Special import duty for stainless steel tubes changes

On 16 Dec 2010 the Russian government adopts the Enactment №1030 which imposes a new rate of the special duty on imports of stainless steel tubes. To remind, the Enactment №758 of 28 Sep 2009 had set the previous rate for this duty at 28.1% of the customs value.

The duty concerns imports of both seamless and welded stainless steel tubes. The Dec 2010 decision has downsized its rate to 9.9% of the customs value, however not less than 1,500 US dollars per ton. The decision will come in effect in one month after its official publication.

As to imports of seamless stainless steel tubes, the decision can be called as justified, however for imports of welded stainless steel tubes the relaxation of the duty looks rather as another toughening, considering the fact that the imported stainless steel tubes are produced from 200 and 400 series.

No big secret that the end user price for welded tubes depends on the price for cold-rolled flat products. While the price for AISI 430 CR flats hovers about 2000 USD/ton, the price for welded tubes from the same steel should be around 2500-2700 USD/ton. With a special import duty of 28.1%, importers had to overpay 730-750 USD/ton, now the new regulation compels them to cough up minimum 1500 USD/ton. And this does not account the import duty and VAT yet.

Spetsstal invites all overseas producers and suppliers of stainless steel to discuss the above-raised topic as well as many other topics regarding the Russian market for stainless steel at the forthcoming international conference ‘Stainless Steel Price – 2011’ to take place in Moscow on 17 February 2011. Kindly refer for all the details and registration at http://inox-conference.ru/index_en.php