Ukraine wants negotiations on quotas for pipes

According to Mikhail Korolenko, Minister of Industrial Policy of Ukraine, in September 2013, the Ukrainian government plans to negotiate a quota for the supply of pipes to Russia.

The day before, at a meeting with leading metallurgists in Chelyabinsk, Dmitry Medvedev announced the suspension of quotas for duty -free import of Ukrainian -made pipes into Russia for the current half -year.

When discussing the abolition of quotas, Russian experts note that this issue can be more political, since the share of the Ukrainian manufacturer over the past 2 years has amounted to about 3 percent of the total market or 300 thousand tons per year. For the first half of this year, the size of the quota amounted to 120 thousand tons.

And what will be quite difficult for Ukrainian metallurgists will actually have no significant impact on the Russian market. In addition, the size of consumer choice will be reduced, as well as Russian pipes can be more expensive than in free trade and all the costs of restrictions will fall on the consumer's shoulders. And this can lead to an increase in the cost of production.

In conditions of the decline of the metallurgical sector, this ban is more likely to support the Russian manufacturer and the formation of additional demand for metallurgical products.

By the way today, it became possible using ultrasonic flaw detector conduct ultrasonic studies for steel continuity or directly when loading metal rolling into a car.

One of the reasons for increasing pressure on Ukraine may be disagreements of the parties on gas supplies. This issue was discussed last week Dmitry Medvedev and Nikolai Azarov, but today no agreements have been reached.