A worker walks in Magnitogorsk Iron & Steel Works.
Photo: Dmitry Lebedev
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Russia’s Economic Development Ministry vs. Metal Makers of Ukraine
Russia’s Economic Development and Trade Ministry launched yesterday the fourth antidumping probe into the import of flat cold-rolled metal from Ukraine. Despite just 5-percent share of Ukrainian metal product on Russia’s market as of late 2005, the ministry stands ready to suppress any attempts of Ukrainian enterprises to compete with domestic metal makers.
Another antidumping investigation of Economic Development and Trade Ministry was spearheaded by Magnitogorsk Iron & Steel Works, Novolipetsk Iron & Steel Works and Severstal, which make 100 percent of flat cold-rolled metal in Russia.
The arguments of domestic producers are as follows. When selling Ukrainian product, the dumping margin was 26.9 percent in 2005. The import from Ukraine grew 149.1 percent from 2003 to 2005, and its share in the overall import of flat cold-rolled metal stepped up 5.9 percent to 90.2 percent in 2005.
As a result, domestic sales of flat cold-rolled metal of Russia’s make dropped 11.4 percent (though the demand gained 0.6 percent), and the sale efficiency went down by 3.3 percent, as the prices of Ukrainian producers proved from 17 percent to 27 percent cheaper than prices offered by Russians.
Therefore, Economic Development Ministry spotted the cause-and-effect relation in dumping import of flat cold-rolled metal and the threat of material damage to respective industry of Russia’s economy. For some reasons, however, the ministry ignored the surge in Russia’s export of steel, which happened in 2003 to 2005 and which to the greatest extent, paved the way for Ukrainian rolled metal to the country.
Moreover, Ukrainian metal makers covered only 5 percent of Russia's metal market as of late 2005, including hot-rolled metal and pipes in addition to flat cold-rolled metal.
www.kommersant.com
All the Article in Russian as of July 05, 2006
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