The Russian authorities have prolonged the validity of their export restriction for ferrous scrap, though they have changed the rules regarding the trade measure. It has been decided to decrease the volume of the available quota for scrap from 1.35 million mt to 600,000 mt. In addition, the duty rate for the volumes exceeding the quota remains at five percent, but not less than €5/mt, while previously it was not less than €100/mt.
Despite the change, market sources mainly agree that it will not affect the balance in the market too much, specifically in Turkey. In the first 10 months of 2022, Russia sold only around 450,000 mt of scrap to Turkey, which is just 2.5 percent of the total imported volume in Turkey. In 2021, before the war and the sanctions, the share of Russia in Turkey’s total scrap imports stood at a little over eight percent and totaled 2.03 million mt. “The new quota is 600,000 mt and it is closer to the reality that 1.35 million mt. Now it can be easier exceeded since more exporters may choose to pay €5/mt, while earlier you would be crazy to pay €100/mt,” one trader told SteelOrbis. “But, overall, I think Russia will not export more, since the deal is not only in the quota now,” he added.
