UPDATE 3: EU sets 19.8–26.2% duty on Russian cold rolled steel

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MOSCOW, Feb 12 (PRIME) -- The European Commission has introduced a 19.8–26.2% duty on imports of Russian cold rolled steel, according to documents seen by PRIME on Friday.

The authority earlier completed an anti-dumping investigation, collecting data presented by Russia’s Magnitogorsk Iron and Steel Works (MMK), Severstal and Novolipetsk Steel (NLMK).

It said that it took into account an exceptional state of the Russian economy in the period of investigation and devaluation of the ruble which reached its lowest in 10 years.

As a result, MMK had a 19.8% dumping margin, Severstal 25.4% and NLMK 26.2%.

The E.U. also took into consideration the lack of competition on Russia’s metals market and limits for competition with foreign producers.

Deputy Prime Minister Arkady Dvorkovich promised Russian companies that authorities will try to find a compromise with foreign countries regarding their anti-dumping investigations, the government said in a statement following a meeting of Dvorkovich with representatives of metals companies.

“The meeting’s participants noted that anti-dumping investigations against Russian companies have become more frequent in past months. The deputy prime minister said that work will be done with foreign partners to find a compromise. Exports of Russian metals products will also be supported under implementation of joint investment projects in other countries,” the government said.

An official of NLMK told PRIME that the decision to introduce the duty was a mistake but it will be good for the company’s European facilities.

“We expect that the introduction of duties will reduce competition on the European market and, consequently, possibly raise prices for cold rolled steel. This situation can potentially have a positive impact on rolling mills of NLMK Europe, which are currently under loaded,” the official said.

He said that the company will insist on reconsideration of the issue because European authorities used incorrect data.

NLMK will continue supplies to its European customers, the official said.

Representatives of Severstal and MMK said that the companies will challenge the introduction of the duties. The companies sell steel at market prices, they said.

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