Russia aims to keep ferrous scrap at home

The national trade ministry of Russia is reportedly preparing to double the export duty on ferrous scrap from a minimum of 45 euros ($54.80) per metric ton to 90 euros ($109.60).

According to The Davis Index, a representative from a Russian trade association said the Ministry of Industry and Trade of the Russian Federation (Minpromtorg) has concluded the 45 euros duty has become “inefficient” with rising prices, with ferrous scrap exports from Russia starting “to surge.”

Minpromtorg statistics indicate ferrous scrap exports from Russia to nations outside the Eurasian Economic Union tripled in April compared with March.

The association spokesperson who spoke with The Davis Index expressed concern that doubling the export duty will cause harm to the profitability of scrap recyclers in the nation to the extent that many may cease operating—especially near seaports.

The Russian association representative said the duties have been placed and raised to try to support steel rebar producers in that nation, but they are unlikely to increase output (or absorb more scrap) unless Russia’s construction sector can gain momentum and become more active.