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Sunday, May 3, 2009

Iron and hard metal enterprises in China from the U.S. "double reverse" examination

By Zou himfr

Steel prices in China from the U.S. "double reverse" survey, exports of 20 billion oil pipe blocked.

April 16, China Steel Structure Association, the Secretary-General flew to a branch pipe Huangshi, Hubei Province, accompanied by Tianjin Pipe Group's senior leadership. They have, Baosteel, Panzhihua Iron and Steel, Anshan Iron and Steel and many other business executives also have reached the Yellowstone.

The purpose of their trip is a total business of measures to deal with the United States the "double reverse" lawsuit.

April 8, seven U.S. oil pipe fabricating enterprises hard metal staff merger and the United States on China's trade overseas to the United States oil pipe (OCTG) to the U.S. Department of Commerce and U.S. International Trade Commission (ITC) against "anti-dumping" and "countervailing" litigation. Proceedings up to the allotment of 2.7 billion U.S. dollars. This reporter has educated that the U.S. International Trade Commission on April 8 in the day, straight away started a "double reverse" study, the instrumentality has set up a 6-member assembly, embracing managers, economists, accounting and so on.

If the record productively, it will be the United States since 2006, started the first of China's 14 "double-anti-" The study, which is "Obama" after the Government first took bureau in mainland China for the "double reverse" complaints.

Emergency response

"This very distinctly is trade protection." Kong ling-ming said, "We are geared up to direct enterprises to energetically replying to the prevailing configuration of the enterprises are, will be turned over to the Ministry of Commerce recently."

April 17 Xinye in Hubei Iron and Steel Group at the "Encounter" by the China Iron and Steel Industry Association, and participants with the case is one of 14 representatives of the Chinese iron and steel enterprises.

Despite embracing Baosteel, Anshan Iron and Steel, Panzhihua Steel and Tianjin Pipe Group and other representatives of large hard metal enterprises, but in item, with the "double reverse" case of the enterprises included in steel and hard metal enterprises to tiny and medium-sized exporters. "To the participants to consider evaluates the amount of 14 enterprises are quite large, in the United States trade overseas a large measure of business. The case includes the item Chinese enterprises arrived at 212 steel and hard metal enterprises." Import and trade overseas of China Steel Industry Association of one who uncovered to reporters.

Ministry of Commerce of China in addition attaches many value to begin an examination in the United States after the first time the Ministry of Commerce distributed a reply to the incident. "First quarter of this year, China's steel and hard metal yield trade overseas quite large decline in rate of trade overseas size down 55%, steel and hard metal enterprises have ran into more difficulties. In this context, the U.S. development grievances request, it should be said out of date. "YAO Jian, spokesperson of the Ministry of Commerce said," We will carry on to pay alertness to 'dual' of the improvement of the case and take advantageous achievement in response. "

Baoshan Iron and Steel Group of the Ministry of Justice said they had obtained the U.S. government dispatched the questionnaire.

It is described that, ITC will be May 26 before the end of the initial enquiry and on June 2 broadcast the outcomes of the initial investigation.

Regret and worry

"For the United States' dual 'investigation, we have expressed regret, but also were under immense pressure, which will undoubtedly be adding enterprises." Tianjin Pipe Group Marketing liu jian said.

China's hard metal trade overseas to the United States is the principle kinds of steel. 2008, China's oil wares pipe trade overseas to the United States has arrived at about 3.2 billion U.S. dollars, same to more than 200 billion yuan. And hard metal trade overseas to the United States, more than half of all hard metal products. U.S. financial gatherings that the midpoint disposing margins as high as 80.72%. Reporter from the China Iron and Steel Association's website that the U.S. hard metal market demand of about five million tons, China's hard metal mills accounted for about 2.2 million tons, prized at an assessed 2.7 billion U.S. dollars.

However, in liu jian, the United States against Chinese iron alloy enterprises enterprises the "double reverse" the accusation because the United States output of oil pipe goods to defend their household market "under the pretext of" it. According to him, the topic of iron alloy trades from China is that the reality of organising and consignment lag time span, often when the market demand of the items set to in a couple of months after that, then the market has dropped.

"The U.S. hard metal development in the fiscal critical purpose, the U.S. oil and gas drilling pursuit has been in the doldrums, the U.S. hard metal goods produced enterprises a many deal of inventory, notably lessened the demand, which makes many of the U.S. hard metal development faces difficulties." Kong ling ming advised reporters said that the United States over the past 9 months a large number of deals from China have become the new oil pipe store, which is the United States hard metal financial gatherings filed the direct source of complaint.

In detail, since the second half of 2008 the worldwide financial position to worsen, metal and iron alloy trade items to China has shown a fast decline. Customs facts and numbers display that in January 2009, China exported 1.91 million tons of iron alloy, a record 35 months since the reduced capacity of China's iron alloy trade items, dropped more than 50.

China Iron and Steel Association said beforehand that the pertinent population, "China's hard metal trade overseas this year, very sombre situation." Decline in worldwide hard metal demand as well as the cost of RMB acknowledgement on China's hard metal trade overseas to advance the consequence of the great. Some enterprises trade overseas to none for numerous months.

Well-known professionals in the metal and iron alloy xu xiang chun said that, one time lost in China, China's iron alloy will be to enforce high anti-dumping obligations, the cost benefit will stop to live, that fundamentally means that the Chinese iron alloy market will have to remove from the United States.

"20 billion yuan iron alloy trade items impeded, it can be said is a large-scale scale." Kong lin ming said with emotion.

The "double reverse" Obama is the examination since he took bureau, the U.S. government started China's first "double reverse" survey. "The quick start, presentations that the Democratic Party after the ruling hard-line trade policy." I do not like to be labelled, the long-term study of Sino-US trade family highly talented, advised reporters.

Prior to that, Obama has been the Government to other swapping partners, commenced the two "double reverse" enquiry, respectively, for Indonesia and China Taiwan retail piece of cloth bag, Argentina and South Korea's anti-nickel Pistons, while China's iron alloy commerce for the "double reverse" Obama has been enquiring the Government's third move. "This year's anti-dumping, countervailing the prosecution will be substantially expanded over preceding years." The professionals said.

Xu xiang chun believe that with the shrinking of the global steel market, will increase the number of similar problems. China must learn to use international trade regulations, protection of China's own interests. At present, private sector small and medium-sized oil pipe mostly decentralized production capacity, we must work together to form a response to the lawsuit. - 21392

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