Russian Ferrous Scrap Exports Up 11% in July

Demand from Turkey and South Korea remained strong in July. Imposition of ban on scrap exports from 9 Far eastern ports may reduce volumes in coming months.

Russia- world's fourth largest scrap exporter after EU-28, USA and Japan has witnessed considerable rise of 11% M-o-M in its scrap exports in Jul'18 as against exports recorded in Jun'18. As per recent customs data, the country imported 483,464 MT ferrous scrap in Jul'18, which has increased 11% M-o-M as against 435,675 MT in Jun'18. On the yearly premises, exports have edged down 2% Y-o-Y as against 495,351 MT in Jul'17.

Russian government has imposed the 6 months ban on ferrous scrap exports effective from July'18 to Jan'19 for the exports activities subjected to the 9 far Eastern ports due to lack of infrastructure and facilities. Further it has also banned exports from black sea ports to enhance domestic use of scrap. However, the impact of scrap export ban seems limited on global supply trends for short run.

Port wise - In Jul'18, St. Petersburg port in Russia remained the largest port for scrap shipping activities occupying 35% share (0.17 MnT) out of total scrap exports. Followed by other major ports like Primorye territory (0.06 MnT), Leningrad region (0.06 MnT), Khabarovsk territory (0.04 MnT), Kaliningrad region (0.03 MnT) and Samara region (0.03 MnT) respectively.

Turkey remained largest importer of Russian scrap - Turkey imported highest 216,523 MT ferrous scrap from Russia, up 2% M-o-M in July occupying almost 45% share of total scrap exports. South Korea remained at second largest importer position occupying 24% share in July. South Korea imported 117,551 MT, up 30% M-o-M. Followed by Belarus importing 66,667 MT ferrous scrap witnessed a rise of 22% M-o-M while Egypt (36,731 MT) and Portugal (16,655 MT) recorded significant rise in scrap imports from Russia in July'18.

Amid strong global scrap prices as compared to Russian prices, the demand for Russian scrap remained strong from major importers like Turkey, South Korea and Belarus in July. Also, the country witnessed speed up in export activities before implementation of export ban.

Russian scrap exports rise 23% Y-o-Y during Jan-Jul'18 - Russia exported 3.07 MnT ferrous scrap during first seven months of CY18 as against 2.50 MnT ferrous scrap exports during Jan-Jul'17. It is expected that Russian scrap exports could climb above 5.5 MnT in 2018 as against 4.98 MnT in 2017.

According to World Steel Association, Russia's crude steel production remained stable at 6.17 MnT Y-o-Y while marginally up by 3% M-o-M in Jul'18. While it is recorded at 42.09 MnT during Jan-Jul'18 as against 41.25 MnT crude steel produced during same period last year.

Country-wise Russia ferrous scrap exports -

Quantity in MnT,
Source: Customs Data