Baosteel wins US trade case

Baoshan Iron & Steel Co Ltd （Baosteel） has won an anti-dumping case in the United States involving imports of drill pipes to the country.

Analysts said the result sets a precedent for Chinese steelmakers to defend their interests in overseas markets.

On Wednesday, Baosteel, China's largest steelmaker, said on its website that it had won the case in which some US competitors accused the company of dumping drill pipes in the country. The complaints sparked an anti-dumping and anti-subsidy investigation at the end of 2009.

The US Department of Commerce ruled in August 2010 that Baosteel had a dumping rate of 7.64 percent, but later downgraded it to 2.66 percent. After a year's preparation, Baosteel provided convincing evidence in its defence and was exonerated.

According to the law firm, Shanxi Yida Special Steel Group Co Ltd was also cleared of dumping charges.

Both Baosteel and Shanxi Yida have confirmed the facts with China Daily, but neither would comment on the issue.

The drill pipes, used in oil production, are high-end products that involve sophisticated technology in their manufacture. The US is the world's largest oil-pipe market, said Zeng Jiesheng, an analyst from Mysteel.com, a steel industry information provider.

The US drill-pipe market used to be dominated by companies from Europe, Japan, and US domestic producers. Baosteel was the first Chinese company to export the pipes to the US as early as 1997. After more than a decade of development, Chinese steelmakers had gained a substantial competitive edge in the US market, which made competitors sit up and take notice.