Russia will impose export tariffs on black metal.
Russian Prime Minister Mikhm Misushos signed a decree on June 26, which will have black metal and major basic metals exported to the Eurasian Economic Alliance (EAEU) from August 1st to December 31. Lessing 15% temporary tariffs, tariff ranges from $ 54 / ton to $ 2321 / ton. According to the data, black metal and non-ferrous metal export tariffs in accordance with the Ministry of Russian Economic Development, increased by $ 113 billion-114 billion rubles (about $ 1.6 billion) and 50 billion rupees (about $ 700 million) country budget. For direct reducing balls, hot press iron (HBI) and other black metal products, the Ministry levied the minimum tariffs of $ 54 / ton; hot-rolled flat and threaded steel minimum tariffs 115 US dollars / ton; cold roll, wire and Other steel product tariffs are up to $ 1,300 / ton, with a minimum of $ 133 / ton; stainless steel and iron alloy minimum tariffs are $ 150 / ton. For non-ferrous metals, the lowest metal specific tariffs of copper are $ 1226 / ton, nickel is $ 2321 / ton, and aluminum is $ 254 / ton. The tax rate is based on the price calculated in the first five months of 2021. Insiders analyzed that Russian pigs producers may have suffered the largest loss, because new tariffs will increase their cost of 25% -30%, thereby reducing their competitiveness. The Russian government’s export tariffs for metal is designed to cool the domestic metal price while offsetting the increase in national budget expenditures. According to the Russian Economic Development Department, Russian black metal export prices rose by 30% year-on-year, with a year-on-year increase of 50% year-on-year, endangering public funding. In addition to the concerns of domestic metal prices, this will also aim at the near future of metal companies. In the first quarter of this year, Russian metal company’s consolidated profit was 570 billion rubles (about $ 7.9 billion), more than 3.5 times higher than 2017, 2018 and 2019. The Russian Economic Development Department predicts that the domestic metal industry has a profit of 21 trillion -23 trillion rubles in 2021. For the decision to levy to black metals and non-ferrous metals, metal companies have an objection attitude, which is considered to have discriminatory and pure financiality. In addition, Mischos signed amendments to resolution 977 on June 23, \”Revision of Tariff Taxation Rate Outside Russian Products to Tariff League Agreement\”, the temporary tariffs of scrap steel will increase from the current 45 Euro / ton To a maximum of 70 euros / ton, the increase is not less than 5% for a period of 180 days. The file was released on June 25th will be officially effective on July 25. As the import price of Turkish scrap has soared, Russia made a decision to improve the tariff of scrap steel in late May. At the end of 2020, Russia will increase the scrap steel minimum export tariff from 5 euros / ton from 5 euros / ton to 45 euros / ton, but still can’t prevent metal price inflation. Thus, the export condition is tightened again to suppress the rise in domestic steel. From January to May 2021, Russia exported 1.44 million tons of scraps, year-on-year2.2% drop.(World Metal Info)