US steelmakers strive to get rid of Russian products in their market

US steelmakers blamed Russia for flooding the domestic steel market for cheap flat products, challenging a trade agreement and reopening old disputes over Russian imports amid heightened tensions between the countries. They believe that Russian manufacturers are undercutting local prices and filling the United States with their products, which increased significantly in the American market in the first half of 2014 compared to last year.

Russia is the main supplier of HRC and the move by US steelmakers also reflects concerns about weak global prices, excess and lack of demand for hot rolled steel used in instrumentation and automotive.

The metals industry noted that the base price of Russian products has been below US market prices since 2004. The difference in price was more than $ 180 in the second quarter of 2014. Russian prices were also lower than any other imports sold in the US markets.

The Commerce Department said it was reviewing the request, which came while the court ruled on anti-dumping duties on imports of pipes destined for the oil and gas industry. The US Department of Commerce was contacted by Nucor Corp, US Steel Corp, Steel Dynamics, SSAB and ArcelorMittal US.

If the agreement is liquidated, Severstal of Russia will have anti-dumping duties of 73.59 percent. Other Russian producers, such as the Novolipetsk Iron and Steel Works and the Magnitogorsk Iron and Steel Works, will face 184.56 percent. The agreement may be terminated 60 days after notification and duties will be applied immediately.