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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 charges in China from the U.S. "double reverse" review, trade items of 20 billion oil pipe blocked.

April 16, China Steel Structure Association, the Secretary-General took air journey to a agency pipe Huangshi, Hubei Province, escorted by Tianjin Pipe Group's older leadership. They have, Baosteel, Panzhihua Iron and Steel, Anshan Iron and Steel and numerous other enterprise bosses furthermore have come to 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 document effectively, it will be the United States since 2006, commenced the first of China's 14 "double-anti-" The review, which is "Obama" after the Government first took agency in mainland China for the "double reverse" complaints.

Emergency response

"This clearly is trade protection." Kong ling-ming said, "We are ready to organize enterprises to actively responding to the current form 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 metal and iron alloy enterprises.

Despite including Baosteel, Anshan Iron and Steel, Panzhihua Steel and Tianjin Pipe Group and other representatives of large steel enterprises, but in fact, with the "double reverse" case of the enterprises involved in iron and steel enterprises to small and medium-sized exporters. "To the participants to discuss measures the size of 14 enterprises are relatively large, in the United States exports a large quantity of business. The case involves the fact Chinese enterprises reached 212 iron and steel enterprises." Import and export of China Steel Industry Association of one who revealed to reporters.

Ministry of Commerce of China also attaches great importance to initiate an investigation in the United States after the first time the Ministry of Commerce issued a response to the incident. "First quarter of this year, China's iron and steel products exports relatively large drop in rate of export volume down 55%, iron and steel enterprises have encountered more difficulties. In this context, the U.S. industry complaints appeal, it should be said out of date. "YAO Jian, spokesman of the Ministry of Commerce said," We will continue to pay attention to 'dual' of the progress of the case and take appropriate action in response. "

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

It is stated that, ITC will be May 26 before the end of the introductory examination and on June 2 advertised the effects of the introductory investigation.

Regret and anxiety

"For the United States' dual 'investigation, we have articulated deplore, but in addition were under immense insist, which will undoubtedly be augmenting enterprises." Tianjin Pipe Group Marketing liu jian said.

China's steel exports to the United States is the main varieties of steel. 2008, China's oil product pipe exports to the United States has reached about 3.2 billion U.S. dollars, equivalent to more than 200 billion yuan. And steel exports to the United States, more than half of all steel products. U.S. companies that the average dumping margins as high as 80.72%. Reporter from the China Iron and Steel Association's website that the U.S. steel market demand of about five million tons, China's steel mills accounted for about 2.2 million tons, valued at an estimated 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. iron alloy commerce in the economic urgent position, the U.S. oil and gas drilling undertaking has been in the doldrums, the U.S. iron alloy output enterprises a large deal of inventory, considerably decreased the demand, which makes many of the U.S. iron alloy commerce faces difficulties." Kong ling ming notified reporters said that the United States over the past 9 months a large number of trades from China have become the new oil pipe supply, which is the United States iron alloy businesses filed the direct origin of complaint.

In item, since the second half of 2008 the global monetary circumstances to decline, steel and hard metal trade overseas to China has shown a quick decline. Customs written knowledge present that in January 2009, China exported 1.91 million tons of hard metal, a record 35 months since the small size of China's hard metal trade overseas, plunged more than 50.

China Iron and Steel Association said earlier that the relevant people, "China's steel exports this year, very serious situation." Decline in global steel demand as well as the cost of RMB appreciation on China's steel exports to increase the impact of the great. Some enterprises exports to zero for several 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 steel exports blocked, it can be said is a big scale." Kong lin ming said with emotion.

The "double reverse" Obama is the enquiry since he took agency, the U.S. government commenced China's first "double reverse" survey. "The fast start, displays that the Democratic Party after the ruling hard-line trade policy." I do not desire to be entitled, the long-term study of Sino-US trade relatives professional, notified reporters.

Prior to that, Obama has been the Government to other trading partners, launched the two "double reverse" investigation, respectively, for Indonesia and China Taiwan retail cloth bag, Argentina and South Korea's anti-nickel Pistons, while China's steel industry for the "double reverse" Obama has been investigating the Government's third move. "This year's anti-dumping, countervailing the prosecution will be greatly increased over previous years." The experts 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. - 18762

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