EEC dept proposes anti-dumping duty for galvanized steel from Ukraine, China
MOSCOW. Oct 7 (Interfax) - The Department for Internal Market Defense of the European Economic Commission (EEC) has proposed introducing a five-year anti-dumping duty on galvanized steel imported to the Eurasian Economic Union from China and Ukraine.
The proposal follows a study initiated by Magnitogorsk Iron and Steel Works , NLMK Group , and Severstal .
The department analyzed the market situation from January 1, 2015 through June 30, 2019. It found that there was 8% growth in visible consumption of galvanized steel in the EAEU in 2015-17 and a 17.4% increase in imports of it from China and Ukraine. This led to an increase of 0.8 pp in the share of imported goods in total visible consumption, according to the department's report.
At the same time, average weighted prices for galvanized steel from Ukraine and China were low, as a result of which companies could not raise prices to match increases in the cost of sales (the latter grew 24.5%, while the average weighted price rose 21.9%). This, in turn, led to decreases in the profitability of production and sales by 3.7 and 2.2 pp, respectively.
Between July 1, 2017 and June 30, 2018, visible consumption fell 2.8%, dumped-import volumes fell 25%, and the average weighted price grew 9% but remained low. The profitability of production and sales fell by 4.9 and 2.8 pp, respectively.
Between July 1, 2018 and June 30, 2019, imports from China and Ukraine grew 12.1%, while demand increased only 2.9%.
According to the report, the EAEU market "has long been attractive for export deliveries of galvanized steel from China and Ukraine due to its close geographical position and minimal transport costs for deliveries." There are also currently restrictions on Chinese and Ukrainian goods in the U.S. and EU markets.
The department proposes an anti-dumping duty of 23.9% for Ilyich Iron and Steel Works and other Ukrainian manufacturers; 17% for China's Angang Steel; 15.2% for Shandong Esdawn Metal Technology Development, 14.39% for Xinjiang Bayi Iron & Steel; 12.69% for Donge Yike Panel; 14.93% for Shandong Sino Steel, Gansu Jiu Steel Group, Hongxing Iron and Steel, and Dalian Posco Co; and 17% for other Chinese producers.