FOCUS: Export tax in Russia 'will create spike in HRC exports in July'

Russia has approved temporary export duties on non-ferrous metals and steel products, including hot-rolled coil, which will come into effect on August 1 this year - which will cause the country’s HRC exports to spike in July, market sources told Fastmarkets.

Although the country is the fourth-largest global steel exporter, its government has set a base duty rate of 15% or $115 per tonne on HRC exports for the period between August 1 and December 31. This is intended to restrict the rise in domestic steel prices.
“In July, mills will try to export as much as they can of upstream products - pig iron, semi-finished [steel] and HRC - because these take less time to produce,” one international trader based in Russia said.
Russia's major flat steel makers - Novolipetsk Steel (NLMK), Severstal and Magnitogorsk Iron & Steel Works (MMK) - may each export an additional 30,000-40,000 tonnes of HRC in July, he estimated. That would add about 90,000-120,000 tonnes to the market.

According to the latest available data from the International Steel Statistics Bureau (ISSB), Russia exported 920,887 tonnes of HRC in January-March 2021, so the monthly average was...

Published

Maria Tanatar

Marina Shulga

Julia Bolotova

June 28, 2021

16:35 GMT

Dnipro, London