Russian exporters’ scrap purchase prices have continued to mainly climb, still supported by globally favourable market conditions. However, players share some concerns regarding the possible imposition of the export restrictions for scrap.
Currently, the Russian authorities are mulling the introduction of five percent export duty for scrap in Russia or a minimum rate of €45/mt. The measure is supposed to secure the needed scrap volumes for local mills in Russia and to help avoid a deficit of the raw material. Currently, there is duty of the same percentage valid in the country, but the minimal rate is only €5/mt. “With the current scrap prices, it is around €21/mt today at 5 percent. The new initiative is nowadays under discussion,” a producer told SteelOrbis. The suggested term of the validity for the new tax is six months.
Over the past week, scrap exporters from Russia’s Baltic region have increased their purchase prices by $4/mt (RUB 900/mt) to $326/mt (RUB 24,500/mt) CPT taking into account currency fluctuations. In the Rostov region, the exporters’ purchase levels have for now remained at $332/mt (RUB 25,000/mt) CPT, SteelOrbis has learned.
Prices exclude 20 percent VAT.
$1 = RUB 75.26