The Russkaya Stal (Russian Steel) consortium and the Magnitogorsk metallurgical combine have sent a joint letter to Minister for Economic Development and Trade German Gref and Deputy Prime Minister Alexei Kudrin urging them to raise the export duty on scrap metal from 15 percent to 30 percent, Russkaya Stal announced in a press release.
It said that Russian industry is losing scrap metal and has to change over to natural iron ores and coal.
Russia annually exports up to 7.5 million metric tons of scrap metal and is one of the world's largest suppliers. In February 2002, prices for the main grades of scrap metal increased 2-2.5 times, reaching $180 per metric ton. Scrap metal dealers have changed over to exports to the detriment of Russia's economic interests. A shortage of scrap metal is making metallurgical enterprises function with only 30 percent of their actual daily needs of this material.
The metallurgical companies also proposed closing particular border checkpoints for scrap metal. Under a steel export agreement with the European Union, two land checkpoints - Smolensk and Topoli- Solovei bordering on Ukraine - were established in European Russia. But in 2002, five more checkpoints were established on Russia's border with the Baltic countries and Finland, through which about 30 percent of scrap metal is being exported.
According to the Russkaya Stal consortium, Russia exported more than 8 million metric tons of scrap metal last year, 30 percent more than in 2001. Russian scrap metal mostly goes to the European Union, Turkey and Eastern European countries.
The Russkaya Stal consortium comprises the Novolipetsk, Nizhny Tagil and Western Siberian metallurgical combines, the Belon coal trader based in Novosibirsk, and the companies Tulachermet, Koks and KMA-Ruda. Daily News Buletin