Metals and mining, EU Commission
On October 28th, both companies filed lawsuits to the European Court of general jurisdiction against the European Commission, the Court's website reports.
On Friday, Russia and the EU will hold a traditional "steel dialogue" - the annual meeting of metallurgical companies and officials.
Russian metallurgical companies have become the object of a new investigation of the European Commission (EC): local steelmakers complained of dumping shipments of flat hot-rolled from Russia and four other countries. But, according to the Kommersant’s sources, for a while only 6% of the dumping margin is imputed to the Russian metallurgical companies, and a possible duty of 6-10% will allow them to maintain the basic supply volumes. Analysts estimate the possible loss of the Russian participants of the industry in such situation at only $50-60 million of EBITDA per year.
The EC has initiated the anti-dumping investigation on imports of hot-rolled flat products from Russia, Serbia, Brazil, Iran and the Ukraine. It was started at the request of the steel lobby Eurofer, filed on May 23, the Bulletin of the EC informs. The investigation will concern uncoated flat hot-rolled except electric steel and stainless steel. The Commission will examine the delivery for the period from July 1, 2015 to June 30, 2016 in order to fund the dumping and injury to local producers, as well as the situation in the period from January 1, 2013 to assess whether the tendency evolved then, threatening the EU steelmakers. The investigation will take up to 15 months, the preliminary duties can be introduced in nine months - in spring of 2017.
European Commission doesn’t take into account arguments of Russian metallurgical companies against dutiesEdited by Rhod Mackenzie / 2016-06-20 09:21:57
The European Commission, the Russian Ministry of Economy and metallurgical companies have discussed the situation around the EU anti-dumping duties on Russian rolled metal and possible violations during the inspection, by results of which they were introduced. The companies have a lot of claims to the conclusions of the EC, including with regard to the behavior of its members who allegedly have explicitly declared their "hatred for Russia". But for a while, according to the Kommersant’s information, the Russian side hasn’t been able to seriously affect the situation, although the European officials have promised to "take into account" received objections and comments.
On Friday, consultation on the preliminary results of the anti-dumping investigation in respect of the supplies of Russian cold-rolled products in Europe took place in Brussels. The meeting was attended by representatives of the European Commission, Ministry of Economy of the Russian Federation, NLMK and Severstal. Preliminary results of the investigation were published in February. As a result, the mode of "non-cooperation" was applied to Severstal and Novolipetsk Steel and temporary duties in the amount of 25.4% and 26.2%, respectively, were introduced. In late May, the European Commission increased the duty to 34.1% for Severstal and to 36.1% for NLMK and other companies. The only exception was Magnitogorsk metallurgical plant (MMK), for which the duty was reduced to 18.7%. The Commission’s report explains the increase in the duties with the 63.8% final dumping margin of Severstal and 68.3% of NLMK and others, besides MMK.
Minister of Foreign Affairs of Russia S.Lavrov asserted the construction of Nord Stream-2 gas pipeline is a commercial project, attempts to block it are of a political nature.
“We are confident Nord Stream-2 will increase energy security in Europe. The project is a commercial one and it joins a number of western companies. Efforts to block the project have a political character. The Americans are trying to make difficulties via their close friends in the North Atlantic Alliance,” RIA Novosti reports citing S.Lavrov.
The European Commission has adopted the mode of "non-cooperation" against Severstal and NLMK, the two main suppliers of cold-rolled steel in the EU, which allowed it to establish protective import duties at the level of 26%. The final amounts of the fees will be announced in August – if it is saved, the Russian steelmakers may lose about $300 million per year. At the same time, a new investigation in Brussels could threaten the companies - already on the hot-rolled metal.
Last Friday, the European Commission published the preliminary results of the anti-dumping investigation in respect of cold-rolled flat products from China and Russia and introduced temporary duties for Russian metallurgists. Every year, Russia exported to the EU up to 1 million tons of cold-rolled steel to the amount of about $300 million, the main suppliers are Severstal of Alexei Mordashov (250-300 thousand tons), NLMK of Vladimir Lisin (about 300 thousand tons) and MMK of Victor Rashnikov (150-200 thousand tons). During the first 11 months of 2015, the import of these products from Russia to the EU, according to the European steel lobby Eurofer, made up 850 thousand tons.
According to preliminary data, in 2015, the goods turnover between Russia and the European Union decreased by 40% as compared to 2014 to $230billion, the First Deputy Head of the Ministry of Economy of Russia Alexei Likhachev stated.
"Valuation roll is very noticeable, clearly showing that, along with other economic groups, namely the European Union suffered the greatest losses in trade with Russia. In figures, this is the fall from $417 billion in 2013 to $230 billion by the end of this year," - he said.
Earlier we observed a strange modesty of "Naftogaz of Ukraine". For several years, "Naftogaz" preferred to remain silent about the volume of investments into the repair and reconstruction of its gas transportation system (GTS). Finally, after years of agonizing doubts the company posted that very data under the scattered public gaze - in the framework of the report for 2014. Let us take the trouble to focus the public eye on the most important and explain why another tube bypassing the Ukraine is necessary.
Yesterday, Russian-German Chamber of Commerce presented results of a survey on the impact of economic sanctions on the business of German companies in Russia. Although respondents recognize the cost-effectiveness of sanctions, the majority of them considers them politically ineffective and hopes for their mitigation or even abolition in January 2016. The German Foreign Minister, in turn, though it acknowledges the negative effect of the sanctions, is not ready to speak for their abolition before the fulfillment of Minsk agreement on the Ukraine.
The results of the survey, conducted among 110 German companies, working in Russia, were presented by head of the Russian-German Chamber of Commerce Rainer Seele yesterday. "A friend in need is a friend indeed: in spite of the sanctions and the difficult economic situation in Russia itself, the fall of the ruble, German companies don’t go away from the Russian market, still seeing the prospects here," - he said to the Kommersant.
On last Friday, the European Commission summed up the anti-dumping investigation on the transformer steel market in Europe, the EC reports. The European zone countries set a duty for this steel for China (28.7%), Japan (35.9%), South Korea (22.8%), the USA (22%), as well as for Russian (21.6%) the EC magazine informs. The dumping margin of Russian transformer steel producers, according to the EC, was 29% (for comparison: the USA’s one - 60.1%).
The EC has analyzed the period from July 2013 to June 2014 and has established anti-dumping duties with a proviso: NLMK and companies from Russia may sell the transformer steel on the European market duty-free, but at the price of not less than 1536 euro per 1 ton. If the price of transformer steel will below this amount, the company will have to pay the anti-dumping duty.