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

The Russian Foundation for development of tube industry (FRTP) has applied for export ferrous scrap restrictions again, Davis Index has learnt.


The foundation sent an official letter to Russia’s Ministry of Economic Development on April 30, 2020, asking the Russian government to consider issuing quotas for scrap export from July 1 or August 1, 2020 for six months. 


In the letter, FRTP cited the shortage of the material in the country, which worsened this year amid COVID-19 related measures that negatively affected collection volumes, while asking for the quotas.


FRTP estimates that scrap collection in Russia dropped by 49.6pc in March and by 56.3pc in April in the letter seen by Davis Index, and expects scrap collection to decrease by 10-15pc (2.7-4mn mt) in 2020. The organization asked for an export quota of 995,000mt.


The organization noted that export quotas in September-December 2019 had a positive effect on steelmakers. According to FRTP, export of the material from Russia dropped by 44pc during this period, and its shortage in the country eased by 2.5pc.


FRTP is a non-governmental organization established to promote and protect the interests of pipe manufacturers in the Russian market, the Eurasian Economic Union, and foreign markets.


Russian scrap collectors are yet to declare their position on this issue.

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