Russia's electric furnace plants require reduction of export tariffs

Posted on 02 September 2021

The Russian Electrometallurgical Association required the government to reduce export tariffs on semi-finished products and steel materials made from scrap steel in order to restore the minimum profitability of electric furnace plants.

Beginning in early August this year, Russia’s exports of semi-finished products and most rolled products, whether they are iron ore or scrap steel, a 15% export duty (minimum US$115/ton) is required.

The Association stated that it was unfair to apply the same tax rate to products from both blast furnace plants and electric furnace plants. The sales profit margin of electric furnace plants is 50%-66% lower than that of blast furnace steel plants that use their own raw materials.

There was a big gap between the production costs of long-flow steel mills and short-flow steel mills, and imposing the same tax rate was very unfavorable for electric furnace plants.     

Source : Yieh