Russian scrap metal export tariffs will increase 2.5 times,2021/01/08
Russia officially announced that starting from the end of January 2021, export tariffs on scrap metal exported by Russia will be increased by 2.5 times. The validity period of this policy is 6 months. Due to the current prices of metal raw materials, the increase in tariffs is not expected to directly lead to a complete cessation of Russian scrap exports, but what can be encountered is that this policy will lead to a substantial decline in the sales profits of Russian scrap exports.
The lowest export tariff rate is 45 euros/ton instead of the current 5% (approximately 18 euros/ton based on current world market prices).
According to media reports, the increase in tariffs will result in a significant decline in exporters’ sales profit margins, while exporters’ costs will increase by nearly 1.5 times. At the same time, because of the high level of international quotations, it is expected that the amount of scrap metal shipped to foreign markets will not drop sharply immediately after the new rules come into effect (at least in February). “The problem of material supply is very serious in the scrap metal market. Turkey may face a shortage of raw materials in February. However, I think the implementation of this tariff, especially in the context of material shortages, will not completely exclude Russia as a supplier. Besides. This will complicate Turkish trade,” a Turkish trader said in an interview with the media.
At the same time, since export market participants have no doubts about the implementation of the new tariffs, by the end of the year, the port’s purchase price will be fixed at 25,000-26,300 rubles/ton (338-356 US dollars/ton) CPT ports, which will enable profitable sales. , And increase tariffs.