The Eurasian Economic Commission has launched an anti-dumping investigation into importation of steel bars originating from Ukraine into the common customs territory of the member-countries of the Customs Union, the Interfax Ukraine news agency reports, citing the Eurasian Economic Commission’s department of domestic market protection.
The official notification "On Commencement of an Anti-Dumping Investigation into Bars Originating from Ukraine Imported into the Common Customs Territory of the Customs Union" was approved by a decree dated November 20, 2013. However, the page on the Eurasian Economic Commission’s website on which the decree was published became unavailable on Friday.
According to the decree, the investigation was launched based on an appeal from the EVRAZ Consolidated West Siberian Metallurgical Plant, the Nizhneserginsky Metalware and Metallurgical Plant, the Chelyabinsk Metallurgical Plant, the Severstal steel company, and the Magnitogorsk iron & steel works, which collectively accounted for an average of 65.9% of the total production of metal bars in Russia from 2010 to the first half of 2013.
The document states that the subjects of the investigation are hot-rolled bars having a uniform circular solid cross-section throughout their entire lengths, produced from carbon and alloy steel in coils or cut to a specified lengths, with or without depressions, reliefs, grooves, or other deformations produced during the rolling process, and with or without further processing, but excluding bars produced from free-machining, high-speed, tool, ball-bearing, and corrosion-resistant steel, forged or after cold deformation, bored bars, or hollow bars for drilling operations.
"The information provided in the statement leads to the conclusion that dumped imported bars exist on the customs territory of the Customs Union,” the notification states. In particular, it states that there was a substantial increase in the importation of metal bars from Ukraine into the Customs Union in the period of 2010-2012. Imports from Ukraine increased by 69% in 2012, compared with 2010, and increased by 86.4% in the first half of 2013, compared with the first half of 2012. Meanwhile, importation of steel bars from all countries increased by 62.8% in the period of 2010-2012 and by 62.7% in the first half of 2013.
Imports from Ukraine accounted for 95.6% of the total imports into the Customs Union in the first half 2013, compared with an average of 75.3% in the period of 2010-2012.
The Eurasian Economic Commission states that the margin of dumping during delivery of bars originating from Ukraine to the Customs Union exceeded the minimum allowable margin of dumping and stood at 12.6% in the period from January 1 to June 30, 2013. In the period of 2010-2012, the volume of apparent consumption of metal bars on the market of the Customs Union increased by 62.6% while the volumes of its production and sales by producers in the member-countries of the Customs Union increased by 24.5% and 62.6%, respectively.
The date of commencement of the investigation is the date of publication of the notification on the official website of the Eurasian Economic Commission, which is November 20. The participants in the investigation may submit comments and information to the department within 90 days from the date of commencement of the investigation and request a public hearing within 60 days from the date of commencement of the investigation.
Roman Topoliuk, an analyst with the Concord Capital investment company told the news agency that in 2012 exports of reinforcing bars, wire rods, and other bars from Ukraine to Russia, Kazakhstan, and Belarus accounted for 4% of the total export of rolled metals from Ukraine (951,000 tons out of 22.5 million tons), 26% of the total Ukrainian deliveries of rolled metal to the Customs Union (3.65 million tons), and 22% of the total exports of metal bars to all regions of the world (from 4.3 million tons). Metal bars are used mainly for reinforcing concrete in the construction industry.
The major manufacturers of metal bars in Ukraine are ArcelorMittal Krivyi Rih and the Metinvest group.