Russia- one of the major scrap exporter has witnessed a significant surge in its scrap exports in Q1 2018 as compared with its scrap exports recorded in Q1 2017. As per recent customs data, Russia exported 1.07 MnT ferrous scrap in Q1 2018 as against 0.64 MnT ferrous scrap exports during Q1 2017.
The sharp increase in scrap imports from the top two importers like Turkey and Belarus in Q1 2018 has resulted in 67% rise in Russian scrap exports. These importers have witnessed the growth of 113% and 53% Y-o-Y in scrap imports from Russia respectively as against imports in Q1 2017.
On the other hand, Russian scrap exports fell by 23% Q-o-Q as against 1.39 MnT exports recorded in Q4 2017. Russian scrap exports remained high during Q4 2017 amid strong global scrap demand. While in Q1 2018 demand slowed down amid high prices as compared to Q4 2017.
During the first quarter of 2018, top scrap loading ports in Russia were St. Petersburg occupying 27% share of total scrap exports. Followed by Primorye Territory (11%) Leningrad region (11%), Pskov region (10%), and Rostav Region (8%) respectively.
Turkey remained largest scrap importer from Russia in Q1 2018 – Turkey imported highest 0.51 MnT ferrous scrap from Russia in Q1’18 occupying almost 48% share of total scrap exports. Belarus remained second largest importer with 0.23 MnT imports occupying 22% share. Followed by other prominent importers were South Korea (0.18 MnT), Spain (0.04 MnT) and Albania (0.03 MnT) from Russia in Q1 2018.
Russia witnessed 23% M-o-M growth in scrap exports in Mar’18 – Russia exported 404,273 MT ferrous scrap in Mar’18 as against 328,607 MT exports recorded in Feb’18. Thus the country witnessed growth by 23% M-o-M in ferrous scrap exports in Mar’18. In line with it, Russian ferrous scrap exports witnessed sharp 80% Y-o-Y surge in scrap exports in Mar’18 as against 224,252 MT exports in Mar’17.
Turkey remained largest scrap importer occupying 46% share in total Russian scrap exports in Mar’18. Turkey imported highest 185,327 MT (Up 15% M-o-M) while Belarus imported 98,264 MT ferrous scrap witnessing mammoth 139% M-o-M rise in Mar’18. Followed by other prominent importers like South Korea (72,166 MT), Albania (7,968 MT) and Spain (2,670 MT).
According to World Steel Association, Russia’s crude steel production fell 7% Y-o-Y in Q1 2018. As against 17.73 MnT steel produced during Q1 2017, Russian crude steel production remained at 16.55 MnT in Q1 2018. Rising scrap exports from Russia might have resulted in the falling crude steel production. However, after the first quarter, the demand for Russian scrap plunged sharply from major importers like Turkey and South Korea amid high prices in Russia as compared to global scrap prices.
Country-wise Russia ferrous scrap exports –
| Country | Q1 2018 | Q1 2017 | % Y-o-Y Change | Q4 2017 | % Q-o-Q Change | Mar’18 | Feb’18 | % M-o-M Change |
| Turkey | 0.51 | 0.24 | 112.50% | 0.71 | -28.17% | 0.19 | 0.16 | 18.75% |
| Belarus | 0.23 | 0.15 | 53.33% | 0.24 | -4.17% | 0.10 | 0.04 | 150.00% |
| South Korea | 0.18 | 0.17 | 5.88% | 0.29 | -37.93% | 0.07 | 0.06 | 16.67% |
| Spain | 0.04 | 0.03 | 33.33% | 0.04 | 0.00% | 0.00 | 0.02 | -100.00% |
| Others | 0.11 | 0.05 | 120.00% | 0.11 | 0.00% | 0.04 | 0.05 | -20.00% |
| Total | 1.07 | 0.64 | 67.19% | 1.39 | -23.02% | 0.40 | 0.33 | 21.21% |
Quantity In MnT,
Source: SteelMint Research
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