The steel export tax initiative in Russia was approved by the Russian authorities late on June 25.  The measure, suggested as a means to curb the rapid price increases for steel in the local market in Russia, will be imposed for the period from August 1 to December 31 this year.

The base export rate is 15 percent and each product will be subject to a specific duty component in US dollars per metric ton. This will be calculated depending on the product group and the metal type (for non-ferrous metals) or the extent of processing required for materials (for ferrous metals) and taking into account the dynamics of global prices within the first five months of 2021.

The specific duty component for HR flats, semis, and rebar will be no less than $115/mt, while for cold rolled flats and wire it will be not less than $133/mt, and for stainless steel and ferroalloys it will be not less than $150/mt.

The duties will be applicable to exports outside the Eurasia Economic Union (EEU) and Russia will hold negotiations with the EEU partners in order to minimize the re-export risks.