Russia sets export duties on 340 metal products [CORRECTED]
The Russian government has approved temporary export duties on 340 steel and non-ferrous metals sold outside the Eurasian Economic Union (EAEU), which are set to take effect from August 1 through December 31, according to an official government decree.
The duties, which are intended to control inflation of metal prices domestically, are expected to raise approximately 160 billion rubles ($2.22 billion) over that five-month period.
The duty’s base rate will be 15%, with the following specific rates for each product:
- Aluminium – $254 per tonne
- Copper – $1,226 per tonne
- Nickel – $2,321 per tonne
- Steel for pellets (iron ore concentrate) – $54 per tonne
- Flat hot-rolled steel and rebar – $115 per tonne
- Stainless steel and ferro-alloys – $150 per tonne
- Cold-rolled mill products and wire – $133 per tonne
The decree noted specific products that will be subject to the export tax, including: unwrought, non-alloyed aluminium, copper cathodes and sections of cathodes and nickel mattes, as well as unalloyed pig iron and alloyed pig iron products.
Before the export taxes were officially announced, Fastmarkets reported that a duty on pig iron exports would help support global prices, and that Brazilian steel slab producers also could benefit from the imposition of a Russian export duty on shipments of steel and non-ferrous metals. Aluminium market participants also speculated that the tariffs - if implemented - could be extremely disruptive to the global market and would almost certainly increase all regional P1020 premiums.
[Editor’s note: This article was updated on Monday June 28 to amend the rate given for cold-rolled mill products and wires. An earlier version of this story gave this rate as $1,300 per tonne - this should have been $133 per tonne.]