Russia: Ferrous Scrap Exports Up 4% in 2018

Russia, world's fourth-largest scrap exporter after EU-28, USA and Japan has witnessed a marginal increase in scrap exports by 4% Y-o-Y in 2018. As per recent customs data, the country exported 5,180,305 MT ferrous scrap in CY18 against 4,977,053 MT ferrous scrap recorded during CY17.

Turkey remained the largest importer of Russian scrap - Turkey imported highest 2.48 MnT ferrous scrap in 2018, up 6% Y-o-Y occupying 48% share. Following two major importers, Belarus and South Korea observed fall of 11% and 7% Y-o-Y in 2018 against that of in 2017 occupying 18% share each.

Port-wise - St. Petersburg port in Russia remained the largest port for scrap shipping activities occupying 34% share (1.75 MnT) of total scrap exports 2018. Followed by other major ports Primorye Territory (0.63 MnT), Leningrad region (0.56 MnT), Pskov region (0.51 MnT), Rostov region (0.29 MnT) and Samara region (0.25 MnT) occupying 12%, 11%, 10%, 6% and 5% share.

Uncertainty over Russia ferrous scrap exports ban - In late Dec'18, Country's leading pipemakers submitted a complaint asking for the prohibition of ferrous scrap exports for six months starting on 1 May. The restrictions on exports from far east ports were earlier imposed for 6 months starting from 20th Jul'18. The ministry has agreed to examine the issue but has not identified any timeframe in which a decision on the matter will be made.

According to World Steel Association, Russia's crude steel production recorded at 71.68 MnT during Jan-Dec'18, almost stable against 71.49 MnT crude steel in the same period last year. Russian EAF steel production has steadily increased over the past four years to 21.4 MnT last year from 18.75 MnT in 2015.

According to reports, Russian ferrous scrap collection has increased over the past four years in line with the rise in EAF output, By contrast, export volumes have remained relatively stable indicating higher apparent domestic consumption.

Russian scrap exports prices have followed trends in domestic scrap prices more closely than global prices. Average export prices increased by around USD 50-55/MT to USD 295-300/MT, CPT (A3 main port) in 2018 as compared to 2017.

Russian scrap exports dropped marginally in Dec'18 - Russia exported 410,111 MT ferrous scrap in Dec'18, down 5% M-o-M against 429,560 MT in Nov'18. However, on yearly premises exports dropped 24% Y-o-Y as against 538,803 MT in Dec'17.

Turkey imported 241,152 MT ferrous scrap in Dec'18, up 47% M-o-M against 163,671 MT in Nov'18. South Korea stepped up at second largest importer position with 77,864 MT ferrous scrap, up 5% M-o-M. While Belarus witnessed minor volume of just 3,868 MT sharply down 97% M-o-M in Dec'18.

Country-wise Russia ferrous scrap exports -

Quantity in MnT,
Source: SteelMint Research