Russia: Ferrous Scrap Exports Rise 17% M-o-M in April

Scrap exports ban announced for 9 far eastern ports during Jul’18-Jan’19 will hardly affect significant volumes of scrap supply – reports

Russia- world’s fourth largest scrap exporter after EU-28, USA and Japan has witnessed a rise in its scrap exports by 17% M-o-M in Apr’18 as against exports recorded in Mar’18. As per recent customs data, Russia exported 474,708 MT ferrous scrap in Apr’18 as against 404,273 MT ferrous scrap in Mar’17.

On yearly premises, exports increased by 11% Y-o-Y as against 427,332 MT exports recorded in Mar17. Notably, scrap exports in Apr’18 recorded highest during the first four months of 2018.

St. Petersburg port in Russia remained the largest port for scrap shipping activities occupying 34% share of total 0.47 MnT scrap exports in Apr’18. Followed by other major ports like Primorye Territory (13%) Leningrad region (13%), Rostov Region (11%) and Pskov region (9%) respectively.

Russian scrap prices remained high as compared to global scrap prices, however, amid a slowdown in scrap export activities from USA under section 232, demand for Russian scrap remained strong in Apr’18 from Turkey and South Korea.

Russian government announced a ban on the exports of ferrous scrap which will be effective during July’2018 to January’2019 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.

Turkey remained largest scrap importer from Russia in April – Turkey imported highest 287,756 MT ferrous scrap from Russia in April occupying almost 61% share of total scrap exports. Turkish imports from Russia increased sharply by 55% M-o-M as against 185,327 MT ferrous scrap in Mar’18.

South Korea witnessed 8% M-o-M growth in its scrap imports from Russia and recorded 77,610 MT imports occupying 16% share in April. Belarus stepped down to third largest importers’ position with 52,597 MT imports which noted down 46% M-o-M occupying 22% share in Apr’18. Followed by other prominent importers were Spain (21,914 MT), Belgium (4,950 MT) and Albania (2,930 MT) in Apr’18.

Scrap exports surge 44% Y-o-Y during Jan-Apr’18 – Russia witnessed a significant surge by 44% Y-o-Y in its scrap exports during first four months of 2018 as compared with its scrap exports recorded during the same period last year. The county exported 1.51 MnT ferrous scrap during Jan-Apr’18 as against 1.07 MnT ferrous scrap exports in Jan-Apr’17.

The sharp increase in scrap imports from the top importer Turkey witnessing a growth of 95% Y-o-Y in Jan-Apr’18 could be the largest reason behind rising in Russian scrap exports. Turkey imported highest 0.80 MnT (Up 95% Y-o-Y) while Belarus imported 0.28 MnT (Up 4% Y-o-Y) ferrous scrap from Russia in Jan-Apr’18. Followed by other prominent importers like South Korea (0.25 MnT, -4% Y-o-Y), Spain (0.06 MnT, stable) and Albania (0.03 MnT).

According to World Steel Association, Russia’s crude steel production remained nearly stable Y-o-Y during Jan-Apr’18. As against 23.57 MnT steel produced during Jan-Apr’17, Russian crude steel production recorded at 23.80 MnT in Jan-Apr’18.

Country-wise Russia ferrous scrap exports –

Quantity in MnT,
Source: SteelMint Research