), we are setting aside a period for 

interested parties to raise issues 

regarding the product coverage of the 

scope. The Department encourages all 

interested parties to submit such 

comments by October 26, 2009, which 

is twenty calendar days from the 

signature date of this notice. Comments 

should be addressed to Import 

Administration’s APO/Dockets Unit, 

Room 1870, U.S. Department of 

Commerce, 14th Street and Constitution 

Avenue, NW., Washington, DC 20230. 

The period for scope consultations is 

intended to provide the Department 

with ample opportunity to consider all 

comments and to consult with parties 

prior to the issuance of the preliminary 

determination in this investigation. 

Comments on Product Characteristics 

for the Antidumping Duty 

Questionnaire 

We are requesting comments from 

interested parties regarding the 

appropriate physical characteristics of 

seamless pipe to be reported in response 

to the Department’s AD questionnaire. 

This information will be used to 

identify the key physical characteristics 

of the subject merchandise in order to 

more accurately report the relevant 

factors of production, as well as to 

develop appropriate product reporting 

criteria. 

Interested parties may provide any 

information or comments that they 

believe are relevant to the development 

of an accurate listing of physical 

characteristics. Specifically, they may 

provide comments as to which 

characteristics are appropriate to use as 

(1) general product characteristics and 

(2) the product reporting criteria and 

order of importance. We note that it is 

not always appropriate to use all 

product characteristics as product 

reporting criteria. We base product 

reporting criteria on meaningful 

commercial differences among products. 

In other words, while there may be 

some physical product characteristics 

utilized by manufacturers to describe 

seamless pipe, it may be that only a 

select few product characteristics reflect 

meaningful commercial differences. 

In order to consider the suggestions of 

interested parties in developing the 

product characteristics for the 

antidumping duty questionnaire, we 

must receive comments at the abovereferenced address by October 26, 2009. 

Additionally, rebuttal comments must 

be received by November 2, 2009. 

Determination of Industry Support for 

the Petition 

Section 732(b)(1) of the Act requires 

that a petition be filed on behalf of the 

domestic industry. Section 732(c)(4)(A) 

of the Act provides that a petition meets 

this requirement if the domestic 

producers or workers who support the 

petition account for: (i) at least 25 

percent of the total production of the 

domestic like product; and (ii) more 

than 50 percent of the production of the 

domestic like product produced by that 

portion of the industry expressing 

support for, or opposition to, the 

petition. Moreover, section 732(c)(4)(D) 

of the Act provides that, if the petition 

does not establish support of domestic 

producers or workers accounting for 

more than 50 percent of the total 

production of the domestic like product, 

the Department shall: (i) poll the 

industry or rely on other information in 

order to determine if there is support for 

the petition, as required by 

subparagraph (A); or (ii) determine 

industry support using a statistically 

valid sampling method to poll the 

industry. 

Section 771(4)(A) of the Act defines 

the ‘‘industry’’ as the producers as a 

whole of a domestic like product. Thus, 

to determine whether a petition has the 

requisite industry support, the statute 

directs the Department to look to 

producers and workers who produce the 

domestic like product. The International 

Trade Commission (‘‘ITC’’), which is 

responsible for determining whether 

‘‘the domestic industry’’ has been 

injured, must also determine what 

constitutes a domestic like product in 

order to define the industry. While both 

the Department and the ITC must apply 

the same statutory definition regarding 

the domestic like product (section 

771(10) of the Act), they do so for 

different purposes and pursuant to a 

separate and distinct authority. In 

addition, the Department’s 

determination is subject to limitations of 

time and information. Although this 

may result in different definitions of the 

like product, such differences do not 

render the decision of either agency 

contrary to law.2

Section 771(10) of the Act defines the 

domestic like product as ‘‘a product 

which is like, or in the absence of like, 

most similar in characteristics and uses 

with, the article subject to an 

investigation under this title.’’ Thus, the 

reference point from which the 

domestic like product analysis begins is 

‘‘the article subject to an investigation,’’ 

(i.e., the class or kind of merchandise to 

be investigated, which normally will be 

the scope as defined in the petition). 

With regard to the domestic like 

product, Petitioners do not offer a 

definition of domestic like product 

distinct from the scope of the 

investigation requested in the Petition. 

As noted, the Department has changed 

the definition of the class or kind of 

merchandise to be investigated from 

that which was initially requested by 

Petitioners. The reference point from 

which the domestic like product is 

defined is the class or kind of 

merchandise that is the basis for the 

Department’s initiation of this 

investigation. Based on our analysis of 

the information submitted on the 

record, we have determined that 

seamless pipe constitutes a single 

domestic like product and we have 

analyzed industry support in terms of 

that domestic like product.3

In determining whether Petitioners 

have standing under section 

732(c)(4)(A) of the Act, we considered 

the industry support data contained in 

the Petition with reference to the 

domestic like product as defined in the 

‘‘Scope of the Investigation’’ in 

Appendix I of this notice. To establish 

industry support, Petitioners provided 

their own 2008 production of the 

domestic like product, and compared 

this to the estimated total production of 

the domestic like product for the entire 

domestic industry.4 To estimate 2008 

production of the domestic like product, 

Petitioners used data from an industry 

publication, published by the American 

Iron and Steel Institute (‘‘AISI’’) which 

compiles data on domestic producers’ 

shipments of seamless standard, line 

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5See id. 

6See Section 732(c)(4)(D) of the Act, and 

Initiation Checklist at Attachment II. 

7See Initiation Checklist at Attachment II. 

8See id. 

9See id. 

10See Initiation Checklist at Attachment III, 

‘‘Analysis of Allegations and Evidence of Material 

Injury and Causation,’’ for details. 11See id. 12See Supplement to the AD Petition, at Exhibit 

Supp. II–1. 13See Volume II–A of the Petition, at 8–9, and 

Exhibits II–6, II–11, II–12, II–13, and II–14, and 

Supplement to the AD Petition, at 3–4. 

14See Volume II–A of the Petition, at 1 and 9. 

15See id.; see also Memorandum from the Office 

of Policy to David M. Spooner, Assistant Secretary 

for Import Administration, regarding The People’s 

Republic of China Status as a Non-Market Economy, 

dated May 15, 2006. This document is available 

online at http://ia.ita.doc.gov/download/prc-nmestatus/prc-nme-status-memo.pdf. 

16See Volume II–A of the Petition, at 2–4. 

17See Volume II–A of the Petition, at 3, and 

Exhibit II–3(A). 

18See Volume II–A of the Petition, at 2, 3, Figure 

1, and Exhibit II–5. 

and pressure pipe. Petitioners 

approximated domestic production of 

seamless pipe by inflating the volume of 

domestic shipments reported by AISI by 

the ratio of the difference between 

Petitioners’ own production and 

shipments in the applicable calendar 

year.5

Our review of the data provided in the 

Petition, supplemental submissions, and 

other information readily available to 

the Department, including a search of 

the Internet, indicates that Petitioners 

have established industry support. First, 

the Petition established support from 

domestic producers (or workers) 

accounting for more than 50 percent of 

the total production of the domestic like 

product and, as such, the Department is 

not required to take further action in 

order to evaluate industry support (e.g., 

polling).6 Second, the domestic 

producers (or workers) have met the 

statutory criteria for industry support 

under section 732(c)(4)(A)(i) of the Act 

because the domestic producers (or 

workers) who support the Petition 

account for at least 25 percent of the 

total production of the domestic like 

product.7 Finally, the domestic 

producers (or workers) have met the 

statutory criteria for industry support 

under section 732(c)(4)(A)(ii) of the Act 

because the domestic producers (or 

workers) who support the Petition 

account for more than 50 percent of the 

production of the domestic like product 

produced by that portion of the industry 

expressing support for, or opposition to, 

the Petition. Accordingly, the 

Department determines that the Petition 

was filed on behalf of the domestic 

industry within the meaning of section 

732(b)(1) of the Act.8

The Department finds that Petitioners 

filed the Petition on behalf of the 

domestic industry because Petitioners 

are interested parties (e.g., domestic 

producer and unions) as defined in 

section 771(9)(C) and (D) of the Act and 

have demonstrated sufficient industry 

support with respect to the antidumping 

investigation that they are requesting 

that the Department initiate.9

Allegations and Evidence of Material 

Injury and Causation 

Petitioners allege that the U.S. 

industry producing the domestic like 

product is being materially injured, or is 

threatened with material injury, by 

reason of the imports of the subject 

merchandise sold at less than normal 

value (‘‘NV’’). In addition, Petitioners 

allege that subject imports exceed the 

negligibility threshold provided for 

under section 771(24)(A) of the Act. 

Petitioners contend that the industry’s 

injured condition is illustrated by 

reduced market share, increased import 

penetration, underselling and price 

depressing and suppressing effects, lost 

sales and revenue, reduced production, 

reduced shipments, increased inventory 

overhang, reduced employment and 

wages, and an overall decline in 

financial performance.10 We have 

assessed the allegations and supporting 

evidence regarding material injury, 

threat of material injury, and causation, 

and have determined that these 

allegations are properly supported by 

adequate evidence and meet the 

statutory requirements for initiation.11

Period of Investigation 

In accordance with 19 CFR 

351.204(b)(1), because the Petition was 

filed on September 16, 2009, the 

anticipated period of investigation 

(‘‘POI’’) is January 1, 2009, through June 

30, 2009. 

Allegations of Sales at Less Than Fair 

Value 

The following is a description of the 

allegation of sales at less than fair value 

upon which the Department has based 

its decision to initiate an investigation 

of seamless pipe from the PRC. The 

sources of data for the deductions and 

adjustments relating to U.S. price and 

NV are discussed in the Initiation 

Checklist. 

U.S. Price 

Petitioners obtained an export price 

(‘‘EP’’) from a distributor’s offer to sell 

PRC-produced seamless pipe to a 

potential customer located in the United 

States. The offer is dated within the POI. 

Petitioners presented an affidavit 

attesting to the offer and its terms of 

sale.12

The U.S. price in the offer includes 

movement costs to ship the 

merchandise from the factory in the PRC 

to the U.S. port and a distributor markup. Therefore, to calculate the net U.S. 

price, Petitioners deducted movement 

expenses and a distributor’s mark-up 

that was based on their own experience 

and knowledge of the industry.13

For additional details regarding the 

U.S. price and the deducted movement 

expenses and distributor mark-up, see 

the Initiation Checklist at 7. 

Normal Value 

According to Petitioners, in every 

previous less-than-fair value 

investigation involving merchandise 

from the PRC, the Department has 

concluded that the PRC is a non-market 

economy (‘‘NME’’) country. Therefore, it 

has based NV on factors of production 

and surrogate values.14 In accordance 

with section 771(18)(C)(i) of the Act, the 

presumption of NME status remains in 

effect until revoked by the Department. 

The presumption of NME status for the 

PRC has not been revoked by the 

Department and, therefore, remains in 

effect for purposes of the initiation of 

this investigation.15 Accordingly, the 

NV of the product is appropriately 

based on factors of production valued in 

a surrogate market economy country, in 

accordance with section 773(c) of the 

Act. In the course of this investigation, 

all parties will have the opportunity to 

provide relevant information related to 

the issues of the PRC’s NME status and 

the granting of separate rates to 

individual exporters. 

Petitioners used India as the surrogate 

country because they claim India is at 

a level of economic development 

comparable to that of the PRC and is a 

significant producer of comparable 

merchandise.16 In support of these 

claims, Petitioners referenced the 

Department’s previous findings that 

India is at a level of development 

comparable to the PRC, provided per 

capita income data for 2007 as reported 

in the World Development Report 

2009,17 and presented data from the 

World Steel Association as reported in 

the Steel Statistical Yearbook 2008, 

showing that India produced 1,218,000 

metric tons of tubular steel products in 

2007, the greatest quantity produced 

among countries commonly considered 

by the Department to be at a level of 

economic development comparable to 

that of the PRC.18

After examining the information 

provided by Petitioners, the Department 

has determined that the use of India as 

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19See Volume II–A of the Petition, at 9–10, and 

Exhibit II–15. 

20See Volume II–A of the Petition, at Exhibit II– 

15, and Attachments A and B. 

21See Second Supplement to the AD Petition, at 

6–7. 

22See Volume II–B of the Petition, at Exhibit II– 

15(Q) and (R), and Supplement to the AD Petition, 

at Exhibit Supp. II–9. 

23See Volume II–A of the Petition, at Exhibit II– 

15(E). 

24See Volume II–A of the Petition, at Exhibit II– 

15, and Attachments C and D. 

25See Volume II–A of the Petition, at Exhibit II– 

15, and Attachment F. 

26See Volume II–A of the Petition, at Exhibit II– 

15(H), and Volume II–B of the Petition, at Exhibit 

II–15(Q). 

27See Volume II–A of the Petition, at Exhibit II– 

15, and Attachments DD and EE. 

28See Volume II–A of the Petition, at Exhibit II– 

15(I)(1). 

29See Volume II–A of the Petition, at Exhibit II– 

15, and Attachment FF and GG, and Second 

Supplement to the AD Petition, at 3–4, and Exhibits 

Second Supp. II–21, II–22, and II–24. 

30See Supplement to the AD Petition, at 16–18. 

31See Second Supplement to the AD Petition, at 

3–4, and Exhibit Second Supp. II–1. 

32See Withdrawal of the Regulatory Provisions 

Governing Targeted Dumping in Antidumping Duty 

Investigations, 73 FR 74930 (December 10, 2008). 

33See id. at 74931. 

34See Circular Welded Austenitic Stainless 

Pressure Pipe from the People’s Republic of China: 

Initiation of Antidumping Duty Investigation, 73 FR 

10221, 10225 (February 26, 2008); and Initiation of 

Antidumping Duty Investigation: Certain Artist 

Canvas From the People’s Republic of China, 70 FR 

21996, 21999 (April 28, 2005). 

a surrogate country is appropriate for 

purposes of initiation. However, after 

initiation of the investigation, interested 

parties will have the opportunity to 

submit comments regarding surrogate 

country selection and, pursuant to 19 

CFR 351.301(c)(3)(i), will be provided 

an opportunity to submit publicly 

available information to value factors of 

production within 40 days after the date 

of publication of the preliminary 

determination. 

Petitioners calculated NVs and 

dumping margins using the 

Department’s NME methodology as 

required by 19 CFR 351.202(b)(7)(i)(C) 

and 19 CFR 351.408. Petitioners 

calculated NVs for four seamless pipe 

products of various sizes 19 using the 

consumption rates of a U.S. producer of 

seamless pipe during the period January 

2009, through June 2009.20 Petitioners 

stated the U.S. producer was selected 

because, like the PRC producer, it is a 

large integrated producer of seamless 

pipe.21

Petitioners valued the factors of 

production using reasonably available, 

public surrogate country data, including 

Indian import data from the Indian 

Ministry of Commerce, published in the 

Monthly Statistics of Foreign Trade of 

India as compiled by the Word Trade 

Atlas (‘‘WTA’’). Petitioners used WTA 

data for the period September 2008, 

through February 2009, the most recent 

six months of data available at the time 

of the filing of the Petition.22 In 

addition, Petitioners used exchange 

rates, as reported by the Federal 

Reserve, to convert Indian Rupees to 

U.S. Dollars.23

Petitioners valued royalties imposed 

in the PRC on mined ore using data 

from the Indian Mines and Minerals 

Development and Regulation Act.24

Petitioners valued labor using the 

wage rate data published on the 

Department’s Web site, at http:// 

ia.ita.doc.gov/wages/05wages/05wages051608.html#table1.25

Petitioners valued electricity using 

Indian electricity rates from the Central 

Electricity Authority in India for 2006.26

Petitioners valued water using data 

from the Maharashtra Industrial 

Development Corporation.27

Where values were not 

contemporaneous with the POI, 

Petitioners adjusted these values for 

inflation using wholesale price index 

data published by the International 

Monetary Fund, which is available 

online at http://www.5-imfstatistics.org/ 

imf/.28

Petitioners based factory overhead, 

selling, general and administrative 

expenses (‘‘SG&A’’), and profit, on data 

from the fiscal year, ending March 31, 

2009, of two Indian producers of pipe 

and tube, the Steel Authority of India, 

Ltd. (‘‘SAIL’’), and Tata Steel Limited 

(‘‘Tata’’), with adjustments as requested 

by the Department.29 Petitioners based 

the financial ratios for seamless pipe on 

the simple average of SAIL’s and Tata’s 

overhead, SG&A, and profit ratios, 

asserting that SAIL and Tata are large 

integrated steel producers like the PRC 

producer on which Petitioners based 

their calculation, and are producers of 

merchandise comparable to seamless 

pipe.30

Fair-Value Comparisons 

The data submitted by Petitioners 

provide a reason to believe that 

seamless pipe from the PRC is being, or 

is likely to be, sold in the United States 

at less than fair value. Based on 

comparisons of the net U.S. price to 

NVs, Petitioners calculated an estimated 

dumping margin of 98.37 percent.31

Initiation of Antidumping Investigation 

Based upon our examination of the 

Petition concerning seamless pipe from 

the PRC and other information 

reasonably available to the Department, 

the Department finds that the Petition 

meets the requirements of section 732 of 

the Act. Therefore, we are initiating an 

AD investigation to determine whether 

seamless pipe from the PRC is being, or 

is likely to be, sold in the United States 

at less than fair value. In accordance 

with section 733(b)(1)(A) of the Act, 

unless postponed, we will make our 

preliminary determination no later than 

140 days after the date of this initiation. 

Targeted-Dumping Allegations 

On December 10, 2008, the 

Department issued an interim final rule 

for the purpose of withdrawing 19 CFR 

351.414(f) and (g), the regulatory 

provisions governing the targeteddumping analysis in AD investigations, 

and the corresponding regulation 

governing the deadline for targeteddumping allegations, 19 CFR 

351.301(d)(5).32 The Department stated 

that ‘‘[w]ithdrawal will allow the 

Department to exercise the discretion 

intended by the statute and, thereby, 

develop a practice that will allow 

interested parties to pursue all statutory 

avenues of relief in this area.’’ 33

In order to accomplish this objective, 

interested parties that wish to make a 

targeted-dumping allegation in this 

investigation pursuant to section 

777A(d)(1)(B) of the Act, should submit 

such an allegation to the Department no 

later than 45 days before the scheduled 

date of the preliminary determination. 

Respondent Selection 

The Department will request quantity 

and value information from the 

exporters and producers listed with 

complete contact information in the 

Petition. The quantity and value data 

received from NME exporters/producers 

will be used to select mandatory 

respondents. 

The Department requires respondents 

to submit a response to both the 

quantity and value questionnaire and 

the separate-rate application by the 

respective deadlines in order to receive 

consideration for separate-rate status.34

Appendix II of this notice contains the 

quantity and value questionnaire that 

must be submitted by all NME 

exporters/producers no later than 

October 27, 2009. In addition, the 

Department will post the quantity and 

value questionnaire along with filing 

instructions on its Web site, at http:// 

ia.ita.doc.gov/ia-highlights-andnews.html. 

Separate Rates 

In order to obtain separate-rate status 

in an NME investigation, exporters and 

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35See Import Administration Policy Bulletin, 

Number: 05.1, ‘‘Separate-Rates Practice and 

Application of Combination Rates in Antidumping 

Investigations involving Non-Market Economy 

Countries,’’ dated April 5, 2005, available on the 

Department’s Web site at http://ia.ita.doc.gov/ 

policy/bull05-1.pdf (‘‘Policy Bulletin, Number: 

05.1’’); see also Certain Circular Welded Carbon 

Quality Steel Line Pipe From the Republic of Korea 

and the People’s Republic of China: Initiation of 

Antidumping Duty Investigations, 73 FR 23188, 

23193 (April 29, 2008) (‘‘Certain Circular Welded 

Carbon Quality Steel Line Pipe from the PRC’’). 

36See Policy Bulletin, Number: 05.1; see also 

Certain Circular Welded Carbon Quality Steel Line 

Pipe from the PRC, 73 FR at 23193. 

producers must submit a separate-rate 

status application.35 The specific 

requirements for submitting the 

separate-rate application in this 

investigation are outlined in detail in 

the application itself, which will be 

available on the Department’s Web site 

at http://ia.ita.doc.gov/ia-highlightsand-news.html on the date of 

publication of this initiation notice in 

the Federal Register. The separate-rate 

application will be due sixty (60) days 

from the date of publication of this 

initiation notice in the Federal Register. 

As noted in the ‘‘Respondent Selection’’ 

section above, the Department requires 

that respondents submit a response to 

both the quantity and value 

questionnaire and the separate rate 

application by the respective deadlines 

in order to receive consideration for 

separate rate status. For exporters and 

producers who submit a separate-rate 

status application and subsequently are 

selected as mandatory respondents, 

these exporters and producers will no 

longer be eligible for consideration of 

separate rate status unless they respond 

to all parts of the questionnaire as 

mandatory respondents. 

Use of Combination Rates in an NME 

Investigation 

The Department will calculate 

combination rates for certain 

respondents that are eligible for a 

separate rate in this investigation. The 

Separate Rates/Combination Rates 

Bulletin states: 

{w}hile continuing the practice of assigning 

separate rates only to exporters, all separate 

rates that the Department will now assign in 

its NME investigations will be specific to 

those producers that supplied the exporter 

during the period of investigation. Note, 

however, that one rate is calculated for the 

exporter and all of the producers which 

supplied subject merchandise to it during the 

period of investigation. This practice applies 

both to mandatory respondents receiving an 

individually calculated separate rate as well 

as the pool of non-investigated firms 

receiving the weighted-average of the 

individually calculated rates. This practice is 

referred to as the application of combination 

rates because such rates apply to specific 

combinations of exporters and one or more 

producers. The cash-deposit rate assigned to 

an exporter will apply only to merchandise 

both exported by the firm in question and 

produced by a firm that supplied the exporter 

during the period of investigation.36

Distribution of Copies of the Petition 

In accordance with section 

732(b)(3)(A) of the Act and 19 CFR 

351.202(f), a copy of the public version 

of the Petition has been provided to the 

representatives of the Government of the 

PRC. Because of the large number of 

producers/exporters identified in the 

Petition, the Department considers the 

service of the public version of the 

Petition to the foreign producers/ 

exporters satisfied by the delivery of the 

public version to the Government of the 

PRC, consistent with 19 CFR 

351.203(c)(2). 

ITC Notification 

We have notified the ITC of our 

initiation, as required by section 732(d) 

of the Act. 

Preliminary Determination by the ITC 

The ITC will preliminarily determine, 

no later than November 2, 2009, 

whether there is a reasonable indication 

that imports of seamless pipe from the 

PRC materially injure, or threaten 

material injury to, a U.S. industry. A 

negative ITC determination covering all 

classes or kinds of merchandise covered 

by the Petition will result in the 

investigation being terminated. 

Otherwise, this investigation will 

proceed according to statutory and 

regulatory time limits. 

This notice is issued and published 

pursuant to section 777(i) of the Act. 

Dated: October 6, 2009. 

Ronald K. Lorentzen, 

Acting Assistant Secretary for Import 

Administration. 

Appendix I 

Scope of the Investigation 

The merchandise covered by this 

investigation is certain seamless carbon and 

alloy steel (other than stainless steel) pipes 

and redraw hollows, less than or equal to 16 

inches (406.4 mm) in outside diameter, 

regardless of wall-thickness, manufacturing 

process (e.g., hot-finished or cold-drawn), 

end finish (e.g., plain end, beveled end, upset 

end, threaded, or threaded and coupled), or 

surface finish (e.g., bare, lacquered or 

coated). Redraw hollows are any unfinished 

carbon or alloy steel (other than stainless 

steel) pipe or ‘‘hollow profiles’’ suitable for 

cold finishing operations, such as cold 

drawing, to meet the American Society for 

Testing and Materials (‘‘ASTM’’) or American 

Petroleum Institute (‘‘API’’) specifications 

referenced below, or comparable 

specifications. Specifically included within 

the scope are seamless carbon and alloy steel 

(other than stainless steel) standard, line, and 

pressure pipes produced to the ASTM A–53, 

ASTM A–106, ASTM A–333, ASTM A–334, 

ASTM A–335, ASTM A–589, ASTM A–795, 

ASTM A–1024, and the API 5L 

specifications, or comparable specifications, 

and meeting the physical parameters 

described above, regardless of application, 

with the exception of the exclusion discussed 

below. 

Specifically excluded from the scope of the 

investigation are unattached couplings. 

The merchandise covered by the 

investigation is currently classified in the 

Harmonized Tariff Schedule of the United 

States (‘‘HTSUS’’) under item numbers: 

7304.19.1020, 7304.19.1030, 7304.19.1045, 

7304.19.1060, 7304.19.5020, 7304.19.5050, 

7304.31.6050, 7304.39.0016, 7304.39.0020, 

7304.39.0024, 7304.39.0028, 7304.39.0032, 

7304.39.0036, 7304.39.0040, 7304.39.0044, 

7304.39.0048, 7304.39.0052, 7304.39.0056, 

7304.39.0062, 7304.39.0068, 7304.39.0072, 

7304.51.5005, 7304.51.5060, 7304.59.6000, 

7304.59.8010, 7304.59.8015, 7304.59.8020, 

7304.59.8025, 7304.59.8030, 7304.59.8035, 

7304.59.8040, 7304.59.8045, 7304.59.8050, 

7304.59.8055, 7304.59.8060, 7304.59.8065, 

and 7304.59.8070. 

Although the HTSUS subheadings are 

provided for convenience and customs 

purposes, our written description of the 

merchandise subject to this scope is 

dispositive. 

Appendix II 

OFFICE OF AD/CVD OPERATIONS 

QUANTITY AND VALUE QUESTIONNAIRE 

Requester(s): 

{insert name of company} 

{company address} 

{contact name and title} 

{contact telephone number} 

{contact fax number} 

{contact e-mail address} 

Representation: {insert name of counsel 

and law firm and contact info} 

Case: Certain Seamless Carbon and Alloy 

Steel Standard, Line, and Pressure Pipe from 

the People’s Republic of China. 

Period of Investigation: January 1, 2009, 

through June 30, 2009. 

Publication Date of Initiation: October 14, 

2009. 

Officials in Charge: 

Howard Smith, Program Manager, AD/CVD 

Operations, Office 4, Telephone: (202) 

482–5193, Fax: (202) 482–5105, E-mail 

Address: Howard_Smith@ita.doc.gov. 

Drew Jackson, International Trade 

Compliance Analyst, AD/CVD Operations, 

Office 4, Telephone: (202) 482–4406, Fax: 

(202) 482–5105, E-mail Address: 

Drew_Jackson@ita.doc.gov. 

Filing Address: 

Secretary of Commerce, Attention: Import 

Administration (Drew Jackson), APO/ 

Dockets Unit, Room 1870, U.S. Department 

of Commerce, 1401 Constitution Avenue, 

NW., Washington, DC 20230. 

On October 6, 2009, the Department 

initiated an antidumping duty investigation 

to determine whether certain seamless 

carbon and alloy steel standard, line, and 

pressure pipe (‘‘subject merchandise’’) from 

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37An electronic copy of the initiation notice may 

be found on the Internet at the following address: 

http://ia.ita.doc.gov/frn/2009/0910frn/. 38Please use the invoice date when determining 

which sales to include within the period noted 

above. Generally, the Department uses invoice date 

as the date of sale, as that is when the essential 

terms of sale are set. If you believe that another date 

besides the invoice date would provide a more 

accurate representation of your company’s sales 

during the designated period, please report sales 

based on that date and provide a full explanation. 

39 If any conversions were used, please provide 

the conversion formula and source. 

40To the extent possible, sales values should be 

reported based on the same terms (e.g., FOB). 

41 Values should be expressed in U.S. dollars. 

Indicate any exchange rates used and their 

respective dates and sources. 

42 Generally, a U.S. sale is classified as an export 

price sale when the first sale to an unaffiliated 

person occurs before the goods are imported into 

the United States. 

43 Generally, a U.S. sale is classified as a 

constructed export price sale when the first sale to 

an unaffiliated person occurs after importation. 

However, if the first sale to the unaffiliated person 

is made by a person in the United States affiliated 

with the foreign exporter, constructed export price 

applies even if the sale occurs prior to importation. 

Do not report the sale to the affiliated party in the 

United States, rather report the sale made by the 

affiliated party to the unaffiliated customer in the 

United States. If you have further manufactured 

sales, please report them under Item 3, rather than 

under Item 2. 

44 ‘‘Further manufactured’’ refers to merchandise 

that undergoes further manufacture or assembly in 

the United States before sale to the first unaffiliated 

customer. 

the PRC was sold in the United States at less 

than fair value during the period January 1, 

2009, through June 30, 2009 (the period of 

investigation or ‘‘POI’’).37

Section 777A(c)(1) of the Tariff Act of 

1930, as amended (‘‘the Act’’), directs the 

Department to calculate individual dumping 

margins for each known exporter and 

producer of the subject merchandise. Where 

it is not practicable to examine all known 

producers/exporters of subject merchandise, 

as is the case in this investigation, section 

777A(c)(2) of the Act permits the Department 

to examine either (1) a sample of exporters, 

producers or types of products that is 

statistically valid based on the information 

available at the time of selection; or (2) 

exporters and producers accounting for the 

largest volume of the subject merchandise 

from the exporting country that can be 

reasonably examined. 

In advance of the issuance of the full 

antidumping duty questionnaire, we ask that 

you respond to the following Quantity and 

Value Questionnaire requesting information 

on the quantity and U.S. dollar value of all 

of your sales to the United States during the 

period January 1, 2009, through June 30, 

2009, of merchandise covered by the scope 

of this investigation (see Appendix I) and 

produced in the PRC. A full and accurate 

response to the Quantity and Value 

Questionnaire from all participating 

respondents is necessary to ensure that the 

Department has the requisite information to 

appropriately select mandatory respondents. 

The Department is also requiring all firms 

that wish to qualify for separate-rate status in 

this investigation to complete a separate-rate 

status application as described in the notice 

of initiation. In other words, the Department 

will not give consideration to any separaterate status application made by parties that 

fail to timely respond to the Quality and 

Value Questionnaire or fail to timely submit 

the requisite separate-rate status application. 

To complete this investigation within the 

statutory time frame, the Department will be 

limited in its ability to extend the deadline 

for the response to the Quantity and Value 

Questionnaire. 

A definition of the scope of the 

merchandise subject to this investigation is 

included in Appendix I. Your response to 

this questionnaire may be subject to on-site 

verification by Department officials. 

Format for Reporting Quantity and Value of 

Sales 

In providing the information in the chart 

below, please provide the total quantity, in 

metric tons, and total value (in U.S. dollars) 

of all your sales to the United States during 

the period January 1, 2009, through June 30, 

2009, of merchandise covered by the scope 

of this investigation (see Appendix I) and 

produced in the PRC.38

• Please include only sales exported by 

your company directly to the United States. 

• Please do not include any sales of subject 

merchandise manufactured in Hong Kong in 

your figures. 

Additionally, if you believe that you 

should be treated as a single entity along 

with other named exporters, please complete 

the chart, below, both in the aggregate for all 

named parties in your group and, in separate 

charts, individually for each named entity. 

Please label each chart accordingly. 

Market: 

United States 

Total quantity 

in metric 

tons 39

Terms of 

sale 40

Total 

value 41

($U.S.) 

1. Export Price 42 ......................................................................................................................... ........................ ........................ ........................

2. Constructed Export Price 43 ..................................................................................................... ........................ ........................ ........................

3. Further Manufactured 44 .......................................................................................................... ........................ ........................ ........................

Total ...................................................................................................................................... ........................ ........................ ........................

[FR Doc. E9–24703 Filed 10–13–09; 8:45 am] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

Sensors and Instrumentation 

Technical Advisory Committee; Notice 

of Partially Closed Meeting 

The Sensors and Instrumentation 

Technical Advisory Committee (SITAC) 

will meet on October 27, 2009, 9:30 

a.m., in the Herbert C. Hoover Building, 

Room 3884, 14th Street between 

Constitution and Pennsylvania 

Avenues, NW., Washington, DC. The 

Committee advises the Office of the 

Assistant Secretary for Export 

Administration on technical questions 

that affect the level of export controls 

applicable to sensors and 

instrumentation equipment and 

technology. 

Agenda 

Public Session 

1. Welcome and Introductions. 

2. Remarks from the Bureau of 

Industry and Security Management. 

3. Industry Presentations. 

4. New Business. 

Closed Session 

5. Discussion of matters determined to 

be exempt from the provisions relating 

to public meetings found in 5 U.S.C. 

app. 2 §§ 10(a)(1) and 10(a)(3). 

The open session will be accessible 

via teleconference to 20 participants on 

a first come, first serve basis. To join the 

conference, submit inquiries to Ms. 

Yvette Springer at 

Yspringer@bis.doc.gov no later than 

October 20, 2009. 

A limited number of seats will be 

available during the public session of 

the meeting. Reservations are not 

accepted. To the extent that time 

permits, members of the public may 

present oral statements to the 

Committee. The public may submit 

written statements at any time before or 

after the meeting. However, to facilitate 

distribution of public presentation 

materials to the Committee members, 

the Committee suggests that the 

materials be forwarded before the 

meeting to Ms. Springer. 

The Assistant Secretary for 

Administration, with the concurrence of 

the General Counsel, formally 

determined on September 29, 2009 

pursuant to Section 10(d) of the Federal 

Advisory Committee Act, as amended (5 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Notices 52945 

1See Petition for the Imposition of Antidumping 

and Countervailing Duties Pursuant to Sections 701 

and 731 of the Tariff Act of 1930, as Amended: 

Certain Seamless Carbon and Alloy Steel Standard, 

Line, and Pressure Pipe from the People’s Republic 

of China, dated September 16, 2009 (‘‘Petition’’). 

DEPARTMENT OF COMMERCE 

International Trade Administration 

(C–570–957) 

Certain Seamless Carbon and Alloy 

Steel Standard, Line, and Pressure 

Pipe from the People’s Republic of 

China: Initiation of Countervailing Duty 

Investigation 

AGENCY: Import Administration, 

International Trade Administration, 

Department of Commerce. 

EFFECTIVE DATE: October 15, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Yasmin Nair and Joseph Shuler, AD/ 

CVD Operations, Import 

Administration, International Trade 

Administration, U.S. Department of 

Commerce, 14th Street and Constitution 

Avenue, NW, Washington, DC 20230; 

telephone: (202) 482–3813 and (202) 

482–1293, respectively. 

SUPPLEMENTARY INFORMATION: 

The Petition 

On September 16, 2009, the 

Department of Commerce 

(‘‘Department’’) received a 

countervailing duty (‘‘CVD’’) petition 

concerning imports of certain seamless 

pipe (‘‘seamless pipe’’) from the 

People’s Republic of China (‘‘PRC’’) 

filed in proper form by United States 

Steel Corporation and V&M Star L.P. 

(collectively, ‘‘Petitioners’’).1 On 

September 25, 2009, the Petition was 

amended to add TMK IPSCO and The 

United Steel, Paper and Forestry, 

Rubber, Manufacturing, Energy, Allied 

Industrial and Service Worker 

International Union as additional 

Petitioners. On September 21 and 22, 

2009, the Department issued requests to 

Petitioners for additional information 

and for clarification of certain areas of 

the Petition. Based on the Department’s 

requests, Petitioners filed a supplement 

to the Petition, regarding general issues, 

on September 25, 2009 (‘‘Supplement to 

the AD/CVD Petitions’’). On September 

25, 2009, the Department requested 

further information from Petitioners, 

including suggested refinements to the 

scope. On September 28, 2009, 

Petitioners filed a supplement to the 

Petition, regarding the CVD allegations. 

On September 29, 2009, Petitioners filed 

an additional supplement to the Petition 

in response to the Department’s 

September 25, 2009 request (‘‘Second 

Supplement to the AD/CVD Petitions’’). 

Also, on September 29, 2009, the 

Department issued a further request to 

Petitioners for information and 

clarification of certain aspects of the 

Petition. In response to the 

Department’s request, Petitioners filed a 

supplement to the Petition regarding 

general issues, on October 1, 2009. 

In accordance with section 702(b)(1) 

of the Tariff Act of 1930, as amended 

(‘‘Act’’), Petitioners allege that 

producers/exporters of seamless pipe 

from the PRC received countervailable 

subsidies within the meaning of 

sections 701 and 771(5) of the Act, and 

that imports from these producers/ 

exporters materially injure, and threaten 

further material injury to, an industry in 

the United States. 

The Department finds that Petitioners 

filed the Petition on behalf of the 

domestic industry because Petitioners 

are interested parties, as defined in 

section 771(9)(C) of the Act, and have 

demonstrated sufficient industry 

support with respect to the investigation 

that they request the Department to 

initiate (see ‘‘Determination of Industry 

Support for the Petition’’ below). 

Period of Investigation 

The period of investigation is January 

1, 2008, through December 31, 2008. 

Scope of Investigation 

The products covered by this 

investigation are seamless pipe from the 

PRC. For a full description of the scope 

of the investigation, please see the 

‘‘Scope of the Investigation’’ in 

Appendix I of this notice. 

Comments on the Scope of Investigation 

During our review of the Petition, we 

discussed the scope of the investigation 

with Petitioners and suggested a number 

of revisions to the scope language, 

including the removal from the scope of 

all language that relies on end–use to 

define covered merchandise. While 

Petitioners made a number of the 

suggested revisions to the scope, they 

did not remove end–use language from 

the scope. See Supplement Regarding 

General Issues to the AD/CVD Petition 

at 4; Second Supplement Regarding 

General Issues to the AD/CVD Petition, 

Item 3; and memorandum to the file 

from Drew Jackson regarding ‘‘Initiation 

of the Antidumping Duty Investigation 

of Certain Seamless Carbon and Alloy 

Steel Standard, Line, and Pressure Pipe 

from the People’s Republic of China’’. 

The Department has inherent authority 

to define the scope of the investigation 

and may depart from the scope as 

proposed by a petition. NTN Bearing 

Corp. v. U.S., 747 F. Supp. 726, 731 (CIT 

1990). In this case, consistent with the 

position taken in circular welded carbon 

quality steel pipe from the PRC, we have 

revised the scope by removing all end– 

use language from it. See Notice of Final 

Determination of Sales at Less Than 

Fair Value and Affirmative Final 

Determination of Critical 

Circumstances: Circular Welded Carbon 

Quality Steel Pipe from the People’s 

Republic of China, 73 FR 31970 (June 5, 

2008) (‘‘Circular Welded Pipe’’) at 

Comment 1 (‘‘ the Department prefers to 

define product coverage by the physical 

characteristics of the merchandise 

subject to investigation.’’). As noted in 

Circular Welded Pipe, excluding end– 

use language from the scope provides 

certainty with respect to product 

coverage and will enable any potential 

future orders to be effectively 

administered by the Department and 

enforced by U.S. Customs and Border 

Protection (‘‘CBP’’). Further, clarity with 

respect to scope will ensure that 

respondents in the investigation will 

know precisely what is included in the 

definition of subject merchandise. 

As discussed in the preamble to the 

Department’s regulations (Antidumping 

Duties; Countervailing Duties; Final 

Rule, 62 FR 27296, 27323 (May 19, 

1997)), we are setting aside a period for 

interested parties to raise issues 

regarding the product coverage of the 

scope. The Department encourages all 

interested parties to submit such 

comments by October 26, 2009, which 

is twenty calendar days from the 

signature date of this notice. Comments 

should be addressed to Import 

Administration’s APO/Dockets Unit, 

Room 1870, U.S. Department of 

Commerce, 14th Street and Constitution 

Avenue, NW, Washington, DC 20230. 

The period for scope consultations is 

intended to provide the Department 

with ample opportunity to consider all 

comments and to consult with parties 

prior to the issuance of the preliminary 

determination in this investigation. 

Consultations 

Pursuant to section 702(b)(4)(A)(ii) of 

the Act, on September 22, 2009, the 

Department invited representatives of 

the Government of the PRC for 

consultations with respect to the 

Petition. The Government of the PRC 

did not request such consultations. 

Determination of Industry Support for 

the Petition 

Section 702(b)(1) of the Act requires 

that a petition be filed on behalf of the 

domestic industry. Section 702(c)(4)(A) 

of the Act provides that a petition meets 

this requirement if the domestic 

producers or workers who support the 

mstockstill on DSKH9S0YB1PROD with NOTICES

52946 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Notices 

2See USEC, Inc. v. United States, 132 F. Supp. 

2d 1, 8 (CIT 2001), citing Algoma Steel Corp. Ltd. 

v. United States, 688 F. Supp. 639, 644 (CIT 1988), 

aff’d 865 F.2d 240 (Fed. Cir. 1989), cert. denied 492 

U.S. 919 (1989). 

3For a discussion of the domestic like product 

analysis in this case, see Countervailing Duty 

Investigation Initiation Checklist: Certain Seamless 

Pipe from the PRC (‘‘Initiation Checklist’’) at 

Attachment II (‘‘Industry Support’’), dated 

concurrently with this notice and on file in the 

Central Records Unit (≥CRU≥), Room 1117 of the 

main Department of Commerce building. 

4See Initiation Checklist at Attachment II. 

5See id. 

6See Section 702(c)(4)(D) of the Act, and 

Initiation Checklist at Attachment II. 

7See Initiation Checklist at Attachment II. 

8See id. 

9See id. 

petition account for: (i) at least 25 

percent of the total production of the 

domestic like product; and (ii) more 

than 50 percent of the production of the 

domestic like product produced by that 

portion of the industry expressing 

support for, or opposition to, the 

petition. Moreover, section 702(c)(4)(D) 

of the Act provides that, if the petition 

does not establish support of domestic 

producers or workers accounting for 

more than 50 percent of the total 

production of the domestic like product, 

the Department shall: (i) poll the 

industry or rely on other information in 

order to determine if there is support for 

the petition, as required by 

subparagraph (A); or (ii) determine 

industry support using a statistically 

valid sampling method to poll the 

industry. 

Section 771(4)(A) of the Act defines 

the ‘‘industry’’ as the producers as a 

whole of a domestic like product. Thus, 

to determine whether a petition has the 

requisite industry support, the statute 

directs the Department to look to 

producers and workers who produce the 

domestic like product. The International 

Trade Commission (‘‘ITC’’), which is 

responsible for determining whether 

‘‘the domestic industry’’ has been 

injured, must also determine what 

constitutes a domestic like product in 

order to define the industry. While both 

the Department and the ITC must apply 

the same statutory definition regarding 

the domestic like product (see section 

771(10) of the Act), they do so for 

different purposes and pursuant to a 

separate and distinct authority. In 

addition, the Department’s 

determination is subject to limitations of 

time and information. Although this 

may result in different definitions of the 

like product, such differences do not 

render the decision of either agency 

contrary to law.2

Section 771(10) of the Act defines the 

domestic like product as ‘‘a product 

which is like, or in the absence of like, 

most similar in characteristics and uses 

with, the article subject to an 

investigation under this title.’’ Thus, the 

reference point from which the 

domestic like product analysis begins is 

‘‘the article subject to an investigation,’’ 

(i.e., the class or kind of merchandise to 

be investigated, which normally will be 

the scope as defined in the petition). 

With regard to the domestic like 

product, Petitioners did not offer a 

definition of domestic like product 

distinct from the scope of the 

investigation requested in the Petition. 

As noted, the Department has changed 

the definition of the class or kind of 

merchandise to be investigated from 

that which was initially requested by 

Petitioners. The reference point from 

which the domestic like product is 

defined is the class or kind of 

merchandise that is the basis for the 

Department’s initiation of this 

investigation. Based on our analysis of 

the information submitted on the 

record, we have determined that 

seamless pipe constitutes a single 

domestic like product and we have 

analyzed industry support in terms of 

that domestic like product.3

In determining whether Petitioners 

have standing under section 

702(c)(4)(A) of the Act, we considered 

the industry support data contained in 

the Petition with reference to the 

domestic like product as defined in the 

‘‘Scope of the Investigation’’ in 

Appendix I of this notice. To establish 

industry support, Petitioners provided 

their own 2008 production of the 

domestic like product, and compared 

this to the estimated total production of 

the domestic like product for the entire 

domestic industry.4 To estimate 2008 

production of the domestic like product, 

Petitioners used data from an industry 

publication, published by the American 

Iron and Steel Institute (‘‘AISI’’), which 

compiles data on domestic producers’ 

shipments of seamless standard, line 

and pressure pipe. Petitioners 

approximated domestic production of 

seamless pipe by inflating the volume of 

domestic shipments reported by AISI by 

the ratio of the difference between 

Petitioners’ own production and 

shipments in the applicable calendar 

year.5

Our review of the data provided in the 

Petition, supplemental submissions, and 

other information readily available to 

the Department, including a search of 

the Internet, indicates that Petitioners 

have established industry support. First, 

the Petition established support from 

domestic producers (or workers) 

accounting for more than 50 percent of 

the total production of the domestic like 

product and, as such, the Department is 

not required to take further action in 

order to evaluate industry support (e.g., 

polling).6 Second, the domestic 

producers (or workers) have met the 

statutory criteria for industry support 

under section 702(c)(4)(A)(i) of the Act 

because the domestic producers (or 

workers) who support the Petition 

account for at least 25 percent of the 

total production of the domestic like 

product.7 Finally, the domestic 

producers (or workers) have met the 

statutory criteria for industry support 

under section 702(c)(4)(A)(ii) of the Act 

because the domestic producers (or 

workers) who support the Petition 

account for more than 50 percent of the 

production of the domestic like product 

produced by that portion of the industry 

expressing support for, or opposition to, 

the Petition. Accordingly, the 

Department determines that the Petition 

was filed on behalf of the domestic 

industry within the meaning of section 

702(b)(1) of the Act.8

The Department finds that Petitioners 

filed the Petition on behalf of the 

domestic industry because Petitioners 

are interested parties (e.g., domestic 

producers) as defined in section 

771(9)(C) of the Act and have 

demonstrated sufficient industry 

support with respect to the CVD 

investigation that they are requesting 

that the Department initiate.9

Injury Test 

Because the PRC is a ‘‘Subsidies 

Agreement Country’’ within the 

meaning of section 701(b) of the Act, 

section 701(a)(2) of the Act applies to 

this investigation. Accordingly, the ITC 

must determine whether imports of the 

subject merchandise from the PRC 

materially injure, or threaten material 

injury to, a U.S. industry. 

Allegations and Evidence of Material 

Injury and Causation 

Petitioners allege imports of seamless 

pipe from the PRC are benefitting from 

countervailable subsidies and that such 

imports are causing, or threaten to cause 

material injury to the domestic industry 

producing seamless pipe. In addition, 

Petitioners alleged that subject imports 

exceed the negligibility threshold 

provided for under section 771(24)(A) of 

the Act. 

Petitioners contended that the 

industry’s injured condition is 

illustrated by reduced market share, 

increased import penetration, 

underselling and price depressing and 

suppressing effects, lost sales and 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Notices 52947 

10See Initiation Checklist at Attachment III for 

details. 

11See id. 

revenue, reduced production, reduced 

shipments, increased inventory 

overhang, reduced employment and 

wages, and an overall decline in 

financial performance.10 We have 

assessed the allegations and supporting 

evidence regarding material injury, 

threat of material injury, and causation, 

and have determined that these 

allegations are properly supported by 

adequate evidence and meet the 

statutory requirements for initiation.11

Initiation of Countervailing Duty 

Investigation 

Section 702(b)(1) of the Act requires 

the Department to initiate a CVD 

proceeding whenever an interested 

party files a petition on behalf of an 

industry that: (1) alleges the elements 

necessary for an imposition of a duty 

under section 701(a) of the Act; and (2) 

is accompanied by information 

reasonably available to the petitioner(s) 

supporting the allegations. 

The Department has examined the 

Petition on seamless pipe from the PRC 

and finds that it complies with the 

requirements of section 702(b) of the 

Act. Therefore, in accordance with 

section 702(b) of the Act, we are 

initiating a CVD investigation to 

determine whether manufacturers, 

producers, or exporters of seamless pipe 

in the PRC receive countervailable 

subsidies. For a discussion of evidence 

supporting our initiation determination, 

see Initiation Checklist. 

We are including in our investigation 

the following programs alleged in the 

Petition to have provided 

countervailable subsidies to producers 

and exporters of the subject 

merchandise in the PRC: 

A. Preferential Loans 

1. Policy Loans to the Seamless Pipe 

Industry 

2. Export Loans 

3. Treasury Bond Loans 

4. Preferential Loans for State–Owned 

Enterprises (‘‘SOEs’’) 

5. Preferential Loans for Key Projects 

and Technologies 

6. Preferential Lending to Seamless 

Pipe Producers and Exporters 

Classified as ‘‘Honorable 

Enterprises 

7. Loans and Interest Subsidies 

Provided Pursuant to the Northeast 

Revitalization Program 

B. Equity Programs 

1. Debt–to-Equity Swaps 

2. Equity Infusions 

3. Exemptions for SOEs From 

Distributing Dividends to the State 

4. Loan and Interest Forgiveness for 

SOEs 

C. Tax Benefit Programs 

1. Income Tax Credits for 

Domestically Owned Companies 

Purchasing Domestically Produced 

Equipment 

2. Preferential Income Tax Policy for 

Enterprises in the Northeast Region 

3. Forgiveness of Tax Arrears for 

Enterprises in the Old Industrial 

Bases of Northeast China 

4. Reduction in or Exemption from 

Fixed Assets Investment 

Orientation Regulatory Tax 

D. Subsidies for Foreign Invested 

Enterprises (‘‘FIEs’’) 

1. ‘‘Two Free, Three Half’’ Program 

2. Local Income Tax Exemption and 

Reduction Programs for 

‘‘Productive’’ FIEs 

3. Preferential Tax Programs for FIEs 

Recognized as High or New 

Technology Enterprises 

4. Income Tax Reductions for Export– 

Oriented FIEs 

E. Tariff and Indirect Tax Programs 

1. Stamp Exemption on Share 

Transfers Under Non–Tradable 

Share Reform 

2. Value Added Tax (‘‘VAT’’) and 

Tariff Exemptions for Purchases of 

Fixed Assets Under the Foreign 

Trade Development Fund Program 

3. Import Tariff and VAT Exemptions 

for FIEs and Certain Domestic 

Enterprises Using Imported 

Equipment in Encouraged 

Industries 

4. Deed Tax Exemption For SOEs 

Undergoing Mergers or 

Restructuring 

5. Export Incentive Payments 

Characterized as ‘‘VAT rebates’’ 

F. Government Provision of Goods and 

Services for Less Than Adequate 

Remuneration 

1. Provision of Land to SOEs for Less 

Than Adequate Remuneration 

2. Provision of Land Use Rights for 

Less Than Adequate Remuneration 

3. Provision of Steel Rounds for Less 

Than Adequate Remuneration 

4. Provision of Electricity for Less 

Than Adequate Remuneration 

5. Provision of Electricity and Water 

for Less Than Adequate 

Remuneration to Seamless Pipe 

Producers Located in Jiangsu 

Province 

6. Export Restrictions on Coke 

7. Provision of Coking Coal for Less 

Than Adequate Remuneration 

G. Grant Programs 

1. The State Key Technology Project 

Fund 

2. Foreign Trade Development Fund 

(Northeast Revitalization Program) 

3. Export Assistance Grants 

4. Program to Rebate Antidumping 

Duties 

5. Subsidies for Development of 

Famous Export Brands and China 

World Top Brands 

6. Sub–central Government Programs 

to Promote Famous Export Brands 

and China World Top Brands 

7. Grants to Loss–Making SOEs 

8. Export Interest Subsidies 

H. Other Regional Programs 

1. Subsidies Provided in the Tianjin 

Binhai New Area and the Tianjin 

Economic and Technological 

Development Area 

2. High–Tech Industrial Development 

Zones 

For further information explaining 

why the Department is investigating 

these programs, see Initiation Checklist. 

We are not including in our 

investigation the following programs 

alleged to benefit producers and 

exporters of the subject merchandise in 

the PRC: 

A. Tax Benefit Programs 

Income Tax Benefits for 

Domestically–Owned Enterprises 

Engaging in Research and 

Development 

Petitioners allege that according to the 

PRC’s World Trade Organization 

subsidies notification, domestic 

industrial enterprises whose research 

and development expenses increased by 

10 percent from the previous year may 

offset 150 percent of the research 

expenditures from their income tax 

obligations. Petitioners have not 

sufficiently established that this tax 

reduction program is specific. 

Consequently, we do not plan to 

investigate this program. 

B. Provision of Inputs for Less than 

Adequate Remuneration 

Export Restrictions on Steel Rounds 

Petitioners allege that effective 

January 1, 2008, the Government of the 

PRC increased the export tax on steel 

billets, including steel rounds, from 15 

to 25 percent. The result, according to 

Petitioners, was a decline in exports of 

this product from the PRC. Specifically, 

Petitioners provide information 

indicating that exports of steel rounds 

fell by 92.6 percent on an annual basis 

for the first two months of the year, and 

were zero in the month of February 

2008. The further result of the export 

tax, according to Petitioners, was a 

sharp divergence in domestic PRC and 

world prices of steel rounds. While 

Petitioners have provided reasonably 

available information showing that 

domestic PRC prices are less than world 

prices, the information does not show a 

connection between the export 

mstockstill on DSKH9S0YB1PROD with NOTICES

52948 Federal Register / Vol. 74, No. 198 / Thursday, October 15, 2009 / Notices 

restraints and this price difference. 

Consequently, we do not plan to 

investigate this program. 

Respondent Selection 

For this investigation, the Department 

expects to select respondents based on 

CBP data for U.S. imports during the 

period of investigation. We intend to 

make our decision regarding respondent 

selection within 20 days of publication 

of this Federal Register notice. The 

Department invites comments regarding 

the CBP data and respondent selection 

within seven calendar days of 

publication of this Federal Register 

notice. 

Distribution of Copies of the Petition 

In accordance with section 

702(b)(4)(A)(i) of the Act and 19 CFR 

351.202(f), a copy of the public version 

of the Petition has been provided to the 

representatives of the Government of the 

PRC. Because of the particularly large 

number of producers/exporters 

identified in the Petition, the 

Department considers the service of the 

public version of the Petition to the 

foreign producers/exporters satisfied by 

the delivery of the public version to the 

Government of the PRC, consistent with 

19 CFR 351.203(c)(2). 

ITC Notification 

We have notified the ITC of our 

initiation, as required by section 702(d) 

of the Act. 

Preliminary Determination by the ITC 

The ITC will preliminarily determine, 

within 45 days after the date on which 

the Petition is filed, whether there is a 

reasonable indication that imports of 

subsidized seamless pipe from the PRC 

are causing material injury, or 

threatening to cause material injury, to 

a U.S. industry. See section 703(a)(2) of 

the Act. A negative ITC determination 

will result in the investigation being 

terminated; otherwise, the investigation 

will proceed according to statutory and 

regulatory time limits. 

This notice is issued and published 

pursuant to section 777(i) of the Act. 

Dated: October 6, 2009. 

Ronald K. Lorentzen, 

Acting Assistant Secretary for Import 

Administration. 

Appendix I 

Scope of the Investigation 

Attachment I 

The merchandise covered by this 

investigation is certain seamless carbon 

and alloy steel (other than stainless 

steel) pipes and redraw hollows, less 

than or equal to 16 inches (406.4 mm) 

in outside diameter, regardless of wall– 

thickness, manufacturing process (e.g., 

hot–finished or cold–drawn), end finish 

(e.g., plain end, beveled end, upset end, 

threaded, or threaded and coupled), or 

surface finish (e.g., bare, lacquered or 

coated). Redraw hollows are any 

unfinished carbon or alloy steel (other 

than stainless steel) pipe or ‘‘hollow 

profiles’’ suitable for cold finishing 

operations, such as cold drawing, to 

meet the American Society for Testing 

and Materials (‘‘ASTM’’) or American 

Petroleum Institute (‘‘API’’) 

specifications referenced below, or 

comparable specifications. Specifically 

included within the scope are seamless 

carbon and alloy steel (other than 

stainless steel) standard, line, and 

pressure pipes produced to the ASTM 

A–53, ASTM A–106, ASTM A–333, 

ASTM A–334, ASTM A–335, ASTM A– 

589, ASTM A–795, ASTM A–1024, and 

the API 5L specifications, or comparable 

specifications, and meeting the physical 

parameters described above, regardless 

of application, with the exception of the 

exclusion discussed below. 

Specifically excluded from the scope of 

the investigation are unattached 

couplings. 

The merchandise covered by the 

investigation is currently classified in 

the Harmonized Tariff Schedule of the 

United States (‘‘HTSUS’’) under item 

numbers: 7304.19.1020, 7304.19.1030, 

7304.19.1045, 7304.19.1060, 

7304.19.5020, 7304.19.5050, 

7304.31.6050, 7304.39.0016, 

7304.39.0020, 7304.39.0024, 

7304.39.0028, 7304.39.0032, 

7304.39.0036, 7304.39.0040, 

7304.39.0044, 7304.39.0048, 

7304.39.0052, 7304.39.0056, 

7304.39.0062, 7304.39.0068, 

7304.39.0072, 7304.51.5005, 

7304.51.5060, 7304.59.6000, 

7304.59.8010, 7304.59.8015, 

7304.59.8020, 7304.59.8025, 

7304.59.8030, 7304.59.8035, 

7304.59.8040, 7304.59.8045, 

7304.59.8050, 7304.59.8055, 

7304.59.8060, 7304.59.8065, and 

7304.59.8070. 

Although the HTSUS subheadings are 

provided for convenience and customs 

purposes, our written description of the 

merchandise subject to this scope is 

dispositive. 

[FR Doc. E9–24834 Filed 10–14–09; 8:45 am] 

BILLING CODE 3510–DS–S 

DEPARTMENT OF COMMERCE 

International Trade Administration 

[A–570–601] 

Tapered Roller Bearings and Parts 

Thereof, Finished and Unfinished, from 

the People’s Republic of China; 

Extension of Time Limit for the Final 

Results of the 2007–2008 

Administrative Review of the 

Antidumping Duty Order 

AGENCY: Import Administration, 

International Trade Administration, 

Department of Commerce. 

FOR FURTHER INFORMATION CONTACT: 

Frances Veith or Brendan Quinn, AD/ 

CVD Operations, Import 

Administration, International Trade 

Administration, U.S. Department of 

Commerce, 14th Street and Constitution 

Avenue, NW, Washington, DC 20230, 

telephone: (202) 482–4295 or (202) 482– 

5848, respectively. 

SUPPLEMENTARY INFORMATION: 

Background 

On July 30, 2008, the Department of 

Commerce (‘‘Department’’) initiated the 

administrative review of the 

antidumping duty order on tapered 

roller bearings and parts thereof, 

finished or unfinished (‘‘TRBs’’), from 

the People’s Republic of China (‘‘PRC’’) 

for the period June 1, 2007 through May 

31, 2008. See Initiation of Antidumping 

and Countervailing Duty Administrative 

Reviews, Request for Revocation in Part, 

and Deferral of Administrative Review, 

73 FR 44220 (July 30, 2008). On July 8, 

2009, the Department published its 

preliminary results on TRBs from the 

PRC. See Tapered Roller Bearings and 

Parts Thereof, Finished or Unfinished, 

from the People’s Republic of China: 

Preliminary Results of the 2007 2008 

Administrative Review of the 

Antidumping Duty Order, 74 FR 32539 

(July 8, 2009). The final results of this 

administrative review are currently due 

no later than November 5, 2009. 

Extension of Time Limit for Final 

Results 

Section 751(a)(3)(A) of the Tariff Act 

of 1930, as amended (‘‘the Act’’), 

requires the Department to issue the 

final results in an administrative review 

within 120 days after the date on which 

the preliminary results are published. 

However, if it is not practicable to 

complete the review within this time 

period, section 751(a)(3)(A) of the Act 

allows the Department to extend the 

time period to a maximum of 180 days. 

We determine that it is not practicable 

to complete the final results of this 

review within the original time limit 

mstockstill on DSKH9S0YB1PROD with NOTICES

B-1

APPENDIX B

CONFERENCE WITNESSES

B-3

CALENDAR OF THE PUBLIC CONFERENCE

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

Commission’s conference to be held in connection with the following investigations:

Certain Seamless Carbon and Alloy Steel Standard, Line, and Pressure Pipe From China

701-TA-469 and 731-TA-1168 (Preliminary)

Date - 9:30 am

The conference was held in Room 101 (Main Hearing Room) of the United States

International Trade Commission Building, 500 E Street, SW, Washington, DC.

In Support of the Imposition of Antidumping and Countervailing Duties:

Skadden, Arps, Slate, Meagher and Flom

Washington, D.C.

on behalf of

U.S. Steel Corp., Pittsburgh, PA

George H. Thompson, General Manager - Commercial, Tubular Products

United States Steel Tubular Products, Inc.

Scott M. Dorn, General Manager - Tubular Marketing

United States Steel Tubular Products, Inc.

Christopher M. Reiter, Manager - Commercial Standard & Line 

and Specialty Tubing, United States Steel Tubular Products, Inc.

William M. Buono, Manager - Market Analysis and Strategy Tubular Products

United States Steel Tubular Products, Inc.

James Durham, President

Dixie Pipe Sales, Inc.

Bob Gilleland, Senior Vice President

Edgen Murray

James C. Hecht )

Stephen P. Vaughn ) – OF COUNSEL

Stephen J. Narkin )
B-4

In Support of the Imposition of Antidumping and Countervailing Duties (continued):

Schagrin Associates

Washington, D.C.

on behalf of

V&M Star L.P., Houston, TX, TMK IPSCO, and The United Steel, Paper and Forestry,

Rubber, Manufacturing, Energy, Allied Industrial and Service Worker International

Union.

Roger Lindgren, President

V&M Star, L.P.

Yves Pognonec, Vice President, Sales for Seamless Pipe 

V&M Star, L.P.

Linda Andros, Legislative Representative

United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied

Industrial and Service Workers International Union 

Roger B. Schagrin )– OF COUNSEL John W. Bohn )

In Opposition to the Imposition of Antidumping and Countervailing Duties:

Troutman Sanders LLP

Washington, D.C.

on behalf of

Hengyang Valin Steel Tube Co., Ltd.

Donald B. Cameron )

Julie Mendoza ) – OF COUNSEL

Brady Mills )
C-1

APPENDIX C

SUMMARY DATA

Table C-1

Small diameter seamless SLP pipe: Summary data concerning the U.S. market, 2006-08, January-June 2008, and January-June 2009

(Quantity=short tons, value=1,000 dollars, unit values, unit labor costs, and unit expenses are per short ton; period changes=percent, except where noted)

Reported data Period changes

January-June Jan.-June

Item 2006 2007 2008 2008 2009 2006-08 2006-07 2007-08 2008-09

U.S. consumption quantity:

 Amount . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Producers' share (1) . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Importers' share (1):

 China . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 All other sources . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Total imports . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

U.S. consumption value:

 Amount . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Producers' share (1) . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Importers' share (1):

 China . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 All other sources . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Total imports . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

U.S. imports from:

 China:

 Quantity . . . . . . . . . . . . . . . . . . 91,932 103,677 197,022 63,846 35,641 114.3 12.8 90.0 -44.2

 Value . . . . . . . . . . . . . . . . . . . . 75,441 86,290 221,020 54,419 44,597 193.0 14.4 156.1 -18.0

 Unit value . . . . . . . . . . . . . . . . . $821 $832 $1,122 $852 $1,251 36.7 1.4 34.8 46.8

 Ending inventory quantity . . . . 3,690 3,761 10,814 1,528 9,581 193.1 1.9 187.5 527.0

 All other sources:

 Quantity . . . . . . . . . . . . . . . . . . 109,130 79,677 105,551 50,159 30,631 -3.3 -27.0 32.5 -38.9

 Value . . . . . . . . . . . . . . . . . . . . 124,028 104,510 171,996 71,048 66,115 38.7 -15.7 64.6 -6.9

 Unit value . . . . . . . . . . . . . . . . . $1,137 $1,312 $1,629 $1,416 $2,158 43.4 15.4 24.2 52.4

 Ending inventory quantity . . . . 8,536 4,653 11,719 4,018 6,063 37.3 -45.5 151.9 50.9

 All sources:

 Quantity . . . . . . . . . . . . . . . . . . 201,061 183,354 302,573 114,005 66,273 50.5 -8.8 65.0 -41.9

 Value . . . . . . . . . . . . . . . . . . . . 199,469 190,800 393,016 125,467 110,713 97.0 -4.3 106.0 -11.8

 Unit value . . . . . . . . . . . . . . . . . $992 $1,041 $1,299 $1,101 $1,671 30.9 4.9 24.8 51.8

 Ending inventory quantity . . . . 12,226 8,414 22,533 5,546 15,644 84.3 -31.2 167.8 182.1

U.S. producers':

 Average capacity quantity . . . . . *** *** *** *** *** *** *** *** ***

 Production quantity . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Capacity utilization (1) . . . . . . . . *** *** *** *** *** *** *** *** ***

 U.S. shipments:

 Quantity . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Value . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Unit value . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Export shipments:

 Quantity . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Value . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Unit value . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Ending inventory quantity . . . . . *** *** *** *** *** *** *** *** ***

 Inventories/total shipments (1) . *** *** *** *** *** *** *** *** ***

 Production workers . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Hours worked (1,000s) . . . . . . . *** *** *** *** *** *** *** *** ***

 Wages paid ($1,000s) . . . . . . . . *** *** *** *** *** *** *** *** ***

 Hourly wages . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Productivity (tons/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 (1) . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Operating income or (loss)/

 sales (1) . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 (1) "Reported data" are in percent and "period changes" are in percentage points.

Note.--Financial data are reported on a fiscal year basis and may not necessarily be comparable to data reported on a calendar year basis. Because of rounding,

figures may not add to the totals shown. Unit values and shares are calculated from the unrounded figures.

Source: Compiled from data submitted in response to Commission questionnaires and from official Commerce statistics.

C-3
Table C-2

Large diameter seamless SLP pipe: Summary data concerning the U.S. market, 2006-08, January-June 2008, and January-June 2009

(Quantity=short tons, value=1,000 dollars, unit values, unit labor costs, and unit expenses are per short ton; period changes=percent, except where noted)

Reported data Period changes

January-June Jan.-June

Item 2006 2007 2008 2008 2009 2006-08 2006-07 2007-08 2008-09

U.S. consumption quantity:

 Amount . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Producers' share (1) . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Importers' share (1):

 China . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 All other sources . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Total imports . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

U.S. consumption value:

 Amount . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Producers' share (1) . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Importers' share (1):

 China . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 All other sources . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Total imports . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

U.S. imports from:

 China:

 Quantity . . . . . . . . . . . . . . . . . . 66,195 68,642 169,066 53,754 30,817 155.4 3.7 146.3 -42.7

 Value . . . . . . . . . . . . . . . . . . . . 54,722 56,368 191,031 46,192 43,502 249.1 3.0 238.9 -5.8

 Unit value . . . . . . . . . . . . . . . . . $827 $821 $1,130 $859 $1,412 36.7 -0.7 37.6 64.3

 Ending inventory quantity . . . . 14,011 13,209 18,512 15,798 22,852 32.1 -5.7 40.1 44.7

 All other sources:

 Quantity . . . . . . . . . . . . . . . . . . 183,691 149,633 242,869 99,814 70,781 32.2 -18.5 62.3 -29.1

 Value . . . . . . . . . . . . . . . . . . . . 256,816 247,822 425,231 170,213 177,345 65.6 -3.5 71.6 4.2

 Unit value . . . . . . . . . . . . . . . . . $1,398 $1,656 $1,751 $1,705 $2,506 25.2 18.5 5.7 46.9

 Ending inventory quantity . . . . 19,824 13,581 16,120 11,815 16,727 -18.7 -31.5 18.7 41.6

 All sources:

 Quantity . . . . . . . . . . . . . . . . . . 249,885 218,275 411,934 153,569 101,598 64.8 -12.6 88.7 -33.8

 Value . . . . . . . . . . . . . . . . . . . . 311,538 304,191 616,262 216,405 220,847 97.8 -2.4 102.6 2.1

 Unit value . . . . . . . . . . . . . . . . . $1,247 $1,394 $1,496 $1,409 $2,174 20.0 11.8 7.3 54.3

 Ending inventory quantity . . . . 33,835 26,790 34,632 27,613 39,579 2.4 -20.8 29.3 43.3

U.S. producers':

 Average capacity quantity . . . . . *** *** *** *** *** *** *** *** ***

 Production quantity . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Capacity utilization (1) . . . . . . . . *** *** *** *** *** *** *** *** ***

 U.S. shipments:

 Quantity . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Value . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Unit value . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Export shipments:

 Quantity . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Value . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Unit value . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Ending inventory quantity . . . . . *** *** *** *** *** *** *** *** ***

 Inventories/total shipments (1) . *** *** *** *** *** *** *** *** ***

 Production workers . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Hours worked (1,000s) . . . . . . . *** *** *** *** *** *** *** *** ***

 Wages paid ($1,000s) . . . . . . . . *** *** *** *** *** *** *** *** ***

 Hourly wages . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Productivity (tons/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 (1) . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Operating income or (loss)/

 sales (1) . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 (1) "Reported data" are in percent and "period changes" are in percentage points.

Note.--Financial data are reported on a fiscal year basis and may not necessarily be comparable to data reported on a calendar year basis. Because of rounding,

figures may not add to the totals shown. Unit values and shares are calculated from the unrounded figures.

Source: Compiled from data submitted in response to Commission questionnaires and from official Commerce statistics.

C-4
Table C-3

Total seamless SLP pipe: Summary data concerning the U.S. market, 2006-08, January-June 2008, and January-June 2009

(Quantity=short tons, value=1,000 dollars, unit values, unit labor costs, and unit expenses are per short ton; period changes=percent, except where noted)

Reported data Period changes

January-June Jan.-June

Item 2006 2007 2008 2008 2009 2006-08 2006-07 2007-08 2008-09

U.S. consumption quantity:

 Amount . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Producers' share (1) . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Importers' share (1):

 China . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 All other sources . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Total imports . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

U.S. consumption value:

 Amount . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Producers' share (1) . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Importers' share (1):

 China . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 All other sources . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Total imports . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

U.S. imports from:

 China:

 Quantity . . . . . . . . . . . . . . . . . . 158,126 172,319 366,088 117,601 66,458 131.5 9.0 112.4 -43.5

 Value . . . . . . . . . . . . . . . . . . . . 130,163 142,658 412,051 100,611 88,099 216.6 9.6 188.8 -12.4

 Unit value . . . . . . . . . . . . . . . . . $823 $828 $1,126 $856 $1,326 36.7 0.6 36.0 54.9

 Ending inventory quantity . . . . 17,701 16,970 29,326 17,326 32,433 65.7 -4.1 72.8 87.2

 All other sources:

 Quantity . . . . . . . . . . . . . . . . . . 292,820 229,310 348,420 149,973 101,413 19.0 -21.7 51.9 -32.4

 Value . . . . . . . . . . . . . . . . . . . . 380,844 352,332 597,227 241,261 243,461 56.8 -7.5 69.5 0.9

 Unit value . . . . . . . . . . . . . . . . . $1,301 $1,536 $1,714 $1,609 $2,401 31.8 18.1 11.6 49.2

 Ending inventory quantity . . . . 28,360 18,234 27,839 15,833 22,790 -1.8 -35.7 52.7 43.9

 All sources:

 Quantity . . . . . . . . . . . . . . . . . . 450,946 401,629 714,508 267,574 167,871 58.4 -10.9 77.9 -37.3

 Value . . . . . . . . . . . . . . . . . . . . 511,006 494,991 1,009,278 341,872 331,560 97.5 -3.1 103.9 -3.0

 Unit value . . . . . . . . . . . . . . . . . $1,133 $1,232 $1,413 $1,278 $1,975 24.7 8.8 14.6 54.6

 Ending inventory quantity . . . . 46,061 35,204 57,165 33,159 55,223 24.1 -23.6 62.4 66.5

U.S. producers':

 Average capacity quantity . . . . . *** *** *** *** *** *** *** *** ***

 Production quantity . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Capacity utilization (1) . . . . . . . . *** *** *** *** *** *** *** *** ***

 U.S. shipments:

 Quantity . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Value . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Unit value . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Export shipments:

 Quantity . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Value . . . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Unit value . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Ending inventory quantity . . . . . *** *** *** *** *** *** *** *** ***

 Inventories/total shipments (1) . *** *** *** *** *** *** *** *** ***

 Production workers . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Hours worked (1,000s) . . . . . . . *** *** *** *** *** *** *** *** ***

 Wages paid ($1,000s) . . . . . . . . *** *** *** *** *** *** *** *** ***

 Hourly wages . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Productivity (tons/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 (1) . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 Operating income or (loss)/

 sales (1) . . . . . . . . . . . . . . . . . . *** *** *** *** *** *** *** *** ***

 (1) "Reported data" are in percent and "period changes" are in percentage points.

Note.--Financial data are reported on a fiscal year basis and may not necessarily be comparable to data reported on a calendar year basis. Because of rounding,

figures may not add to the totals shown. Unit values and shares are calculated from the unrounded figures.

Source: Compiled from data submitted in response to Commission questionnaires and from official Commerce statistics.

C-5

D-1

APPENDIX D

COMPARISON OF SMALL DIAMETER AND

LARGE DIAMETER SEAMLESS SLP PIPE 

D-3

PRODUCERS OF SEAMLESS SLP PIPE

* * * * * * *

IMPORTERS OF SEAMLESS SLP PIPE

* * * * * * *

E-1

APPENDIX E

NONSUBJECT COUNTRY PRICE DATA

E-3

Figure E-1

Seamless SLP pipe: Weighted-average prices and quantities of domestic and imported product,

by quarters, January 2006-June 2009

* * * * * * *