EU to investigate Turkish, Russian HDG

The European Commission is expected to launch an anti-dumping probe into Turkish and Russian hot-dipped galvanised steel imports, following a petition from producers, according to market participants.

European steel association Eurofer refused to comment, but multiple participants said they expect the move because HDG imports from the two countries have risen amid a shortage of material in the bloc.

Turkish imports hit 916,600t in 2020, up from 692,700t in 2019, while Russian receipts increased to 311,900t from 261,900t. In the first quarter of 2021, Russian imports rose by 41pc on the year to 114,600t, and Turkish imports by 70pc to 315,400t. The rise could reflect scarce EU supply, which has led to sharp price increases — ArcelorMittal has been targeting €1,320/t since late May — as well as the imposition of dumping duties on Turkish and Russian HRC.

“The product concerned is defined as flat-rolled products of iron or alloy steel or non-alloy steel; plated or coated by hot-dip galvanisation with zinc and/or aluminium and/or magnesium, whether or not alloyed with silicon; chemically passivated; with or without any additional surface treatment such as oiling or sealing; containing by weight not more than 0.5pc of carbon, not more than 1.1pc of aluminium, not more than 0.12pc of niobium, not more than 0.17pc of titanium and not more than 0.15pc of vanadium; presented in coils, cut-to-length sheets and narrow strips originating in Turkey and Russia. The following products are excluded: (i) of stainless steel, of silicon-electrical steel, and of high-speed steel, and (ii) not further worked than hot-rolled or cold-rolled (cold-reduced),” according to a letter to sellers seen by Argus. Turkish mills have recently been able to take advantage of competitive Chinese substrate, which is also subject to duties in Europe.

Market participants expect EU HDG prices to surge now, with traders already preparing.

By Lora Stoyanova