The Russian authorities have recently announced that they have taken the decision to increase the export duty rate for steel scrap to €70/mt, versus the earlier valid €45/mt. Previously, it had been suggested that the duty would be increased to €90/mt. “The percentage is being kept at five percent of the customs value. In the meantime, in order to … prevent the underestimation of the goods’ customs value, the minimal rate has been increased to €70/mt,” the official statement reads. The decision was taken on May 25 and the market is waiting for the official document to be released soon. Still, there is no clarity on the period for which the new regulation will be valid, but most market players believe it will cover a period of 180 days starting at the end of June. Some sources, however, assume it would be more logical that the new rate becomes applicable from the end of July when the €45/mt rate expires.
The imposed measure is the result of the significant increase in prices for scrap in the global market and has been taken by the Russian authorities in order to secure the scrap volumes required by local steel producers. “It will surely affect exports and will help give local mills more arguments while setting the local price. However, depending on the global market situation, the increased rate may result in lower scrap collection in some periods,” a source told SteelOrbis.