Трубы горят

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 18 ноября 2009

Начавшийся 16 ноября визит Президента США Барака Обамы в Китай происходит под залпы начавшейся между этими странами настоящей торговой войны. Ее составляющими стали введение в США антидемпинговых и компенсационных пошлин на китайские шины и стальные трубы, на что Китай ответил заявлениями о готовности ограничить поставки из США курятины, автомобилей и автомобильных деталей.

Судя по всему, высокие договаривающиеся стороны постараются по итогам визита несколько сгладить торговые конфликты, хотя бы на словах, однако вряд ли это спасет китайских трубников. Тем более, что антидемпинговые иски против китайских производителей труб рассматриваются или же уже удовлетворены в ЕС, Мексике, Аргентине и ряде других стран. Для поставщиков остаются экспортные рынки на Ближнем Востоке, в Африке и странах Юго-Восточной Азии.

Министерство Торговли США установило 5 ноября антидемпинговые пошлины на китайские нефтегазовые трубы в размере от 36,53 до 99,14%. Из около 90 компаний, попавших под расследование, их смогла избежать только фирма Jiangsu Changbao Steel Tube, однако, согласно предыдущему решению Министерства по этому вопросу, ее продукция подпадает под действие компенсационных пошлин в размере 24,33%. Прочие китайские производители нефтегазовых труб получили компенсационные пошлины от 10,90 до 30,69%. При этом, помимо Jiangsu Changbao, в относительно "привилегированном" положении оказалась только компания Tianjin Pipe: для нее совокупный размер компенсационной и антидемпинговой пошлины составил 47,43%.

Окончательные пошлины будут установлены в начале 2010 года и, возможно, они могут быть несколько смягчены по сравнению с их предварительным уровнем, однако сомнительно, чтобы американские власти согласились вернуть китайских трубников на национальный рынок, который еще долго будет приходить в себя после китайской экспансии. В 2008 году китайские компании поставили в США почти 2 млн. т нефтегазовых труб на общую сумму порядка $2,6 млрд. Рынок до сих пор переполнен, складские запасы оцениваются почти в годичный уровень потребления. Учитывая слабый спрос на трубы в США, для восстановления может понадобиться не менее двух лет.

Сейчас стоимость труб на американском рынке после небольшого повышения в конце третьего – начала четвертого квартала вернулась на сентябрьский уровень. При этом, многие поставщики, чтобы обеспечить себя заказами до конца года, проводят агрессивную ценовую политику и предлагают покупателям крупные скидки (до 10% от официальной цены). Из-за этого импорт трубной продукции в страну упал до минимума. По оценкам американских аналитиков, конкурировать с местными производителями могут в настоящее время разве что мексиканские компании.

Что касается Китая, то там цены на стальные трубы в начале ноября пошли вверх, прибавив, в зависимости от спецификации, до $50 за т по сравнению с концом октября. Так, внутренние цены на сварные трубы диаметра 2-6 дюймов в середине ноября находились в интервале 4100-4600 юаней ($600-673) за т с металлобазы (включая НДС), а сварные трубы ASTM A106 сорт "В" котировались на уровне 4500-4850 юаней ($659-710) за т EXW.

Впрочем, для российских и украинских трубников гораздо важнее то, что китайские компании одновременно несколько повысили и экспортные котировки. Стоимость бесшовных труб ASTM A106/API 5L диаметром 2-6 дюймов составляла в конце первой половины ноября $650-690 за т FOB против $640-670 за т FOB двумя неделями ранее, сварные трубы ASTM A53/API 5L котируются на уровне $600-650 за т FOB. Как отмечают китайские источники, подорожание стало ответом на рост цен на штрипс и трубные заготовки на местном рынке.

В любом случае, китайские трубы все равно остаются самыми дешевыми на мировом рынке. Российская и украинская бесшовная продукция сходных спецификаций в начале ноября предлагалась в Турцию и страны Ближнего Востока по $750-800 за т FOB, что с учетом расходов на доставку почти на $100 за т дороже, чем у китайцев.

Рассчитывать же на существенный рост цен на китайскую продукцию в обозримом будущем не приходится. Труб в Китае по-прежнему производится гораздо больше, чем потребляется. Так, выпуск бесшовных труб, наиболее сильно пострадавших от внешнеторговых ограничений, составил за первые три квартала текущего года 15,45 млн. т, что всего на 0,8% меньше, чем за тот же период годичной давности. Производство сварных труб за это же время достигло 22,47 млн. т, на 19,6% больше, чем в январе-сентябре 2008 года.

В отрасли продолжают реализовываться новые проекты. В частности, в начале ноября компания Valin Steel анонсировала строительство предприятия стоимостью около $250 млн. для производства бесшовных труб диаметром 180 мм. По оценкам специалистов China Steel Construction Society, в 2010 году мощности по производству труб в стране достигнут около 60 млн. т в год, тогда как национальное потребление оценивается, примерно, в 45 млн. т.

В последнее время ряд китайских компаний, особенно, выпускающих бесшовные трубы, стремятся активизировать экспортные операции. Как сообщает китайская металлургическая ассоциация CISA, в сентябре экспорт бесшовных труб достиг 286,6 тыс. т (более 16% от месячного производства этой продукции), превысив показатели августа, примерно, на 20%.

Тем не менее, как и в ситуации с горячекатаными рулонами, китайские компании считают для себя приоритетным внутренний рынок. И некоторое оживление спроса на трубы в Китае в конце октября – ноябре, очевидно, должно привести к снижению градуса китайской агрессивности и уменьшению давления на мировой рынок со стороны китайских производителей труб.

 

 

 

 

02-11

China’s seamless pipe prices still moving down

Over the past two weeks most Chinese pipe mills have lowered their domestic quotations, by an average of RMB 200-300/mt ($30-45/mt), due to weak market demand. Export prices have declined by $10-30/mt during the period in question due to the low level of interest from foreign customers and also due to trade restrictions. However, the price reductions are not likely to have any big impact on the market and sales volumes are not expected to show any significant increase. As round billet prices remain stable, fluctuations in seamless pipe prices are unlikely to continue for long.

Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are currently varying at around RMB 4,250-4,500/mt ($620-660/mt) ex-works, compared to RMB 4,500-4,800/mt ($660-700/mt) ex-works two weeks ago. These prices for the local market include 17 percent VAT and are on actual weight basis. Domestic quotations of tubing pipes of 2"-4" size, of J55 strength group as per API 5CT, plain-ended, are at about RMB 4,600-5,000/mt ($675-730/mt) ex-works. Chinese domestic prices of casing, 6"-8" grade J55 according to API 5CT, are varying at around RMB 4,500-4,700/mt ($660-690/mt) ex-works.

Current export offers of seamless pipes from Chinese manufacturers for 2"-6" grade B material according to ASTM A106/API 5L are on average at $640-670/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $700-750/mt FOB, while quotations for 6"-8" casing are at $690-740/mt FOB, both for November production material.

 

04-11

Valin Steel to build new seamless steel pipe unit

Hunan Province-based Chinese steel producer Valin Steel has recently announced that it is about to build a new production unit for 180 mm diameter seamless pipe at its subsidiary Hengyang Valin Steel Tube Co. Ltd. The investment for this project totals RMB 1.676 billion ($245.46 million), with the construction expected to take 24 months.

China's seamless steel pipe market has been registering growing demand over the past several years, especially for oil pipe, high-pressure boiler pipe, alloy steel pipe, and other special-purpose pipes, with annual growth generally above 25 percent. About 40 percent of total demand locally is focused on pipes with specifications between 114 mm and 180 mm, and Valin's new unit will produce seamless pipes in this specification range. Valin currently has two pipe production units: an 89 mm diameter pipe unit and a 340 mm diameter unit.

Additionally, Valin Steel has also reported a Q3 net profit of RMB 298 million ($43.64 million) in its Q3 financial report, but has still suffered a loss of RMB 225 million ($32.95 million) for the first nine months of this year. The producer estimates that its loss for the whole of 2009 will reach RMB 220 million ($32.22 million).

 

06-11

US tubing mills pulling back prices, with more decreases likely

Just one month removed from a failed attempt at an October price hike, US domestic hollow structural section (HSS) tubing mills are now offering at below September price levels; furthermore, actual spot transactions reflect significant discounts.

Most domestic mills have reduced their offers by approximately $1.00 cwt. ($22 /mt or $20 /nt) since our last report two weeks ago, and are now offering HSS tubing for around $36.50 cwt. to $37.50 cwt. ($805 /mt to $827 /mt or $730 /nt to $775 /nt) ex-mill. However, most spot deals are ultimately concluded at significantly below this range, at roughly around $34.00 cwt. ($750 /mt or $680 /nt) depending on mill and the size of the order. Nevertheless, distributors say that the price is not particularly relevant anyway because most people do not need to buy and are not interested in purchasing at any price.

Moving forward, US tubing producers are likely to allow prices to slip even further over the remainder of the year. With the flat rolled market and scrap prices expected to continue declining, tubing mills will not have any firm ground to stand on, price-wise. Another $2.00 cwt. ($44 /mt or $40 /nt) decrease over the next month is a likely scenario.

While demand is lethargic on the domestic side, traders have informed SteelOrbis that the demand for offshore tubing is basically nonexistent. US demand for tubing is just too low due to the stall in construction projects and domestic offers are too aggressive for imports to compete with.

The only offshore offers traders have seen recently for HSS tubing to the US have come from Japan. However, while Japanese offers spiked in interest just two weeks ago, their aggressiveness has worn off and traders have pretty much turned off their radar. Meanwhile, Korean offers were more prevalent last month, but have since gone quiet.

Mexican HSS tubing offers appear to be, for all intents and purposes, the only legitimate import option. Mexican offers have mostly trended neutral over the past two weeks and continue to range from $36.50 cwt. to $38.00 cwt. ($805 /mt to $838 /mt or $730 /nt to $760 /nt) delivered to Southern California and at about $34.00 cwt to $35.00 cwt. ($750 /mt to $772/ mt or $680 /nt to $700 /nt) delivered to Houston. Larger customers may be able to negotiate a small discount depending on order size and specifics.

Preliminary license data from the US Steel Import Monitoring and Analysis System (SIMA) demonstrate that total import tonnage of structural pipe and tube decreased for the third consecutive month in October, falling from 17,406 mt (preliminary census data) in September to 15,015 mt. October's pipe and tube imported tonnage is less than half the 30,498 mt recorded a year ago in October 2008. For the second consecutive month, only Canada, at 9,820 mt, and Mexico, at 3,509 mt exported more than 1,000 mt to the US in October.

Import pipe offers for the US

SteelOrbis has learned that Indian ERW ASTM A53 galvanized plain end (GPE) standard pipe offers for the US have decreased, on average, by about $30/mt since our last report two weeks ago and currently range from approximately $800/mt to $830/mt CFR FO in US Gulf Coast ports.

Chinese offers to the US of large diameter seamless line pipe, API 5LX42, black plain end (BPE), with a diameter of 18.0 to 24.0 inches (46 to 61 cm), currently range from approximately $650/mt to $675/mt CFR FO in US Gulf ports.

 

 

US sets more AD duties on Chinese OCTG

Friday, 06 Nov 2009

It is reported that the United States has set preliminary anti dumping duties ranging from 36.53% to 99.14% on Chinese made steel pipe used in oil wells.

The Commerce Department is expected to announce the preliminary duties now.

They reflect the department's determination of how far below "fair market value" Chinese companies are selling steel pipe and tubing product in the United States.

The Commerce Department decided one Chinese company targeted in the investigation, Jiangsu Changbao Steel Co, is not guilty of dumping in the United States. However, that same company was hit last month with a 24.33% countervailing duty rate.

Tianjin Pipe Group Corp. was assessed a 36.5% duty. Changbao received a 24% countervailing duty in September.

They are in addition to preliminary countervailing duties of 10.69% to 30.69% the Commerce Department announced in September to offset Chinese government subsidies to encourage production of the steel goods.

US companies imported USD 2.63 billion of certain oil country tubular goods from China in 2008 or more than three times the USD 750 million they imported in 2007.

 

US slaps tariffs on Chinese steel imports

November 6, 2009

The US imposed duties of as much as 99 per cent on steel pipes from China after American producers led by US Steel Corp. complained they were being dumped at below-market prices. China's government protested.

The duties on $US2.6 billion ($2.9 billion) in annual imports of the pipes, used in oil and gas wells, will be 36.5 per cent for the 37 largest exporters, the Commerce Department said in a preliminary decision announced by e-mail yesterday. The tariffs will be on top of separate duties announced in September averaging 21 per cent to counter subsidies to Chinese producers.

The US ruling comes ahead of President Barack Obama's Nov. 16 visit to meet China's President Hu Jintao. China and the US have exchanged complaints about steel, poultry, tires and metals as the worst economic crisis since the Great Depression spurred attempts by countries to protect jobs.

``The anti-dumping ruling is unfair to Chinese producers who sold the pipes in the US at a 20 per cent premium to our domestic prices,'' said Li Liancang, an export manager at state-owned Tianjin Pipe Group Co. ``Chinese pipe exports to the US have almost stopped since the preliminary ruling in September.''

China's government also weighed in on Friday, condemning the new US tariffs on imports of Chinese tubular steel as an ``abuse of protectionism.''

``China firmly opposes the abuse of protectionism and will take measures to seriously protect the interests of the domestic industry,'' the commerce ministry said in a statement posted on its website.

The statement called the US measures ``discriminatory'' steps that would ``have a serious impact on the Chinese steel industry's exports.''

China is the second-biggest trading partner for the US after Canada, and ran up a record $US266 billion trade surplus with the US last year. The US and the European Union this week asked the World Trade Organization to end Chinese restrictions on exports of nine commodities.

Chinese steel exports to the US plunged 73 per cent in the first eight months from a year ago, the China Iron & Steel Association said last month.

Fair trade

Trade tensions are on the rise after Obama imposed tariffs on Chinese tyres in September and China responded with a complaint to the WTO. China announced plans to investigate US exports of poultry, auto parts and automobiles.

``China's government and exporters are being told we are fed up with their cheating on our fair-trade laws and penalties for these transgressions are long overdue,'' Leo Gerard, president of the United Steelworkers, said in a statement. The union, which joined in the case, said laid-off workers would be brought back to work because of the tariffs.

The pipe case, the largest so-called countervailing and anti-dumping duty complaint filed against Chinese-made products, was brought by the union; US Steel, the largest US-based steelmaker; US operations of Evraz Group SA, Russia's second- largest mill; and Pennsylvania-based Wheatland Tube Co.

Production plunges

The two top Chinese exporters of the pipe to the US received their own specific rates. Jiangsu Changbao Steel Tube Co. won't face any dumping duties, while Tianjin Pipe was assessed a 36.5 per cent duty. Changbao received a 24 per cent countervailing duty in September.

``Capacity utilization at plants has tumbled to below 50 per cent'' for makers of the oil pipes, Tianjin's Li said, citing data from the Chinese steel association. ``We have to shift to making other products but demand for them is much smaller.''

After the ruling is published in the Federal Register, importers of the product - known as oil country tubular goods -  will have to deposit duties, pending a final ruling next year by the Commerce Department and a separate decision by the US International Trade Commission.

China's Ministry of Commerce said it will issue a statement on the ruling on its Web site today.

Rising imports

Imports of the pipe from China more than tripled in 2008 from $US750 million a year earlier, as gasoline prices soared and companies rushed to drill new wells.

Chinese shipments to the US surged at the start of this year as producers rushed exports before the tariffs were introduced, said Michelle Applebaum, who runs a steel research firm in Highland Park, Illinois.

``China is widely regarded as the world's worst abuser of steel export markets and subsidies, so we believe that the US will continue to win these Chinese trade cases,'' Applebaum said in a note.

 

China blasts US steel pipe duties as protectionist

China blasts US anti-dumping tariffs on steel pipe imports ahead of Obama visit

Friday November 6, 2009

AP) -- China on Friday blasted Washington's decision to impose anti-dumping duties on imports of Chinese-made steel pipe as protectionist ahead of President Barack Obama's visit to Beijing this month.

The Commerce Ministry said the U.S. decision violated World Trade Organization principles and commitments by Washington and other Group of 20 major economies to avoid protectionism amid the global economic crisis.

"China resolutely opposes use of such protectionist practices, and will take measures to protect the interests of domestic industry," ministry spokesman Yao Jian said in a statement on the ministry's Web site.

The U.S. Commerce Department said Thursday it concluded Chinese producers were dumping pipes used by the oil and gas industry and would impose duties of up to 99 percent.

The Chinese statement said the Commerce Department used the wrong formula to calculate the cost of goods and the duties it imposed were too high.

The clash comes amid a series of U.S.-Chinese trade disputes and could add to diplomatic irritants just two weeks before Obama is due to arrive Nov. 15 on his first presidential visit to China.

Beijing and Washington are involved in a series of disputes over access to each others' markets for poultry, tires, steel pipes, music and movies.

On Wednesday, the United States joined Europe and Mexico in asking the WTO to investigate Chinese curbs on exports of bauxite and other industrial raw materials. Beijing says it must rein in mining to protect the environment, but Washington and others say the curbs improperly give Chinese companies favorable access to some materials.

 

China Protests U.S. Steel Duties, Starts Probe on American Cars

Nov. 6 (Bloomberg) -- China protested U.S. duties on steel pipes and announced the start of an anti-dumping probe into American carmakers as trade tensions escalate ahead of President Barack Obama’s first visit to the nation this month.

The levies of as much as 99 percent on $3.2 billion of Chinese exports are “discriminatory,” the Commerce Ministry in Beijing said on its Web site today. The penalties were announced in a preliminary decision by the U.S. Commerce Department yesterday.

The disputes may test relations between the U.S. and the biggest foreign buyer of its debt ahead of Obama’s visit on Nov. 16. The two nations, with $409 billion of trade between them, have swapped complaints about steel, poultry and tires as the worst economic crisis since the Great Depression spurred countries to protect jobs.

“Falling demand, caused by the financial crisis, is the ultimate reason for the problems in the U.S. steel industry,” Yao Jian, a spokesman at the Chinese ministry, said in the statement. “The U.S. should take this into consideration in its further investigations and make a fair and reasonable final ruling.”

The Asian nation is the second-biggest trading partner for the U.S. after Canada. China plans to investigate whether some U.S.-made sports utility vehicles and cars sold in the Asian nation benefited unfairly from American government help, according to a government statement today.

Rising Tensions

General Motors Co., the largest U.S. automaker, is majority owned by the government after a bankruptcy reorganization. The carmaker more than doubled September sales in China from a year ago.

Trade tensions are on the rise after Obama imposed tariffs on Chinese tires in September and China responded with a complaint to the World Trade Organization. The U.S. and the European Union this week asked the WTO to end Chinese restrictions on exports of nine commodities.

Duties of 36.5 percent will be imposed for the 37 largest exporters of pipes used in the oil and gas industry, the U.S. said in a preliminary decision yesterday, after complaints about dumping were received from companies led by U.S. Steel Corp. The tariffs will be on top of separate duties announced in September, averaging 21 percent to counter alleged Chinese subsidies.

“The anti-dumping ruling is unfair to Chinese producers who sold the pipes in the U.S. at a 20 percent premium to our domestic prices,” said Li Liancang, an export manager at state- owned Tianjin Pipe Group Co. “Chinese pipe exports to the U.S. have almost stopped since the preliminary ruling in September.”

Chinese steel exports to the U.S. plunged 73 percent in the first eight months from a year ago, the China Iron & Steel Association said last month.

Falling Demand

The value of Chinese steel-pipe exports under investigation reached $3.2 billion last year, or 46 percent of the country’s total steel exports to the U.S., the Chinese ministry said. It “strongly opposes” the duties, the statement said.

“The U.S. has had a lot of trade remedy measures this year against China,” said Hu Yanping, a Beijing-based analyst with Umetal, a steel research company. “China has bought huge U.S. debts. Why is the U.S. always targeting China?”

The U.S. has carried out 13 investigations against Chinese products this year for alleged dumping and illegal subsidies, the Asian nation’s commerce ministry said in the statement.

“China’s government and exporters are being told we are fed up with their cheating on our fair-trade laws and penalties for these transgressions are long overdue,” Leo Gerard, president of the United Steelworkers, said in a statement.

The pipe case, the largest so-called countervailing and anti-dumping duty complaint filed against Chinese-made products, was brought by the union, U.S. Steel, U.S. operations of Evraz Group SA, and Pennsylvania-based Wheatland Tube Co.

Production Plunges

The two top Chinese exporters of the pipe to the U.S. received their own specific rates. Jiangsu Changbao Steel Tube Co. won’t face any dumping duties, while Tianjin Pipe was assessed a 36.5 percent duty. Changbao received a 24 percent countervailing duty in September.

“Capacity utilization at plants has tumbled to below 50 percent” for makers of the oil pipes, Tianjin’s Li said, citing data from the Chinese steel association. “We have to shift to making other products but demand for them is much smaller.”

 

 

06-11

CIS seamless pipe suppliers cut offers for Turkey due to Chinese influence

Demand for seamless pipes in Turkey remains at steady levels. In spite of this, however, import quotations have decreased over the past month under pressure from the aggressive pricing of Chinese suppliers. In the period in question, quotations of Ukrainian material have dropped by $45-60/mt, while offers of Russian seamless pipes have decreased by a maximum of $25/mt. Import offers of seamless pipes from China have declined by $40-50/mt over the same period. The future price tendency of seamless pipes from the CIS will depend on the Chinese prices. Currently, CIS suppliers are concerned that Chinese material will cause congestion in the Turkish market. Due to trade barriers for Chinese seamless pipes in the US and Europe, Chinese exporters are trying to enter alternative markets.

Current quotations for Chinese seamless pipes 2"-6" grade B made to ASTM A106/API 5L are in the range of $710-750/mt C&F Marmara Sea ports.         

November-December production pipes from Ukrainian producer Interpipe with diameter of 57-159 mm made of steel grade 10, 20 according to GOST 8731/8732 are being offered to the Turkish market at about $820-870/mt C&F. Offer prices ex-Ukraine from Duferco partner Dnepropetrovsk Tube Plant for October production 57-168 mm seamless pipes as per GOST 8731/8732 are at around $780-800/mt C&F.         

Russian producers Uraltrubostal (Pervouralsky Novotrubny Works) and TMK (Taganrog Pipe Plant) are offering December-January production seamless hot-formed pipes with diameter up to 425 mm made to GOST 8731/8732 at about $770-780/mt C&F.

 

09-11

CIS seamless pipe quotations fluctuate in difficult market conditions

Weak buyer activity has forced CIS producers of round billets to cut their prices. Quotations of Ukrainian and Russian billets for Ukrainian pipe producers have decreased by $20-40/mt over the past month. During the same period, export prices of round billets from the CIS have declined by $30-40/mt.

Offers of November production billet from Russian producer OEMK are being given to the Ukrainian market at $425-440/mt DAF, down by $20/mt from the levels for October production material ($445-460/mt DAF). Offers of round billet from Ukraine's Dneprovsky (Dzerzhinsky) to Ukrainian mills are being given at $410-420/mt ex-works, compared to $445-460/mt ex-works last month. Export quotations of round billets from the CIS are in the range of $400-410/mt FOB for material produced in November. Yet, market participants report continuing weak demand in the export markets and expect another decrease of about $20/mt in quotations next month.

In line with falling round billet prices, export offers of Ukrainian seamless pipes for November-December production have decreased by $30-60/mt compared with the prices for October production.

Export prices from Ukrainian mill Interpipe for November-December production hot-formed seamless pipes of 57-219 mm diameter, of 10, 20 steel grades, as per GOST 8731/8732, are varying in the range of $800-850/mt FOB, with 273-325mm diameter pipes in the range of $900-950/mt FOB Black Sea ports, depending on the destination. 2"-8" seamless pipes of grade B, as per ASTM A106/API 5L, are offered by the same producer at an average of $850-900/mt FOB, with 10"-12" sizes at $950-1,000/mt FOB.

Export offers of November production seamless pipes with diameter of 57-168 mm made from steel grade 10, 20 according to GOST 8731/8732 from Ukraine's Dnepropetrovsk Tube Works are at $760-780/mt FOB.

Offer prices of Russian seamless pipes have increased by $10-40/mt over the past month. Producers say that they have been forced to raise their export quotations due to the weakness of the US dollar against the Russian currency, despite the falling prices of round billets. An expected increase of around 10 percent in transportation costs in the first quarter next year is another factor behind the raising of export prices of seamless pipes.

The export offers of Russian seamless hot-formed pipes of 33.7-219.1 mm diameter, made to GOST, ex-Uraltrubostal (Pervouralsky Novotrubny Works) are at $750-790/mt FOB, for December-January output.

Export prices for seamless hot-formed pipes with diameter up to 425 mm of 10, 20 steel grade made to GOST 8731/8732 from Russian producer TMK's subsidiaries Taganrog Pipe Plant and Volzhsky Pipe Plant are at about $750-800/mt FOB.

TMK notes that soft demand in the export markets has cut deeply into pipemakers' profits, though the market could improve by mid-2010. TMK does not expect to see a significant recovery of demand before Q2 2010 due to high levels of inventories, depressed gas prices and liquidity problems.

The prices for January-February production hot-formed seamless pipes ex-Belarus SW (BMZ), of 21.3-168.3 mm diameter as per EN 10216-1 or GOST, are at about $1,000/mt FOB. Pipe production at this mill will remain suspended in November and December due to modernization work being carried out on equipment.

 

10-11

US DOC announces affirmative preliminary determination in AD investigation of Chinese OCTG

The U.S. Department of Commerce (DOC) has announced its preliminary affirmative determination in the antidumping (AD) investigation of OCTG from China. 

The DOC has calculated the following preliminary dumping margins:

(1)  Jiangsu Changbao Steel Tube Co. Ltd., Jiangsu Changbao Steel Tube Co. Ltd., and Jiangsu Changbao Precision Steel Tube Co. Ltd.  - 0.00 percent

(2)  Tianjin Pipe International Economic and Trading Corporation, and Tianjin Pipe (Group) Corporation - 36.53 percent

(3)  Separate Rate Respondents (37 companies) - 36.53 percent

(4)  All Others - 99.14 percent

Additionally, the DOC has also made a preliminary affirmative determination of critical circumstances in the AD investigation. This is in contrast to the DOC making a negative preliminary determination of critical circumstances upon announcing its preliminary determination in the companion countervailing duty (CVD) investigation in September.

When this announcement is published in the Federal Register, the DOC will instruct US Customs and Border Protection to require the deposit of dumping duties or the posting of a bond.

As previously reported, the DOC has calculated the following subsidy margins in the CVD investigation:

(1)  Jiangsu Changbao Steel Tube Co. and Jiangsu Changbao Precision Steel Tube Co. Ltd. - 24.33 percent

(2)  Tianjin Pipe (Group) Co., Tianjin Pipe Iron Manufacturing Co. Ltd., Tianguan Yuantong Pipe Product Co. Ltd., Tianjin Pipe International Economic and Trading Co. Ltd., and TPCO Charging Development Co. Ltd. - 10.90 percent

(3)  Wuxi Seamless Pipe Co. Ltd., Jiangsu Fanli Steel Pipe Co. Ltd., and Tuoketuo County Menfeng Special Steel Co. Ltd. - 24.92 percent

(4)  Zhejiang Jianli Enterprise Co. Ltd., Zhejiang Jianli Steel Tube Co. Ltd., Zhuji Jiansheng Machinery Co. Ltd., and Zhejiang Jianli Industry Group Co. Ltd. - 30.69 percent

(5)  All Others - 21.33 percent.

 

90 Chinese steel pipe makers hit by US AD on OCTG

Tuesday, 10 Nov 2009

West China City Daily reported that the levies of as much as 99% antidumping tariffs on USD 3.2 billion worth Chinese OCTG case is probably the largest scale antidumping and countervailing case in Chinese history.

The data from Chinese ministry of commerce unveiled that nearly 90 enterprises got involved in this case, including some large state owned enterprises in China like Tianjin Steel Pipe, Baosteel and Angang etc.

The Commerce Ministry criticized the US decision on last Thursday to raise tariffs on Chinese pipes were as protectionist, which would badly hurt Chinese exports. And Chinese government may take measure to safeguard national industrial interests.

Mr Yao Jian a spokesman at the Chinese ministry, said in the statement that "Falling demand, caused by the financial crisis is the ultimate reason for the problems in the US steel industry. The US should take t his into consideration in its further investigations and make a fair and reasonable final ruling."

Chinese government said it will stick to the dispute resolution process laid out in WTO agreements in a bid to keep fair trade orders in the global market.

Also Friday, Beijing announced it was launching an anti dumping investigation of imported US autos. It said it was acting on a complaint by Chinese automakers but gave no details of the alleged American misconduct. The case could result in higher tariffs on US autos if Chinese investigators can conclude American automakers received improper subsidies or sold their products in a below fair market price.

US Commerce Department decided to slap as highest as 99.14% antidumping duties on oil pipes imported from China on November 5th. And they believed that the prices carried out by Chinese manufacturers and exporters were much lower than the local ones in US. As a result, there are 37 Chinese steelmakers suffering 36.53% antidumping tariffs and the others have to face as much as 99 percentage duties.

 

Chinese OCTG makers find US AD decision unfair

Friday, 13 Nov 2009

National Business Daily reported that the US Commerce Department has announced to impose 36.53% to 99.14% antidumping duties on China export oil pipes in its preliminary decision on November 6th with the involved value of USD 3.2 billion in total last year including nearly 90 Chinese steel enterprises, like Baosteel, Angang and Tianjin Steel Pipe etc this is the biggest antidumping and countervailing case in Chinese history.

The Commerce Ministry in Beijing said the levies of as much as 99% on USD 3.2 billion of Chinese exports are discriminatory. While, many steel mills are intentionally to keep cautious on this sensitive moment because US President Mr Barack Obama first visit to China this month. So, most of them refused to deliver any comments on this matter.

As per report, Chinese steel mills choose to take low keyed attitudes towards the antidumping investigations, hoping to find a new way for survivals. US imported USD 2.63 billion oil pipes from China in 2008, up more than 200% from one year ago experiencing a import growth of 203% from 2006 to 2008.

Jiangsu Changbao Steel Tube Co didn't get any antidumping duties, while Tianjin Pipe and the other 37 steelmaker were assessed a 36.53% duty and 99.14% for the rest steel enterprises. To China Baosteel and Hunan Valin Steel, they didn't get a lot of influences from this as two of them only covered a very small amount of oil pipes to US. While, Tianjin Pipe exported 1.25 million tonnes oil pipes to US in 2008 occupying 19% of the total. In fact, Hunan Valin Steel noticed that it was easier to get antidumping investigation by US earlier in 2007 so it decided to shift export destinations.

The Beijing Commerce Ministry criticized the US decision to raise tariffs on Chinese pipes as protectionist. It said the move violated World Trade Organization principles and commitments by Washington and other Group of 20 major economies to avoid protectionism amid the global economic crisis.

China steel exports started shrinking especially after the entry of Q2 in 2009 with a much higher price sold in American market than domestic market in fact. And Mysteel analyst Mr Zhang Limin viewed that Chinese steel mills should enlarge their export destinations, especially in Mid-Asian, African and CIS markets. It is beneficial for them to establish plants in overseas markets, and in fact, many mills have earlier built plants there, like Wuhan Steel co established a 5 million tonnes per year steel making mills with a Brazil miner.

Also On November 6th Friday, Beijing announced it was launching an anti dumping investigation of imported US autos. It said it was acting on a complaint by Chinese automakers but gave no details of the alleged American misconduct. The case could result in higher tariffs on US autos if Chinese investigators conclude American automakers received improper subsidies or sold below fair market price.

Mr Zhang hoped that we, Chinese steel enterprises would search new ways to cope with the difficulties in front of us amid the world financial crisis.

 

Argentina conducts AD probe on Chinese steel pipes

Friday, 13 Nov 2009

It is reported that Argentina has lately announced to launch anti dumping investigation on China made steel tubes.

This investigation included seamless and welded steel pipes imported from China, which are used in oil and natural gas exploration with the outer diameter of less than 10.75 inches. And the other pipes like alloy pipes, carbon pipes, spiral welded pipes, longitudinally welded pipes, cold rolled pipes and hot rolled pipes were also involved.

The statistics revealed by National Institute of Statistics and Censuses of Argentina show that the total value of bilateral trade between China and Argentina was posted at USD 6.893 billion in the first nine months this year down by 37.7%YoY.

 

13-11

China’s welded pipe prices may see rise by end of November

Due to sluggish demand from foreign customers Chinese exporters of welded pipes have decreased their quotations by $10-30/mt over the past two weeks. On the other hand, domestic prices for welded pipes are a little firmer: their upper end remains at the previous level while the bottom end has decreased by RMB 200/mt ($30/mt) over the period of review.

Despite little interest coming from the exports markets, production of welded pipes in China is increasing: in September the output figure reached 2.76 million mt, 25 percent higher than in September 2008 but 2.5 percent lower than in August this year. Welded pipe production in China rose to 22.47 million mt in the January-September period this year, up by 19.6 percent year on year. Due to China's stimulus plan for the economy, a lot of the Chinese production capacity is working to meet demand in the domestic market.

The downstream industries in China are increasing their investments and are thus buying more steel products. China may see a 10 percent increase in GDP in the fourth quarter, which would guarantee high demand for steel products. The cost of feedstock material is another factor influencing the prices of welded steel pipes. The cost of Chinese flat steel may see a large increase in the coming period mainly due to the devaluation of the dollar and increased fuel prices, and also as spot iron ore prices are pushed up against the background of the iron ore contract price negotiations for next year. In this general context, welded steel pipe prices in China may see a rise by the end of November. On the other hand, high steel inventories in China are playing havoc with prices. However, as per some market reports, the Chinese steel market is starting to see reduced inventories of construction steel, led by the Shanghai market, and may eventually reach a situation of equilibrium between supply and demand. Overall, the pressure of strong inventories and high output levels still exerts a braking effect on Chinese welded steel pipe prices and thus the rate of increase of welded pipe prices will be slow.

Current export prices of Chinese ERW pipes, 2"-6" grade B according to ASTM A53/API 5L, are at about $600-650/mt FOB.

Current offers of locally produced welded pipes, 2"-6" Q215-Q235 grade, are being given to the domestic market at RMB 4,100-4,600/mt ($600-675/mt) ex-works. These local market prices include 17 percent VAT and are on actual weight basis.

 

16-11

China’s seamless pipe quotations rise despite weak demand and stable feedstock prices

Despite the stability of round billet prices and weak market demand, Chinese suppliers of seamless pipes have increased their domestic and export quotations in order to the change the downward direction of prices and in the hope of rousing buyers. Over the past two weeks most Chinese pipe mills have raised their domestic quotations, by an average of RMB 250-350/mt ($40-50/mt). Meanwhile, export prices have risen by $10-20/mt during the period in question.

Chinese domestic prices of seamless pipes, 2"-6" grade B according to ASTM A106 or GB/8163, are currently varying at around RMB 4,500-4,850/mt ($660-710/mt) ex-works, compared to RMB 4,250-4,500/mt ($620-660/mt) ex-works two weeks ago. These prices for the local market include 17 percent VAT and are on actual weight basis. Domestic quotations of tubing pipes of 2"-4" size, grade J55 as per API 5CT, plain-ended, are at about RMB 4,800-5,200/mt ($700-760/mt) ex-works. Chinese domestic prices for casing, 6"-8" grade J55 according to API 5CT, are varying at around RMB 4,600-5,000/mt ($675-730/mt) ex-works.

Current export offers of seamless pipes from Chinese manufacturers for 2"-6" grade B material according to ASTM A106/API 5L are on average at $650-690/mt FOB, while 1"-1 ½" pipe sizes are at $690-720/mt FOB, with ½"-3/4" pipe sizes at $760-850/mt FOB. Export quotations for 2"-4" tubing J55 as per API 5CT, plain ends, are in the range of $720-770/mt FOB, while quotations for 6"-8" casing are at $700-750/mt FOB.

China's seamless steel pipe production has been declining throughout 2009. In September the output figure was 1.77 million mt, 7.7 percent lower than in September 2008 and 36.8 percent lower than in August this year. Seamless pipe production in China in January-September this year totaled 15.45 million mt, down 0.8 percent year on year. The major reason behind the shrinking monthly output is the insufficient demand both at home and in the overseas markets.

According to data from the China Iron and Steel Association (CISA), in September exports of seamless pipes from China totaled 286,603 mt, up 20 percent from the previous month. However, some Chinese seamless steel pipe enterprises are still facing severe challenges due to the inadequate increase in exports and poor domestic market demand.

Taking a look at the global market, some countries have put forward measures to ease the financial crisis, and economies have warmed up slightly in major countries like the US and others. Meanwhile, many countries have launched a series of antidumping duties against Chinese steel products. Internally, China's domestic economy has shown signs of a rebound on the back of increased demand driven by government policy, but still faces uncertainties which pose further challenges to enterprises in China.

 

Chinese steel pipes sector facing huge overcapacity

Monday, 16 Nov 2009

The statistics from China Steel Construction Society unveiled that China steel pipe manufacturing is going to face more than 15 million tonnes of overcapacities in 2010.

The capacity of steel pipes in China will be posted at 60 million tonnes by 2010, 15 million tonnes higher than the real demand, boosted by the rapid capacity expansion and sliding exports.

Even more, trade protectionism practices have further damaged Chinese steel pipe exports.

Источник: Rusmet.ru

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