Russia is considering the prolongation of duty-free imports of certain cold rolled steel products used in the manufacture of motor vehicles and their parts, in order to support domestic manufacturers of cars and other motor vehicles, considering the recent price increases for the similar products of domestic steel producers.
As SteelOrbis previously reported, starting from February 22, 2009, the Russian government canceled for a nine month-period the five percent import duty for certain cold rolled steel products under HS Codes 7209 17 900 1 and 7209 27 900 1. Meanwhile, cold rolled steel products under HS Codes 7209 17 900 9 and 7209 27 900 9 were imported with a five percent duty.
Russian car manufacturers reported earlier this month that domestic steel producers had notified them about planned price increases of up to 30 percent in the second half of the current year. This caused concern within the highest quarters of the Russian government. Currently, the government is negotiating a compromise, as part of which domestic car makers are ready to accept somewhat higher steel prices. Citing Deputy Industry Minister Andrei Dementyev, Reuters reported that the acceptable hikes would vary depending on the different kinds of steel, but average would be about 17 percent.