On Thursday, the American Scrap Coalition--a trade association representing companies and industries that use scrap steel as a raw material--sent a letter to US Trade Representative Ron Kirk about recent maneuvers made by the Russian government in regards to port closures for steel scrap exports. The letter states that the new measures taken by Russia "could deny the United States the benefits of commitments Russia has made in connection with its accession to the World Trade Organization (WTO)." When joining the WTO, Russia had agreed to reduce export tariffs on steel scrap, but recent actions by the government seem to go against their original agreement.
The letter continues on with the shutting down of two of the major ports in Russia where about 90 percent of steel scrap is exported--Vladivostok and Nakhodka--but they are allowing the export of scrap out of the Far Eastern Federal District and its Port of Magadan as of February 13, 2012. The Russian government has also issued a separate decree issuing a restriction on scrap exports to certain ports in its Northwest District, including the Port of St. Petersburg--which handles 87 percent of the district's steel scrap exports during 2011. These maneuvers have made it clear that Russia has placed administrative barriers on steel scrap exports to benefit its domestic steel producers.