The Eurasian Customs Union has launched an anti-dumping investigation into importation of railcar wheels from Ukraine, according to official information from the Eurasian Economic Commission (EEC), the Interfax Ukraine news agency reports.
The investigation was launched in response to complaints filed by the Vyksa Steel Works (Nizhny Novgorod region), which is part of United Metallurgical Company (UMC), and the Evraz Nizhny Tagil Iron and Steel Works (Sverdlovsk region), which is part of the Evraz Group.
"The objects of the investigation are solid-rolled steel wheels with diameters from 710 millimeters intended for manufacture and repair of wheelsets for trolleys, passenger cars in locomotive-hauled trains, locomotives, wheel pairs of electric and diesel trains, and special rolling stock. Moreover, in the course of investigation, the EEC’s department for protection of the domestic market will consider including blanks for such wheels in the goods covered by the investigation," the commission said.
The Vyksa Steel Works and the Evraz Nizhny Tagil Iron and Steel Works accounted for an average of 98.9% of the total production of solid-rolled steel wheels in the Customs Union in the period from 2011 to the first half of 2014.
According to the EEC, imports of railcar wheels from Ukraine increased 4.4-fold in the period from 2011 to 2013. Imports of railcar wheels from Ukraine accounted for an average of 95.8% of the total imports into member-countries of the Customs Union in the period from 2011 to 2013 and 97.1% in the first half of 2014.
The market share of steel wheels produced in member-countries of the Customs Union reduced by 13.9 percentage points in in the period from 2011 to 2013. It reduced by 2 percentage points in the first half of 2014, compared with the first half of 2013.
At the same time, the volume of wheel imports from Ukraine increased sharply and its market share increased by 11.2 percentage points in the period from 2011 to 2013.
"Price competition on the market of the Customs Union escalated in the first half of 2014. As a result of a 25.4% reduction in Ukrainian prices, enterprises in member-countries of the Customs Union lowered their prices by 21.8% under pressure from dumped imports from Ukraine while their production cost increased by 16.4%. As a result, their margin on sales reduced by 22 percentage points and their sales profit reduced more than 6.2-fold," the materials of the Eurasian Economic Commission state.
According to preliminary estimates, the margin of dumping of solid-rolled steel wheels imported from Ukraine was 36.3% in the period from 1 July 2013 to 30 June 2014.
"The availability of evidence to back the above-mentioned claims is the basis for the decision to launch an anti-dumping investigation into solid-rolled steel wheels from Ukraine," the EEC said.