Russia may suspend its five percent import duty on coking coal as a temporary measure to support the steel industry following the accident earlier this month at the country's largest coal mine Raspadskaya, which led to its shutdown, the Russian newspaper Vedomosti has stated.
According to analysts, the accident at the mine, which was providing up to 75 percent of Raspadskaya Coal Company's output and 10 percent of Russia's total coking coal production, may lead to a coking coal shortage in the domestic market, to higher prices for coking coal, and to an increase in domestic steelmakers' production costs.
The issue of the suspension of coking coal import duties will be considered by a government commission on customs tariff regulation.
Following the mine accident, Raspadskaya suspended its exports, and until the end of the current year is expected to supply 2.13 million mt of concentrate to the domestic market. Its competitors, Mechel and Severstal Resources, are also ready to redirect to the domestic market a part of their products destined for export.