Restrictions on ferrous scrap export are on the agenda again in Russia. This time, the Foundation for Development of Tube Industry (FRTP) has applied for an increase in export duties, Davis Index learned from official sources.
FRTP sent a request to the Ministry of Economic Development of the Russian Federation on Dec 3 to consider a 15pc export duty on ferrous scrap, or at least €45/mt, from January 1, 2021 for one year. The current export duty in Russia is 5pc.
The organization explained that the current export regime was causing a significant shortage in material and, as a result, Russian EAF mills had been using only 58-65pc of their capacities in past five years while struggling to increase their output. Besides, the COVID-19 pandemic has also negatively affected scrap collection.
FRTP expects ferrous scrap export from Russia to rise to 3.7mn mt in 2020 compared with 3.3mn mt in 2019, as mentioned in the document seen by Davis Index.
Russian scrap collectors, however, disagree and believe that there is no shortage of material in the country.
In April 2020, FRTP had asked the Russian government to issue quotas for ferrous scrap export for six months, but the request did not receive enough support.