New Antidumping Investigation on Welded Carbon Steel Line Pipe (NCM 7305.11.00, 7305.12.00, 7305.19.00, 7305.31.00, 7305.39.00, 7306.19.00 and 7306.30.00)
On July 6, 2026, SECEX/MDIC Circular No. 51/2026 initiated an antidumping investigation to determine the existence of dumping in exports of welded carbon steel line pipe, of circular cross-section, with a yield strength below 60 ksi, with a nominal outside diameter of 14 inches (355.6 mm) or greater, but not exceeding 48 inches (1,219.2 mm), regardless of wall thickness or end finish (“welded line pipe”), from China to Brazil, and the resulting injury to the domestic industry.
The petition requesting the initiation of the investigation was filed by Confab Industrial S.A., which accounted for the entirety of Brazilian domestic production of the product concerned during the injury investigation period.
The product under investigation is manufactured primarily from carbon steel coils or plates, which may vary in chemical composition, mechanical properties, and dimensions. Production also involves welding consumables and inputs such as electricity, compressed air, soluble oil, cutting saws, and machining inserts. These welded pipes may be supplied either uncoated (bare pipe) or with coatings such as epoxy or polypropylene, depending on customer specifications and intended use. Their principal applications involve the transportation of fluids through oil pipelines, gas pipelines, and systems for transporting ethanol, hydrocarbons, mineral slurries, and tailings in slurry form, excluding sanitation-related applications. In addition, certain foreign suppliers operate under vertically integrated production structures, encompassing both steelmaking and pipe manufacturing, either within the same industrial complex or through separate production facilities, providing greater control over the supply chain.
The analysis of dumping covered the period from July 2024 to June 2025, while the injury examination covered the period from July 2020 to June 2025. It was determined that market economy conditions do not prevail in China’s welded line pipe sector. Accordingly, normal value was established on the basis of the price of the like product in a market economy third country, with the United States selected as the surrogate country. For purposes of the dumping margin calculation, normal value was established at a level equivalent to FOB and compared with the export price on an FOB basis.
The participation of interested parties is essential and may contribute to the determination of more favorable individual dumping margins. The deadline for the registration of additional interested parties in the investigation is July 27, 2026 (Monday), pursuant to Article 45, Paragraph 3 of the Brazilian Antidumping Decree.
