Russia: Ferrous Scrap Exports Hit 25 Month High in May

Scrap export ban announced for 9 far eastern ports which will be effective from 21st July for next six months could have resulted in increased export activities from Russia in May-Jun’18 – Sources

Russia- world’s fourth largest scrap exporter after EU-28, USA and Japan has witnessed sharp rise in its scrap exports in May’18. As per recent customs data, Russia exported 611,091 MT ferrous scrap in May’18 as against 474,708 MT ferrous scrap in Apr’18. The country recorded 29% M-o-M increase in May’18 as against exports recorded in Apr’18.

Russia observed last 25 months’ highest ferrous scrap exports in May, as earlier to this, Russian scrap exports were recorded highest at 672,204 MT during Apr’16. Notably, the country has also observed third consecutive rise and highest scrap exports in May in CY18.

On yearly premises, exports increased significantly by 57% Y-o-Y as against 388,670 MT exports recorded in May’17.

St. Petersburg port in Russia remained the largest port for scrap shipping activities occupying 46% share of total scrap exports in May’18. Followed by other major ports like Primorye Territory (11%) Leningrad region (10%), Samara region (7%),Pskov region (7%) and Rostov region (5%) respectively.

Russian scrap prices moved down in May’18 as compared to global scrap prices resulting in decent demand for Russian scrap from importers like Turkey, Belarus and South Korea.

Turkey remained largest scrap importer of Russian scrap in May – Turkey imported highest 285,898 MT ferrous scrap from Russia in May occupying almost 47% share of total scrap exports. Turkish imports from Russia remained stable M-o-M as against 287,756 MT ferrous scrap in Apr’18.

Belarus stood as the second largest importer occupying 18% share in May, its imports noted at 108,587 MT, up sharply by 105% M-o-M against 52,597 MT in Apr’18.

South Korea witnessed 22% M-o-M growth in its scrap imports from Russia and recorded 94,482 MT imports occupying 15% share in May’18. Followed by other prominent importers were Vietnam (34,800 MT), Bangladesh (24,325 MT) and Greece (17,339 MT) witnessing significant rise in scrap imports from Russia in May’18.

Russian government announced a ban on the exports of ferrous scrap which will be effective from 21st Jul’18 to Jan’19 for the exports activities subjected to the 9 far Eastern ports due to lack of infrastructure and facilities. However, the ban may not affect significant volumes of supply as monthly just 50,000-60,000 MT scrap get exported from these far eastern ports.

Russian scrap exports surge 47% Y-o-Y during Jan-May’18 – Russia witnessed a significant surge by 47% Y-o-Y in its scrap exports during first five months of 2018 as compared with its scrap exports recorded during the same period last year. The county exported 2.15 MnT ferrous scrap during Jan-May’18 as against 1.46 MnT ferrous scrap exports in Jan-May’17.

The sharp increase in scrap imports from the top importer Turkey witnessing a growth of 91% Y-o-Y in Jan-May’18 could be the largest reason behind rising in Russian scrap exports. Turkey imported highest 1.09 MnT while Belarus imported 0.39 MnT (stable Y-o-Y) ferrous scrap from Russia in Jan-May’18. Followed by other prominent importers like South Korea (0.35 MnT, +6% Y-o-Y), Spain (0.06 MnT, -33% Y-o-Y) and Vietnam (0.03 MnT).

According to World Steel Association, Russia’s crude steel production inched upward 2% Y-o-Y during Jan-May’18. As against 29.45 MnT steel produced during Jan-May’17, Russian crude steel production recorded at 30.02 MnT in Jan-May’18.

Country-wise Russia ferrous scrap exports –

Quantity in MnT,
Source: SteelMint Research