OCTG Trade Case
To most outsiders, “OCTG” probably means very little. However, those 4 letters represent a highly debated topic that has taken the energy and steel industries by storm. “Oil Country Tubular Goods” refer to various commodities imported from overseas. Over the past 2-3 years, large influxes of these goods have made their way into the domestic market. However, due to heavy subsidies in their home countries, many of these products have undercut local steel pipe suppliers.
Earlier this month, the U.S. Department of Commerce handed down a decision with the intention of leveling the playing field. New duties and tariffs have will be imposed upon OCTG shipments from eight different countries. U.S. based tubular steel manufacturers stand to benefit as a result of the increased prices of these foreign products.
While still new, demand for steel has remained static in the immediate aftermath of the DOC’s decision. Actual consequences remain to be seen over the coming months. Regardless of how the market may react, JD Fields is prepared to continue to supply our clients with the 150,000 tons of steel pipe, tubular goods, and other product we keep in stock at all times.