The Russian Ministry of Industry and Trade announced recently that it plans to extend the ferrous scrap export quota until 30 June 2023, as per SteelDaily reports.
The quota volume will be significantly reduced to 600,000 tonnes (t) between 1 January-30 June 2023 which was 540,000 t between 1 June-31 July 2022, and 1.35 million tonnes (mnt) between 1 August-31 December 2022.
The ministry stated that, in the face of unprecedented sanctions and pressure from some nations, they are limiting quota volumes to safeguard the supply of strategic raw materials such as ferrous scrap to local steelmakers.
Furthermore, the export duty rate is € 5/t ($5.25/t) inside the quota limit and € 290/t ($305/t) outside the limit with exceptions of no quota limit for Eurasian Economic Union (EAEU) countries like Kazakhstan, Belarus, Kyrgyzstan, and Armenia.
Amid the limitations, exports of ferrous scrap from Russia plunged by 70% y-o-y to 1.03 mnt in January-October 2022. More than half (620,000 t, 36% less than the same period last year) were sent to Belarus.
Speculation of market players
Some participants are worried that the extension of Russia’s export quota for steel scrap would coincide with the EU’s modified WSR and South Africa’s six-month steel scrap export ban effective on 30 November 2022, which might restrict the availability of scrap globally.
Market players are aware that only specific border zones will be used for exports to countries outside the EAEU.
Note: This article has been published in accordance with an article exchange agreement between SteelDaily and SteelMint.
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