Russia may tighten scrap export duty to €90/mt

Tuesday, 18 May 2021 17:19:34 (GMT+3)   |   Istanbul
       

The Russian authorities are mulling the tightening of the export restricting measure in the scrap segment, claiming that the previously imposed rate has not been enough to secure sufficient domestic supply and to prevent excessive exports.

Starting from January 31 this year, the duty of five percent with a minimum of €45/mt has been imposed for scrap exports from Russia for the period of 180 days. The Ministry of Industry and Trade admitted that the currently valid measure has helped to reduce exports in the February-March period this year, but has failed to prove itself workable in April this year and hence the tremendous price increase seen in the global market and in Turkey in particular. According to the provided data, in April this year scrap export shipments from Russia increased to 75,400 mt, as compared to 24,800 mt in March this year.

Today, the ministry proposes to increase the minimal rate to €90/mt for a period of 180 days. Moreover, it estimates that there will be no negative effect on collection rates, taking into account that in the first quarter this year local scrap consumption increased by 13.5 percent, while collection improved by 11 percent.

Market sources believe there is a good chance that the measure will be accepted by the government. “We should see in two weeks as it is logical to impose the duty after the current one of €45/mt expires on July 31, 2021. For that, the statement needs to be officially published 30 days prior to then,” a Russian scrap market player told SteelOrbis.


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