CRU: Russian Scrap Export Tariffs to Up Pressure on EU, U.S. Scrap Markets

By CRU Principal Analyst Chris Asgill, from CRU’s Steelmaking Raw Materials Monitor

Russia will impose tariffs of 5% ferrous scrap exports, with a minimum rate of €45 /t ($55 /t), for a period of six months. The country states that these are to protect the domestic metallurgical industry from supply shortages and high prices. As shown in the latest CRU Steel Metallics Monitor (here, for subscribers of this service), Russian domestic scrap prices have reached record highs in recent months. Large scrap procurement plans from domestic steel mills, seasonally restricted supply due to winter weather and surging international steel prices have all played a part in these price gains.