Deal’s End May Boost U.S. Steel Industry
The recent termination of a suspension agreement that shelters Russian hot rolled coil from high import duties could have some positive effects for steelmakers in the United States. The termination of the 15-year-old agreement, as well as the implementation of anti-dumping duties, was finalized in December. It is unclear how long it may take, but domestic producers of steel and steel products could see the prices, which have recently been falling, stabilize or reverse in the following months.
The termination came in the wake of domestic steel manufactures addressing their concerns in July to the U.S Department of Commerce about the suspension agreement which has not stopped Russia from undercutting or flooding the United States’ steel market. The ending of the agreement came as a surprise to both sides of the deal because there wasn’t any news expected on the matter until April when the Department of Commerce planned to have their preliminary ruling of an administrative review completed.
Russia is one of the Unites States’ largest offshore supplier of flat-rolled steel and makes up 16.3% of the 345,186 tons of hot rolled coil that was shipped into the market in September 2014. Some market sources expect that hot rolled coil from Europe, South America and Australia’s steel industries will fill the gap left by Russia.