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[China Taipei]
Posted on : Nov 10, 2008
The Russian government has
imposed a zero import duty on ferrous metal scrap and selected types of rolled
product for a period of nine months, says a Cabinet decree, posted on the
government's website. The duty on scrap was 5%. The roll products subject to
zero duty are flat iron or non-alloyed steel products not wider than 0.6
centimeters for industrial automobile assembly.

The duty takes effect two months after its official publication. It is being
introduced because some steel mills have stopped supplying metal to automobile
plants or are about to do so in connection with the car industry's mounting

According to Reusian press agency InterFax, Magnitogorsk Iron & Steel Works (MMK)
(RTS: MAGN), for example, has stopped supplying the GAZ auto works. An MMK
source said the automobile industry's overall debt to MMK was currently 3
billion rubles. MMK's other debtors from the industry were said to include
Avtovaz and Kamaz.

The source said to InterFax pipe makers owed MMK 8 billion rubles. In total,
clients owe MMK 25 billion-27 billion rubles, he said. The Estar steel group's
senior vice president, Andrei Saltanov, said Kamaz owes the group approximately
2 billion rubles, and Estar has now halted supplies to the truck maker.
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