Russian metallurgists have come under the sanctions of the European Union – RBC

In the shop of metallurgical combine

Photo: Sergey Savostianov / TASS

The European Union has introduced a five-year anti-dumping duties on cold-rolled steel from Russia. The sanctions affected the largest Russian metallurgical companies – “Severstal”, Magnitogorsk and Novolipetsk Steel

The European Commission imposed anti-dumping duties on cold-rolled steel from Russia and China. This is stated in a message in the official Journal of the EU

The lowest duty established for the Magnitogorsk Metallurgical Combine (MMK) Victor Rashnikova -. 18.7%. The fee for the “Severstal” (the main owner – Alexei Mordashov) – 34%, for the Novolipetsk Metallurgical Combine (NLMK) Vladimir Lisin and other companies – 36.1%. Fees are introduced retrospectively from December 2015 and will be valid for five years.

The reason for the investigation served as a complaint by the European Steel Association (Eurofer), representing the interests of manufacturers of more than 25% cold-rolled sheet steel volume. The association accused the Chinese and Russian metallurgists at artificially low prices for cold-rolled products used in the manufacture of automobiles and household appliances

The introduced duties are actually obstruction for Russian metallurgists, recognizes KPMG analyst Dmitry Smolin:. “And m will have to seek other export markets and may increase competition between the players and the domestic

market. “in 2015, Russia exported to the EU about 700 thousand. t cold-rolled, says Smolin. According to him, about 90% came from NLMK, “Severstal” and MMK. According to “Interfax”, the supply of cold-rolled “Severstal” in Europe each year are about 200-250 thousand tons, MMK -.. About 100 thousand tons, while NLMK shipments in 2015 reached 350 thousand tons These data confirmed two members of the RBC.. market.

The preliminary anti-dumping duties on imports of cold-rolled steel from Russia and China have been introduced by the authorities of the European Union in February 2016. Then their size ranged from 19.8% (MMK) to 26.2% (NLMK).

On the eve of the EU authorities, rendering its decision Oleg Peter and Paul from the BCS told RBC that we are talking about the actual closing of the European market, which will have serious consequences for Russian metallurgists.

Two Russian exporter contested the investigation and asked it to suspend the examination of their complaints, the European Commission indicates in its decision (name of exporting are not specified in the document). Ministry of Economic Development has also asked the European Commission not to impose anti-dumping duties, before they will be considered the complaint, the document says. But the European Commission rejected their requests.

NLMK representative of the European Commission called “biased” investigation and stated that it was “carried out by its representatives with numerous violations.” According to him, the data, which were presented by NLMK, “were completely ignored,” and calculations fabricated. As a result, NLMK was charged non-existent dumping, says a company spokesman. “We will continue to protect its interests by all legal means. In particular, we plan to challenge the fees imposed by the EU court, as well as in the WTO “, – he said

Since the decision did not agree, and” Severstal “.. a company spokesman said – “WTO rules and distorted economic logic of the sales have been violated.” According to him, transactions were concluded at the rate of 70-80 rubles. the euro and the Commission used the rate of 40 rubles. per euro. “Severstal” will appeal against the decision of the commission, said a company spokesman. Furthermore, he expects to help the Russian authorities.

Video: RBC

MMK representative also said he intends to challenge the decision of the European Commission, but stressed that the key for the company is the domestic market.

Managing partner Sergey Vodolagin Westside Advisors RBC said that the appeal of the EU anti-dumping measures possible within the dispute settlement mechanism that exists in the World trade organization. “The procedure for the settlement of disputes is very durable and takes place in several stages, but if we manage to prove a violation of the WTO rules, it will be possible to recover from the EU overpaid duties. Alternatively, the payment of anti-dumping duties exporter can commit themselves to deliver the goods in the EU at a price not lower than agreed to by the Commission to the European. The European Commission has the right, but not the obligation to make such a commitment from the exporter “, -. Vodolagin said

According to Eurostat, in 2014 the share of Russian producers on the EU market of cold-rolled steel was 10.1%. During the year, the Russian companies have put the EU 724.758 thousand. Tons of cold-rolled at an average price of € 499 per tonne. Statistics say that over the three years (2011 to 2014) the proportion of Russians in the EU market has increased by 1.7 times (from 5.9 to 10.1%), shipments jumped by half (from 466 thousand. To 724 7 ths. tons), and the average price decreased by 21% (from € 630 to 499 per tonne).

at the beginning of July 2016 the EU authorities announced the start of an anti-dumping investigation against supplies from Russia, and as Brazil, Iran, Serbia and Ukraine, hot-rolled steel.