Russia not likely to extend export tariffs beyond Dec'21

The Russian government has hinted that it is not planning to extend the export tariffs imposed on various steel products for next year (2022), as per latest news reports.

In a statement on 1 Sepr'21, Russia's Deputy Minister of Industry and Trade, Victor Evtuhov, said the possibility of an extension cannot be ruled out at all, but there is growing opinion that there is no need for an extension because the Russian government has succeeded in stabilising domestic steel prices.

The minister further said that current steel prices in the domestic market are lower as compared to global prices. However, of all products, scrap prices are still high which can be primarily attributed to decent demand in both domestic and overseas markets.

It should be noted that the Russian government had announced export tariffs of 15% on exports of steel products with effect from 1 Aug'21 till 31 Dec'21 in a bid to control rising steel prices in the domestic market. The minimum amount of tariffs was set different for each product.

For iron ore pellets and other ferrous products with indicative prices of up to $400/t, the ministry added a minimum tax of $54/t; for hot-rolled flat products and rebar, the minimum tax was $115/t; for cold-rolled coil, wire and other steel products priced up to $1,300/t, the minimum tax was at $133/t; and for stainless steels and ferro alloys, at $150/t.