According to media reports, Russian government is currently reviewing a petition of major Russian steel producers, a powerful force linked to the Russian government, to reduce recently imposed export tariffs on major steel products. Although it is difficult to predict whether this petition will be successful or not, successful reduction of export tariff of pig iron last month from USD 115 per tonne to USD 54 per tonne has given the confidence to appeal the case. If the petition this time is successful, Russian steel exports are likely to increase in the second half of 2021 and will indirectly affect steel prices.Russian Prime Minister Mr Mikhail Mishustin had signed a decree in early July to introduce export duties on ferrous and non ferrous metals starting 1 August 2021 for sales outside the Eurasian Economic Union. The duties on 340 products, ranging from USD 54 to USD 2,321, will be in effect through the end of December 2021. The duty’s base rate will be 15%, with the following specific rates for each productIron ore concentrate – USD 54 per tonneFlat hot-rolled steel and rebar – USD 115 per tonneCold-rolled mill products and wire – USD 133 per tonneStainless steel and ferroalloys –USD 150 per tonneAluminium – USD 254 per tonneCopper – USD 1,226 per tonneNickel – USD 2,321 per tonneThe duties will not be applied to Russia’s aluminium exports to countries within the Eurasian Economic Union ie Armenia, Belarus, Kazakhstan and Kyrgyzstan. All Russian steel products for export outside of the EAEU with a bill of lading dated August 1 or later would be subject to the taxThe introduction of an export tax was expected to cause tightness in global supplies leading to jump in global export prices. But the situation in August is quite opposite as Russian mills have lowered their export offers for billets and HR etc. While pig iron export prices, amid bearish trends in scrap, have slid to USD 510-520 FOB Black Sea, spot prices for imported hot-rolled coil in Vietnam continued on a downward trend last week, after traders and steel mills continued slashing offers to attract buyers. Sellers offering HRC from Russia cut their offers to USD 870-880 per tonne CFR Vietnam, which translates to just about USD 800 FOB
According to media reports, Russian government is currently reviewing a petition of major Russian steel producers, a powerful force linked to the Russian government, to reduce recently imposed export tariffs on major steel products. Although it is difficult to predict whether this petition will be successful or not, successful reduction of export tariff of pig iron last month from USD 115 per tonne to USD 54 per tonne has given the confidence to appeal the case. If the petition this time is successful, Russian steel exports are likely to increase in the second half of 2021 and will indirectly affect steel prices.Russian Prime Minister Mr Mikhail Mishustin had signed a decree in early July to introduce export duties on ferrous and non ferrous metals starting 1 August 2021 for sales outside the Eurasian Economic Union. The duties on 340 products, ranging from USD 54 to USD 2,321, will be in effect through the end of December 2021. The duty’s base rate will be 15%, with the following specific rates for each productIron ore concentrate – USD 54 per tonneFlat hot-rolled steel and rebar – USD 115 per tonneCold-rolled mill products and wire – USD 133 per tonneStainless steel and ferroalloys –USD 150 per tonneAluminium – USD 254 per tonneCopper – USD 1,226 per tonneNickel – USD 2,321 per tonneThe duties will not be applied to Russia’s aluminium exports to countries within the Eurasian Economic Union ie Armenia, Belarus, Kazakhstan and Kyrgyzstan. All Russian steel products for export outside of the EAEU with a bill of lading dated August 1 or later would be subject to the taxThe introduction of an export tax was expected to cause tightness in global supplies leading to jump in global export prices. But the situation in August is quite opposite as Russian mills have lowered their export offers for billets and HR etc. While pig iron export prices, amid bearish trends in scrap, have slid to USD 510-520 FOB Black Sea, spot prices for imported hot-rolled coil in Vietnam continued on a downward trend last week, after traders and steel mills continued slashing offers to attract buyers. Sellers offering HRC from Russia cut their offers to USD 870-880 per tonne CFR Vietnam, which translates to just about USD 800 FOB