It is reported that Russian carmakers are calling for the abolition of import duty on steel because they are unhappy with the quality of local supplies.

According to the Kommersant business daily the Association of Russian Automakers has asked the Industry and Trade Ministry to consider abolishing the import duty on several types of flat-rolled products used in auto production.

The carmakers are said to be unhappy with galvanized deep drawing rolled stock used for the front of a car body. The ministry will consider abolishing the duty at a meeting on 1 February.

Import duty on rolled stock amounts to 5%. A total of 1.7 million vehicles were produced in Russia last year using on average, 250 kilogram to 300 kilogram of the galvanized rolled stock necessary for each car a total of 425,000 tonnes to 510,000 tonnes.

Kommersant said if import duties are abolished it could save USD 1.8 million. GAZ Group said abolition of import duties would allow Russian carmakers to reduce the overall cost of car production.

(Sourced from www.just-auto.com)