The European Union has imposed 5 years antidumping duties on cold-rolled metal from Russia. The sanctions have affected the largest Russian metal companies: Severstal, Magnitogorsk and Novolipetsk Iron and Steel Works.
The lowest duty is imposed for MMK – 18.7%. Severstal received 34%, while NLMK – 36.1%.
The reason for the investigation was the complaint of the European Steel Association (Eurofer), which represents the over 25% of cold-rolled sheet manufacturers. The association accused Russian metal companies of cold-rolled metal price decrease.
These duties are prohibiting for Russian metal manufacturers, according to KPMG expert Dmitry Smolin.
“They will have to look for new export markets, and the competition among them on the local market will increase”, he said.
In 2015 Russia exported some 700 thousand tons of cold-rolled metal to EU, with NLMK, Severstal and MMK accounting for almost 90% of the total volume.
Annually Severstal supplies around 200-250 thousand tons of cold-rolled metal to Europe, with 100 thousand tons from MMK and 350 thousand tons from NLMK. (Ukrainian metal)