The Russian authorities have been advancing on the issue of the adjustment of the export duty for steel scrap, aiming to double its minimal €/mt rate. Minister of Economic Development Maksim Reshetnikov has instructed the competent authorities to conduct the evaluation regarding whether there are grounds for the increase of the export scrap tax rate from €45/mt to €90/mt, in order to take a balanced decision. “The ministry realizes the necessity of the tax increase in relation to risks of the surge in local prices and in terms of securing the needed scrap volumes inside the country. But the question is whether the size of the increase is justified and in securing a balance between the collectors’ and the mills’ interests. It is necessary to provide guarantees for the sector that, if the export scrap prices are to decline, the duty will be corrected too,” the ministry’s press service reported.
The relevant authorities have been given two days for the calculations and evaluation of the consequences of a duty hike on the companies’ profitability and investment activity. The next meeting regarding the issue is due on May 26, SteelOrbis has learned. Earlier, market sources had commented that the decision, if positive, has to be taken by the end of June in order to replace the currently valid €45/mt in time right after it expires on July 31.
