Russian PM signs resolution to raise export duty on scrap metal to 70 euros from 45 euros per tonne
MOSCOW. June 25 (Interfax) - Russian Prime Minister Mikhail Mishustin signed a resolution on June 23 to amend customs export duties on ferrous metal scrap and introduce for a period of 180 days a combined export duty of 5%, but not less than 70 euros per tonne.
The resolution takes effect within 30 days of publication, according to a statement posted on the official website for legal information.
Export duty on ferrous metal scrap and waste is currently 5% but not less than 45 euros per tonne. It was raised on January 31 also from 5%, but not less than 5 euros per tonne, for a period of 180 days.
As previously reported, Russia's Industry and Trade Ministry suggested raising the export duty on ferrous steel scrap to 5%, but not less than 90 euros per tonne, from the current minimum of 45 euros, for a period of 180 days.
According to the Industry and Trade Ministry, 65%-70% of the construction product assortment in Russia is produced from scrap metal. The previous rise in the duty produced the desired effect, as exports of scrap metal declined. Meanwhile, worldwide scrap metal prices are continuing to grow, as demand for the raw material remains high on the global market, particularly in China, which recently cancelled its import duty on scrap metal.
Russian exports of ferrous steel scrap to Turkey rose sharply three-fold-plus from 24,800 to 75,400 tonnes in April 2021 compared with March 2021 amid the high prices on exports, the Industry and Trade Ministry had reported. This spring, there was a difference of nearly 7,000 rubles between the export price and the domestic price of 27,500 rubles on the Russian market.
Economic Development Minister Maxim Reshetnikov at the end of May instructed the corresponding agencies and members of the subcommittee on customs tariffs and non-tariff regulation, as well as protective measures in foreign trade to work out the feasibility of raising the export duty on ferrous steel scrap and waste to 90 euros per tonne, as proposed by the Industry and Trade Ministry, in order to adopt a balanced solution that would not harm Russian processors. Reshetnikov also instructed to work out the matter, make the necessary calculations, and analyze the possible consequences on the profitability and investment attractiveness of Russian enterprises from raising the duty.
