Demand in the railway wheels market has stabilized after a peak in 2019
The Eurasian Economic Commission (EEC) decided to re-impose a 34.22% anti-dumping duty on Ukraine-made railway wheels,
according to Interfax-Ukraine.
In the opinion of the EEC, demand in the railway wheels market has stabilized after a peak in 2019.
“Prices in the Eurasian Economic Union (EAEU) may decline with the threat of surplus capacities of EAEU producers,” a EEC representative said.
The Eurasian Economic Commission imposed an anti-dumping duty on Ukraine-made wrought wheels in 2018. Afterwards the duty increased from 4.75% to 34.22%.
The EEC suspended the duty due to a shortage of railway wheels from 25 August 2019 up to and including 1 June 2020. In May, the Commission stated its readiness to re-impose the protective measure. The reason is the absence of an expected drop in prices for Ukraine-made wrought wheels. Conversely, the cost of wheels, excluding allowances, grew 3.4 times from 2016 to 2019.
The suspension of the duty in the summer of 2019 allowed Interpipe, the only manufacturer of wrought railway wheels in Ukraine, to ramp up sales of its products in the CIS market by 26% to 93 thousand tons in 2019.
In general, sales of Interpipe railway products (wheels, tires, axles and wheel pairs) in 2019 increased by 8% to 203 thousand tons against 2018.