Russian steel lost its privileges in the USA

The US Department of Commerce will end 15 years of trade relations regarding imports of steel production, steel pipes and tubes from Russia. The department gave Russia 60 days to comply and mentioned that it will then apply anti-dumping obligations.

Suspension of the contract will force Russia to reconsider its policy of preferential steel exports. This is logically followed by an increase in prices, beyond the guarantees until now.

Russian decision-makers reacted by saying that „there are no objective reasons” for such an action. And that in the USA there is an increase in prices which indicates to the Russian side that „we have to defend our interests”.

The spokesperson of the relevant Russian ministry told Reuters that they had received the document and that they would study it carefully.

Sanctions for steel imports from Russia

The USA has recently intensified the sanctions against Russia. After the intensification of its military intervention in Ukraine, the economic targets being banks, oil producers and steel factories.

American producers complained to the Ministry of Commerce that Russian exporters violated a 1999 agreement. That regulates the prices of Russian steel products in the US. They said that the Russians sell at the price of 2004 on the American market.

„It is obvious that the parameters of the relationship in the field of steel have changed, so Russia should no longer be given special treatment”. Said Alan Price, lawyer for American companies involved in the steel trade.

The current anti-dumping percentage is 73.59%, and the Russian producers – NOVOLIPETSK and MAGNITOGORSK – benefited from facilities of 184.56%. Basically, the Americans involved in steel want a new regulation and an up-to-date stabilization to limit their losses.

The American Iron and Steel Institute (AISI) welcomed the decision, saying that „the understanding could no longer be continued.”

„Our industry can no longer tolerate the preferential treatment applied to Russian producers who send their products to us under conditions that serve vested interests”. Said AISI president Thomas Gibson.

Source: tribelive.com