Term for Ukrainian Rods Extended
Russian Prime Minister Mikhail Fradkov sealed the ruling to extend duties on steel fittings import from Ukraine (21 percent) till the middle of December to give time to officials to determine whether the Ukrainian product is so detrimental to Russian economy. Metal makers say they would have lost roughly $1 billion over a year if the duties had not been prolonged and call on the RF Economic Development and Trade Ministry to introduce quotas for other CIS countries.
In Russia, steel rods for concrete structure enforcement are made at Mechel, Evrazholding, Severstal Group’s enterprises and at VMZ Krasny Octyabr of Britain Midland Resources. 2004 output reached 4 million tons, aggregate capacity is around 6 million tons. Russian metal makers account for 56 percent of the national steel rod market.
Ukrainian steel rod makers are Krivorozhstal, Yenakievsky Metal Works, Makeevsky and Donetsky Metal Works. Aggregate capacity exceeds 5 million tons on year.
The 21-percent antidumping duty on Ukrainian steel rods was imposed on July 8, 2002 to expire on August 14, 2005. As a result, Ukrainian import of the product slid to 19,000 tons in 2003 only to go up to 174,500 in 2004, according to the Industry and Energy Ministry.
Apprehensive of duty’s expiration, Russia’s metal makers addressed the Economic Development Ministry seeking prolongation for the duties on the steel rod import from Ukraine and introduction of quotas for that product for other CIS countries. Among the arguments was the surge in the product import from CIS – 262 percent up vs. 2002. However, the ministry appeared to think different. Imported metal product doesn’t hinder economy of the country, the officials said. But according to Alexey Ivanushkin, executive director at Mechel, steel makers will lose around $1 billion in profits over the year, if the duties are not extended.
To stand for the metal makers, Russian Mining and Metal Trade Union went to PM Mikhail Fradkov with a letter, seeking to prolong the duties for another two years or introduce temporarily restrictions for the period of another investigation. Sources with the Economic Development Ministry said, at the end of the past week, Frakov extended the duties for four months, so that the ministry could carry out repeated probe to check the data on damages provided by the metal makers of Russia.
www.kommersant.com
All the Article in Russian as of Aug. 15, 2005
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