Russian producers warn of economic threat: Chinese steel inundates domestic markets
Major Russian metallurgical firms, including Severstal, NLMK, and MMK, have expressed growing concern over the influx of Chinese steel imports into the Eurasian Economic Union (EAEU) and are pushing for the extension of anti-dumping duties on Chinese products, reports the Russuan newspaper Kommersant. Already hampered by Western sanctions, Russian metallurgists now see China aggressively targeting their internal market. This expansion poses a significant threat to the positions of Russian producers, who also fear the potential resumption of cheap steel imports from Ukraine.
Russian metallurgists are urging the Eurasian Economic Commission to implement measures against this perceived unfair competition. China, producing a staggering 1 billion tons of steel annually, is projected to see its exports rise to 104 million tons this year. Amidst a construction crisis, Chinese steelmakers benefit from favorable bank financing despite low profitability margins of 2-4%, allowing them to offer below-cost prices in new markets. Russia, unable to match these conditions, is poised to lose the battle to Chinese firms.
Beyond China, Russian steel companies view Ukraine as a looming threat to their market standing in the EAEU. Since 2022, Ukrainian products have ceased entering Russia. However, data indicate that between April 2023 and March 2024, Ukraine has been selling galvanized steel to third-party countries at prices lower than those on its domestic market.