April 26, 2024

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[THE INVESTOR] The US Department of Commerce increased anti-dumping tariffs on South Korean oil country tubular goods by up to 24.92 percent, the department said on April 12.

A 24.92 percent tariff rate has been imposed on OCTG from Nexteel, 2.76 percent on  SeAh Steel and 13.84 percent on Hyundai Steel and other local steelmakers, according to the US department.

The finalized duties will be applied on local OCTG exported to the US after the original decision made in July of 2014.

OCTG refers to drill pipes, casing and tubing used in the petroleum industry to extract oil and natural gas.

Anti-dumping tariffs on Nexteel and Hyundai rose 16.88 percentage points and 7.92 percentage points, respectively, following preliminary rulings last October.

Seah Steel, on the other hand, saw a 1.04 percentage point reduction, making it the only South Korean steelmaker that was levied a lower tariff rate.

Industry experts pointed to Seah Steel’s acquisition of two OCTG plants in Texas last November as a factor that contributed to the reduction.

The department’s latest decision has lowered the price competitiveness of South Korean OCTG in the US steel market, which is expected to grow in line with the Trump administration’s development on shale gas and oil.

Peter Navarro, a director of the White House National Trade Council, officially requested the Department of Commerce raise anti-dumping tariffs on imported South Korean OCTG by 36 percent due to a “particular market situation” last month.

Meanwhile, the reduced anti-dumping tariff on Seah Steel will strengthen the company’s competitiveness in the US market, said Lee Jong-hyung, an analyst at Daishin Securities.

Lee added, increased tariffs on Nexteel will have a negative effect on the company’s exports, while conditions at Hyundai Steel should remain neutral as the finalized tariff is similar to 2014 levels.

By Kim Bo-gyung/The Korea Herald (lisakim425@heralcorp.com)