The EC is investigating the revision of the duty on steel products supplied by Severstal

The European Commission is launching an investigation into a partial revision of the anti-dumping duty on steel products supplied to the region by the Russian Severstal.

The investigation, which concerns the period from January 1, 2020 to December 31, 2020, is initiated by the European Association of the Steel Industry (Eurofer). According to Eurofer, the market conditions under which antidumping duties were imposed on Severstal steel have changed: the Russian company has made a strategic decision to change its business model and increase its exports to the EU. The association also provided information indicating higher steel prices on the domestic mining market compared to export prices, and drew attention to the dumping margin, significantly exceeding 5.3%, according to the European Commission.

According to the data Severstal, in the third quarter of last year, 24% of the company’s revenue came from sales in the European region, in 9 months – 26%. In Q3 2019, this figure was 22%, while Europe accounted for 6% of total sales, and the domestic market accounted for 75%. A source close to the company told Interfax that Severstal’s sales increased by 5.5% relative to 2019.

Eurofer reportedly said in May that it insists on revising antidumping duties with regard to the supply of hot-rolled steel by Severstal to the EU countries, wrote Argus. Severstal has a fixed duty on hot-rolled steel at 17.6 euros per ton ($ 19.35). Eurofer believes that it can be tripled, since, based on an analysis of data from April 2019 to March 2020, the excess dumping margin is 9-17% higher than the established duty.

Then the official representative of Severstal said “Interfax” that if the revision is initiated, the company will be ready to participate in it. “If the revision is carried out fully in accordance with EU legislation and WTO rules, the company will be able to prove that it does not use unfair trading methods and does not dump on the EU market,” spoke in the company.

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