Cablegate: Ukraine: Usitc Review of Steel Antidumping And

VZCZCXYZ0009
PP RUEHWEB

DE RUEHKV #1776/01 2011050
ZNR UUUUU ZZH
P 201050Z JUL 07
FM AMEMBASSY KYIV
TO RUEHC/SECSTATE WASHDC PRIORITY 3127
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS KYIV 001776

SIPDIS

SENSITIVE
SIPDIS

STATE PLEASE PASS TO USITC FOR LSCHLITT
STATE PLEASE PASS TO USTR FOR KLEIN/MOLNAR
USDOC FOR 4231/ITA/OEENIS/NISD/CLUCYCK
STATE FOR EUR/UMB, EB/TPP/BTA, EB/TPP/MTA

E.O. 12958: N/A
TAGS: ETRD ECON UP
SUBJECT: UKRAINE: USITC REVIEW OF STEEL ANTIDUMPING AND
COUNTERVAILING DUTY ORDERS

REF: STATE 81993

Treat as Sensitive but Unclassified. Contains business proprietary
information. Not for Internet.

1. (U) In response to reftel, Post formally requested the GOU to
provide information regarding the production of steel products
covered by the upcoming ITC five-year review of antidumping and
countervailing duty orders. We received a response from the
Ministry of Economy on July 18. An unofficial translation of the
letter is provided below. (Note: This letter contains business
proprietary data in the form of two data tables, which should be
protected accordingly. Para 2 below is marked SBU solely because of
the business proprietary contents of these two data tables. End
Note.)

2. (SBU) BEGIN TEXT OF LETTER

July 18, 2007 # 142-26-7/292

Deputy Economic Counselor
U.S. Embassy to Ukraine
J.P. Schutte

Information regarding the U.S. Department of Commerce's
five-year review of the antidumping and countervailing
duty orders on hot-rolled steel products from Ukraine

Dear Mr. Schutte,

As to your request of June 21, 2007 to provide information on
Ukrainian exports of hot-rolled steel products to the U.S., the
Ministry of Economy has coordinated its efforts together with the
Ministry of Industrial Policy and Ukrainian producers of the subject
merchandise to inform you of following.

The producers of hot-rolled steel products in Ukraine are: OJSC
"Mariupol Steel Mill named after Illich" and OJSC "Zaporizhsteel."

All the information regarding your request has been provided
based on the data of OJSC "Mariupol Steel Mill named after Illich."

Year Capacity Output Capacity

(thousands (thousands Utilization
of tons) of tons)
---- -------- --------- -----------
2001 3800 2810.45 73.96%
2002 3800 3049.74 80.26%
2003 3800 3402.51 89.54%
2004 3800 3640.07 95.79%
2005 3800 3744.30 98.53%
2006 3800 3647.88 96.00%

Year Supplies to Domestic Market
---- ---------------------------
Quantity Value
(thousands of tons) (thousands UAH)
----------------- -------------
2001 83.4 66174.1
2002 166.0 153365.9
2003 130.5 155363.0
2004 258.0 497653.9
2005 217.2 447059.4
2006 306.7 671343.9

We would also like to mention that it is not possible to
provide official statistics on export of the relevant products to
the U.S., because there is no table matching the codes of the U.S.
HTS and Ukraine's Single Trade Registry of Foreign Trade
Commodities.

Considering the fact that the information provided in this
letter contains data on output and sales of a company, the Ministry
of Economy requests confidential status for this information
according to an Administrative Protection Order.

The Department of Antidumping Investigations and Protection of
Domestic Market confirms its commitment to future cooperation,
should you have any questions.

[Signature]

N. Sydoruk

Deputy Director
Department of Antidumping Investigations and
Protection of Domestic Market

END TEXT OF LETTER

3. (U) Econoff followed up with Natasha Sydoruk from the Ministry of
Economy on July 19 to encourage the GOU to provide additional
information. Sydoruk, referring to the July 18 letter, said that
differences between U.S. and Ukrainian descriptions of the relevant
products made it very difficult for Ukraine to provide data on
exports of these products. Sydoruk added that, even with further
clarification of the products involved, the GOU would not be able to
provide additional information concerning exports within the
timeframe necessary to have an impact on the ITC's review.

TAYLOR

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