BIR Protests Russian Plan to Hike Tariffs on Steel Scrap

The Bureau of International Recycling has sent a letter to the European Commission asking that organization to take action against Russia, which is looking to raise export tariffs on steel scrap.

The BIR responded to an article by Reuters stating that Russia was going to increase the tariffs to between 120-130 Euros ($US187-$202) per metric ton.

The project is proposed to the Government of the Russian Federation by the Ministry of Economic Development and Trade of Russia, the Ministry of Industrial Trade of Russia, the Ministry of Finance of the Russian Federation, the Federal Customs Service and the Federal Antimonopoly Service. Official sources reported that the draft decree would come into effect this coming November.

The absence of an import duty for steel scrap and other raw materials in combination with higher export duties would help the Russian steel industry to feed the numerous newly-installed mini-mills.

According to a market analyst scrap demand is likely to increase by 10 percent in the coming year and should continue to grow. Russia collects around 30 million metric tons of scrap per year; 6 million metric tons are exported.

In its complaint, the BIR noted that it objects to any form of trade barrier that could jeopardize the free movement of raw materials across borders and insists on the importance of free access to raw materials worldwide.