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Russia

Eurofer requested investigation of dumping by Severstal – NEGATIVE

  • The European Commission is in a process of initiation an interim review of anti-dumping measures applicable to imports

  • The procedure was requested by Eurofer in relation to Severstal’s steel exports to the EU

  • There is obviously a steel deficit on the EU market, which has seen a sharp increase in prices lately

Yulia Tolstykh
Yulia Tolstykh

Analyst, Metals & Mining

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Boris Krasnozhenov
Boris Krasnozhenov

Head of Research (Managing Director)

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Alfa
18 January 2021
Published byAlfa

Earlier today we have learned that the European Commission is in a process of initiating an interim review of anti-dumping measures applicable to imports of certain flat hot-rolled products originating from Russia. The procedure was requested by Eurofer in relation to Severstal’s steel exports to the EU. According to Eurofer, Severstal has increased steel exports to the EU while selling at a discount to domestic prices. Severstal commented that the company supplies products to the EU in accordance with international law. Volumes to the EU are already regulated by quotas and the y/y increase is negligible. Severstal will participate in the investigation to defend its position that it does not dump on the EU market.

The news is NEGATIVE for the stock sentiment-wise but we do not envisage the introduction of any additional trade barriers in the near term. There is obviously a steel deficit on the EU market, which has seen a sharp increase in prices lately. Additional measures in such a situation may negatively affect European customers. However, the trade restriction risk remains high and tangible for Russian steel producers, who sell around 50% to overseas markets.