Posted on 07 Jul 2022
Russia’s Ministry of Industry and Trade has proposed to extend duties on exports of ferrous scrap and waste from 1 August to the end of this year, Kallanish notes.
The corresponding draft resolution is published on Russian’s official portal for draft regulatory legal acts.
The project provides for the establishment of a quota of 1.35 million tonnes, an intra-quota rate of 5% but not less than €35/tonne ($35.60) and an out-of-quota rate of at least €290/t.
The duties will only apply to exports outside the Eurasian Economic Union (EAEU).
According to the explanatory note, the project was developed in order to provide Russian steel enterprises with strategic raw materials in the face of sanctions pressure, the volatility of the rouble and the cost of raw materials in foreign markets.
At the end of May, the Russian government postponed duties on the export of ferrous scrap and waste from 1 June 1 to 31 July (see Kallanish passim).
Russian exports of scrap decreased in January-June by almost 95%, Russian scrap metal association Ruslom said earlier. Russian steel enterprises have significantly reduced consumption of ferrous scrap due to steel capacity utilisation falling by some 35%.
Russia’s Ministry of Industry and Trade said earlier it does not plan to introduce new export duties on metals, like those imposed last year, but that scrap export duties are here to stay (see Kallanish passim).
Last December, meanwhile, the Ukrainian government increased the scrap export duty to €180/t, which is more than three times the previous duty, after the country's scrap exports rebounded to pre-duty levels during 2021. In January-April, exports of ferrous scrap amounted to 7,001t, while in January-April 2021 they were 87,000t.
In April, Kazakhstan extended its ban on ferrous scrap exports for a further six months from 6 May. Last year, the country banned scrap metal exports for six months until 19 April 2022. In 2020, Kazakhstan exported only 441,000t of scrap against 1 million tonnes in 2019, according to the latest available worldsteel data.
Source:Kallanish
