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Thursday, April 30, 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 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 reason of their journey is a total enterprise of assesses to deal with the United States the "double reverse" lawsuit.

April 8, seven U.S. oil pipe constructing enterprises iron alloy employees amalgamation and the United States on China's trade items 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 allowance of 2.7 billion U.S. dollars. This reporter has wise that the U.S. International Trade Commission on April 8 in the day, directly commenced a "double reverse" review, the bureau has set up a 6-member group, encompassing bosses, 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 apparently is trade protection." Kong ling-ming said, "We are prepared to coordinate enterprises to dynamically answering to the present pattern 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 steel and hard metal enterprises.

Despite encompassing Baosteel, Anshan Iron and Steel, Panzhihua Steel and Tianjin Pipe Group and other representatives of large iron alloy enterprises, but in detail, with the "double reverse" case of the enterprises engaged in metal and iron alloy enterprises to little and medium-sized exporters. "To the participants to talk about assesses the dimensions of 14 enterprises are somewhat large, in the United States trade items a large amount of business. The case engages the detail Chinese enterprises come to 212 metal and iron alloy enterprises." Import and trade items of China Steel Industry Association of one who disclosed to reporters.

Ministry of Commerce of China furthermore attaches large significance to start an enquiry in the United States after the first time the Ministry of Commerce handed out a answer to the incident. "First quarter of this year, China's metal and iron alloy goods trade items somewhat large fall in rate of trade items capacity down 55%, metal and iron alloy enterprises have came across more difficulties. In this context, the U.S. commerce accusations apply, it should be said out of date. "YAO Jian, representative of the Ministry of Commerce said," We will extend to pay vigilance to 'dual' of the advancement of the case and take befitting activity 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 reported that, ITC will be May 26 before the end of the preliminary investigation and on June 2 announced the results of the preliminary investigation.

Regret and anxiety

"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 steel enterprises enterprises the "double reverse" the complaint because the United States production of oil pipe products to protect their domestic market "under the pretext of" it. According to him, the issue of steel imports from China is that the existence of ordering and delivery lag period, often when the market demand of the goods set to in a few 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 fact, since the second half of 2008 the international economic situation to deteriorate, iron and steel exports to China has shown a rapid decline. Customs data show that in January 2009, China exported 1.91 million tons of steel, a record 35 months since the low volume of China's steel exports, fell 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 skilled population in the steel and hard metal xu xiang chun said that, one time lost in China, China's hard metal will be to inflict high anti-dumping responsibilities, the charge superiority will finish to survive, that rudimentally means that the Chinese hard metal market will have to extract 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 accept as factual that with the shrinking of the international iron alloy market, will boost the number of alike problems. China should discover to use worldwide trade guidelines, defence of China's own interests. At present, personal part little and medium-sized oil pipe mostly decentralized output capability, we should work simultaneously to pattern a answer to the lawsuit. - 18780

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