It is reported that the Ukrainian government is negotiating with Thailand for the reduction of customs import duty on steel products from Ukraine.

The total volume of commodity turnover between Ukraine and Thailand in the current year up to September reached a value of USD 170.2 million of which about 90% of the Ukrainian total export volume comprised steel products.

The main Ukrainian supplier of steel products to Thailand is Ilyich Iron and Steel Works of Mariupol for which the import duty on rolled steel products stands at the level of 32%. Meanwhile for other Ukrainian steel exporters the import duty is more than two times higher, amounting to 72%. This difference in taxation is caused by the specific policy of Thailand, which considers that, compared to other Ukrainian steel exporters only Ilyich sells its products at the market price.

Ukraine's main competitors in Thailand's steel market are the Chinese steel producers. However, according to experts, the Ukrainian companies are in a more advantageous position, as Thailand fears Chinese expansion into the country and therefore the cancellation of its import duty on steel products from China is considered to be unlikely. In addition due to the low value of the Ukrainian currency compared to the US dollar, Ukrainian steel products have a lower production cost than Chinese steel products.

(Sourced from SteelOrbis)
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