Russia’s Minister of Industry and Trade Victor Evtukhov affirmed that the 15pc duty on ferrous and major base metal exports will not be rolled over in 2022. With the decline in prices, there is no rationale for extending the export duties in 2022, said the minister to media on Aug 30.
Metal prices have been decreasing, excluding steel scrap. Scrap prices are still high due to support from local and international demand, he added.
Russia is limiting the growth of raw material export with an increase in steel scrap export duty to 5pc from Aug 1. The duty has risen to around EUR70/mt ($83/mt) from EUR45/mt in July.
In August, President Vladimir Putin hinted of an increase in Mineral extraction tax (MET) for the metallurgical industry from January. Industry participants believe the Russian government might remove the 15pc export tax and replace it with an increase in MET. Local media reports suggest a tripling of MET rate to increase tax revenues for the country.