Carbon and Alloy Seamless Standard, Line and Pressure Pipe from the Czech Republic, Japan

283 Pages·1999·1.68 MB·English

Carbon and Alloy Seamless
Standard, Line, and Pressure Pipe
from the Czech Republic, Japan,
Mexico, Romania, and South Africa
Investigation Nos. 731-TA-846-850 (Review)
Publication 3850 April 2006
U.S. International Trade Commission
Washington, DC 20436
U.S. International Trade Commission
COMMISSIONERS
Stephen Koplan, Chairman
Deanna Tanner Okun, Vice Chairman
Jennifer A. Hillman
Charlotte R. Lane
Daniel R. Pearson
Shara L. Aranoff
Robert A. Rogowsky
Director of Operations
Staff assigned
Christopher Cassise, Investigator
Alan Treat, Industry Analyst
Amelia Preece, Economist
Justin Jee, Accountant
Rhonda Hughes, Attorney
Lemuel Shields, Statistician
Douglas Corkran, Supervisory Investigator
Address all communications to
Secretary to the Commission
United States International Trade Commission
Washington, DC 20436
U.S. International Trade Commission
Washington, DC 20436
www.usitc.gov
Carbon and Alloy Seamless Standard,
Line, and Pressure Pipe from the Czech
Republic, Japan, Mexico, Romania, and
South Africa
Investigation Nos. 731-TA-846-850 (Review)
Publication 3850 April 2006

CONTENTS
Page
Determinations .................................................................. 1
Views of the Commission ......................................................... 3
Separate views of Commissioner Shara L. Aranoff concerning small diameter CASSLP
pipe from Romania ............................................................ 55
Views of Chairman Stephen Koplan and Commissioner Charlotte R. Lane ................... 71
Dissenting views of Vice Chairman Deanna T. Okun and Commissioners Jennifer A. Hillman
and Daniel R. Pearson regarding Romania .......................................... 97
Part I: Introduction and overview ................................................. I-1
Background .................................................................. I-1
Statutory criteria and organization of the report ...................................... I-3
Summary data ................................................................ I-4
The original investigations ...................................................... I-10
Related investigations .......................................................... I-10
Title VII investigations ...................................................... I-10
Safeguard investigations ..................................................... I-11
Commerce’s results of expedited reviews .......................................... I-11
Commerce’s administrative reviews ............................................... I-13
Small diameter CASSLP pipe ................................................. I-13
Large diameter CASSLP pipe ................................................. I-14
Distribution of Continued Dumping and Subsidy Offset Act funds ....................... I-14
The subject products ........................................................... I-16
Definition of the subject products .............................................. I-16
Description and end uses ..................................................... I-20
Manufacturing process ...................................................... I-23
Interchangeability .......................................................... I-26
Domestic like product issues .................................................... I-26
Carbon and alloy SSLP ...................................................... I-27
U.S. market participants ........................................................ I-30
U.S. producers ............................................................. I-30
U.S. importers ............................................................. I-32
U.S. purchasers ............................................................ I-32
Apparent U.S. consumption, market shares, and ratio to U.S. production .................. I-33
Part II: Conditions of competition in the U.S. market ................................ II-1
Small diameter CASSLP pipe market characteristics .................................. II-1
Supply and demand considerations for small diameter CASSLP pipe ..................... II-2
U.S. supply ............................................................... II-2
U.S. demand .............................................................. II-6
Substitutability issues ....................................................... II-11
Factors affecting purchasing decisions .......................................... II-11
Comparisons of domestic products, subject imports, and nonsubject imports ............ II-16
Elasticity estimates for small diameter CASSLP pipe ................................. II-19
U.S. supply elasticity ........................................................ II-20
U.S. demand elasticity ....................................................... II-21
Substitution elasticity ....................................................... II-21
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CONTENTS
Page
Part II: Conditions of competition in the U.S. market (continued) ...................... II-22
Large diameter CASSLP pipe market characteristics .................................. II-22
Supply and demand considerations for large diameter CASSLP pipe ..................... II-23
U.S. supply ............................................................... II-23
U.S. demand .............................................................. II-25
Substitutability issues ....................................................... II-32
Factors affecting purchasing decisions .......................................... II-33
Comparisons of domestic products, subject imports, and nonsubject imports ............ II-37
Elasticity estimates for large diameter CASSLP pipe ................................. II-40
U.S. supply elasticity ........................................................ II-40
U.S. demand elasticity ....................................................... II-40
Substitution elasticity ....................................................... II-40
Part III: Condition of the U.S. industry ............................................ III-1
U.S. producers’ capacity, production, and capacity utilization for small diameter CASSLP
pipe .................................................................... III-1
U.S. producers’ domestic shipments and export shipments of small diameter CASSLP pipe ... III-2
U.S. producers’ inventories of small diameter CASSLP pipe ........................... III-2
U.S. producers’ imports and purchases of imports of small diameter CASSLP pipe .......... III-2
U.S. producers’ employment, wages, and productivity of small diameter CASSLP pipe ...... III-2
Financial experience of U.S. producers of small diameter CASSLP pipe .................. III-3
Background ............................................................... III-3
Operations on small diameter CASSLP pipe ...................................... III-3
Capital expenditures and research and development expenses ........................ III-6
Assets and return on investment ............................................... III-6
U.S. producers’ capacity, production, and capacity utilization for large diameter CASSLP
pipe .................................................................... III-7
U.S. producers’ domestic shipments and export shipments of large diameter CASSLP pipe ... III-8
U.S. producers’ inventories of large diameter CASSLP pipe ............................ III-8
U.S. producers’ imports and purchases of imports of large diameter CASSLP pipe .......... III-8
U.S. producers’ employment, wages, and productivity of large diameter CASSLP pipe ...... III-8
Financial experience of U.S. producers of large diameter CASSLP pipe .................. III-9
Background ............................................................... III-9
Operations on large diameter CASSLP pipe ...................................... III-9
Capital expenditures and research and development expenses ........................ III-10
Assets and return on investment ............................................... III-10
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CONTENTS
Page
Part IV: U.S. imports and the foreign industries ..................................... IV-1
U.S. imports of small diameter CASSLP pipe ....................................... IV-1
U.S. importers’ inventories of small diameter CASSLP pipe............................ IV-3
Cumulation considerations for small diameter CASSLP pipe ........................... IV-4
The industry in the Czech Republic ............................................... IV-4
The industry in Japan .......................................................... IV-5
The industry in Romania........................................................ IV-7
The industry in South Africa .................................................... IV-8
The industry in all subject countries ............................................... IV-9
U.S. importers’ current orders of small diameter CASSLP pipe ......................... IV-13
U.S. imports of large diameter CASSLP pipe ....................................... IV-14
U.S. importers’ inventories of large diameter CASSLP pipe ............................ IV-15
Cumulation considerations for large diameter CASSLP pipe ........................... IV-15
The industry in Japan .......................................................... IV-16
The industry in Mexico ......................................................... IV-17
The industry in all subject countries ............................................... IV-18
U.S. importers’ current orders of large diameter CASSLP pipe .......................... IV-18
Antidumping duty orders in third-country markets on CASSLP pipe ..................... IV-19
Global market ................................................................ IV-19
Supply ................................................................... IV-19
Demand .................................................................. IV-21
Prices . . ................................................................. IV-22
Part V: Pricing and related information ............................................ V-1
Factors affecting small diameter CASSLP pipe prices ................................. V-1
Transportation costs to the U.S. market.......................................... V-1
U.S. inland transportation costs ................................................ V-1
Exchange rates ............................................................. V-1
Pricing practices .............................................................. V-1
Pricing methods ............................................................ V-5
Sales terms ................................................................ V-5
Price data ................................................................... V-5
Price trends and comparisons ................................................. V-7
Factors affecting large diameter CASSLP pipe prices ................................. V-9
Transportation costs to the U.S. market.......................................... V-9
U.S. inland transportation costs ................................................ V-9
Exchange rates ............................................................. V-9
Pricing practices .............................................................. V-9
Pricing methods and sales terms .................................................. V-11
Price data ................................................................... V-11
Price trends and comparisons ................................................. V-12
iii
CONTENTS
Page
Appendixes
A. Federal Register notices and the Commission’s statement on adequacy .................. A-1
B. Hearing witnesses ............................................................ B-1
C. Summary data............................................................... C-1
D. U.S. producers’, U.S. importers’, U.S. purchasers’, and foreign producers’ comments
regarding the effects of the antidumping duty orders and the likely effects of revocation .. D-1
E. Selected comments regarding comparability of carbon and alloy seamless standard, line
and pressure pipe .......................................................... E-1
F. U.S. import data for nonsubject countries ......................................... F-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.
iv
UNITED STATES INTERNATIONAL TRADE COMMISSION
Inv. Nos. 731-TA-846-850 (Review)
CARBON AND ALLOY SEAMLESS STANDARD, LINE, AND PRESSURE PIPE FROM THE
CZECH REPUBLIC, JAPAN, MEXICO, ROMANIA, AND SOUTH AFRICA
DETERMINATIONS
On the basis of the record1 developed in the subject five-year reviews, the United States
International Trade Commission (Commission) determines, pursuant to section 751(c) of the Tariff Act of
1930 (19 U.S.C. § 1675(c)) (the Act), that revocation of the antidumping duty orders on small diameter
carbon and alloy seamless standard, line, and pressure pipe from Japan and Romania2 and large diameter
carbon and alloy seamless standard, line, and pressure pipe from Japan would be likely to lead to
continuation or recurrence of material injury to an industry in the United States within a reasonably
foreseeable time.
The Commission also determines that revocation of the antidumping duty orders on small
diameter carbon and alloy seamless standard, line, and pressure pipe from the Czech Republic and South
Africa3 and large diameter carbon and alloy seamless standard, line, and pressure pipe from Mexico4
would not be likely to lead to continuation or recurrence of material injury to an industry in the United
States within a reasonably foreseeable time.
BACKGROUND
The Commission instituted these reviews on May 2, 2005 (70 F.R. 22688) and determined on
August 5, 2005 that it would conduct full reviews (70 F.R. 49680, August 24, 2005). Notice of the
scheduling of the Commission’s reviews and of a public hearing to be held in connection therewith was
given by posting copies of the notice in the Office of the Secretary, U.S. International Trade Commission,
Washington, DC, and by publishing the notice in the Federal Register on September 23, 2005 (70 F.R.
55917).5 The hearing was held in Washington, DC, on March 2, 2006, and all persons who requested the
opportunity were permitted to appear in person or by counsel.
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 Vice Chairman Deanna Tanner Okun and Commissioners Jennifer A. Hillman and Daniel R. Pearson dissenting
with regard to imports from Romania.
3 Chairman Stephen Koplan and Commissioner Charlotte R. Lane dissenting.
4 Chairman Stephen Koplan and Commissioner Charlotte R. Lane dissenting.
5 The Commission revised its schedule effective February 10, 2006 (71 F.R. 8311, February 16, 2006).
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