The Russian Ministry of Industry and Trade is discussing raising the minimum level of scrap export duty to €100 per ton and extending it for another six months. The current tax of €70 per tonne expires at the end of the year. Scrap collectors are skeptical of the effectiveness of hedging the tax, citing other factors in the increase in local scrap prices. First of all, the increase in transportation costs due to the lack of rolling stock triggers this suspicion.
On October 27, a meeting with metallurgists at the Russian Ministry of Industry and Trade discussed the option of increasing the scrap export duty to €100 per tonne or more for a period of 180 days.
The Ministry of Industry and Trade confirmed to Kommersant that they are considering the possibility of raising the tax to €100 "depending on how the market situation develops".
Demand is rising in China because they are replacing dirty blast furnace production with electric steel production. Therefore, we will look at the market situation and make a decision accordingly. I do not exclude that the task can grow. There is a need for scrap here, it needs to be recycled,” he said.
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