Metallurgical plants convinced the Russian Ministry of Industry and Trade of the necessity to impose antidumping duties

The Ministry of Industry and Trade of Russia in conformity with the Federal law of December 8th, 2003 #165-FZ about special safety, antidumping and compensation measures has conducted an investigation in respect of nickel containing stainless flat rolled products from China, Korea, Brazil and South-African republic and imported into Russia.

The investigation was started on March 27th, 2009 by the claim of the Russian producers of nickel containing stainless flat rolled products of CJSC Volgograd metallurgical plant Krasny Octyzbr, JSC Chelyabinsk metallurgical plant and JSC MMZ Serp and Molot (further referred to as plants-claimers).

The announcement of the start of the investigation was published on March 27th, 2009 in the Russian Newspaper #53 (4877). In conformity with the order of the Ministry of Industry and Trade of Russia of March 26th, 2010 #237 the investigation was prolonged for 3 months (till June 27th, 2010).

The period that is being investigated for antidumping is determined in the following way:

- period of investigation for analysis of dumping import – from Jan 1st, 2008 to December 31st, 2008;

- previous period for the analysis of the situation in the sphere of the Russian economy aiming at determining material loss – from 2006 to 2008.

The share of the claimers in 2006-2008 was 90.3% of all the volume of production of nickel containing stainless flat rolled products in Russia. In conformity with Article 2 of the Federal law the claimers represent the sphere of the Russian economy.

On the basis of the presented facts by the claimers those nickel containing rolled precuts that are not produced in Russia (as it was determined in the process of investigation) are excluded from investigation.

The analysis allows setting the following:

The presence of dumping import of nickel containing rolled products in Russia. the presented facts show that in 2006-2008 while the total import volume of nickel containing rolled products feel by 1.2 times, the import of nickel containing rolled products from China, Korea, Brazil and South African republic rose by 5 times (by 38,772 tons). At the same time the share of nickel containing rolled products from China, Korea, Brazil and South African republic in the total import volume of this product in Russia increased from 13.2% in 2006 to 82.0% in 2008.

The weighted average prices for nickel containing rolled products from China, Korea, Brazil and South African republic during the whole investigated period were much lower that the weighted average prices for nickel containing rolled products from third countries with an exception of 2006 when the weighted average prices for nickel containing rolled products from China, Korea, Brazil and South African republic were higher by 6.3% than the weighted average prices for this product imported from third countries.

The presence of material loss in the sphere of the Russia economy is due to the dumping import of nickel containing rolled products from China, Korea, Brazil and South African republic.

The analysis of the Russian market of nickel containing rolled products showed that in 2008 against 2006 in Russia in the condition of decrease of nickel containing rolled products consumption (-10.8%) and production (-2.6%) there was the rise of the volume of realization (4.7%), stakes of the Russian producers in the domestic market (6%), profitability of production (2.3%) and labor productivity (10.4%) that was connected with imposing of antidumping measure in respect of nickel containing rolled products from countries-members of EU in 2007.

At the same time there was a sharp increase of import from China, Korea, Brazil and South African republic within this period, the share of which in 2008 almost reached 50% in the total volume of consumption in the domestic market against 9% in 2006. The dumping import prices for nickel containing rolled products from China, Korea, Brazil and South African republic were significantly lower than the Russian prices.

To keep the price competition the Russian producers in 2008 had to check prices. The weighted average price of the Russian producers in the domestic market in 2008 against 2007 fell by 6.1% that led to the fall of the profitability level by 1.5% and decrease of revenue (-12.1%). The share of the Russian producers in the domestic market in 2008 decreased by 3% against 2007.

The presence of the cause-and-effect relation between dumping import of nickel containing rolled products from China, Korea, Brazil and South African republic and the material loss in the sphere of the Russian economy.

In 2006-2008 the Russian producers of nickel containing rolled products were displaced off the domestic market by the supplies of this product from China, Korea, Brazil and South African republic.

In 2006-2008 while there was a decrease of the total volume of import of nickel containing rolled products to Russia the volumes of import of this product from China, Korea, Brazil and South African republic increased by 402.2%. as a result the share of import of nickel containing rolled products from China, Korea, Brazil and South African republic in the total volume of import of this product increased from 13.2% in 2006 to 82.0% in 2008, in the total volume of nickel containing rolled products in the Russian market increased by 40%.

On the basis of the results of the investigation and in conformity with articles 4, 11, 16, 29 of the federal law the ministry of Trade and Industry offered the Government of Russia to set antidumping measure for 5 years in the form of antidumping duties in the following sizes:

- for Shanxi Taigang Stainless Steel Co., Ltd. – 29.9% of its customs value;

- for Yeun Chyang Industrial Co., Ltd – 39.1% of its customs value;

- for other producers of nickel containing rolled products form China and imported in Russia – 39.1 of customs value;

- for POSCO – 4.8% of customs value;

- for Daimyung TMS Co., Ltd. and Taihan ST Co., Ltd. – 62.8% of customs value;

- for other producers of nickel containing rolled products form Korea and imported in Russia – 62.8% of customs value;

- for all producers of nickel containing rolled products from Brazil and imported in Russia – 21.1% of customs value;

- for all producers of nickel containing rolled products from South African republic and imported in Russia – 33.3% of customs value.

Taking the antidumping measure at the suggested sizes will allow eliminating the material loss caused to the domestic producers of nickel containing rolled products.

http://www.metalinfo.ru/ru/news/46417

Translated by Galiya Davletgareeva