The question of restricting the export of scrap made at the government level. The initiator was the lobby of the trumpet companies — the Fund of development of pipe industry, which proposes to introduce export quotas for six months with a volume quota of 995 tons. Otherwise, the Fund forecasts a decline of steel production in Russia by 2.5–4 million tonnes. Lomozagotoviteli argue that such a measure would have long-term negative consequences for the industry and will not lead to an increase in the consumption of scrap in Russia.Export quotation of scrap proposed for the working group of the state Commission on economic development and integration, stated in the letter of the Ministry of economy to the Ministry of industry and trade dated 14 may (there is a “b”). The basis for the discussion was the letter of the Fund of development of pipe industry (FRCC) to the head of Ministry of Economics Maxim Reshetnikov. The FRCC proposes to introduce quotas for export to countries outside the EEU, for six months from 1 July or 1 August. Volume quotas would be set to 995 thousand tons. The economy Ministry said “Kommersant” that the question of the competence of the Ministry of industry and trade, said that he “is in progress”.Quotas on exports of scrap has already been used in Russia in September—November 2019. According to the version of the FRCC, this period was able to redirect the scrap in the domestic market, which reduced prices to 13-15 thousand rubles per ton. But now because of the quarantine scrap decreased and for the year may fall by 10-15%, or 2.7 to 4 million tons. Thus, according to the FRCC, in mid-April Russian scrap from the southern Federal district was delivered CIF to Turkey for 19 thousand rubles per ton, which is 36% higher than the domestic price, FCA in the same region.The Director of the FRCC Igor Malyshev told Kommersant that if the quotas will not be introduced in the second half of the year, steel production will decline at almost the same 4 million tons, only to fall on the scrap. “In today’s realities it is necessary to impose export quotas, which will allow you to redirect at least 1 million tons of scrap in the domestic market and, therefore, produce about 1 million tons of finished steel products worth about 30 billion rubles, to support the load of domestic steel producers and related industries, and preserve jobs in the industrial sector. The additional tax revenues and contributions to the funds will amount to about 7.5 billion rubles,”— he said. Scrap is used as raw material in the production of billets for seamless pipes, rolled and sheet metal for welding medium-diameter pipes and large-diameter pipes and for all other types of rentals that are used in construction and industry. TMK and OMK declined to comment. In CHTPZ support the proposals of the FRCC.Lomozagotoviteli expected to negatively evaluate suchideas. Director of the Association of nsro “Channel.kom” Victor kovševnyj considers that “in advance of the quota will last six months, and the negative consequences of it — five years.” He recalled that scrap has already suffered from the effects of quarantine measures and, given the decline in consumption of scrap by the Russian metallurgists, the export quotas will lead to bankruptcy. So, emphasizes Mr. kovševnyj, last year the result of the quota was a decline in the consumption of scrap in the domestic market of 1 million tons, although the original metallurgists promised to increase it. In addition, in his opinion, regulatory bodies in other countries may regard the quotas as indirect subsidization of the steel industry, which could lead to investigations against Russian companies.According to Maxim Hudalova of an ACRE, the result of the quota will be that part of samoborsko leave the market amid a series of epidemiological and regulatory constraints. The demand for rolled steel and tubes in Russia, obviously, this year will be below last year’s levels, says the expert, and hence the need for scrap will be lower, so to limit the ability of samoborsko to sell raw materials to foreign markets is not necessary.Eugene Zainullin
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