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Scrap flow in Russia expected to stay tepid

It is expected that the flow of scrap from Russia shall more or less stay tepid because 30% to 50% export duties might be applied to outbound scrap. Analysts say that the trade laws of Russia shall not change anytime soon. Businessmen say that there are already 30% to 50% duties on the market since the last eight years and hence, and forcing more duties is not a wise step on part of the government. At the moment, exporters of copper scrap and aluminum scrap have to pay a total duty of 50% on the value of scrap while nickel exporters have to pay a 30% duty on the value of material they export. Recently, the government of Russia started an investigation on steelmaker Mechel for the purpose of tax audit. This shall disturb the expansion plans of the company which were decided as a step to increase demand for stainless steel scrap originating from the company.

Nov 15, 2008 12:39
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