The Domestic Market Protection Department of the Eurasian Economic Commission has announced the start of an anti-dumping investigation after an application was filed by OAO Severstal, one of the world’s leading vertically integrated steel and steel-related mining companies, and other Russian manufacturers. The inquiry relates to the dumping of wire rods manufactured in Ukraine and imported to the single customs territory of the Customs Union.

The dumping allegations specifically refer to hot rolled wire rods with similar solid cross-section along their whole length in the shape of circles, made from carbon and alloy steel, in coils or cut to a specific length, which may have holes, ribs, grooves and other manufacturing deformations, with or without further processing. Wire rods made from free-cutting steel, high-speed steel, tool steel, ball bearing steel and corrosion-resistant steel, forged wire rods or rods undergone cold deformation, bored wire rods and hollow rods used in drilling operations are excluded from the investigation.

Over recent years the volumes of wire rods imported from Ukraine have risen consistently from 469 thousand tonnes in 2010 to 800 thousand tonnes in 2012. In 2013, Ukraine further boosted its imports, with more than 619 thousand tonnes of wire rods imported into the Customs Union in the first six months of 2013 63% more than during the same period last year.

Meanwhile, Ukrainian manufacturers have expanded exports into Russia, Belarus and Kazakhstan at dumping prices. The Russian manufacturers spearheading the investigation estimate anti-dumping margins were 12.6%.

The dumping of Ukrainian export hot rolled wire rods has a significant impact on the performance of domestic companies and causes financial damage to the steel industry of the Customs Union.

Mr Dmitry Goroshkov marketing and sales director of Russian Steel Division at Severstal commented that “Severstal plans to actively participate in the investigation to eliminate unfair competition in the domestic market and to reduce the negative impact of dumping from Ukraine. The company also supports changes to the laws of the Customs Union to strengthen protective, anti-dumping and countervailing measures. According to WTO law, manufacturers in the Customs Union are able to apply for the retroactive application of preliminary and final duties to improve trade protection measures.”