Russia Unlikely to Extend Steel Export Duties to 2022
Russian authorities have recently indicated that there may be no grounds for the prolongation of recently imposed export duties for August 1- December 31 and they will not be rolled over to 2022. Russia's Industry and Trade Deputy Minister Mr Victor Evtukhov told “I do not see the export duties being valid next year. There is no need for that. The local prices have started to decrease and the market has started to cool off. We cannot foresee now how the economy will be, but today it is not bad. The decision can be either one.”
Mr Evtuhov added that “At present Russia has fixed the price decreases in the local market for all of the primary products. Moreover, some products locally are priced lower than in the international markets. However, scrap prices remain strong among all of the products, which are explained by the decent demand in both local and export markets.”
At the end of July this year, Russia's Ministry of Industry imposed 15 percent export duty for most steel products, while the minimal payable value was set individually for each product. The measure has been imposed for the period from August 1 until 31 December 2021.
But industry insiders believe the Russian government will replace the 15% export duty with an increase in mineral extraction tax or MET. Just under a month ago, President Mr Vladimir Putin said Russia would increase the MET for the metallurgical industry starting in January.