The Russian Federation Ministry of Economic Development and Trade (MEDT) has announced its decision to initiate a special safeguard investigation into the increasing imports of stainless steel pipes to the territory of the Russian Federation.
The investigation was initiated on behalf of Russian pipe producers Volzsky Pipe Plant, Sinarskiy Pipe Plant, Pervouralsky Novotrubniy Plant and Chelyabinsk Tube Rolling Plant, which together share 88 percent of all stainless steel pipes of the following qualifications produced in Russia.
The subject products under investigation include stainless steel pipes with diameter up to 426 mm (inclusive) under the following HS Codes: 7304 11 100 1, 7304 11 100 2, 7304 11 100 9, 7306 11 110 0, 7306 11 190 0, 7304 11 300 1, 7304 11 300 2, 7304 11 300 9, 7306 11 900 0, 7304 11 900 1, 7304 11 900 2, 7304 11 900 9, 7306 40 200 1, 7306 40 200 9, 7306 40 800 9, 7304 41 000 1, 7304 41 000 9, 7304 49 100 0, 7304 49 920 0, 7304 49 990 0 (in revised HS Code of Russia during 2004-2006 the following including 7304 10 100 9, 7304 10 300 9, 7304 10 900 9, 7304 29 110 9, 7304 31 910 0, 7304 31 990 0, 7304 39 590 0, 7304 39 910 0, 7304 39 930 0, 7304 39 990 0, 7304 41 100 0, 7304 41 900 0, 7304 49 100 0, 7304 49 910 0, 7304 49 990 0, 7304 51 190 0, 7304 59 910 0, 7304 59 930 0, 7304 90 900 0, 7305 31 000 0, 7305 39 000 0, 7306 10 190 0, 7306 30 510 0, 7306 30 590 0, 7306 30 710 0, 7306 30 780 0, 7306 30 780 9, 7306 30 900 0, 7306 40 100 0, 7306 40 910 0, 7306 40 990 0, 7306 40 990 1, 7306 40 990 9, 7306 50 910 0, 7306 50 990 0, 7306 60 310 0, 7306 60 900 0, 7306 90 000 0, 7306 90 000 9).
Based on the data presented by the Russian pipemakers in question for the period covering 2004 through 2006, MEDT has concluded that during the given period, imports of the subject products increased by 70 percent; the main exporters of the subject products were the EU, China, and Ukraine. In addition, MEDT has determined that serious damage has been caused to the Russian economy. In particular, during the period in question, production and sale volumes of stainless pipes in Russia decreased by 12.5 percent and 2.4 percent respectively. Meanwhile, the share of Russian producers in overall stainless pipe consumption decreased from 46 percent to 32.9 percent, and the production capacities were reduced by 11.1 percent. Furthermore, the volume of investment was reduced by 6.7-fold.
Following the consideration of the above-mentioned facts, MEDT has determined that the imports of the subject products caused harm to the Russian economy. In particular, the share of the imported subject products increased from 54 percent in 2004 to 67.1 percent in 2006. In addition, MEDT has also determined that the price of the imported pipes in question was lower than that of Russian-origin stainless pipes.
Within 60 days from the beginning of the investigation the concerned parties are invited to submit a petition for the holding of an open hearing regarding the issue, while within 120 days the parties can present their views on the issue.