China accused the Novolipetsk Metallurgical Plant of Dumping

China began an anti -dumping investigation into transformer steel imports from Russia and the United States, Bloomberg reported with reference to the message of the Chinese Ministry of Commerce.

The investigation was started on the complaint of Baosteel Group Corp. And Wuhan Iron & Steel Group.

The only manufacturer of this type of steel in Russia is OJSC Novolipetsk Metallurgical Plant and its subsidiary of VIZ-Stal LLC.

As Suy Lazzyan previously warned, the chairman of the board of directors of Baosteel Group, "the Chinese steel industry can show financial losses in 2009 against the backdrop of weak steel demand in the world market."

The PRC government threatened to apply strict measures to those steel companies that will continue to increase steel production.

World demand and steel prices fell sharply after in mid -2008 they reached the maximum. The cause of the fall was a general decline in the economy, which led to a decrease in consumption in key sectors using steel, such as automotive and construction.

Reduced production volumes reduced the income of enterprises. So, Baosteel announced a decrease in net profit per quarter by 98%.