The country's largest steelmaker, National Steel Corp. is asking the Department of Trade and Industry to impose a one-year moratorium on Russian steel shipments into the country.
In a letter to Trade and Industry Secretary Jose T. Pardo, Ibrahim Bidin, chairman of the interim management committee of NSC, appealed to the government to immediately adopt the provisions of the US-Russia suspensions agreement against the importation of Russian steel into the country. NSC stated that the continuing surge of unfairly traded Russian imports is now bleeding the local steel industry out of existence.
NSC brought to Pardo's attention the latest development in the moves of the US government to address dumped Russian steel products. On July 12, 1999, the Ministry of Trade of the Russia Federation agreed to sign a suspension agreement that addresses concerns about the dumping of hot-rolled steel products into the United States.
The trade suspension agreement includes a complete moratorium on all shipments for one year, a quota for four subsequent years, and a minimum price provision.
NSC stated that the new development regarding the agreement reached by both US and Russia in addressing the injury of dumped hot rolled steel to the US steel industry is a very clear indication of a world recognition of the trade of Russian hot rolled steels at dumped prices.
"Even the Russians themselves through their Ministry of Trade now recognize the dumped prices. As an example, the Russians agreed to have minimum price of $255 per metric ton FOB for hot rolled steel. This means that the Russians will not price the hot rolled steel they sell to the US at prices below $255/MT (excluding freight cost). However, hot rolled steel from Russia has been and still is coming in our country since last year at prices even below $190/MT C&F!" NSC said.
NSC has shut down its operations since last Nov. 7 and is now facing foreclosure proceedings from its creditor banks.