Interpipe continues supplying railroad wheels to Russia, even though the EEC has increased the import duty from 4.75% to 34.22%.
According to the company CFO Denis Morozov, the Russian market is suffering from the wheel shortage, and the customers are ready to pay any price.
“There is now no spare wheels in Russia. The shortage is immense. The wagon-builders produce wagons without wheels and they just stand idle. NTMK and Vyksa Works capacities are loaded for half a year in advance. Thus the Russian market is in panic: name any price, and they will buy your wheels”, he said.
“EEC wanted to punish us by blocking our access to the Russian market with the 7-fold increase of the duty. In a way they have succeeded – our sales have fallen considerably. But local customers proved to be punished even more. Because of the wheel shortage they now have to pay this duty, by adding it to the old price”, Morozov added. (Ukrainian metal)