The Eurasian Economic Union (EAEU) has recommended to implement an anti-dumping duty on imports of hot-dip galvanized flat steel from China and Ukraine. This follows an investigation initiated in June 2018.
The EAEU market defence department suggests a five-year anti-dumping duty on HDG imports from Ukraine-based Metinvest's Ilyich Iron and Steel and other Ukrainian producers of 23.9%. On China's Angang Steel the recommended duty is 17%; on Shandong Esdawn 15.12%; Xinjiang Bayi, Shandong Sino Steel, Gansu Jiu Steel and Dalian Posco 14.39%; and Donge Yike Panel 12.69%. All other Chinese suppliers are given 17%.
The investigation, petitioned for by MMK, NLMK and Severstal, focussed on products falling under HS codes 7210490001, 7210490009, 7210610000, 7212300000, 7212506100 and 7225920000. Imports of these products into the EAEU exceeded 50% of total production volumes within the Union, the bloc says in a note seen by Kallanish.
The investigation concluded that supply of Ukrainian and Chinese HDG caused material damage to the Union's industry during the investigation period from January 2015 to June 2019.
During January 2015-December 2017, Chinese and Ukrainian HDG imports grew by 17.4% and prices by 21.9%, while the Union's apparent consumption increased by 8%. The cost of HDG production rose by 24.5%, leading to profitability and sales volumes decline within the bloc by 3.7 percentage points and 2.2pp respectively.
July 2017-June 2018 saw the Union's apparent consumption fall -2.8%, and Chinese and Ukrainian import volumes drop -25%. Exports were nevertheless conducted at dumped prices, with dumping margin calculated at 12.69-23.90%, depending on the company.
July 2018-June 2019 saw imports of HDG from the two countries rise 12.1%, while apparent demand grew just 2.9%.
Chinese and Ukrainian producers and other interested parties have until 21 October to submit their comments on the decision.