The Russian market of heating radiators keeps on developing. A proof to it is the analysis of the customs statistics of heating radiators import in the first half year of 2016.
Like Quarter I of 2016, Quarter II of 2016 has shown a trend towards fewer volumes of aluminum and bimetal heating radiators import.
As a result, summing up Quarter I of 2016, we can observe a general decrease in import as compared to the corresponding period of 2015 – about 50%.
This fall was particularly evident in March and May of 2016.
In June 2016 the import volume almost reached the 2015 indicators.
As concerns the import structure of aluminum heating radiators classified by the code 7615 20 0000 of the EAEU FEACN, worth mentioning is the retained dominance of the products coming the Peoples’ Republic of China, whose share in the total aluminum heating radiators import volume never falls below 90%.
Apart from changes in the import volume and the retained dominance of the Chinese production, the Russian market of heating radiators is showing a number of new trends.
Thus, for example, despite the ‘hot’ purchasing season, from April to June 2016, there was a fall in the import volume of aluminum heating radiators classified within the commodity position 7615 20 0000 of the EAEU FEACN
Besides, the background of the general decrease in the import volume within this code made it well noticeable that the import share of the Chinese heating radiators has grown, reaching in June 2016 94%.
Worth pointing out is also the illegitimate, given the new regulation, import of bimetal heating radiators by the code 7615 20 0000 of the EAEU FEACN.
The point is that, according to the decision of the Eurasian Economic Commission Board №164 as of 8-Dec-2015, bimetal heating radiators shall be classified within the commodity position 7616 of the EAEU FEACN.
As a result, the volume of bimetal heating radiators imported by the inappropriate code 7615 is gradually falling, though instances of the ‘outdated classification’ are still to be come across.
In their turn, volume dynamics and structure of bimetal heating radiators imported by the code 7616 of the EAEU FEACN in Quarter II and the first half year of 2016 are showing the following trends:
– a dramatic rise in bimetal heating radiators import volume from April to May 2016, which is most likely connected to stricter customs control and, consequently, to partial ‘overflow’ of bimetal heating radiators from the inappropriate commodity position 7615 into the correct classification group – commodity position 7616;
– a decrease of the Chinese bimetal radiators share in the total volume of import by the code 7616 over the first half year of 2016 (from 96% in February to 83% in June);
– a slight decrease of the average statistical price of 1 kg of a bimetal heating radiator in the second half year of 2016 (from $3.1 in April to $2.8 in June) – by 10%.
On the whole, a number of positive trends on the heating radiators market are clear to be seen – be it a fall in the import volume for one position (aluminum) or a decrease in the Chinese heating radiators share for another.
Alongside with it, negative trends are to be observed as well:
– downpricing of import heating radiators without objective market prerequisites (strengthening of the ruble or lower prices for raw materials);
– importing bimetal heating radiators by codes meant for ferrous metal heating devices.
It calls for special notice, that, given the considerable volumes of aluminum and bimetal heating radiators imported by the code 7615 20 0000 of the EAEU FEACN, which in the money equivalent more than three times exceeds the import volumes of cast iron section and steel panel heating radiators taken together, the APHR proposed to the authorized state agencies to supplement the EAEU FEACN with separate codes (commodity subpositions) meant ‘specially’ for aluminum and bimetal heating radiators.