The Russian authorities have officially increased the export duty on ferrous scrap, having published the official document as of November 27.
Starting from January 1, 2022, the export tax will not be less than €100/mt versus the previous €70/mt, valid from mid-summer this year. The new rate will be in place for 180 days and is intended to ease the situation in the Russian domestic scrap market, where mills have been worried regarding the increasing scrap exports seen in recent months.
Local scrap collectors are expected to favour supplies to the domestic market in Russia, sources say, but the situation will largely depend on the price trends in the global market. “If the import price of Turkey is high enough to absorb the duty and to leave good margins, exports will certainly continue,” a trader said. Some sources believe that possible declines in export volumes from Russia to Turkey will not be critical in affecting the overall supply situation, but it will definitely be hard to increase the allocation if demand grows.