Russia's scrap export ban to squeeze local markets

Ferrous scrap exports from Russia’s Far East region will be subject to restrictions for a six-month period that began on Saturday July 21. This will squeeze suppliers between a reduced number of available ports to sell into but does not guarantee a rise in domestic demand, according to Metal Bulletin Research (MBR).

The restrictions mean that, for a period of 180 days, scrap exports will be banned from several major dry-bulk cargo ports, and will only be permitted through nine (mostly smaller) ports.
At first glance, this ruling is particularly inconvenient for exporters. Only four of the exempt ports have a year-long navigation period, while the others are mostly closed from December to May because of frozen seas. Moreover, the “open” ports have only restricted railway connections, and these are vital for efficient scrap deliveries.
In the first quarter of 2018, Russia’s Far East ports exported 179,620 tonnes of ferrous scrap, with almost 99% of this material being shipped to South Korea, according to Far East Customs Administration.

This latest export ban is designed to help the only steelmaker in Russia’s Far East province, Amurmetall, by enabling it to secure higher volumes of scrap at lower prices so that it...


July 23, 2018

20:10 GMT