Russian flat-rolled steel producers
The U.S. Department of Commerce will terminate a 15-year-old deal sheltering Russian flat-rolled steel producers from high import duties, it said in a letter to Russian authorities.
In the letter published on Monday, the United States gave Russia 60 days notice of the termination and said anti-dumping duties would then apply.
The so-called suspension agreement has sheltered Russian steelmakers from anti-dumping duties as high as 184.56 percent on hot-rolled, flat-rolled, carbon quality steel, instead setting a cap on imports and a minimum price.
Duties will apply beginning Dec. 16, according to the letter from Ronald K. Lorentzen, the Commerce Department's deputy assistant secretary for enforcement and compliance, to Russia's economic development ministry.
Severstal (CHMF.MM), one of Russia’s top steel producers, blasted the proposed move. It claimed there was “no objective reason” for it because the price of hot-rolled coil in the U.S. market has actually risen this year and it indicated it might appeal the decision to “defend our interests.”
A spokesman for the Russian ministry told Reuters his office had received the formal notice and was studying the issue.
