Dumping at the box office

Russian metallurgists again oppose Ukrainian

The largest Russian metallurgical companies have joined forces in the fight against the low prices of their Ukrainian colleagues. The Ministry of Economic Development yesterday announced the start of an anti-dumping investigation into flat cold-rolled steel produced in Ukraine. As the ministry said in a statement, the investigation was undertaken on the basis of a statement filed by Magnitogorsk Iron and Steel Works, Novolipetsk Iron and Steel Works and Severstal. According to Vremya Novostey, these companies account for about 40% of the Russian market for flat cold-rolled products. The total volume of the Russian market, according to expert estimates, is approximately 6 million tons; The Ministry of Economic Development and Trade does not disclose it, calling this data strategic.

The reason for the investigation by the Ministry of Economic Development and Trade is cited, in particular, by the fact that the difference in price between Russian-made cold rolled products sold on the domestic market and similar Ukrainian products was 17.2% in 2003, 25.1% in 2004, and in the past - 27.6%. The share of cold rolled products supplied to Russia from Ukraine last year amounted to 90.2% of the total import volume of this type of product. The Ministry of Economic Development and Trade estimates the decline in sales of domestic flat products last year on the domestic market at 11.4% compared to the previous year. According to the ministry, over the past year the share of Russian cold-rolled steel in the domestic market decreased from 91.7 to 80.8%, while the share of imported Ukrainian rolled steel increased from 7 to 17.3%, i.e. more than twice.

At Severstal, the reasons that prompted the company to contact the Ministry of Economic Development and Trade with a request for an anti-dumping investigation included, among other things, the fact that the difference in prices between imported and similar domestic goods reaches 35%. The company fears a further increase in supplies of Ukrainian cold-rolled steel to the Russian market due to a reduction in domestic consumption in Ukraine. They say about the same thing at MMK. “Ukrainian representatives are openly dumping,” a company representative told Vremya Novostey. “As a result, they discourage our potential buyers.” By taking the initiative to investigate, MMK, according to its representative, is only seeking to regain the niche that it traditionally occupied in this segment. In the event of the introduction of anti-dumping measures on Ukrainian products, NLMK expects to restore sales levels in the southern regions of Russia and be able to increase shipments to the domestic market, the company reported.

According to Vremya Novostei, the main Ukrainian suppliers of cold-rolled steel to the Russian market are the Mariupol Iron and Steel Works and Zaporizhstal. But a market source is confident that the Ministry of Economic Development and Trade will consider supplies from other Ukrainian enterprises producing cold rolled steel.

The investigation will last for two months, and if dumping is confirmed, additional duties will be applied as a preventive measure. The Ministry of Economic Development and Trade refused to name their possible size until the results of the investigation were summed up.

Last year, the Ministry of Economic Development conducted a similar investigation into the supply of Ukrainian pipes. As a result, duties ranging from 11 to 55% of the customs value were introduced on some types of products, depending on the product range.

Anna LANDER