Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Rising construction costs and steel prices have prompted Russia to consider sales or export taxes and regulate domestic steel prices.


The country is looking at various options to support the construction industry through funding and its Industry Ministry has proposed a sales tax beyond a specific price that will aid in the financing effort. The government is also considering setting up indicative prices for products used in construction to introduce a minimum domestic selling price. 


However, Russia’s Economy Minister told the media on Wednesday that a formula-based export may lead to a shortage of steel products. Steel prices are at an all-time high since 2008, and though Russian producers are profiting from exports, the government perceives inflationary fears that have led internal ministries to propose these measures. 


Russia has taken such measures in the past like increasing ferrous scrap exports duty of €45/mt from €5/mt in January 2021, to boost capacity utilization rates in its EAF mills.

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