In response to complaints from European manufacturers, the European Commission is imposing antidumping duties on imports of hot-rolled steel from Brazil, Russia, Iran and Ukraine.
A tariff of between €17.60 and €96.50 per tonne will be levied against exports starting Oct. 7, the EU's executive arm said Oct. 6.
The EU launched an investigation in July 2016 following a complaint by the European Steel Association that non-EU exporters were offering their products at excessively low prices.
Antidumping tariffs on Brazilian exporters vary from €53.40/t on Cia. Siderúrgica Nacional to €63/t on Usinas Siderúrgicas de Minas Gerais SA.
The Mobarakeh Steel Co. and other producers in Iran were slapped with a duty of €57.50/t, while leading Russian steel producers PAO Severstal and PJSC Novolipetsk Steel will be subject to tariffs €17.60/t and €53.3/t, respectively. PJSC Magnitogorsk Iron & Steel Works was hit with a duty of €96.5/t, the heaviest levy imposed.
Metinvest BV, which holds significant assets in Ukraine, will be subject to a duty of €60.50/t.
Russian steel producers were quick to react to the measures. In a written note to S&P Global Market Intelligence, Novolipetsk Steel, also known as NLMK, said the measures would bolster the position of the group's European companies, which produce and sell hot-rolled steel locally.
"The hot-rolled steel output of Belgium-based NLMK company La Louvière, for example, in the first half of 2017 amounted to 770,000 tonnes and there is a growth potential for output and sales as the nominal capacity of the rolling mill is close to 2.5 million tonnes per year," the company said.
Severstal said it may continue to ship hot-rolled steel to Europe, as the tariff imposed on imports to the EU was relatively low at 5.3%.
"The company has been assigned the lowest anti-dumping duty of all exporters. This has given Severstal a strong competitive advantage over other suppliers," said the company in an official statement.
Severstal also said it believed that the EU's conclusions on dumping were incorrect, as at the time of the investigation, prices were extremely low and had a negative impact on all market players globally.