Steel Mills
US Steel Mills Mulling Challenge to Russian HRC Imports
Written by Sandy Williams
June 18, 2014
The US steel industry is contemplating challenging a trade agreement with Russia that governs imports of hot rolled steel from Russia. A suspension agreement currently exempts Russian steelmakers from antidumping duties by setting a cap and minimum price on HRC imports.
According to a Reuters article on Tuesday, US steel companies say the hot rolled coil pricing is set too low and are considering urging the Administration to drop or adjust the exemptions.
Russian import of HRC increased 162 percent in the first three months of 2014 compared to the previous three month period.
“Given the volume of imports coming in, the industry is actively exploring its options to terminate or modify the agreement,” an attorney familiar with the Russian case said in the Reuters article. “We are in the process of preparing a filing for the U.S. government.”
A revision or termination of the agreement would benefit domestic steel companies like US Steel, Nucor and AK Steel.
The original 1999 agreement was made following an influx of Russian steel imports after the Cold War. It can be terminated with 60 days notice, or modified by negotiation.
The agreement was renegotiated two years ago increasing the minimum price for HRC imports. The current references prices range from $554.61 per ton to 709.90 per ton
Antidumping duties would be applied immediately should the agreement be terminated. Russian steelmaker Severstal, which is currently looking for buyers for its US-based mills, would face antidumping duties of 73.59 percent on its exports to the US. Other Russian steelmakers could face duties of 184.56 percent.
The challenge comes in the midst of tensions with Russia over the Ukraine conflict as well as a host of trade disputes with other global steelmakers.
US Steel and Nucor had no comment at this time.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Ternium pushes forward with growth projects despite slump in earnings and Mexican market
Ternium S.A. Fourth quarter ended Dec.31 2024 2023 Change Net sales $3,876 $4,931 -21.4% Net income (loss) $333 $554 -39.9% Per diluted share $1.43 $2.11 -32.2% Full year ended Dec.31 Net sales $17,649 $17,610 0.2% Net income (loss) $174 $986 -82.4% Per diluted share $(0.27) $3.44 -108% (in millions of dollars except per share) While […]
Kestenbaum, Ancora state their case in proxy fight for U.S. Steel
Ancora Holdings is moving forward with its proxy fight to oust U.S. Steel’s leadership and install a new board of directors and Alan Kestenbaum as CEO.
BlueScope shelves midstream facility but still upbeat on US
BlueScope Steel is pulling back on its expansion plans in the US for now but remains optimistic about the North American market.
Japanese PM cites ‘unjust political interference’ in Nippon/USS deal: Report
Japan’s Prime Minister Shigeru Ishiba said on Monday that former President Joe Biden’s decision to block Nippon Steel’s buy of U.S. Steel was “unjust political interference,” according to a report in Reuters. This comes after another Reuters report on Friday saying that President Trump would not object to Nippon taking a minority stake in the […]
Trump says Nippon will ‘invest heavily’ in USS rather than buy it
Nippon Steel has agreed to “invest heavily in U.S. Steel as opposed to own it,” President Donald Trump said on Friday during a press conference with Japanese Prime Minister Shigeru Ishiba. U.S. Steel is “a very important company” and was once “the greatest company in the world”. Of potential foreign ownership of the Pittsburgh-based steelmaker, Trump said, “the concept, psychologically, not good."