Russian Ferrous Scrap Exports Down 7% in November

Russia, the world's fourth-largest scrap exporter after EU-28, USA and Japan has witnessed a marginal fall in scrap exports by 7% M-o-M in Nov'18. As per recent customs data, the country exported 429,560 MT ferrous scrap in Nov'18 as against 464,324 MT in Oct'18. However, on yearly premises exports increased 9% Y-o-Y as against 393,477 MT in Nov'17.

Turkey remained the largest importer of Russian scrap - Turkey imported 163,671 MT ferrous scrap in Nov'18, down 12% M-o-M against 186,455 MT in Oct'18. It occupied the highest share of 38% followed by Belarus and South Korea occupying 30% and 17% share each in total Russian exports in Nov'18.

Belarus stepped up at second largest importer position with 127,361 MT ferrous scrap imports, up 24% M-o-M. South Korea remained the third largest importer recording 74,342 MT scrap imports, down 27% M-o-M. While Greece imported 33,955 MT from Russia in Nov'18.

Port-wise - St. Petersburg port in Russia remained the largest port for scrap shipping activities occupying 26% share (113,080 MT) out of total scrap exports in Nov'18. Followed by other major ports Leningrad region (67,350 MT), Pskov region (61,477 MT), Primorye Territory (48,100 MT), Kaliningrad region (30,920 MT) and Rostov region (9,693 MT) occupying 16%, 14%, 11%, 7% and 2% share.

Russian scrap exports increased 7% Y-o-Y during Jan-Nov'18 - Russia exported 4,770,193 MT ferrous scrap during the first eleven months of CY18 against 4,438,250 MT ferrous scrap recorded during Jan-Nov'17

According to World Steel Association, Russia's crude steel production recorded at 65.81 MnT during Jan-Nov'18, marginally up against 65.25 MnT crude steel in the same period last year.

Total scrap exports likely to remain flat in 2018 - It was earlier expected that Russian scrap exports may climb 5.5 MnT levels in 2018 as against a total of 4.98 MnT in 2017 however, on the implementation of six month ban on scrap exports since July'18, scrap export volume likely to reach around 5.1-5.2 MnT in 2018.

Russian scrap exports prices tumbled by USD 25-30/MT in recent bulk vessel bookings made by South Korean steelmaker. Weak global finish steel demand and tight scrap supply during winter season had kept Russian scrap suppliers away from offering much but sharp fall in global prices could have carried Russian scrap price down in early Jan'19. Meanwhile, Turkey scrap bookings remained limited from Russia in Dec'18.

6 months ban on Russian scrap export period will complete on 20th of Jan'19. However, whether these restrictions on far east export ports will be taken off or will continue even after 20th Jan'19 has not yet been confirmed.

Country-wise Russia ferrous scrap exports -

Quantity in MnT,
Source: SteelMint Stats