Russia to Restrict Scrap Exports by Implementing Quotas

SEATTLE (Scrap Monster): The Russian government plans to introduce quota system for ferrous scrap exports from the country. The Industry and Trade Ministry has agreed to the proposal to establish quotas for ferrous scrap exports from the country’s far-east, northwest, central European and southern regions. Initially, quotas will be implemented for a period of six months beginning July 1 this year.

According to market participants, the government’s decision to introduce quota system might have been influenced by the plea made by Russian steel pipe makers to the Ministry of Economy in December last year to place temporary ban on ferrous scrap exports out of the country. However, the proposal was dropped following broad opposition from Russian scrap metal firms. Meantime, industry sources believe that the export restrictions are likely to benefit steelmaker Amurstal, which has been facing severe issues with respect to supply of scrap. On the other hand, the decision is likely to impact scrap exporters all over the country.

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The latest Russian official data suggests that ferrous scrap exports from the country dropped significantly by 18% over the previous year to total 934,500 tonnes in the first quarter of the current year. The primary export destination was Turkey, which received almost 40% of the total Russian exports. The Turkish scrap imports from Russia plunged by 26% when compared with the initial quarterly period in 2018.