Author: Paul Ploumis
21 Oct 2014 Last updated at 01:37:52 GMT
SEATTLE (Scrap Monster): The US Department of Commerce (DOC) has announced termination of the suspension agreement on certain hot-rolled steel products from Russia. The suspension of the 15-year old agreement will become effective in 60 days, after which the imports shall be subject to provisions of US antidumping laws and regulations. According to reports, letter to this effect is already forwarded to the Russian Ministry of Economic Development.
Earlier this year, US steel firms including Nucor Corp., Gallatin Steel Co., Steel Dynamics Inc. and SSAB North America had pointed out the ineffectiveness of the suspension agreement and had demanded revocation of the same.
According to them, the US market continued to remain under pressure due to dumping of Russian products at lower prices. The flooding of underpriced hot rolled steel by Russian manufacturers has damaged the domestic steel industry in the country, they noted. The Russian hot rolled steel reference prices had quoted at nearly $180 per ton lower than the then prevailing market price during Q2 2014.
The American Iron and Steel Institute (AISI) today applauded the US DOC decision to revoke the suspension agreement with Russia. The Institute termed the agreement as ‘outdated’ and further noted that the agreement which was designed for a different era is presently no longer working. The action by the US DOC will support the domestic steel industry, it observed.