The Russian government has decided to postpone implementation of the new scrap export scheme via trading exchange from the previously expected January 1, 2020 to April 1, 2020. Moreover, the quota system as a temporary measure, which is in place at the moment, will also not be extended, according to Ilya Jus, representing Russian deputy prime minister Dmitry Kozak.
"The introduction of exchange trading in the scrap and non-ferrous metal scrap market from April 1, 2020 will contribute to greater transparency in the scrap metal market and the elimination of transfer pricing risks," Ilya Jus added. The decision follows the sending of a collective letter by the seven largest scrap collectors in Russia, asking the Russian government not to impose requirements to export scrap only through a trading exchange. Accordingly, the government has decided to increase the transition period.
As SteelOrbis reported earlier, the Russian authorities officially set the quota for steel scrap exports to countries excluding members of the Eurasian Economic Union in order to protect the local steel industry. The official document, signed on August 31, implies a total allowed export volume of 1.0092 million mt of scrap for the period from September 1 to December 31 of the current year.
As exporters will have no restrictions in the first quarter, sales in the January-March period will increase from the major export regions of Russia.
