The European Union has started anti-dumping investigation in respect of the supply of hot-rolled steel from Russia, Brazil, Iran, Serbia and Ukraine. This is stated in the message, published Thursday in the official journal of the EU.
The European Commission initiated an investigation after a complaint of the Association of European steel producers (Eurofer, representing producers of more than 25% of the steel in the EU) received may 23, 2016. European Industrialists are accusing exporters of dumping.
Russia is the largest exporter of steel to the European market, says KPMG expert Dmitry Smolin. Themselves European producers, according to him, virtually all products supply on the domestic market. For Russia the EU is the second largest supply of foreign market after Turkey and the Middle East, says Smolin: the EU accounts for about a third of Russian exports of hot-rolled steel. In 2015, the Russian metallurgists have sold 2.1 million tons of hot-rolled steel by $900 million, cites the expert. According to him, major Russian suppliers — Severstal, MMK and NLMK, they account for 90% of all Russian exports to the EU.
The investigation will cover the period 1 July 2015 to 30 June 2016, says the report of the European Commission. It will be defined, carried out exporters the detriment of EU industry. The Commission will send to steel producers, special questionnaires, and those should be within 37 days to submit the answers to the questions. If the conclusions of Eurofer are true, the offenders can be imposed anti-dumping duties.
If the EU investigation will identify dumping by Russian producers, the EU is likely to establish protective tariffs, which will make Russian exports to the EU unprofitable, and Russian companies will have to seek new markets for rental, says Smolin.
“Severstal” has carried out export deliveries to Europe without violating anti-dumping legislation of the EU and the relevant rules of the WTO, said RBC representative of the company. All these years, the rent comes to the EU at market prices and in quantities not exceeding the earlier of the agreement of the quota of supply, he added. The interlocutor of RBC called the European market is “strategically important” for Severstal, and allegations of dumping and damage to local industry “unproven”. According to a source close to “Severstal” in 2015, the company delivered to Europe about 900 thousand tons of hot-rolled, in 2016, shipments remain at this level.
Deliveries to Europe are carried out at market prices in strict accordance with international rules,” said RBC representative of the CMI (in 2015, according to “Interfax”, the company set in the EU of 650 thousand tons hot rolled). “We will prove the absence of our actions of any violations by all available means,” — he stressed. But, according to him, MMK’s priority has always been the Russian market.
While representative of NLMK did not comment on the EU investigation. But he recalled that the company owns the production capacity of 2.2 million tons of hot-rolled steel in Belgium. These capacities are not yet fully loaded,” he said. Thus, NLMK’s Belgian plant can only benefit from the introduction of protective duties against producers from Russia. In 2015, NLMK delivered from its Russian plants in the EU 150 thousand tons of hot rolled.
The Russian metallurgists for the second time in a year be subject to anti-dumping investigations in the market of hot-rolled steel. At the beginning of the year, the Ministry of economy of Turkey revealed that the Russian exporters received the dumping margin to 13.66%, and threatened to impose their duty. However, in April, Turkish producers withdrew their complaint to the Russian competitors, and the Ministry of economy of Turkey stopped its investigation.
Meanwhile, the EU intends to close its market for cold-rolled steel from Russia by imposing a prohibitive duty of 26%. The final decision will be made in August.