MOFCOM Announcement No. 34, 2012 on Ending AD Review on Russian Grain-Oriented Flat-Rolled Electrical Steels

Issued by: The Ministry of Commerce of China (MOFCOM)
Issue No.: Announcement No. 34 of 2012
Issue Date: June 21, 2012


According to China's Anti-Dumping Regulations, on June 27, 2011, the MOFCOM issued its Announcement No. 37 of 2011 to start an antidumping (AD) midterm review on the Grain-Oriented Flat-Rolled Electrical Steels made by two Russian enterprises Novolipetsk Iron & Steel Works and VIZ-Stal Ltd.

The MOFCOM hereby decides to terminate the antidumping midterm review from the issue date of this Announcement because of the termination request jointly made on June 4, 2012 by two Chinese petitioners Wuhan Iron & Steel (Group) Corporation and Baosteel Group Corporation.

Annex: MOFCOM Decision for Terminating Antidumping Midterm Review on Grain-Oriented Flat-Rolled Electrical Steels Made by Russian Novolipetsk Iron & Steel Works and VIZ-Stal Ltd.

According to China's Anti-Dumping Regulations, the MOFCOM announced on June 27, 2011 starting the antidumping (AD) midterm review on the Grain-Oriented Flat-Rolled Electrical Steels made by two Russian enterprises Novolipetsk Iron & Steel Works and VIZ-Stal Ltd.

The MOFCOM has investigated the normal value, export prices and dumping margins during the review investigation period regarding the products made by the two Russian enterprises.

On June 4, 2012, the Chinese petitioners Wuhan Iron & Steel (Group) Corporation and Baosteel Group Corporation both proposed to the MOFCOM the revocation of their review petition and requested the MOFCOM to terminate the review.

Relevant matters are hereby announced:

1. Investigation Procedure:

(1) Original Antidumping Measures:

On April 10, 2010, the MOFCOM decided to conduct the antidumping measures from April 11, 2010 with the antidumping duty rate 6.3% levied on Russian Novolipetsk Iron & Steel Works and VIZ-Stal Ltd.

(2) Petition for Review

On April 29, 2011, Wuhan Iron & Steel (Group) Corporation and Baosteel Group Corporation petitioned the MOFCOM to conduct a midterm review on dumping acts and dumping margins of the two Russian enterprises, requesting the calculation of their dumping margins over the past one year and revision of the antidumping duty rate on them.

(3) Pre-Institution Notice and Interested Parties' Comments

On May 10, 2011, the MOFCOM informed related Russian enterprises of the midterm review petitioned by the Wuhan Iron & Steel (Group) Corporation and Baosteel Group Corporation, forwarding them the open text of the Chinese petition and non-confidential summary concerned.

On May 31, 2011, Novolipetsk Iron & Steel Works and VIZ-Stal Ltd. submitted to the MOFCOM their comments, which hold that the Chinese petition presented incorrect export price information and overestimated normal value.
The MOFCOM affirmed that Chinese statistics on the export prices are correct and Chinese calculation of the normal value is reasonable, which therefore constitute the preliminary evidence for the review.

(4) Review Institution

On June 27, 2011, the MOFCOM issued its Announcement No. 37 of 2011 to start the antidumping midterm review on Russian Novolipetsk Iron & Steel Works and VIZ-Stal Ltd. in terms of their dumping acts and dumping margins, and informed the interested parties of the review institution.

(5) Questionnaire Issue

On June 27, 2011, the MOFCOM sent questionnaires to Novolipetsk Iron & Steel Works and VIZ-Stal Ltd. respectively, from which no answer sheet was received in a time limit.

(6) Comments from the Interested Parties

After examining the comments from the interested parties, the MOFCOM held that, firstly, the midterm review herein does not involve identification of the injury from dumping, but only involving investigation on the dumping margins that changed after implementation of China's antidumping measures, and second, the MOFCOM does not break China's laws or regulations by reviewing the original antidumping measures before a relevant ruling is made through China's judicial procedure.

2. Investigated Products

Product Name: Grain Oriented Flat-Rolled Electrical Steels

Chinese HS Codes: 72251100 and 72261100

Product Description: a kind of alloy-steel flat-rolled metal, with silicon content at least 0.6%, carbon not more than 0.08%, or aluminum not more than 1.0%; its thickness is not more than 0.56 mm; in a roll shape, it can be in any width; in a plate shape, it can have a width at least ten times its thickness.

Main Usage: a kind of soft magnetic material essential in the electric utility industry for transformers, rectifiers, reactors and big electric machines.

3. Termination of Investigation

On June 4, 2012, the Chinese Wuhan Iron & Steel (Group) Corporation and Baosteel Group Corporation submitted their written request to the MOFCOM for revoking their midterm-review petition and terminating relevant investigation by alleged reason that some change has taken place in Chinese local market after the institution of the midterm review.

Therefore, the MOFCOM has decided to terminate from June 21, 2012 its midterm review on the dumping acts and margins of the steels herein made by Russian Novolipetsk Iron & Steel Works and VIZ-Stal Ltd.