US breaks off treaty with Russia on special conditions for imports of hot rolled steel

The US Department of Commerce (DOC) announced the termination of the contract for the supply of hot rolled steel products from Russia. The suspension of the 15-year agreement will take effect 60 days after the announcement, after which the import of HRC from Russia must comply with the general provisions of US anti-dumping laws and regulations. According to available data, a letter informing about this DOC decision has already been sent to the Ministry of Economic Development of Russia.

Earlier this year, US steelmakers, including Nucor Corp, Gallatin Steel Co, Steel Dynamics and North American SSAB, pointed to the ineffectiveness of the agreement and demanded that it be canceled.

According to these companies, the US market continues to be under pressure due to the supply of Russian products at lower prices. Reduced prices for hot rolled steel from Russian producers are damaging the country's domestic steel industry, the companies note. Russian hot rolled product prices are almost $ 180 /t lower than prevailing market prices throughout 2014.

The American Iron and Steel Institute (AISI) today welcomed the US Department of Commerce's decision to withdraw its agreement with Russia. The institute called the agreement "obsolete" and noted that the agreement was designed for a different era and is no longer working at this time. The US DOC action will support the domestic steel industry, AISI claims.