While most global steel markets enjoyed a break during the Christmas holidays, the eyes of most analysts and participants turned toward Russia, where the local authorities are pushing forward a number of measures to apply export duties for scrap and steel products, in order to protect the domestic market.

Russian federal anti-monopoly service FAS suggested in late December that all exports of steel products should be liable for duties, not just ferrous scrap, as implemented by the economic development ministry earlier in December.

FAS is responding to the request by deputy prime minister for construction and development Marat Husnullin in connection with rising domestic steel product prices. This follows a petition from construction industry representatives. 

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The ministry agreed to raise the existing 5% ferrous scrap export duty to 15% and the minimal fiscal value to €45/tonne ($55/t) from €15/t, for six months. This followed a request from the country's Pipe Industry Development Foundation (FRTP), representing major Russian steelmakers. The hike is aimed at securing sufficient and appropriately priced feedstock supply for Russian mills.

FAS argues Russia’s domestic steel industry is deeply enmeshed in the global steel market, and is influenced by its trends directly. It describes Russian domestic steel prices gaining up to 30% in November and early December, with rebar prices rising 16% from end-October to early December, and flat products by 20%.

Despite this, local values do not exceed export prices, which grew even stronger in the same period, while domestic scrap prices have also gained 35% from the start of 2020, according to FRTP.