Association: Duties may cut ferrous metals exports by 1–2.5 mln tns

MOSCOW, Jul 2 (PRIME) -- The planned ferrous metals export duties reduce foreign sales by 1–2.5 million tonnes, or by 40–75 billion rubles, the national metals industry association Russian Steel said in a statement on Friday.

“If the current pricing conditions persist, exports may fall by 1 million tonnes, or about 40 billion rubles in monetary terms, production of rolled metal products and pig iron will decrease by 1.2 million tonnes, the net profit will fall to around 150 billion rubles, the corporate profit tax will fall by 30 billion rubles, and combined payments to the Russian budget will decrease by about 30 billion rubles,” the statement read.

If the international prices fall while the duties are in place, the association expects exports to fall by 2.5 million tonnes or 75 billion rubles. Output of rolled metal products and pig iron will fall by over 1.2 million tonnes, the net profit will shrink by 180 billion rubles, and payments to the budget may decrease by 51 billion rubles.

The government will introduce duties for the products of ferrous and non-ferrous metals industries on August 1 through December 31. They will consist of a 15% rate plus a specific component, which depends on the degree of processing for the ferrous metals industry.

For instance, the export duty on hot-rolled metal products with amount to at least U.S. $115 per tonne, for cold-rolled metal products to at least $133 per tonne, and for stainless steel and ferroalloys to at least $150 per tonne.

(72.9086 rubles – U.S. $!)

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