US reintroduces anti-dumping duties on Ukrainian pipes

The United States Department of Commerce (DoC)
announced on July 15 that from July 10 a 7.47% anti-dumping duty will apply to
imports into the US of certain oil country tubular goods, mostly seamless pipes,
according to the department’s release.

The major Ukrainian exporter of these products is
Ukraine’s largest producer, Interpipe (INPIP). From July 10, 2014 until July
10, 2019, the DoC had an agreement with Interpipe: Interpipe did not sell at
prices below the agreed minimum, and in return the duty did not apply to its
exports into the US. However, the DoC decided not to extend this agreement.

GMK Center, an industry consultancy, estimated in a July
16 report that in 2018 Interpipe more than doubled yoy its sales of seamless
pipes for drilling into the US to 88 kt. According to our analysis of UkrStat
data, total Ukrainian exports of the goods subject to the duty rose to 101.5 kt
in 2018, a 69% yoy jump. Interpipe’s total pipe sales amounted to 668 kt in
2018.

Dmytro Khoroshun: This is another trade barrier that will be negative for Interpipe, as
the US market comprised up to 15% of its pipe sales. However, this share is not
overwhelming, and we think that Interpipe will keep selling into the US market
because this duty in itself looks small.