Severstal replaces Russian steel with imports from China

Russian Severstal has increased supplies to the EU market. Cheap steel will always find a way to enter the market. Recently, the Americans have agreed that some of the steel imports from Vietnam are indeed Chinese imports supplied through Vietnamese companies.

Severstal sold Chinese steel on the EU market, since duties on Chinese products are significantly lower than on Russian ones. While tariffs on imports from Russia range from 18.7 to 36.1 percent, for steel from China, from 19.7 to 22.1 percent. Considering that in Europe customs duties are calculated for individual producers using Chinese steel instead of their own, the company received duties lower by at least 12 percentage points.

Russian producers benefit from, among other things, the exchange rate of the ruble against the dollar, providing significant profitability compared to their European competitors. According to the European Commission, the share of Russian cold-rolled products on the EU market increased from March 2015 to March this year from 5.9 percent to 9.8 percent. This is another example of the need for changes in European market protection policy, as noted by EU experts.