Theymanaged tomaintain it somehowdue toa
numberof largeprojectshowevermanyprojectswere
completed in2013,while implementationsof some
newoneswerepostponed.
Tubes IndustryDevelopmentFoundationdoesnot
forecast any improvements in the industry in2014
even, taking intoaccount the forecastof theMinistry
of IndustryandTradeof theRussianFederation,
webelievebigdiameterpipesoutput inRussiawill
reach1.8Mtwhich is just a littlemore than in2013
(1.75Mt). If thedemand forbigdiameterpipes
reached1.8Mt in2014 theprocessutilization in
Russiawouldonly reach35.5% (diagram2).
What are themain reasons for that?Among
themain reasonsTubes IndustryDevelopment
Foundationpointsout those thatmayundermine the
industry in the futureand those that areaffecting the
industry today. Firstly,Russian tubesandpipeshave
longbeenexcludedoutof theCustomsUnionmarket
by importedproductsdue tounfaircompetition.
Secondly,CustomsUnionprotectivemeasuresare
evadedwhen it comes to suppliesof cold-formed
stainless tubes fromChina.Thirdly, there isa risk
of reductionorevenabolitionof importdutieson
tubeswhenestablishing free tradezonesbetween the
CustomsUnionand thirdcountries. Fourthly, and
it isa typicalRussianproblemwhenagainst the law,
usedor reconditioned tubesandpipesareused in
buildingof infrastructureor industrial objects.
Diagram3givesanoverviewofoil andgas tubes
andpipes imports in Ihalfof2013ascompared to
thecorrespondingperiod in2012.Drillpipes import
grew102% in relativeamount, pumpandcompressor
pipes:+202%, casing tubes:+4457% (44.5 times
more)Some2kcasing tubeswere imported inRussia
in Ihalfof2012,whilemore than88ktwere imported
in thecorrespondingperiodof2013.
It is imported tonote, thatwhen it comes to tubes
aswell asother typesof steelproductsexport,China
inmost casesusesmethodsofunfaircompetition,
namelydumpingand state subsidies. State subsidies
arewidelypracticed inChinaby federal aswell as
regional andmunicipal authorities in the formsof
grants, tax remissionsprograms, favorablecredit
facilities (debt relief inclusive), regionsdevelopment
programs (the so-called industrial zones), income tax
exemptions for twoyears fornewenterprisesetc.
Inaddition to that, statisticscollectionand
processionare strictlyprohibited inChina.The
largest consulting, auditing, and lawfirmscannot
provide foreignproducerswhowant toholdan
inquest intounfaircompetitionanyvalidand
correct statistics.Collectionof such information is
prosecutedby the lawwhile theaccuracyof statistics
available (providedby the stateauthorities) is
questionable.Thecomplete informationprotection
inChinaconsiderablycomplicates initiationsof
claims incompliancewith theEurasianEconomic
Committee.
Diagram 3. Dynamics of Import of OCTGTubes
fromChina toRussia
Diagram 2. Dynamics of BigDiameter Pipes
Consumption inRussia andRussian Export
ferrousMarkets
8
