The US government¡¯s move to levy anti-dumping duty on Chinese Steel Pipes has provided Indian manufacturers an opportunity to increase
exports to the US. India¡¯s steel pipe makers such as Maharashtra Seamless, Jindal Saw and Indian Seamless Metal Tubes are all set to more than double their exports to the US. The US recently imposed preliminary import duties ranging from 10.9% -30.7% on Steel Pipes, used to deliver oil and gas, from China in order to protect the domestic pipe making industry from low-priced imports. As per industry estimates, China exported 1.9 million tonnes of Steel Pipes to the US last year.
¡°Chinese government extended various export subsidies to its Pipe-makers early this year to do away with surpluses. Being a low cost producer, China remains a threat to all global producers. The Anti-dumping duty on Chinese Pipes will provide a level playing field to other suppliers,¡± said Maharashtra Seamless chief financial officer Anil Jain.
Maharashtra Seamless produces 2 lakh tonne of seamless and Electric Resistance Welded (ERW) Pipes annually. Its exports to the US stood at 20,000 last year, which is expected to go up to 70,000 tonnes this year. India¡¯s seamless, spiral and ERW Pipe making capacity is close to 5 million tonnes currently.
¡°Indian pipe makers are likely to benefit as the Chinese supplies will reduce to the US. North America has remained one of the largest consumer of steel pipes and a huge market for our large diameter and seamless pipes range. Despite the downturn, the US will remain leading consumer of Pipes,¡± said Jindal Saw spokesperson.
Jindal Saw has saw and Seamless Pipe manufacturing facilities in India with a total production capacity of 1.6 million tonne. The company also has double joint and coating facilities in North America. It exported 7-10% of the total produce to North America last year and is expected to increase exports to 15-20% in the coming months.
Last month, Europeon Union, too levied 24% anti-dumping duty on Chinese Steel Pipes and wire rods for a period of five years. The definitive measure came after temporary duties were slapped in February 2009 following Europeon producers¡¯ claim that Chinese producers has sold their products at low prices and hurt their businesses.
China, has, however, objected to the US and European Union¡¯s decision to impose anti-dumping tariffs on China-made Seamless Steel Pipes.
