July 6, 2022 – The International Trade Administration has announced its intention to extend the anti-dumping measure on stainless steel sheet and strip from China. Average dumping margin of more than 76%. Is the Rusal Nornickel merger coming? Alternative energy: huge opportunity for Europe, but still caught in regulatory madness.
US stainless steel anti-dumping measure to be extended
The International Trade Administration (ITA) has announced the Final Results of Expedited Sunset Review of the Anti-dumping Duty Order regarding Stainless Steel Sheet and Strip from the People’s Republic of China.
Recurrence or continuation of dumping remains likely
In it, the ITA concludes that the removal of the anti-dumping duty on stainless steel sheet and strip (SSSS) from the People’s Republic of China would likely lead to a continuation or recurrence of dumping. The magnitude of the average dumping margin would be 76.64%, as in the past.
Anti-dumping duties of up to 58.04% still possible
Thus, it can be assumed that the previous US anti-dumping duties of 45.26 to 58.04% on stainless steel sheet and strip (SSSS) from China will be maintained.
Is the Rusal Nornickel merger coming now?
Norilsk Nickel has received a proposal from Rusal to reconsider a merger, Nornickel President and CEO Vladimir Potanin said Tuesday, adding that the leading nickel producer has confirmed its readiness to start negotiations.
The proposed merger would make it possible to diversify the shareholder base and improve stability amid ongoing sanctions, Potanin said. The “green” agenda and sustainability would be an additional factor, Potanin said.
Aluminum group Rusal already holds the second-largest stake in Russian company Nornickel. Currently, negotiations for an extension of the shareholders’ agreement at Nornickel are deadlocked. This is probably one of the reasons why a merger was once again brought into play.
Could a merger lead to further sanctions?
In view of the sanctions already in place against Russia, a merger could lead to a further tightening of the measures. Most recently, the UK government imposed sanctions on Vladimir Potanin. Rusal founder Oleg Deripaska, whose EN+ Group is the largest shareholder in Rusal with a 56.88% stake, is also on the European Union’s sanctions list, among others.
Alternative energies need start-up aid
According to a recent assessment by EU steel producers and the European wind power association WindEurope, the demand for renewable energies in European steel production alone is once again 50% higher than assumed by the European Commission in its Fit for 55 program.
Natural gas no longer an option by 2030
This makes the calls from steel producers for a solution to this problem all the more urgent. After the plan to switch to natural gas only for the time being by 2030 failed due to the Russian war against Ukraine.
In particular, and despite declarations of intent to implement a 40% share of renewable energies in the EU by 2030, the regulation mania has not yet decreased, especially with regard to solar and wind power.
Wind power regulation mania in the EU
Efforts of the German Federal Minister of Economics, Robert Habeck, to deregulate the expansion of renewable energies have led to a situation in the federal states of the largest EU member state, where all governments are now trying to quickly write a 1,000 meter distance regulation to residential areas into their laws.
Biggest opportunity for Europe in decades
Instead of recognizing this important step and the great opportunity it offers to put the European energy supply on a new footing and thus give industry an important and job-saving impetus, they continue to shy away from the necessary measures.
Energy transition: 845 million tons of metal needed?
A Dutch study just concluded that the Netherlands alone would need up to 33 million tons of steel, aluminum, nickel and other metallic raw materials to switch completely to renewable energies. If this demand is simplified to the entire EU27, it would be more than 845 million tons of metal.
It is about time that the legislators in the EU member states get moving and throw the tangle of unnecessary regulations into the garbage can – to burn, not to recycle.
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