US DOC lowers reference prices in suspension agreement with Russia

The US Department of Commerce (DOC) has calculated the fourth quarter 2012 reference prices for hot-rolled steel flat products pursuant to the suspension agreement with Russia. 
 
The reference prices for the fourth quarter of 2012 (i.e., October 1- December 31, 2012) are as follows (with the reference prices from the third quarter of 2012 in parentheses for comparison):
 
Group 1:  Commercial and Structural Quality Steel - A36; A1011-CS; A1011-SS-Grades 30, 33, 36, 40; A1018-SS-Grades 30, 33, 36, 40; and API 5L Grades A and B

• Reference price: $409.01/metric ton (mt) ($419.29/mt)

Group 2:  HSLA & HSLA-F Quality Steel Grades - A752; A1011-HSLAS; A1018-HSLAS; A1011-HSLAS-F; A1018-HSLAS-F; API 5L Grades X42, X46, X52, X56, X60; and API 5CT Grades J55 and K55

• Reference price: $449.05/mt ($460.34/mt

Group 3:  High Grade Coils and Sheets for Pipes and Casings - API 5L Grades X65, X70, X80

• Reference price: $522.10/mt ($535.23/mt)

The DOC is conducting an administrative review of this suspension agreement, and it preliminarily determined that there was price undercutting by imports of Russian hot-rolled coils during the period of review.  The DOC and the Russian Government are trying to negotiate a revised Suspension Agreement that will remedy the price undercutting.  If they fail to reach an agreement, the DOC has stated that it will terminate the Suspension Agreement, which could result in the eventual assessment of dumping duties.