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Ministry of Industry plans to restrict scrap exports

The Ministry of Industry and Trade of the Russian Federation is prepared to take serious measures to reduce the cost of scrap metal internal consumer. Not excluded the temporary ban on the export of scrap metal. At the same time industry workers believe it is unlikely that 13% of the scrap will have a significant impact on its value. But the variant in which the EU countries importing scrap of Russia, will close their markets to Russian products. Analysts also believe that cost reduction is inevitable in the absence of the influence of dealers. At the same time they do not rule out the emergence of new trade restrictions on foreign markets.

Website regulation.gov.ru published material that was developed by the Ministry of Industry the bill concerning the ban or temporary restrictions on exports of non-ferrous and ferrous metals. Representatives of the Ministry believe that such measures are necessary, given the increase in the intrinsic value of the scrap. The ban will also eliminate the possibility of a lack of secondary raw materials in Russia. According to preliminary data of the bill will take effect in April. In this case the document is not on the site, as the Ministry of Industry has ignored the request for granting it.

According to certain sources, the possibility of a ban on the export of scrap metal was seen to feed Manturova Denis, head of Industry and Trade, at the end of January. The bill provides an incentive to the Ministry for metallurgists in the event of their refusal to compromise with the consumer. Complaints about the sharp rise in prices in the pipe and steel sectors — 25−30% — occurred on the part of oil companies and machine builders in November 2014. In early February, Denis Manturov said the need to agreement between the parties, having given 2 weeks to resolve differences. Otherwise, there is no risk of export duties with respect to steel.

According to some reports, the relationship steelmakers and consumers, along with the bill will be considered at the Industry and Trade Ministry Deputy Prime Minister Arkady Dvorkovich. The prepared document says that in 2014 domestic use of scrap amounted to about 26.5 million. Tons. Export volumes reached 4.2 mln. Tons. Of these, Turkey took 2.2 million tons, South Korea 0.7 million tonnes, the EU -… 1 million tons… However, even if these amounts do not leave the limits of the Russian Federation, the price of scrap due to the weakening RUB will remain the same.

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