[Ferro-Alloys.com] Ministry of Economic Development of Russia 07 September 2021 13:54
The Sub-Commission on Customs Tariff and Non-Tariff Regulation supported the initiative to reduce export duties on a number of ferroalloys and carbonyl iron, the decision on which was taken at the end of June. It is planned to reset the duties for certain items. Adjustments are made in response to requests from Russian manufacturers, taking into account the market fluctuations that have occurred in recent months on world markets.
For example, the main raw material for ferrochrome is chromium concentrate imported to the Russian Federation, for which world prices have significantly increased, while the alloy itself is mainly export-oriented.
As it was noted at the meeting of the sub-commission, this decision will allow supporting the production of relevant products, employment at enterprises. The relevant draft resolution of the Ministry of Economic Development has been submitted to the Government of the Russian Federation.
"On behalf of the Prime Minister, together with the Ministry of Industry and Trade, we conducted an analysis of the financial condition of the ferrous metallurgy industry based on the results of the combined duties. All alloys were singled out from large product groups, the situation and appeals of enterprises were carefully studied for each position. Compared with the June data, on the basis of which the decision on the introduction of duties was made, the situation has changed today. We see that under the influence of the external conjuncture, there are risks for the production of a number of products. As a result, we have developed a position that takes into account the production aspect and the specifics of the economy of each enterprise, " said Vladimir Ilyichev, Deputy Minister of Economic Development of Russia.
"Ferroalloys are a necessary raw material for both the smelting of carbon and alloy steels. The need to adjust export duties is associated with the dependence of domestic producers on imported raw materials, for example, from manganese and chromium ores, as well as with the export orientation of the industry. The reduction of duties will contribute to maintaining the existing growth rates of output and exports of products and will allow the implementation of investment development plans of companies in the planned time, for example, the construction of a new workshop for the production of medium and low – carbon ferromanganese at the Satkinsky Iron Smelter JSC, "said Viktor Yevtukhov, Deputy Minister of Industry and Trade of the Russian Federation.
Ferroalloys are used in the production of so-called alloy steels, from which they produce various specific products. These can be construction floors for ultra-high buildings, infrastructure elements for high-speed trains and communication routes, components of aviation and space construction, as well as elements of aero and cosmodromes.
Recall that combined duties on the export of ferrous and non-ferrous metals were introduced before the end of the year as a temporary measure. It is aimed at compensating for the rise in the cost of metal products on the domestic market. The Ministry of Economic Development, together with the Ministry of Industry and Trade, constantly monitor the dynamics of world prices, as well as analyze the appeals of metallurgists regarding the adjustment of duties. For example, a decision to reduce the rate of specific duties on pig iron to$ 54 per ton has already been adopted and entered into force on August 16.
It is planned to install
- - in relation to ferrochrome (code 7202 41 900 0 of the EAEU Customs Code), the export duty rate is 5 %, but not less than 57 US dollars per 1000 kg;
- - in relation to ferrochrome (code 7202 49 100 0 of the EAEU Customs Code), the export duty rate is 5 %, but not less than 134 US dollars per 1000 kg;
- - in relation to ferrochrome (code 7202 49 500 0 of the EAEU Customs Code), the export duty rate is 5 %, but not less than 109 US dollars per 1000 kg;
- - for ferrosilicochrome (code 7202 50 000 0 of the EAEU Customs Code), the export duty rate is 5 %, but not less than 71 US dollars per 1000 kg;
- - in relation to ferromanganese (code 7202 11 800 0 HS of the EAEU), the export duty rate is 5 %, but not less than 49 US dollars per 1000 kg;
At the same time, it is proposed to cancel the rates of export customs duties in respect of
- - ferromolybdenum (code 7202 70 000 0 HS of the EAEU)
- - ferroniobia (code 7202 93 000 0 of the Customs Code of the EAEU)
- - ferrovolframa (code 7202 80 000 0 of the Customs Code of the EAEU)
- - ferrotitane (code 7202 91 000 0 HS of the EAEU)
- - iron in powder (code 7205 29 000 0 HS of the EAEU)