Page 76 - RB-98-2021-3

KAZAKHSTAN/RUSSIA
the hot method proved to be way more effective for 1200R20," Zhanabergenov said.
"We have to explain to our customers, who tried the cold method and had a negative experience, that our method is different and is more reliable," Zhanabergenov added.
However, the ultimate target is to master the cold method, too, Zhanabergenov said, explaining that it would allow the company to expand its product range and find new customers.
"It is yet to be seen what we will use. It appears to me that we would need to have products in different price categories because there are clients who ask for some premium stuff and clients who would rather opt for some cheaper alternatives," Zhanabergenov said. He said he had already purchased some equipment and made a few trial batches.
"This time, we have no plans to apply a trial and error method.
Due to harsh winters, the construction industry almost stops for several months every year. During this time, the demand for our tyres slumps," he admitted.
Just like most other retreaders in the post-Soviet space a shortage of casings is the main problem Zhanabergenov’s retreading plant has to face. 1200R20 is in short supply.
"We don't import casings. We source them entirely on the domestic market. Thanks to low production volumes, this is not so severe," Zhanabergenov added, but agreed that in case of production growth, this problem promises to get more serious. The competition with new Chinese tyres is fierce both in the hot method and in the cold method segment. Basically, Chinese tyres dominate on the Kazakh market.
"Customers trust into new tyres, simply because they are new. This problem is similar in Russia,
Russia Extends Anti-Dumping Duty against Chinese Tyres
We want to learn the basics of good production before releasing our retreads to the market," he added.
When it comes to the retreading business, Kazakhstan still lags behind its neighbours – Russia and China. There are numerous plants across the country, but most of them are relatively small. "We have no capacities like in Russia, where plants retread 100 or more tyres per day," Zhanabergenov said. "For us, the main challenge is seasonality.
where retreaders also have to compete with new Chinese tyres," Zhanabergenov said.
As for raw materials, the company purchases rubber from a Russian company. Zhanabergenov said he is fully satisfied with its quality and doesn't plan to change anything. Among other things, the company plans to begin dealing with off-the-road tyres. “We are currently looking for an investor [to start operating in this segment],” Zhanabergenov said.
The Eurasian
Economic
Commission, the
governing body
of the Eurasia
Union, has
extended anti-
dumping duty
against Chinese
tyres until 2026.
The decision has
been taken based
on the results of the new anti- dumping investigation launched on August 19, 2020, the Eurasian Commission said.
The anti-dumping duty was originally introduced on November 17, 2015. The additional duty ranges between 14.79% and 35.35% from the price.
The new investigation was requested by a group of Russian and Belarus tyre producers, including Belshina, Omskshina, Kordiant, Nizhnekamsk Tire Plant, and Nortek. Numerous retreaders in Russia praised the anti-dumping duties for helping the industr y.
Dmitry Ageev, the owner of Perm-based retreading plant DA Group, stated that the anti- dumping duties made all Chinese tyres more expensive on the Russian market.
Chinese exports to Russia were hampered by the Eurasia Union anti-dumping restrictions introduced in 2016. Before that, the price of cheap Chinese tyres was significantly lower compared to the new Russian tyres. The anti-dumping duties made the Russian tyre industr y more competitive pricewise. "These days, the average market price of new Russian tyres in our region is around Rub 20,000 ($280). You can buy a new Chinese tyre of a similar size for Rub 18,000 ($280)," Ageev said.
The problem of Chinese tyres in Russia is not as pressing as in some other regions of the world thanks to the anti-dumping duties introduced several years ago by the Eurasia Economic Commission, said Sergey Yatsina, co-owner of the Nizhniy Novgorod-based company Sto Shin.
The anti-dumping duties cut the flow of Chinese tyres to the Russian market by at least 30%, the Eurasia Economic Commission estimated. The biggest supplier Aeolus saw its market share decreasing to 1.4% from 7.3% before, and Triangle — to 2% from 6.3% before the restrictions. In addition, Russian tyre production jumped by almost 40% to nearly 3 million tyres.
This has happened even although some tyres were imported into Russia at lowered custom costs. For instance, research conducted by Kordiant showed in the first year after the introduction of the anti- dumping duties, more than 100,000 new Chinese tyres were imported into Russia at lower costs.
Russian tyre companies have repeatedly been calling the authorities to deal with grey imports in order to protect the domestic tyre industry. It is believed that the Federal Customs Service strengthened control over tyre imports from China during the past few years. Market participants expected the anti-dumping duties to be extended. The Russian press reported that abolishing the duties by the authorities could jeopardise the entire tyre
industr y.
On the other hand, some market participants said that the Russian ruble's devaluation contributed more to the import- replacement on the domestic tyre market than the anti- dumping duties. Since 2014, the Russian ruble's value has almost halved, which made all foreign products more expensive on the Russian market.
76 Retreading Business