Russian Ferrous Scrap Exports Up 10% in October

South Korean scrap imports increased by 56% while that of Belarus by 43% M-o-M in Oct’18 from Russia

Russia, the world’s fourth-largest scrap exporter after EU-28, USA and Japan has witnessed a considerable rise of 10% M-o-M in scrap exports in Oct’18. As per recent customs data, the country exported 464,324 MT ferrous scrap in Oct’18 as against 420,528 MT in Sept’18. However, on yearly premises exports observed stability as against 462,266 MT in Oct’17.

Turkey remained the largest importer of Russian scrap – Turkey imported 186,455 MT ferrous scrap in Oct’18, down 24% M-o-M as against 243,785 MT in Sept’18. Turkey occupied the highest share of 40% followed by South Korea and Belarus occupying an equal share of 22% in Oct’18.

South Korea stepped up at second largest importer position with 104,150 MT ferrous scrap imports, up 56% M-o-M. Followed by Belarus at 103,013 MT, up 43% M-o-M as against 71,876 MT ferrous scrap in Sept’18. While Greece imported 36,700 MT in Oct’18.

Port-wise – St. Petersburg port in Russia remained the largest port for scrap shipping activities occupying 35% share (161,709 MT) out of total scrap exports in Oct’18,. Followed by other major ports Pskov region (83,106 MT), Primorye Territory (71,200 MT), Leningrad region (30,600 MT), Khabarovsk territory (26,121 MT) and Rostov region (14,500 MT) occupying 18%, 15%, 7%, 6% and 3% share respectively.

Russian scrap exports increased 7% Y-o-Y during Jan-Oct’18 – Russia exported 4.34 MnT ferrous scrap during the first ten months of CY18 as against 4.05 MnT ferrous scrap exports during Jan-Oct’17.

According to World Steel Association, Russia’s crude steel production recorded at 60.29 MnT during Jan-Oct’18, stable as against 59.33 MnT crude steel in the same period last year. Russian domestic supplies of ferrous scrap summed at 7.49 MnT in H1-2018, down by 2.3% compared with the corresponding period last year.

Total scrap exports likely to remain flat in 2018 – It was earlier expected that Russian scrap exports may climb 5.5 MnT levels in 2018 as against a total of 4.98 MnT in 2017 however, the forecast was lowered to 4.3-4.5 MnT after the Russian government in July banned export shipments from multiple ports in the country’s far east to support scrap supplies to local mill Amurstal.

According to reports, exports companies had filed a request against the government restrictions on various ports but they could not take over it. 6 months ban on Russian scrap export will continue till 20th of January 2019. However, whether these restrictions on export ports will be taken off or they will continue even after 20th Jan’19 has not yet been confirmed.

A weak Russian currency Ruble (RUB) relative to the US dollar allowed far eastern exporters to cover additional logistics costs to maintain export volumes in July-December. Softening prices for semi-finished and finished products also pressured the ferrous scrap market as steel producers in Russia were seeking ways to cut production costs. The winter decline in domestic scrap supplies and volatility of the RUB could still support prices from falling significantly further.

Consequently, total Russian ferrous scrap export volumes for 2018 are expected to be just below 2017 or flat on the year.

Country-wise Russia ferrous scrap exports –

Quantity in MnT,
Source: SteelMint Stats