The Russian government might temporarily limit scrap exports from the Azov and Black Sea ports to provide raw materials for Russia-based Abinsk Electrometallurgical Plant (AEMZ), according to media reports. Russia’s Ministry of Industry and Trade is expected to hold a meeting on the issue.
The authorities of the Krasnodar region have asked Russia’s Ministry of Industry and Trade to limit scrap exports from the Azov and Black Sea ports or increase export duties. It has been indicated that AEMZ and Russian steel producer Novorosmetall need at least 2.33 million mt of scrap per year, but scrap exports are growing and the export duty on scrap has been reduced to five percent from 7.5 percent, which has raised domestic prices and created a shortage of raw material.
The government has already banned scrap exports from the main ports of Russia's Far East for a period of six months (effective from July 21) to provide raw materials for Russian steel producer Amurmetal.