Russia To Impose Duties On Ukrainian Pipes.

According to the head of the Metallurgy Department at the Ukrainian Ministry of Industrial Policy Volodymyr Granovsky, the duties will range from 8% to 53%, depending on the type of pipe, and take effect from the beginning of 2006. Duties are the result of Russian antidumping investigations into Ukrainian pipe imports. Concorde Capital: In 9M05, Ukraine?s pipe makers exported 1.3 mln mt of pipes, 33.9% of which were delivered to Russia. We think there is still a chance that Russia will not impose the duties if the presidents of the two countries come to terms on a quota that would limit Ukrainian pipe exports to Russia. Otherwise, the Ukrainian pipe industry will be significantly hindered. Khartsyzk Tube (HRTR: SELL) will suffer the most, as exports account for 95% of its sales, and Russia consumes 50%-60% of its exports. Furthermore, the large diameter pipe segment in which Khartsyzk Tube specializes is going to be the most competitive one in Russia, which is likely to result in it having the highest duties.