It is reported that Russia may increase import duties on stainless steel products by 35% to 40%, from EUR 840 per tonne to EUR 1,200 per tonne ¨C EUR 1,300 per tonne in early 2008 and also expand the duties to Chinese imports, which enjoys the duty-free benefits so far.

A spokesman of Russian economic development & trade ministry, which controls the protective duties commission, said that. "Russian producers may initiate an anti dumping investigation and if it proves that imported metal products were sold at dumping prices, import duties will be raised in 2008."

Analysts say this measure, aimed at closing a market with a capacity of 150,000 tonnes a year, will benefit metals giant Mechel and deliver a heavy blow against Russian traders of Chinese metal.

Russia introduced the duty on metal products imported from the European Union on March 20th 2007.