US says Chinese drill pipe, collars threaten US industry

The US International Trade Commission (USITC) determined Monday that imports of drill pipe and drill collars from China threatened the US industry with material injury.

As a result of the USITC's affirmative threat determinations, the US Commerce Department will issue anti-dumping and countervailing duty orders on imports of these products from China.

On January 4, the US Commerce Department announced its affirmative final determinations in the anti-dumping duty and countervailing duty investigations on imports of drill pipe from China. The department determined that Chinese producers and exporters had sold drill pipe in the United States at margins ranging between 0.00 and 69.32 percent, while they have received countervailable subsidies of 18.18 percent ad valorem.

In the anti-dumping investigation, mandatory respondent China's DP Master Manufacturing Co., Ltd. and Jiangyin Liangda Drill Pipe Co., Ltd. received a dumping rate of 69.32 percent. Baoshan Iron and Steel Co., Ltd. as well as Shanxi Yida Special Steel Imp. and Exp. Co., Ltd. each received a dumping rate of 0.00 percent, according to the department.

The USITC did not specify the combined value of imported drill pipe and drill collars from China in the statement. A determination will be considered as affirmative if there is a 3-3 voting result within the USITC Commissioners.

Drill pipe and drill collars are hollow drill string components used in drilling rigs, particularly those intended to extract oil and gas, to transmit power and conduct lubricant during the drilling process.