Russia: Ferrous Scrap Exports Rise 30% in H1 2018

Russia- world’s fourth largest scrap exporter after EU-28, USA and Japan has witnessed significant 30% Y-o-Y rise in its scrap exports in H1’18. As per recent customs data, Russia exported 2.59 MnT ferrous scrap in H1’2018 as against 2 MnT ferrous scrap in H1’2017.

Russian government imposed the ban on ferrous scrap exports effective from July’18 to Jan’19 for the exports activities subjected to the 9 far Eastern ports due to lack of infrastructure and facilities. Further it also banned exports from black sea ports to enhance domestic use of scrap.

Russian scrap exports increased 43% Q-o-Q and recorded at 1.52 MnT in Q2 2018 as against 1.06 MnT in Q1 2018. This could be the result of increase in exports ahead of imposition of ban during May-June.

Russian scrap prices remained high as compared to global scrap prices in Q1 2018, however, amid a slowdown in scrap export activities from USA under section 232, demand for Russian scrap remained strong from Turkey, Belarus and South Korea in Q2 2018.

Port wise – St. Petersburg port in Russia remained the largest port for scrap shipping activities occupying 33% share (0.86 MnT) out of total scrap exports in H1’18. Followed by other major ports like Primorye Territory (12%), Leningrad region (10%), Pskov region (9%) and Rostov Region (8%) respectively.

Turkey remained largest scrap importer of Russian scrap in H1 2018 – The sharp increase in scrap imports from the top importer Turkey witnessing a growth of 49% Y-o-Y in H1’18 could be the largest reason behind rising in Russian scrap exports. Turkey imported highest 1.30 MnT followed by Belarus and South Korea both imported 0.44 MnT ferrous scrap each from Russia in H1’18.

According to World Steel Association, Russia’s crude steel production inched upward 3% Y-o-Y during Jan-Jun’18. As against 35.06 MnT steel produced during H1 last year, its crude steel production recorded at 36.06 MnT in H1 2018.

Russian scrap exports fell 29% in June – After witnessing last 2 years’ high ferrous scrap exports in May, Russian scrap exports turned down in June amid less clarity on scrap exports and fall in global demand at high prices. The country imported 435,675 MT ferrous scrap in Jun’18, which is down 29% M-o-M as against 611,091 MT in May’18 and down 19% Y-o-Y as against 537,694 MT in Jun’18.

Turkey imported highest 213,186 MT ferrous scrap from Russia in June occupying almost 49% share of total scrap exports. South Korea stepped up at second largest importer position occupying 21% share in June. Followed by Belarus imported 54,506 MT witnessing sharp fall in imports while Brazil (26,430 MT) and Greece (12,609 MT) witnessing significant rise in scrap imports from Russia in June’18.

Country-wise Russia ferrous scrap exports –

Quantity in MnT,
Source: SteelMint Research