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Ferrous Update

Stainless steel prices in Europe will continue to decline

A drop in cold-rolled stainless steel prices and production costs for European producers in the third quarter., view more

China reduced steel production by 7% m/m

Chinese steelmakers reduced steel production by 7% compared to the previous month to 86.02 million tons., view more

India, EU conclude another round of talks on free trade pact

India and the European Union (EU) chief negotiators have concluded another round of talks on the proposed., view more

Tough India-US trade discussions amidst irritants over tariff tensions

Throughout last week, President Trump of the United States repeatedly irritated India with one., view more

Non-Ferrous Update

Global Copper and Aluminium Market Daily Pulse-Bluglance

Global Copper and Aluminium Daily Market reports., view more

Supply support is evident, copper prices fluctuate at highs

the copper market has shown stability, with copper prices continuing to fluctuate rangebound near the 5-day., view more

Aluminium Dunkerque’s sustainable milestone

a leading producer of primary aluminium in Europe, has taken a bold step toward greener metal production with the., view more

US Copper Market Faces Surplus Amid Tariff Speculations

The copper market is witnessing a dramatic shift as a potential US tariff on copper imports., view more

Battery Recycling Update

What the Battery Passport Means for Researchers and Material Suppliers

It aims to increase transparency across the global battery value chain by standardizing the collection., view more

Plastic Recycling Update

Plastic wastes recycling: A micro business turning crisis into opportunity

that The European Union has adopted binding rules to secure safer transport of plastic pellets., view more

E Waste Update

Solar Energy Update

The post MRAI News Updates: 19th May, 2025 appeared first on Ferrous and non-ferrous scrap & wastes processors and vehicle recyclers.

U.S. President Donald Trump holds Pennsylvania rally to promote deal for Japan-based Nippon to ‘partner’ with U.S. Steel President Donald Trump is holding a rally in Pennsylvania on Friday (May 30, 2025) to celebrate., view more

Non-Ferrous Update

Plastic Recycling Update

Battery Recycling Update

E Waste Update

Namo eWaste Reports 50% Revenue Growth, Unveils Expansion Plans in Nashik and Hyderabad One of India’s leading waste management companies, Namo eWaste Management Ltd., view more

The post MRAI News Updates 30th May, 2025 appeared first on Ferrous and non-ferrous scrap & wastes processors and vehicle recyclers.

Non-Ferrous Update

Plastic Recycling Update

Battery Recycling Update

E Waste Update

The post MRAI News Updates 26th May appeared first on Ferrous and non-ferrous scrap & wastes processors and vehicle recyclers.

Non-Ferrous Update

Plastic Recycling Update

Battery Recycling Update

E Waste Update

The post MRAI News Updates 23th May, 2025 appeared first on Ferrous and non-ferrous scrap & wastes processors and vehicle recyclers.

Non-Ferrous Update

Battery Recycling Update

Plastic Recycling Update

E Waste Update

The post MRAI News Updates 20th May 2025 appeared first on Ferrous and non-ferrous scrap & wastes processors and vehicle recyclers.

Stainless steel prices in Europe will continue to decline A drop in cold-rolled stainless steel prices and production costs for European producers in the third quarter., view more

China reduced steel production by 7% m/m Chinese steelmakers reduced steel production by 7% compared to the previous month to 86.02 million tons., view more  

India, EU conclude another round of talks on free trade pact India and the European Union (EU) chief negotiators have concluded another round of talks on the proposed., view more  

Tough India-US trade discussions amidst irritants over tariff tensions Throughout last week, President Trump of the United States repeatedly irritated India with one., view more  

Non-Ferrous Update

Global Copper and Aluminium Market Daily Pulse-Bluglance Global Copper and Aluminium Daily Market reports., view more  

Supply support is evident, copper prices fluctuate at highs the copper market has shown stability, with copper prices continuing to fluctuate rangebound near the 5-day., view more  

Aluminium Dunkerque’s sustainable milestone a leading producer of primary aluminium in Europe, has taken a bold step toward greener metal production with the., view more  

US Copper Market Faces Surplus Amid Tariff Speculations The copper market is witnessing a dramatic shift as a potential US tariff on copper imports., view more  

Battery Recycling Update

What the Battery Passport Means for Researchers and Material Suppliers It aims to increase transparency across the global battery value chain by standardizing the collection., view more  

Plastic Recycling Update

Plastic wastes recycling: A micro business turning crisis into opportunity that The European Union has adopted binding rules to secure safer transport of plastic pellets., view more

E Waste Update

India’s e-waste rules through EPR certificate trade and its challenges India in 2022 introduced a new e-waste regulation, replacing the E-Waste (Management and Handling) Rules., view more

Solar Energy Update

Reliance Power teams up with Bhutan for country’s largest ever solar energy project at Rs 2000 crore Reliance Power on Monday announced that it has signed an agreement with., view more

The post International News Digest 19th May, 2025 appeared first on Ferrous and non-ferrous scrap & wastes processors and vehicle recyclers.

The National Recycling Association RUSLOM.COM continues to publish its regular newsletter for international partners, containing valuable proprietary information on the Russian metals and scrap markets – RUSLOM.COM self-regulatory news and updates; the national metal scrap processing industry stories; as well as the latest Rusmet Rating Agency market indices. We welcome your feedback and communication, based on the above newsletter.

Index

RUSLOM.COM NEWS: ANNOUNCEMENTS AND POST-RELEASES. 3

Freight industry conference on 27 August to propose to authorities how to improve efficiency of industrial freight transport 3

Two members of RUSLOM.COM sign agreements on development of production facilities with state support 5

Representatives of RUSLOM.COM and Rusmet Rating Agency participate in a BRICS Working Group meeting on Mining and Metallurgy. 5

Balance of Metals and Raw Materials Markets session is held at INNOPROM-2024. 5

Introductory meeting of RUSLOM.COM’s newly elected Presidium is held. 7

RUSSIAN SCRAP PROCESSING INDUSTRY NEWS. 8

RUSAL to melt aluminium scrap in new way. 8

Eco- friendly recycling of metallurgical waste. 9

Conversion of metallurgical waste into high-strength construction materials: modern technologies and sustainable development 9

New plant in Kursk region: zinc oxide from recycled resources. 9

Scrap metal market continues to be in turmoil 10

RUSMET RATING AGENCY INDICES. 11

METALLURGY NEWS OF RUSSIA.. 12

Possibility of Russia’s rare earth industry integrated management 12

Minister of Industry and Trade reports to President on results of state support for steel companies. 13

Russia’s iron and steel exports to EU up. 13

Russian industry slows in June amid positive dynamics for half-year period. 14

New M&A deals in the copper mining sector 14

Gold mine in North Caucasus. 15

New bimetallic product of Severstal 15

MMK supplies Arctic steel to Russia’s shipbuilding industry. 16

Chelyabinsk Electrometallurgical Plant invests in new chrome deposit 16

MACROECONOMIC NEWS OF RUSSIA.. 18

Indexation of utilisation fee proposal 18

President Vladimir Putin speaks about plans to scale up digital rouble project 18

Ministry of Finance and Bank of Russia propose draft law on the list of precious metals turnover violators. 19

Progress of recycled polymers products. 19

RUSLOM.COM NEWS: ANNOUNCEMENTS AND POST-RELEASES

Freight industry conference on 27 August to propose to authorities how to improve efficiency of industrial freight transport

The 7th industry conference “Cargo Transportation for Industry: Metals, Scrap, Gravel, Grain, Sand” will be held on 27 August at the Hilton Moscow Leningradskaya 5* hotel (21/40 Kalanchevskaya Street, Moscow).

The conference is organised by Rusmet, a Russian Rating Agency with 27 years of history, specialising in analytics in the metals and scrap industry and currently actively engaged in “information import substitution” in these industries.

The conference will bring together delegates from metallurgical and scrap processing companies, logistics companies, railway operators, banks, grain holdings, transport and loading equipment suppliers.

Representatives of the Ministry of Transport of Russia, Ministry of Industry and Trade of Russia, Skolkovo Innovation Centre, IPEM, Association Russian Steel, Pipe Industry Development Fund, Russian Railways, RosAvtodor, National Recycling Association RUSLOM.COM, as well as leading logistics analysts will act as experts.

The conference participants will discuss the challenges faced by the industry in the field of industrial cargo transportation in terms of competition with crushed stone and grain, as well as make proposals to improve the efficiency of logistics work, which will be submitted to the authorities for consideration.

In August, there is traditionally an increased load on the railway transport infrastructure due to the high demand for passenger transport during the holiday period, as well as the purchase of crushed stone by builders and the need for metallurgists to form a winter stock of scrap metal. But in terms of freight transport, the priority is usually given to crushed stone, as it freezes in the wagons during frosts. Transportation of scrap metal often takes place in October and later, which reduces the availability of raw materials at the plants, increases the cost of scrap and prevents its reorientation from export to the domestic market.

Another issue is the growth of railway tariffs for scrap delivery. In 2020 it increased by 3.5%, in 2021 by 3.7%, in 2022 by 18.6%, in 2023 by 10.75%, and in 2024 by 11%. Thus, logistics costs now account for more than 20% of the scrap value. In addition, metallurgical plants conclude service contracts with railway operators for 5-7 years, according to which they cannot provide their wagons to scrap suppliers for delivery of recyclable materials to the enterprise and accept scrap on the wagons of the scrap collector. In connection with the above-mentioned issues, a situation is developing where shippers start competing with each other, rather than with freight carriers, as the current legislation suggests.

Due to the difficulties with railway transport, it is necessary to look for alternative ways of cargo delivery. The development of road and water transport could reduce the burden on railways. But there are barriers here as well. The water transport sector requires modernisation and renewal of infrastructure. Road transportation also needs regulation, as trucking companies favour grain due to harvesting, and the possibility of increasing their own fleet is hampered by the high cost of maintenance. For example, the price of fuel and lubricants in Russia has increased by 40% on average, and in the southern regions it reaches 100%. The growth of drivers’ salaries has exceeded 50% due to competition for staff with other industries. The average price of domestic and Chinese scrap trucks in 2021 was around 10 million, now it is over 13 million. Repair costs have increased by 35-40%.

Leading market players and experts will discuss how to improve transport operations in the busy autumn season, solve the problem of competition of scrap transportation with crushed stone and grain, reorient export volume to the domestic market, and analyse the reasons for the decline in scrap and metal transportation.

The conference will result in a resolution of the industry community with specific proposals to the authorities.

Draft conference programme: https://www.rusmet.ru/events/new-events/7-ya-konferentsiya-gruzoperevozki-dlya-promyshlennosti-metally-lom-shcheben-zerno-pesok/

Two members of RUSLOM.COM sign agreements on development of production facilities with state support

Two members of the National Recycling Association RUSLOM.COM signed agreements on the development of production facilities with state support in the Rostov Region during INNOPROM-2024.

It is planned to create an enterprise worth up to 4 billion roubles in the Rostov Region for processing of waste of electrical and electronic equipment. The signing of the agreement was announced at the session of the Rusmet Rating Agency at the International Industrial Forum INNOPROM-2024. The agreement was signed by the Rostov Region Investment Development Agency and AKRON HOLDING.

Also at the event it was announced that 4 billion roubles would be invested in the development of the Ug-Met Industrial Park. Located in the Aksai District

Ug-Met Industrial Park is one of the largest infrastructure complexes in the South of Russia in the field of ferrous and non-ferrous metal recycling.

Representatives of RUSLOM.COM and Rusmet Rating Agency participate in a BRICS Working Group meeting on Mining and Metallurgy

The topic was increasing consumption of steel and non-ferrous metals in the construction sector. The session was moderated by Andrey Savelyev, Department of Metallurgy and Materials of the Ministry of Industry and Trade of the Russian Federation.

Reports are presented by experts:

• Alexey Sentyurin , Director of the Russian Steel Association,
• Dmitry Kolotilov, Chairman of the Trade Policy Commission of “Russian Steel”,
• Valery Ogarkov, representative of Central Research Institute Chermet.

Also, experts from RSPP, the Aluminium Association, Chinese colleagues from the departments of the relevant agencies.

Balance of Metals and Raw Materials Markets session is held at INNOPROM-2024

The session was moderated by Viktor Kovshevny, Director of the National Recycling Association RUSLOM.COM.

Andrey Savelyev from the Department of Metallurgy and Materials of the Ministry of Industry and Trade, made a welcoming speech. He spoke about indicators and trends in the regulation of domestic and foreign markets of metals and scrap, in particular, about the plans for reforms in the regulatory approach to the allocation of quotas for the export of ferrous scrap in relation to the specifics of the region.

Andrey Savelyev also drew attention to the progress in streamlining control in scrap collection.

The session continued with a presentation by Victor Kovshevny. The speaker presented forecasts for the segments of steel products, scrap, and steel and analysed the factors that will influence the development scenarios of these segments in Russia. For steelmaking, he suggested the base scenario in 2024 as the most probable, and the conservative scenario for pipes

For comparison Viktor Viktorovich cited the situation in Turkey and other countries’ markets. He also drew attention to the problems of railway and road logistics of metals. In railway freight transport, the issue of lack of wagons and high tariffs is acute. In road deliveries, it will be necessary to overcome the shortage of drivers, as well as the issue of insufficient vehicle fleet due to sanctions and road infrastructure in a number of regions.

Victor Kovshevny also appealed to the Ministry of Industry and Trade with a request to intervene in the situation with the decline of the stainless steel scrap market.

According to the Director of RUSLOM.COM, stainless steel scrap collection is actually destroyed due to the current limited domestic market and the impossibility of export (there is a barrier duty of 290 euros per tonne and a ban on export to unfriendly countries).

In the Russian Federation it is planned to open additional capacities for production of stainless steel, and revival of demand for stainless steel scrap. Thus, the Russian Stainless Company in Volgograd will potentially consume at least 100 thousand tonnes of B26 grade scrap, but only from 2027.

The speaker fears that by that time, if the scrap collection market is not stimulated, the plant will not be able to load the furnaces with recyclables. He said that the members of RUSLOM.COM propose to remove the barrier duty on the export of stainless steel scrap from Russia.

Mr Savelyev commented that the Ministry is ready to consider changing the level of the rate without lifting the ban on exports to unfriendly countries.

Concluding the session on the balance of metal and scrap markets, the president of the Association RUSLOM.COM Vladimir Volodkin thanked the delegates of INNOPROM-2024 for the attention to the session and invited to join the Association. The speaker noted that the purpose of the Association is to increase the efficiency of involvement in the recycling of scrap and other recyclable materials, to achieve the objectives of ecology and raw material safety of industry.

Separately, Mr Volodkin spoke about the structure and functions of the organisation and noted that RUSLOM.COM is the only industry association in the form of a self-regulated organisation in the country, which consolidates more than 75% of the market for ferrous scrap consumption and about 60% for non-ferrous scrap.

Introductory meeting of RUSLOM.COM’s newly elected Presidium is held

Members of the collegial governing body met on 10th of July to discuss the agenda at the partner stand of the Association at the Innoprom-2024 exhibition in Yekaterinburg.

As a result of the meeting, the composition of the Control Commission of the Association was elected for the period of work of the new Presidium.

RUSSIAN SCRAP PROCESSING INDUSTRY NEWS

RUSAL to melt aluminium scrap in new way

RUSAL is finalising the development of a fleet of rotary furnaces that will enable it to remelt aluminium scrap on an industrial scale and use it to produce low and ultra-low carbon footprint aluminium.

The company has already commissioned five such furnaces at its production sites. The project will enable 17,000 tonnes of consumer aluminium scrap to be melted and recycled annually.

The new equipment will also enable the processing of approximately 40,000 tonnes of aluminium slag per year, which contains approximately 40% aluminium. To secure raw materials for the new facilities, the company plans to enter into long-term agreements with scrap collectors across the country, ensuring transparent pricing and guaranteed purchase volumes.

RUSAL is also implementing other aluminium recycling projects. The company is using recycled scrap to produce primary alloys with an extremely low carbon footprint for car manufacturers. In addition, the Volgograd aluminium smelter has been remelting processing scrap since 2021 and recycled 1,150 tonnes of metal in 2023. The smelter uses a standard gas furnace to remelt clean metal.

Eco- friendly recycling of metallurgical waste

Researchers from the South Ural State University have proposed an innovative method of reutilising metallurgical waste to produce raw materials for the production of pig iron and steel.

Today, millions of tonnes of metallurgical waste are accumulated in Russia, and the solution proposed by the Chelyabinsk scientists will help the country’s steel plants and rolling mills to solve these problems.

Metal production and processing produces waste in the form of zinc-containing dust and greasy dross. To make the most of this waste, it is pressed into briquettes, with prior removal of chlorine from the dust. The briquettes processed in this way are suitable for the production of, for example, pig iron or steel. The processed dross will be used in blast furnaces, replacing ore and saving coke due to the component contained in it.

Conversion of metallurgical waste into high-strength construction materials: modern technologies and sustainable development

At the request of a Russian company, scientists from the Crimean Federal University (CFU) have researched and developed new methods for creating building materials from recycled metallurgical slags and anthropogenic carbon dioxide. The scientists created a new technology and together with designers developed an unparalleled carbonisation chamber.

Metallurgical enterprises produce a huge amount of slags, in Russia their volume reaches almost 500 million tonnes. Blast furnace and steelmaking wastes, ferroalloy slags and non-ferrous metal slags pollute large areas. To find ways to recycle them, CFU scientists cooperated with five enterprises in the Central and North-Western Federal Districts of Russia.

Slags produced at high temperatures contain substances that can react with carbon dioxide. The aim of the researchers was to develop optimal technological conditions to increase the reactivity of these minerals and make them suitable for carbonisation.

In total, several samples of various slags, including those produced during the processing of alumina raw materials, were studied during the research period. As a result, the scientists developed technologies to produce high-strength products, such as paving slabs and bricks, made entirely from waste, slag and carbon dioxide.

These products have high strength, durability, frost resistance, are resistant to acids and temperature fluctuations, significantly surpassing cement analogues. Raw materials for their production are cheap, and many enterprises will be ready to give some types of slags for free to get rid of their presence on their territory.

New plant in Kursk region: zinc oxide from recycled resources

At the beginning of 2025, a plant for the production of zinc oxide from recycled resources will start operating in the Zheleznogorsk district of the Kursk Region. The enterprise will process up to 120 thousand tonnes of waste annually. This pilot project is being implemented within the framework of the industry programme “Application of secondary resources and secondary raw materials from waste in industrial production” of the federal project “Circular Economy”.

As part of the pilot project, a plant, LLC Zincum, will be built to utilise valuable secondary resources containing zinc and iron, processing up to 120,000 tonnes of secondary resources. The production will result in the formation of zinc waelz-oxide – raw material for zinc metal production, clinker – iron-containing raw material for ferrous metallurgy and cement industry, as well as secondary ignites – raw material for non-ferrous metallurgy.

Zinc waelz oxide is the most important raw material for production of metallic zinc, which is in short supply in Russia. The country has to import 20-30% of the required volumes of zinc from abroad, as its consumption exceeds domestic production.

The plant is scheduled to be launched in early 2025, with construction and installation works scheduled to be completed by the end of 2024. The project will create about 100 jobs and capital investments will amount to over RUB 7bn.

Scrap metal market continues to be in turmoil

According to RUSLOM.COM and Rusmet Rating Agency, demand for scrap metal has fallen, and therefore its price is far from its maximum. The situation was complicated by the extension of the tariff quota for exports of scrap and ferrous waste outside the Eurasian Economic Union (EAEU) until December 31, 2024. Metallurgists have once again won this battle against scrap metal collectors.

RUSMET RATING AGENCY INDICES

The Weekly Rusmet Index for Steel Scrap 3A FCA Russia domestic on 31th week 2024 (29 Jul – 04 Aug) settled at 23 450 RUB/mt (ex VAT). The Index decreased by 750 RUB/mt (-3,1%) compared to previous week.

For 31th week 2024 (29 Jul – 04 Aug) Rusmet Billet Index FOB Black Sea settled at 41 584 RUB/mt (down 1,5%), Rusmet HRC FOB Black Sea Index settled at 46 061 RUB/mt (down 0,5%), Rusmet CRC FOB Black Sea Index settled at 56 823 RUB/mt (down 0,5%), Rusmet Rebar FOB Black Sea Index settled at 43 3322 RUB/mt (down 0,7%).

Rusmet Coal FOB Australia (62% CSR) Index compared to previous week decreased by $2 (-1,1%) to 199$/mt, Index for Coal FOB Australia (70% CSR) compared to previous week decreased by $7 (-3,2%) and is equal to 216$/mt.

METALLURGY NEWS OF RUSSIA

Possibility of Russia’s rare earth industry integrated management

According to an expert opinion, Russia needs a state structure capable of complex management of the rare earths mining process, from the development of deposits to the creation of final products for the industry. This suggestion was made to TASS by Professor Nikolay Pokhilenko, an academician of the Russian Academy of Sciences, doctor of geological and mineralogical sciences.

Such an initiative requires the creation of a special agency, similar to the USSR Council of Ministers for Scientific and Technical Policy, which would coordinate the entire production chain from mining to the use of rare metals. Russia should strive not only to extract these resources, but also to create its own industrial end products based on them. At present, the country has to buy rare earth metals abroad in the form of individual components, and the range is quite wide.

Russia ranks second in the world in terms of rare earth reserves, but its extraction accounts for less than 1% of the world total, and its processing is practically non-existent. Currently, the Ministry of Natural Resources is responsible for mining, while the Ministry of Industry and Trade is responsible for their economic use. There is no specialised agency to manage the industry.

In July, the Russian Minister of Industry and Trade said that Russia plans to increase its production of rare and rare-earth metals eightfold over the next decade.

According to Professor Pokhilenko, a specialised structure would make the development of rare earth metals deposits more comprehensive, tracking the mining process from start to finish, which would make it possible to fully meet Russia’s domestic needs.

Minister of Industry and Trade reports to President on results of state support for steel companies

Anton Alikhanov, the Minister of Industry and Trade, noted that the government continues to create a strong demand for steel products in the domestic market through the implementation of large-scale infrastructure construction projects, including those included in the new national projects.

The government provides state support to steel companies that are increasing their investments in the creation of new high-tech production facilities and the greening of existing facilities. There are also state programmes of support through R&D. This format is used to develop technologies for the production of bearing and medical steels and other new types of products.

A number of projects will receive tax incentives totalling RUB 400 billion under the terms of SPIC 2.0, including the creation of low-carbon footprint production facilities. In turn, the DIF has granted preferential loans for the greening of certain facilities of enterprises.

Projects to develop the Udokan and Malmyzhskoye copper deposits are being implemented.

In previous years, technologies were developed to process complex ores and extract these metals. Now major investment projects are being prepared for launch with state support. It is planned to increase the output of rare and rare-earth metals 8 times by 2030 and reduce the share of imports in consumption to 15 per cent.

Russia’s iron and steel exports to EU up

Russia exported metals and metal products worth around EUR 370 million to the EU; this is the highest level of Russian iron and steel exports to the EU in the last two years. Most of the shipments were semi-finished products of iron or non-alloy steel and ferro-alloys.

The main buyer of Russian metals in May was Italy, with a volume of 120 million euros.

This makes Russia the leading exporter of iron and steel to the EU. In second place was South Korea and in third place India, whose deliveries to the EU halved.

Russian exports of aluminium to Europe also increased. The largest increases in aluminium imports from Russia were recorded by Germany – up to 16 million euro, Italy and Sweden – around 19 and 7 million euro respectively.

Russian industry slows in June amid positive dynamics for half-year period

Russia’s industrial production growth in June 2024 was 1.9 percent year-on-year, a significant slowdown from May’s 5.3 percent. The slowdown was the lowest since March 2023, when growth was just 0.7 percent. Analysts’ expectations of a 3.7 percent increase were not met, and this was partly due to calendar factors: there were two fewer working days in June 2024 than in June 2023.

For the first half of 2024, the country’s industrial production increased by 4.4 percent year-on-year. However, the manufacturing sector has seen a slowdown in growth, which stood at 4.6 percent in June, down from 9.1 percent in May. In the extractive sector, production fell by 3.1 percent.

Among the industries that showed positive dynamics in June are the production of finished metal products (+30.9%), motor vehicles (+21.7%), computers and electronics (+20.3%). At the same time, a significant decline in production was recorded in the segments of machinery and equipment (-18.6%) and mining of other minerals (-17.2%).

The first half of 2024 also saw an impressive growth in passenger vehicle production, with a 62.2 percent increase, equivalent to 330 thousand units. Some 63,000 passenger cars were produced in June, up 45.9% year-on-year.

Economists forecast industrial growth in Russia at 4.0% in 2024, although the Ministry of Economic Development expects more modest growth of 2.5%. In the manufacturing sector, the ministry is targeting a 4% increase, emphasising the need to adapt to current economic conditions.

New M&A deals in copper mining sector

Artem Volynets, a former top executive at Russian aluminium giant RUSAL, is looking to acquire copper assets to be incorporated into London-listed SPAC. The Volynets-led mining company plans to acquire copper mines in Africa, North and South America and increase annual copper production to 300,000 tonnes by 2027, which would account for more than 1% of global copper production. The company has already acquired a copper mine in Turkey for $300m.

Analysts forecast a shortfall of 5m tonnes of copper in the market by 2030 due to rising demand for the metal in renewable energy sources, electric vehicles and artificial intelligence technologies.

Investors can buy shares in copper-related mining companies on the London Stock Exchange, including shares in Chile’s Antofagasta, which is valued at £20bn.Other investment options include Glencore, Rio Tinto and Anglo American, which also produce other minerals such as iron ore and metallurgical coal. However, demand for these materials is not expected to grow as much as copper.

ACG, a London-listed mining company, plans to acquire more copper assets in the future. The company tried to raise $300 million last year to buy two nickel and copper mines in Brazil for $1.1 billion with financial backing from commodities trader Glencore and European carmakers Volkswagen and Stellantis. However, the deal fell through due to disagreements over the valuation of the assets to be acquired.

ACG announced that it had fully financed the acquisition of the Gediktepe gold and silver mine in western Turkey for $290m.The deal was financed by Lidya, a subsidiary of Turkish conglomerate Calik, which was originally a textile producer. It is now a major supplier of clothing to Zara.

ACG will pay $100 million in cash and issue new shares in Lidya for the equivalent of $37 million or a 30 per cent stake in the company.

ACG also plans to invest $145m to increase production to develop a new copper and zinc deposit and produce 25,000 tonnes of copper a year, generating $80m in annual profits by 2026. The company has raised $220m through a bond and equity issue from Luxembourg-based trader Traxys, mining private equity fund and sponsors ACG, and an unnamed European family investment firm. ACG is also considering an additional equity offering to fund new asset acquisitions backed by investment bank Stifel.

Gold mine in North Caucasus

A specialised company started geological exploration work at the B.K. Mikhailov gold deposit in Kabardino-Balkaria. Located near Tyrnyauz, the deposit was discovered during the reassessment of the reserves of the previously developed tungsten-molybdenum deposit.

A geological assessment and feasibility study for gold production will be completed by the end of 2025. The deposit is unique for the North Caucasus due to its scale and the possibility of open-pit mining, which significantly simplifies and cheapens the production process.

According to experts, similar deposits with such reserves and easy access to the metal have not been found in Russia for the last decades. The profitability of gold mining is due to the availability of infrastructure, which reduces production costs.

Elbrusmetall, a company established jointly with Rostec State Corporation, is developing the deposit. The subsidiary Elbrusmetall-Gold will be directly involved in gold mining. The reserves of precious raw materials are tentatively estimated at 87.7 tonnes.

The project includes the establishment of a mine, a processing plant, and a hydrometallurgical plant in Nevinnomyssk. The two enterprises are expected to employ over 900 people, contributing to the economic development of the region and creating new jobs.

New bimetallic product of Severstal

Severstal has introduced an innovative product in the POWERS line of wear resistant and high strength steels – Powerhard Duo bimetallic rolled product. It combines high strength properties and wear resistance.

The use of Powerhard Duo increases the service life of machine and equipment parts more than twice as much as conventional materials, which is particularly important for structures operating under maximum loads, such as mining conveyors, slurry pipelines, etc.

Over the past year, Severstal has improved technologies for the production of bimetals with different properties, increased competence and production capacity, and modernised certain parts of existing equipment.

Severstal has developed a product that will improve efficiency by extending equipment life and repair intervals. The company is actively developing the business of wear-resistant bimetallic rolled products, expanding the range of materials and their applications as part of Prospective Engineering. This service enables the company to reduce customers’ operating and capital expenditure and increase profits through the use of advanced materials with improved properties.

MMK supplies Arctic steel to Russia’s shipbuilding industry

Magnitogorsk Iron and Steel Works is the leading steel producer for the shipbuilding industry, occupying up to 50% of the market for metal supplies to Russian shipyards.

The development of Arctic hydrocarbon resources and the intensive use of the Northern Sea Route require the use of cold-resistant steel for the construction of icebreakers and marine equipment. The main materials for Arctic structures are low-alloy, high-strength, weldable steels with a ductile-brittle transition. Steel for icebreakers, offshore platforms and Arctic equipment must meet special requirements.

The competitiveness of MMK steels is ensured by a unique combination of economical alloying and high strength, toughness and low temperature properties (down to -60˚C). These steel grades can be used without restrictions in arctic conditions and have no analogues in the world. MMK is also developing the production of steels with an Ags index for use in the Far North.

Chelyabinsk Electrometallurgical Plant invests in new chrome deposit

Chelyabinsk Electrometallurgical Plant has won the right to develop the Zapadnoye chrome ore deposit in the Yamalo-Nenets Autonomous District for 25 years. The combine obtained this right by paying 110 million roubles to the federal budget. According to the plan, more than 300 million roubles will be invested in the infrastructure of the deposit by the end of the year.

Chelyabinsk Electrometallurgical Plant is the largest ferroalloy producer in Russia, which fully meets the needs of the domestic steel industry. The plant’s products are widely used in various industries, such as the paint and rubber industry, as well as in construction and agriculture.

The Zapadnoye deposit contains easily enriched high-chromium ores. Mining is planned both by open pit and underground mining. Prospective reserves are estimated at 1.87 million tonnes, with the possibility of increasing them by developing deeper horizons.

At the moment, the company is also developing the Tsentralnoye deposit, located 35 kilometres from the settlement of Kharp, by underground mining. In addition to geological exploration and mine development, the company has created an ore enrichment system by acquiring the necessary equipment.

MACROECONOMIC NEWS OF RUSSIA

Indexation of utilisation fee proposal

The Ministry of Industry and Trade is proposing to introduce a gradual indexation of the utilisation fee rates for vehicles and special equipment, according to a draft resolution of the ministry.

The rate could be indexed by an average of 70-85% in the first year and by 10-20% in the following years, the ministry said. For construction and road-building equipment, the possibility of indexation is being considered from 2025, with the rate increasing by 15% each year.

The increase in the utilisation fee is likely to make imports more expensive, but it is not impossible that the price of Russian-made cars will also rise, as the existing compensatory measures will only partially cover the indexation of the tax.

President Vladimir Putin speaks about plans to scale up digital rouble project

The pilot project on the use of the digital rouble was launched by the Central Bank in August 2023. The peculiarity of this form of national monetary unit is that legal entities and individuals can use the digital rouble regardless of which bank they have an account with.

The project involved 12 banks, 600 individuals, 22 trade and service companies from 11 cities. Over 27 thousand transfers and over 7 thousand payments for goods and services have already been made in the system over the year.

The President proposed to move to a wider introduction of the digital rouble into the economy, economic activity and finance.

Ministry of Finance and Bank of Russia propose draft law on the list of precious metals turnover violators

Draft Federal Law No. 658358-8 proposes to amend Federal Law No. 115-FZ to toughen the provisions of the anti-money laundering law in the sphere of precious metals turnover.

According to Interfax, the Ministry of Finance and the Central Bank will maintain a list of organisations and private entrepreneurs who have not registered in the system for controlling the circulation of precious metals and precious stones (GIIS DMDK), and banks will not be able to write off funds from the accounts of these violators.

Progress of recycled polymers products

Rossiyskaya Gazeta reports that in 2023, 7.1 million tonnes of polymer raw materials were recycled in Russia, of which about 2.5 million were used for the production of disposable packaging, which after use ended up in landfills.

For example, in Europe, 54-58 million tonnes of polymer goods were produced, with 28 million tonnes of polymer waste collected, of which 8 million tonnes were recycled, 11 million tonnes incinerated and the rest buried.

There is still a shortage of secondary polymer raw materials in Russia due to the underdeveloped waste collection system in the country.  At the same time, such recyclable materials, unlike scrap metal, are increasingly demanded by factories and are becoming more expensive.

CONTACT:
Alexey Kondratyev
Director, Public Relations

National Recycling Association RUSLOM.COM
Address: 119017 Bolshaya Ordynka st., 50 b.1, Moscow, Russian Federation
Phone/fax:+7 (499) 490-49-28
Mobile:+7 (903) 363-53-93
E-mail:a.kondratiev@ruslom.com

The post NEWSLETTER RUSLOM 090824 appeared first on Ferrous and non-ferrous scrap & wastes processors and vehicle recyclers.

RUSLOM.COM NEWS: ANNOUNCEMENTS AND POST-RELEASES. 3

Regular General Meeting of RUSLOM.COM’s members is held in Moscow.. 3

Session on balance of metals and raw materials to be held at INNOPROM.. 5

On 14 June, Xi’an hosts a communication session on Russian-Chinese business in the metal trade sector 5

Russian delegation of scrap and metal markets’ representatives visits Mysteel Corporation in Shanghai 6

RUSSIAN SCRAP PROCESSING INDUSTRY NEWS. 7

Armat Steelworks in Buryatia successfully launches production of construction rebar using ferrous scrap metal 7

RUSLOM.COM: Consumption of ferrous scrap in Russia is estimated at about 20 million tonnes per year 8

Novosibirsk Region, Russian Environmental Operator and Akron Holding to create system for electronics waste management 8

RUSMET RATING AGENCY INDICES. 9

METALLURGY NEWS OF RUSSIA.. 10

Kuzbass State Technical University develops airships to transport coal 10

Bystrinsky Mining and Processing Plant to increase production capacity. 11

Air separation unit at MMK.. 11

Russia at the forefront of global race for strategic metals. 12

Design of Rusal’s plant in Leningrad Region to start in late 2024–early 2025. 12

Metalloinvest to supply OMK with around 53 million tonnes of pellets. 13

Future of palladium.. 14

MACROECONOMIC NEWS OF RUSSIA.. 15

New foreign currency exchange rates are set for the first time. 15

State Duma proposes to prohibit registration of vehicles without full payment of utilisation fee. 15

Government softens requirements for compulsory repatriation of foreign currency proceeds by largest Russian exporters. 16

State Duma adopts progressive personal income tax. 16

RUSLOM.COM NEWS: ANNOUNCEMENTS AND POST-RELEASES

Regular General Meeting of RUSLOM.COM’s members is held in Moscow

On 27 June 2024 in Moscow at the Soluxe Hotel Moscow a regular General Meeting of members of the National Recycling Association RUSLOM.COM on the issues of the statutory activities of the organisation was held. The meeting was attended by 126 members of the Association, so the quorum for decision-making on the agenda was reached.

The President of the Association Vladimir Volodkin was elected as the Chairman of the Meeting, Director of the Association Victor Kovshevny was elected as the Secretary of the Meeting.

As a result of voting the Meeting approved the new composition of the Association’s Presidium for a period of 5 years. The Presidium consisted of:

Representatives of the Association member companies:

• Mrat Abdualinov, Director of LLC PK Metallinvest;
• Sergey Astakhov, General Director of OOO Translom;
• Igor Balashev, Executive Director of LLC Intermettrade;
• Alexandr Kobenko, member of the Board of Directors, Akron Holding Group;
• Evgeniy Konyakhin, founder of Yug-Met Production Technopark, YugTekhnoMet LLC;
• Sergey Kurnosov, General Director of Uni-Block LLC;
• Denis Kraev, General Director of JSC SGMK;
• German Lalayan, founder of CJSC “AGROPRIBOR”;
• Yuriy Nevrov, General Director of “NLMK-EcoTech”;
• Dmitriy Stechkevich, Director (founder) of JSC “PSKOVVVTORMET”;

and independent members of the Presidium of the Association:

• Alexey Alipchenko;
• Sergey Voytsekhovskiy, Chairman of Voytsekhovskiy Partners Co;
• Vladimir Volodkin;
• Vladimir Dvoretskiy, Chairman of “Republican Union of Industrialists of Secondary Metallurgy” Ltd;
• Kimball, Commercial Director in the Hungarian branch of Loacker Recycling Group;
• Andrey Polinov, Director of MMK VTORMET;
• Nikita Taganovich, Head of the Recycling Department of the Aluminium Association;

The elected members of the Presidium noted in their speeches that they are ready to actively promote the interests of the industry and respond to the existing challenges.

RUSLOM.COM thus enters the next “five-year” of its history, relying on a strong human capital.

The meeting also approved the list of members of the Association’s Audit Commission, which included:

• Vladimir Starikov, Head of Legal Department of NLMK Eco Tech Ltd;
• Valeriya Tyurina, attorney-at-law of Voytsekhovskiy PARTNERS;
• Yuliya Shish, Director of LLC “Avangard”.

Vladimir Volodkin was approved for a new term as the President of the Association from the elected members of the Presidium of the Association.

It was proposed to hold the introductory meeting of the Presidium in the new composition on the site of Innoprom exhibition in Ekaterinburg in July 2024.

A proposal was made to create a new Supervisory Board to facilitate the implementation of the Association’s strategy, receive monitoring and initiatives from regional companies, and prepare proposals for consideration by the General Meeting and the Presidium.

Session on balance of metals and raw materials to be held at INNOPROM

On 11 July 2024 at 10.30 at the INNOPROM exhibition in Ekaterinburg a session on the balance of metals and raw materials will be held with the participation of the Ministry of Industry and Trade of the Russian Federation, the National Recycling Association RUSLOM.COM, banks, scrap collectors, Russian and Chinese steelworks, metal trading and service companies.

Questions for discussion:

• Trends in state regulation of the domestic market and foreign trade operations;
• Market analysis, price indices for carbon and stainless steel, copper, aluminium, lead, products and scrap;
• Ways to improve the efficiency of banking services for the business with scrap, metals on the domestic and foreign markets;
• Logistics;
• Proposals of the international industrial community and resolutions, etc.

The business programme will be supplemented by a schedule of meetings with Chinese partners and experts, banks and analysts at the stand of Rusmet Rating Agency, as well as visits to companies and places of interest.

On 14 June, Xi’an hosts a communication session on Russian-Chinese business in the metal trade sector

Representatives of the companies discussed challenges and development opportunities in export and import, as well as in the production of stainless steel, aluminium, copper, carbon steel, and recycled materials for metallurgy.

Chinese colleagues stated that they are introducing more and more new production capacities in the metals sector. In particular, for stainless steel they are now smelting more than 40 million tonnes per year and will be introducing 23 million tonnes of capacity in the near future. They are therefore targeted at export markets

The following barriers to foreign trade activity and co-operation have been identified:

1. Risks in the sphere of financial transactions. Including delayed transfers by the banks of the countries, difficulty in opening settlement accounts, expensive servicing of inter-country bank payments, instability of exchange rates.
2. High interest rate on loans in Russia
3. Long and expensive cargo logistics
4. Barrier duty on export of stainless-steel scrap from Russia

Speaking at the conference in Xi’an about the Russian stainless-steel scrap market under the barrier export duty (290 euros per tonne), Victor Kovshevny, Director of RUSLOM.COM, drew attention to the price trend (comparison of LME and Rusmet price index for stainless-steel scrap), as well as the critical drop in scrap collection in Russia for this position.

The chart shows that the liquidity of scrap stock has actually gone to zero, as consumption of stainless-steel scrap by Russian mills does not exceed 20 thousand tonnes per year, while scrap collection is above 500 thousand tonnes per year.

Besides, importers buy scrap with nickel content of 7-8%, while Russian plants take only 10%. The scrap not demanded in the Russian Federation accumulates as harm to environment.

The speaker drew attention to the fact that in order to bring the stainless-steel scrap market out of the crisis it is necessary to revise the regulation of exports, as the increase in stainless steel production in Russia even by 300-500 thousand tonnes (now 160 thousand tonnes) and some growth in domestic consumption of scrap, will not give sufficient impetus.

Russian delegation of scrap and metal markets’ representatives visits Mysteel Corporation in Shanghai

Ways of development of Chinese-Russian cooperation in the sphere of carbon and stainless steel, aluminium, copper, including raw materials and rolled products are discussed.

The delegation included representatives of RUSLOM.COM, Cyberstal, RNA and RNA-Service, Profkomplekt, Salut Steel, Ferrum Trade, Yug-Met, Metinvest, Vtormet, Metallinvest Omsk, Metmarket, HuaHun-Rus, Intermettrade.

The organisers are Rusmet RA and Mysteel. Both analytical organisations presented data on prices, supply and demand, trends of state regulation in the sphere of foreign economic activity of the countries.

RUSSIAN SCRAP PROCESSING INDUSTRY NEWS

Armat Steelworks in Buryatia successfully launches production of construction rebar using ferrous scrap metal

The company received a subsidy to reimburse part of the cost of purchasing new equipment, as well as a targeted concessionary loan at 3% per annum from the Industrial Development Fund of the Republic of Buryatia. To launch the new production, the plant purchased equipment for melting metal and producing reinforcing bars.

According to the representative of the Ministry of Industry and Trade of Buryatia, there is currently no similar production in the republic. The equipment has already been installed and commissioned, and production has begun.

The plant currently employs more than 50 people and has a planned production capacity of 700 tonnes of rebar per month.

RUSLOM.COM: Consumption of ferrous scrap in Russia is estimated at about 20 million tonnes per year

Clothes, roads, houses and garden tools – all this has been produced in Russia for many years using secondary raw materials. According to the Russian Environmental Operator (REO), the production of products from recycled materials in Russia is most developed in metallurgy. Companies traditionally use ferrous scrap. The method of electric steel production is based on its use, says Denis Butsaev, CEO of REO. “Scrap is used not only what is extracted from municipal solid waste (MSW). To a greater extent, it is taken from various metal structures, machines and equipment,” he explained. According to the National Recycling Association RUSLOM.COM, consumption of ferrous scrap in Russia is estimated at around 20 million tonnes per year.

At the same time, in 2021 internal consumption of scrap by plants exceeded 25 million tonnes, in 2022 plants have already consumed about 22.5 million tonnes, and in 2024 there is a tendency to reduce the demand for scrap at steel plants in the country, the priority is more often given to primary raw materials.

The business of recycling secondary metals, plastic, waste paper, glass, rubber needs incentives.

Novosibirsk Region, Russian Environmental Operator and Akron Holding to create system for electronics waste management

It is planned to jointly implement an investment project to create a WEEE recycling centre in the Novosibirsk Region and to develop a network of WEEE collection points in various formats.

RUSMET RATING AGENCY INDICES

The Weekly Rusmet Index for Steel Scrap 3A FCA Russia domestic on 27th week 2024 (01 – 07 Jul) settled at 24 800 RUB/mt (ex VAT). The Index decreased by 100 RUB/mt (-0,4%) compared to previous week.

For 27th week 2024 (01 – 07 Jun) Rusmet Billet Index FOB Black Sea settled at 43 071 RUB/mt (up 0,8%), Rusmet HRC FOB Black Sea Index settled at 47 465 RUB/mt (down 0,4%), Rusmet CRC FOB Black Sea Index settled at 58 453 RUB/mt (down 0,0%), Rusmet Rebar FOB Black Sea Index settled at 44 284 RUB/mt (up 1,6%).

Rusmet Coal FOB Australia (62% CSR) Index compared to previous week increased by $12 (5,5%) to 219$/mt, Index for Coal FOB Australia (70% CSR) increased by $16 compared to previous week and is equal to 254$/mt.

METALLURGY NEWS OF RUSSIA

Kuzbass State Technical University develops airships to transport coal

At the Siberian Transport Forum in Novosibirsk, Kirill Kostikov, Vice-Rector of the Kuzbass State Technical University (KuzSTU), presented an innovative project to use airships to transport coal from deposits and processing plants. The idea is an alternative to rail transport, which often lacks the capacity to transport Kuzbass coal.

According to Kostikov, the airships, which are designed to carry 60 tonnes, consume 200 kg of fuel per hour, and a flight takes about 2.7 days. The cost of transporting coal by airship along the proposed route is 10.7 thousand roubles per tonne, which is slightly higher than the cost of transporting it by rail (9 thousand roubles per tonne). However, preliminary calculations show that as the technology develops, the cost of airship transport may become comparable to that of rail transport and even decrease in the long term.

The project is planned to be implemented as part of the Integrated Scientific and Technical Programme “Clean Coal – Green Kuzbass” launched in 2020.

Bystrinsky Mining and Processing Plant to increase production capacity

Nornickel’s Bystrinsky Mining and Processing Plant plans to double its ore processing capacity to 20 million tonnes per year by 2030.

Members of Nornickel’s Board of Directors recently visited Bystrinsky in the Zabaikalsky Krai and presented plans to increase production capacity. The company currently processes up to 11 million tonnes of ore per year, producing up to 68,000 tonnes of copper, 245,000 ounces of gold and 1.7 million tonnes of iron in concentrate.

To achieve its goal of doubling ore processing, the company is building a high-pressure grinding roll (HPGR) shop. This 5 billion roubles technology will increase capacity by 350,000 tonnes of ore per year by crushing it into smaller fractions, which will facilitate the enrichment process.

The next step will be the construction of the second stage of the plant, which will increase processing by a further 1 million tonnes. In parallel, it is planned to increase iron recovery by 10-15%. The construction of a gold extraction plant and a third production line with a capacity of 5 million tonnes of ore per year is also planned for the future.

In addition to the Bystrinskoye deposit, several major copper mining investment projects are underway in the Russian Far East. These include the development of the Udokan deposit in Transbaikalia, the Malmyzhskoye field in the Khabarovsk Krai and the Baimskoye field in Chukotka. All of these projects are targeted for export to China.

Air separation unit at MMK

A new air separation plant is being built in the Chelyabinsk region, which will be an important link in the development of the plant’s oxygen workshop. The new plant, known as AKAr 60/60, will not only meet modern requirements for cryogenic technology, but also promises to significantly increase the production of technical oxygen, pure industrial nitrogen and argon.

According to plans, the new complex will be able to produce up to 60,000 cubic metres of technical oxygen and 60,000 cubic metres of pure industrial nitrogen per hour, as well as up to 2,35,000 cubic metres of argon per hour. This will represent approximately one fifth of the plant’s current oxygen production and half of the plant’s nitrogen production.

According to MMK’s Information and Public Relations Department, the use of air separation products plays a key role in intensifying metallurgical production processes and improving product quality. There are currently 11 air separation units at the plant, serving various needs of the blast furnace and steelmaking shops.

The new complex will function as an independent oxygen plant under the sixth serial number, providing the necessary gases for the production processes. It includes cryogenic and compressor equipment, as well as storage and gasification systems for liquid air separation products. The cooling tower, pumping station and substation will ensure reliable operation of the plant and create more than 70 new jobs.

The general designer of the complex is Magnitogorsk Gipromez and the general contractor for the construction is Prokatmontazh JSC. At present, the installation of all equipment is almost complete, the machine hall building is finally finished, and the installation of air and nitrogen compressors and the air separation unit is underway.

Russia at the forefront of global race for strategic metals

According to international and Russian experts, consumption of metals such as copper, graphite, cobalt, and lithium is expected to grow significantly by 2030. As the world leader in production and reserves of many minerals, Russia plays a key role in ensuring this growth. For example, Russia controls 27 percent of the world’s platinoid production, 22 percent of nickel reserves, 13 percent of cobalt, 15 percent of titanium, 12 percent of tungsten, 9 percent of copper, and also has significant reserves of rare-earth metals and graphite.

Speaking at the SPIEF-2024 expert session, the Russian Minister of Natural Resources and Environment, Alexander Kozlov, emphasised that Russia is seeking to create long mineral processing chains that include the production of end products.

One of the key areas was uranium processing, from mining to fuel.

Evgeny Petrov, head of the Federal Agency for Subsoil Use, reported on systematic work to assess deposits of scarce minerals. According to him, a list of 46 deposits has already been drawn up, for which preferences and incentives have been developed to attract private companies.

Federal investments in the geological exploration of solid minerals have been redirected to the search and exploration of scarce resources in Siberia and the Far East.

Design of Rusal’s plant in Leningrad Region to start in late 2024–early 2025

The cost of the project may increase by 10-15% by this date, experts believe.

Design work on Rusal’s alumina refinery in the Lomonosov District of the Leningrad Region will begin in late 2024 – early 2025, Dmitry Yalov, Deputy Chairman of the Regional Government, told Vedomosti Severo-Zapad.

According to him, survey work is currently underway, in particular the process of land surveying for the port terminal and road infrastructure. “After that, design work will begin, environmental impact assessments will be carried out, and the results will be presented to the public. Only then will final decisions be made,” Yalov said.

He stressed that the construction of the alumina refinery is a matter of ensuring the security and independence of the Russian aluminium industry. “An absolutely correct decision was made to locate the bauxite ore processing and alumina production plant near the port terminals,” Yalov added.

At SPIEF-2023, the Governor of the Leningrad Region Alexander Drozdenko and Evgeny Nikitin, CEO of JSC Russian Aluminium Management, signed an agreement for the construction of an alumina refinery and deep-water port in Ust-Luga. The investment in the project will amount to RUB 400 billion. According to the signed agreement, the first stage of the project, with a capacity of 2.4 million tonnes, will be completed in 2028, and the second stage, with a similar capacity, in 2032. The project includes the construction of four technological lines for alumina production, a deep-water port with related infrastructure, sludge storage, energy infrastructure, and auxiliary facilities. The company plans to import raw materials for the alumina refinery in the Leningrad region from its own plant in Guinea.

At the same time, Yalov specified that the plant “will definitely be built”. Freedom Finance Global analyst Vladimir Chernov notes that all the key aspects of the project have already been decided. According to him, the technology and equipment will be the same as that of the modern alumina refinery in China of the metallurgical company Hebei Wenfeng New Materials (HWNM). Rusal acquired a 30% stake in the Chinese company in October last year. At the time, the press service of the Russian aluminium producer reported that this would help to strengthen Russia’s raw material security.

At the same time, the required investment volume may increase by 10-15% by the time the project is launched, Chernov believes. “Inflation in Russia reached 8.17% on an annual basis in May 2024. Technology and equipment for the construction of the alumina refinery in the Leningrad region will come from China, and logistics from China have also increased in price over the year. Therefore, a 10-15% increase in the estimated cost of building this plant is quite likely,” the expert said.

Anna Garkusha, an expert with the “Separate Collection” environmental movement, does not rule out the possibility that the terms of the project’s implementation and the final conclusion of the state environmental impact assessment may be delayed due to the public attention. She cited the example of the construction of waste processing plants in the Leningrad region. For example, local residents tried to use the courts to challenge the conclusion of the state environmental impact assessment of the “Dubrovka Waste Processing Complex” project documentation. The court dismissed the case, but such moments delay the implementation of projects, the expert notes.

“The speed of the project implementation will depend on the activity of the local population. Investors and authorities, in turn, must prove the safety of the plant”, stressed Garkusha.

Earlier, the authorities of the Leningrad region had repeatedly announced that they had placed the implementation of the project to build an alumina refinery, including all stages of expert opinions and public hearings, under “special control”. As Yalov noted, the environmental issue is “one that the regional government is concerned about”. “Russian legislation imposes the strictest requirements on investors, including the use of modern technologies,” he said.

Metalloinvest to supply OMK with around 53 million tonnes of pellets

Metalloinvest and OMK have signed an agreement under which Metalloinvest will fully cover OMK’s pellet needs for 15 years. The memorandum of the long-term agreement was signed by Nazim Efendiev, Chairman of the Board of Directors of Metalloinvest, and Anatoly Sedykh, Chairman of the Board of Directors of OMK, on the sidelines of the St. Petersburg International Economic Forum.

The agreement is for 15 years, during which Metalloinvest will fully meet OMK’s needs for high quality raw materials – DR grade iron ore pellets with high iron content and reduced silicon content, Metalloinvest said in a statement. The total volume of supplies will be about 53 million tonnes of pellets.

The signing ceremony was attended by First Deputy Prime Minister Denis Manturov and State Secretary – Deputy Minister of Industry and Trade Viktor Evtukhov.

‘This is a record-breaking contract in terms of timing and volume of deliveries, a landmark for Russia’s mining and metallurgical industry,’ said Efendiev. ‘It will be an important milestone in the ecological transformation of domestic metallurgy.’ Metalloinvest will bring to the partnership with OMK its unique long-term experience in the use of low carbon footprint technology for the production of direct reduced iron.

Future of palladium

Research of new applications for palladium could increase global demand for the metal by around 14% over the next five years. Dmitry Izotov, director of Nornickel’s Palladium Centre speaks about significant plans of the metallurgical group.

According to him, Nornickel plans to develop about 120 new materials for high-tech industries by 2030, which will increase global demand for palladium by 40 tonnes a year. The company is conducting basic research in collaboration with research institutes to explore and discover new applications and properties of palladium in various fields. The main objective of this research is to develop and commercialise new products for green technologies.

The company’s activities in this area are driven by its desire to achieve the highest possible carbon neutrality of its metals. This requires replacing at least 84% of energy sources used today (mainly hydrocarbons) with renewable sources such as hydrogen, solar and biofuels. However, at the current stage of technological development, their share is unlikely to exceed 25%.

The main challenge is the slow pace of new technologies in the industrial sector due to higher costs and technical limitations. In this context, Nornickel’s Palladium Centre is developing more efficient palladium-based materials and alloys to reduce costs and accelerate the widespread adoption of green technologies.

One example of such solutions is a catalyst developed by Nornickel for a hydrogen electrolyser. Palladium replaced 30% of the iridium in this catalyst, reducing the cost of the device (palladium costs much less than iridium) and increasing its performance five times while maintaining its lifetime.

Nornickel has also developed catalysts for fuel cells in which palladium replaces platinum. Despite the similar cost of these metals, devices using palladium are three times more efficient.

Global demand for palladium is now estimated at around 290 tonnes per year. The introduction of Nornickel’s new products could increase this figure by 13.8%.

MACROECONOMIC NEWS OF RUSSIA

New foreign currency exchange rates are set for the first time

The Bank of Russia has set official exchange rates for the first time since the sanctions were imposed on Moscow Exchange, against the background of which the platform stopped trading in dollars and euros. Information about them is published on the regulator’s website.

According to the new rules for determining the indicator, the exchange rate is determined on the basis of data from credit organisations’ reports on the results of interbank conversion operations concluded on the over-the-counter foreign exchange market.

State Duma proposes to prohibit registration of vehicles without full payment of utilisation fee

The bill expands the list of grounds for refusal of registration. If the bill is adopted, the grounds for refusing registration, including in connection with a change of ownership, will be “the application to the registration authority of the owner of a motor vehicle who has not paid the use fee” within the prescribed period.

This applies to a vehicle imported into the Russian Federation from abroad by an individual. From 1 August 2023, the recycling fee for new and used cars, LCVs, trucks and buses imported into Russia for resale was indexed. This measure affected both legal entities and individuals planning to resell vehicles imported after 1 August within one year. At the same time, the indexation of the duty did not affect individuals importing cars with an engine capacity of up to 3 litres for personal use. They will continue to pay the duty at a preferential rate – 3,4 thousand roubles for cars up to three years old and 5,2 thousand roubles for cars over three years old.

Amendments are proposed to the Law “On State Registration of Vehicles in the Russian Federation”. In the first reading of the bill was adopted by the State Duma in November 2023. Its author was the head of the Duma Committee on Transport and Development of Transport Infrastructure Yevgeny Moskvichev.

Government softens requirements for compulsory repatriation of foreign currency proceeds by largest Russian exporters

From 29 June, they are obliged to deposit into their accounts at least 60% of currency under foreign trade contracts, rather than 80% as before. The requirement applies to a number of exporters operating in the fuel and energy complex, ferrous and non-ferrous metallurgy, chemical and timber industries, and grain farming.

State Duma adopts progressive personal income tax

The State Duma has adopted in the first reading amendments to the Russian Tax Code introducing a progressive personal income tax scale.

The amendments introduce a progressive personal income taxation scale with rates starting from 13% (for annual income up to 2.4 million roubles) with a gradual increase to 22% depending on the level of income.

The tax rate for the self-employed will remain unchanged.

According to the financial and economic justification to the draft law, this will allow for an additional allocation of about 1.4 trillion roubles to the Russian budget system, of which 533 billion roubles – in 2025.

CONTACT:
Alexey Kondratyev
Director, Public Relations
National Recycling Association RUSLOM.COM
Address: 119017 Bolshaya Ordynka st., 50 b.1, Moscow, Russian Federation
Phone/fax:+7 (499) 490-49-28
Mobile: +7 (903) 363-53-93
E-mail:a.kondratiev@ruslom.com

The post INFORMATION NEWSLETTER OF THE NATIONAL RECYCLING ASSOCIATION RUSLOM.COM FOR INTERNATIONAL PARTNERS appeared first on Ferrous and non-ferrous scrap & wastes processors and vehicle recyclers.

The National Recycling Association RUSLOM.COM continues to publish its regular newsletter for international partners, containing valuable proprietary information on the Russian metals and scrap markets: RUSLOM.COM self-regulatory news and updates; the national metal scrap processing industry stories; as well as the latest Rusmet Rating Agency market indices. We welcome your feedback and communication, based on the above newsletter.

Index

RUSLOM.COM NEWS: ANNOUNCEMENTS AND POST-RELEASES. 3

RUSLOM.COM visits renewable energy company in Shanghai 3

Annual conference Baltic Scrap held in Kaliningrad. 4

Victor Kovshevny speaks at Russian Railways Conference. 6

Victor Kovshevny speaks at round table “Metal and Scrap Market Balance. Trends in pipe industry”. 7

RUSLOM.COM and Bureau of Middle East Recycling sign a priority partnership agreement 8

Speakers of RUSLOM.COM and Rusmet Rating Agency take part in the 12th International Wire and Cable Industry Exhibition ‘WIRE’ 8

RUSLOM.COM plans business programme at INNOPROM industrial exhibition in Ekaterinburg. 9

RUSSIAN SCRAP PROCESSING INDUSTRY NEWS. 10

Consumption of ferrous scrap in Russia at around 20 million tonnes per year 10

Russia prepares to develop unified register of vehicle recyclers. 10

Scrap metal in Russia becomes 10% more expensive since beginning of year 11

RUSMET RATING AGENCY INDICES. 12

METALLURGY NEWS OF RUSSIA.. 13

Liquid steel production in Russia. 13

Growth of Russian metal exports to China. 13

Nornickel: new solutions. 14

MACROECONOMIC NEWS OF RUSSIA.. 15

Russian Government proposes surcharge to tax on coal 15

Kuban’s radio electronics industry. 15

Loading on Russian Railways in May. 16

RUSLOM.COM NEWS: ANNOUNCEMENTS AND POST-RELEASES

RUSLOM.COM visits renewable energy company in Shanghai

On 6 June 2024, the National Recycling Association RUSLOM.COM as part of a delegation from the Ministry of Natural Resources and Environment of Russia visited Shanghai’s renewable energy company Tianma.

This is one of the plants in the eco-technopark that recycles more than 3,500 tonnes of household waste per day and produces energy from steam and gases through incineration and biotechnological processes. The company uses 14 percent of the energy for its own needs, while 86 per cent is sold to the government.

The ash from the incineration process is used to make bricks for construction. It is also worth noting that the government pays the plants for waste collection and recycling, while citizens do not pay solid waste fees or other environmental charges.

The second plant in Tianma technopark is a construction waste recycling facility that processes at least 1,500 tonnes of waste per day. The waste undergoes air, magnetic and other types of separation.

Annual conference Baltic Scrap held in Kaliningrad

On 30-31 May 2024, the annual conference ‘Baltic Scrap’ was held in Svetlogorsk, Kaliningrad region. The conference was organised with the support of the Kaliningrad Region Administration, with the participation of the Ministry of Industry and Trade of the Russian Federation and the Regional Union of Waste Processors of the Kaliningrad region. The organisers were Rusmet Rating Agency and the National Recycling Association RUSLOM.COM; the conference was supported by Baltvtorresurs.

The programme of the event included sessions on trends in state regulation and transformation of the scrap business; reports by banking experts; and directions of diversification and technologisation of the scrap business.

The session on regulatory trends was opened by Andrey Savelyev, Head of Ferrous Metallurgy Development Division of the Department of Metallurgy and Materials of the Russian Ministry of Industry and Trade.

Andrey Savelyev noted that regulation of the scrap procurement industry in Russia is currently being reformed, including scrap export, non-cash payments for scrap, personal income tax and legal status of individuals, control and supervision. The speaker drew attention to the fact that the new version of the Resolution 980 of the Government of the Russian Federation includes powers of control of self-regulatory organisations, reduction of licensing services. On quotas for ferrous scrap exports, a change from the regional coefficients approach to individual calculation of quota capacity is being considered. This is especially relevant for export-oriented regions such as Kaliningrad.

The next speaker was Svetlana Shevchenko, Head of the Department of Licensing of the Kaliningrad region, who spoke about the specifics of the licensing process in the region and the results of the department’s activities over the last three years, and shared useful information for licensees. Thus, in particular, it has been possible to significantly reduce the time of consideration of applications, up to 10 days.

The session continued with a report by Natalia Belyaeva, CEO of Delphi Law Company, who spoke about the specifics and differences of licences for waste disposal and scrap metal. ‘For those companies that are thinking about diversification, about getting involved in another area of recycling, which implies a different regulatory framework, it is necessary to first determine whether they have a licence for this, and understand the procedure required to obtain it’ – said the speaker.

Dmitry Stechkevich, General Director of PSKOVVVTORMET, one of the leading scrap exporters in North-West Russia, noted in his speech that there is no shortage of scrap metal in the Russian Federation. This statement, the speaker emphasised, is supported by many factors, in particular, such as the noticeable rejection of scrap metal by Russian consumers over the past and current year. According to him, as a result of the introduction of quotas in the North-West Federal District, the amount of scrap metal shipped for export fell from two million to 314 thousand tonnes, while the amount sent to Russian plants fell from 800 to 500 thousand.

Kristina Gronskaya, Head of Scrap and Waste Metals Management at Rusmet Rating Agency, devoted her presentation to scrap exports and price change factors. The analyst traced the dynamics of scrap exports from the port of Kaliningrad from 2016 to 2023, highlighting the leading country export destinations that changed during the analysed period. The speaker also spoke about the dynamics of total scrap shipment volumes from the port over the period; presented the price index for ferrous scrap of Russia and Turkey, 2020-2024, $/t.

Victor Kovshevny, Director of RUSLOM.COM Association, compared the situation with scrap collection in Russia and Belarus. The speaker noted that in Belarus there is no personal income tax on all collected recyclables. The percentage of scrap collected by individuals in the country is 52-54%, while the average level in Europe is about 50%. The Director of the Association stated that the reform of personal income tax on scrap collected in Russia is one of the key issues for the industry. He also separately noted that scrap metal exports should not be restricted.

The event continued with an interactive session with banking experts. The session opened with a presentation by Marina Uglovskaya, CEO of Rusmet Rating Agency. Rusmet CEO’s speech was devoted to SWOT-analysis of adaptation of the members of RUSLOM.COM to work under the conditions of non-cash payments with individuals for scrap (according to the law № 304-FZ, entered into force on 01.10.2023). The speaker listed and analysed a wide range of advantages, weaknesses, opportunities, and threats to the business of the scrap industry participants.

Thus, among the objectively strong sides were considered the leading positions and high reputation of RUSLOM.COM members in the business environment and authorities; sufficiency of own infrastructure, assets, experience of doing business in a transparent zone; availability of client base and stable financial and economic relations; priority cashless payment instruments, including those with partner banks; expert and GR-support of the Association, the ability to convey initiatives and appeals of Association’s members to the regulator; support of the Association in the dialogue of scrap collectors with the compliance of banks and the Central Bank; preferential tariffs in partner banks; and the availability of systemic industry analytics to make informed decisions.

The first speaker from the banking community was Melina Gosyan, Director of Medium Corporate Business at Alfa-Bank in Kaliningrad. She spoke about the results of work with scrap collectors since 2019. During this time, the bank has established work in terms of financial monitoring, constantly developing the product line based on changes in legislation and customer needs. The speaker said that currently 80% of scrap collection companies in the Kaliningrad region are clients of Alfa-Bank. Melina Gosyan noted that the bank offers both express lending and long-term financing.

Elena Minkina, a representative of Mozen, the company which together with Alfa-Bank has developed a cashless transfer service for scrap collectors that allows them to organise the entire process of accepting scrap ‘in one window’, was a co-presenter. Mozen also makes it possible to optimise commission costs through a single payment to the scrap collector for all types of scrap. Elena Minkina stressed that the service integrates with 1C and other ERP systems and features a variety of flexible settings.

Vyacheslav Tsarik, Head of PSB’s Client Solutions Centre, spoke about the bank’s integrated solutions for scrap collectors. He said that the bank has been working with scrap collectors for two years already and how the approach to work in this area has changed. According to him, the bank enables scrap collectors to work through integration, using a personal account or mobile application, and also provides a choice of three partner payment services.

Anna Reznik, product manager of Tinkoff Bank, talked about Jump.Finance payment service. The service offers services to automate payments and document flow, and currently has more than a thousand connected scrap customers. As the speaker noted, the service highlights several advantages. Among them are the absence of monthly and daily limits, prompt and high-quality support, simplification of accounting work due to the 1C module and other functionality.

The final session of the event was devoted to the directions of diversification and technologicalisation of the scrap business.

Alexander Shepelev, General Director of Taurus Motors, was the first to speak on ‘Electricity vs. Diesel’. He told about the company’s experience of using electric unloaders, which allowed the company to meet the demand for servicing of scrapyards with an average volume of one and a half to two thousand tonnes per month. The speaker also gave a comparative analysis of the use of electric and diesel loaders. Thus, the effective cost per one tonne of scrap is 114 roubles for an electric loader and 169 for a diesel one, provided that the capital cost of an electric loader is about one and a half times less.

Mikhail Tarakanov, General Director of MegaRex, spoke about equipment that can effectively replace personnel at a scrap yard. Talking about the experience of scrap processing of American companies, the speaker noted that it is cheaper to process certain types of scrap with mounted shears, which, firstly, replace gas cutters, and secondly, are 4-8 times more efficient than them.

Svetlana Mikhailova, International Sales Director of SEDA-Umwelttechnik GmbH, talked about the equipment for auto recycling offered by the company.

Pavel Drynkin, founder of BusinessOrbita LLC, spoke about the practice of using Chinese press shears.

Svyatoslav Lavrinenko, Chairman of the Union of Waste Processors of the Kaliningrad Region, presented a badge of honour to Victor Kovshevny, Director of the National Recycling Association RUSLOM.COM. The speaker noted that he highly appreciates the efforts of industry communities to consolidate and support business, as well as to promote the development of a closed-cycle economy.

On the second day of the event, 31 May, a group of delegates from the Baltic Scrap conference visited the AMPERTEX plant, which is located in the Kaliningrad region and uses a unique technology of heating electrically conductive filament based on polymers and nano-additives. AMPERTEX products are effective in de-icing and heating systems for various surfaces and industrial facilities in construction, oil, transport, medical and other spheres.

Victor Kovshevny speaks at Russian Railways Conference

Moscow hosted a major discussion on what influences the choice of transport mode in freight transport – on 23 May, Russian Railways-Partner held a conference entitled “Rail vs. Motor Transport: Competition for Cargo”.

Since the beginning of the year, Russian Railways cargoes have not grown, and shippers are declaring a global shift to motor transport. For example, the volume of metallurgical cargoes transported by motor transport has increased four times. Against the backdrop of these trends, an open dialogue between market participants on the extent, reasons and options for curbing the exodus of freight from rail to road has proved very useful.

Market participants note that they choose road transport even though it costs them more – they are willing to pay for meeting deadlines and delivery dynamics.

Among the cargoes that have turned out to be among those that have opted for road transport is ferrous scrap. Victor Kovshevny, Director of the National Recycling Association RUSLOM.COM, spoke at the conference about the situation on the scrap market in general. He noted that the media reported that scrap loading on the Russian Railways network today is the lowest for 5 years, but it is safe to say that the current figures are the lowest since 2000. The expert suggested to follow the dynamics in a narrower interval – from 2011 to 2024 – the loading decreased from 87 to 64%. Victor Kovshevny gave several reasons for this, but not only the competition between rail and road – the problem is broader.

“In 2024 we have a decrease in the consumption of scrap by factories (by 18% in 2023). The situation is incomprehensible to many: everywhere there are victory speeches that the construction is loaded, but there is a collapse in the scrap market. The problem is the 12th package of sanctions, which actually redirected pig iron to the domestic market, previously it was mainly an export cargo. Scrap is now being actively replaced by it, just like HBI,” he says.

Among the other reasons he cites are: restrictions on scrap exports in 2022-2024, which will lead to a reduction in the collection of hard-to-reach and hard-to-recover scrap, a reduction in the number of scrap collectors; restrictions on Russian Railways – it is impossible to divert scrap flows from export-oriented regions; economics – transport by road and water is more efficient.

Victor Kovshevny speaks at round table “Metal and Scrap Market Balance. Trends in pipe industry”.

Victor Kovshevny shared forecasts for ferrous scrap up to 2030. Summarising the results, he familiarised the participants with the Association’s proposals:

Not to allow toughening of measures of ferrous metal scrap export regulation compared to those in force in 2023, and to maintain the export duty rate at the level of 5%.

Increase the size of the tariff quota up to 2 million tonnes for 12 months of 2024, including the main volume of 1 million 200 thousand tonnes and an additional volume of 800 thousand tonnes for scrap collectors harvesting metal waste in the territories of the Arctic zone of the Russian Federation. This is necessary for the development of the territories and the elimination of accumulated environmental damage, including during the period of the barrier duty on the territories of the constituent entities of the Russian Federation.

In order to create economic conditions for harvesting of hard-to-recover scrap in the Arctic zone of the Russian Federation (Arkhangelsk region, Republic of Karelia, Murmansk region, Yamalo-Nenets Autonomous District, Nenets Autonomous District, Chukotka Autonomous District, Republic of Sakha (Yakutia), Krasnoyarsk region) it is proposed to provide additional incentives for scrap collectors from these regions by increasing the size of the tariff quota and setting a zero export duty rate for scrap exports from these territories.

RUSLOM.COM and Bureau of Middle East Recycling sign a priority partnership agreement

During the business trip of Russian scrap collectors to the United Arab Emirates (UAE), organised by the National Recycling Association RUSLOM.COM on 14-18 May 2024, a priority partnership agreement was signed between the Association and the Bureau of Middle East Recycling (BMR).

The signing ceremony was attended on the Russian side by BusinessOrbita, Vtormet, Intermettrade, Metalltorg, Rusmet RA, and SGMK, and on the UAE side by Aboura Metals, Eurogulf Minerals and Metals FZCO, Jupiter Metals Trading LLC and The Nile Metals.

The purpose of the business trip is to study the experience in the field of ferrous and non-ferrous metal scrap processing, electronic scrap and batteries.

Under the agreement, RUSLOM.COM and BMR intend to promote cooperation between companies operating in Russia and the UAE in order to coordinate and secure their common interests, increase their competitiveness, strengthen their professional capacity and manage a network of economic, professional and knowledge-based systems of international scope for the development of the recycling industry and the economies of both Russia and the UAE.

The undersigned partners also aim to expand the system of interaction between the member companies of their industry associations in the domestic and international markets, as well as to create opportunities for cooperation with foreign companies and the development of new markets.

As part of the Russian scrap collectors’ trip to the UAE, the participants visited Al Asfaran Steel, Masonery&Aluminium Smelting LLC as part of a business programme. The company, which is a major exporter and importer of recyclable materials, is involved in the production of structural steel, aluminium and the processing of ferrous and non-ferrous scrap. The core business of Al Asfaran Steel, Masonery&Aluminium Smelting LLC is the recycling of aluminium scrap.

The delegates also visited PGI, a leading ferrous and non-ferrous scrap recycler in the UAE, which also specialises in waste management. PGI buys, recycles and sells various types of scrap including aluminium, copper, wire and cable, brass, lead, nickel alloys, titanium, stainless steel and zinc.

Next on the programme was a visit to Ni Met Recycling FZ, which specialises in recycling scrap stainless steel, heat-resistant stainless steel alloys, chromium steel and other recyclable metals.

Highlights of the programme were talks at the Dubatt and Sasra Metal FZC facilities. Dubatt is the UAE’s first fully integrated used lead-acid battery (ULAB) recycling facility, capable of recycling up to 50,000 tonnes per year, one of the largest in the region. In turn, Sasra Metal FZC is a new aluminium recycling plant equipped with a state-of-the-art air emission treatment system.

Speakers of RUSLOM.COM and Rusmet Rating Agency take part in the 12th International Wire and Cable Industry Exhibition ‘WIRE’

Alexey Kovtun, Commercial Director of Rusmet RA, made a report on ‘Copper and Aluminium Market Trends. Price Indices”. He spoke about the scenario of copper scrap market balance in 2024, about the structure of copper scrap purchase in Russia, and also noted that the structure will change if the law on agency VAT is adopted. The topics of import and export of copper scrap were also touched upon.

Aluminium production in Russia in 2023 was 58,294 thousand tonnes. Loading of aluminium products by rail, according to RA Rusmet, for the period January-December 2023 increased by 0.9% to 3,732.0 thousand tonnes compared to the same period last year. Including, in the intra-Russian direction loading increased by 20.8% to 566.5 thousand tonnes, while in the export direction there was a decrease of 1.6% to 3,165.5 thousand tonnes. Imports of aluminium and aluminium products by rail during the period under review increased by 28.4% to 15.6 thousand tonnes, this information was shared by Alexey Alipchenko, member of the Presidium of RUSLOM.COM.

The expert also spoke about the balance of the aluminium scrap market in Russia and predicted that under the baseline scenario the scrap volume in 2030 will be 1982 thousand tonnes.

At the end of the presentation, the results were summarised and the reasons for the decline in scrap collection were given: saturation of scrap markets for export due to duties. Non-ferrous scrap provides 30% of the financial revenue of a scrap collection point and 6-8% by weight to ferrous scrap. When ferrous scrap falls, non-ferrous scrap also falls. One of the reasons for the fall in 2022 was the 100-euro barrier duty on exports, because of which the non-ferrous scrap harvesting industry is suffering.

Alexey Chizhikov, Head of Metals and Metals Raw Materials Analytics at Rusmet, presented a report on ‘Steel and Metals Raw Materials Markets. Metal and product price indices”. His presentation included a detailed assessment of current trends and future prospects for these markets.

RUSLOM.COM plans business programme at INNOPROM industrial exhibition in Ekaterinburg

The national Recycling Association RUSLOM.COM, in accordance with the schedule of events, is planning a business programme at the INNOPROM industrial exhibition in Ekaterinburg, which will be held on the eve of Metallurgists’ Day, 8-11 July 2024.

The partner is Rusmet Rating Agency. The INNOPROM programme includes a session on the balance of metals and raw materials markets.

Questions to be discussed:

• Price trends on the markets of ores, scrap, metals and metal products
• Balance of supply and demand
• Intermediate results of the implementation of the law on cashless settlements and other areas of reform in the industry of handling scrap and waste of ferrous and non-ferrous metals, etc.

RUSSIAN SCRAP PROCESSING INDUSTRY NEWS

Consumption of ferrous scrap in Russia at around 20 million tonnes per year

According to the National Recycling Association RUSLOM.COM, the consumption of ferrous scrap in Russia is estimated at around 20 million tonnes per year.

4.1 million tonnes of waste paper are used annually as a secondary raw material, from which the majority of cardboard is made. About 300,000 tonnes of external glass waste (glass waste collected for recycling, does not include glass waste generated in production facilities) is recycled annually. This is used as raw material for glass container production and glass fibre production. Approximately 260,000 tonnes of secondary polymer granulate is also used in the economic process to make new products.

Russia prepares to develop unified register of vehicle recyclers

The service is to be combined with the Public Services Portal, so that anyone can submit an online application for the disposal of their car or motorcycle. After that, the car owner will be able to get a discount on the purchase of a new domestic car, said Victor Kovshevny, Director of the National Recycling Association RUSLOM.COM.

“A unified register of recyclers will unite the interests of machine manufacturers, buyers, scrap collectors, and metallurgists who need raw materials. For the consumer, it means that he can bring in his old car for recycling and get a discount on a new car. The scrap yard gets the volumes for car recycling, gives the raw material to the metallurgist and the metallurgist smelts the metal and steel, which is then used by the car manufacturer. It is a win-win situation,” he explains.

Scrap metal in Russia becomes 10% more expensive since beginning of year

On 7 May the newspaper Vedomosti published an article entitled “Scrap metal in Russia has risen in price by another 10% since the beginning of the year”. The press service of RA Rusmet brings to your attention extracts from this article.

“In recent years there have been two main trends in the scrap market: a decrease in the number of medium-sized companies and an increase in the number of small ones, and a decrease in the number of independent scrap collectors. They drive up the price of this raw material,” Victor Kovshevny, Director of the National Recycling Association RUSLOM.COM, told Vedomosti in an interview.

“In order to restore the volume of scrap collection in Russia, Mr. Kovshevny expects that it will be necessary to abolish quotas and export barriers for supplies to foreign markets. Earlier, RUSLOM.COM estimated the potential annual export revenues from scrap deliveries abroad at $1.5 billion,” Vedomosti reported.

RUSMET RATING AGENCY INDICES

The Weekly Rusmet Index for Steel Scrap 3A FCA Russia domestic on 22nd week 2024 (27 May– 02 Jun) settled at 25 850 RUB/mt (ex VAT). The Index decreased by 350 RUB/mt (1,3%) compared to previous week.

For 22nd week 2024 (27 May-02 Jun) Rusmet Billet Index FOB Black Sea settled at 44 279 RUB/mt (down 1,7%), Rusmet HRC FOB Black Sea Index settled at 50 439 RUB/mt (down 1,1%), Rusmet CRC FOB Black Sea Index settled at 61 598 RUB/mt (down 1,1%), Rusmet Rebar FOB Black Sea Index settled at 44 725 RUB/mt (down 1,7%).

Rusmet Coal FOB Australia (62% CSR) Index compared to previous week decreased by $1 (0,6%) to 207$/mt, Index for Coal FOB Australia (70% CSR) remained unchanged compared to previous week is equal to 240$/mt.

METALLURGY NEWS OF RUSSIA

Liquid steel production in Russia

According to the results of Q1 of this year, the production of liquid steel by domestic enterprises is estimated at 18.2 million tonnes, which is 2.1% less than in the previous quarter and 1.9% less on year.

At the same time, the share of steel melted by the oxygen converter method was 48.1%, the share of EAF steel was 25.6%, and the share of open-hearth steel was 1.5%.

Growth in Russian metal exports to China

Russia significantly increased its exports of copper, nickel, and aluminium to China in April-May. According to RIA Novosti calculations based on Chinese customs data, the volume of supplies of these metals increased by almost a third on year, reaching 144,000 tonnes. In monetary terms, the value of the shipments increased by one and a half times to $570 million.

In April, nickel exports from Russia to China showed the most significant growth. Shipments increased more than sixfold year-on-year to 4.2 thousand tonnes. The value of these exports also increased significantly, totalling $62 million compared to $16 million a year earlier. This increase can be attributed to increased demand for nickel in China for use in the production of batteries and stainless steel.

Copper exports also increased significantly. Copper shipments increased by a third in both physical and monetary terms, reaching 20 thousand tonnes and $174 million respectively. The growth in demand for copper in China can be attributed to the development of infrastructure projects and the expansion of electronics production.

Aluminium shipments from Russia to China increased by 27% to 120 thousand tonnes. In monetary terms, aluminium exports increased to $335 million from $230 million in the previous year.

The increase in the value of exports in monetary terms indicates a rise in metal prices on the world market, which may be due to supply constraints and increased demand.

Nornickel: new solutions

Nornickel presented four key IT projects at the Russian IT forum ‘Digital Industry of Industrial Russia 2024’ (DIIR), underlining its commitment to innovation in the metallurgical and environmental sectors.

These developments, carried out within the framework of the Metallurgy and Ecology Industrial Competence Centres (ICC), demonstrate the company’s readiness to provide advanced solutions for various industries. The new develpments are: Mining and Geological Information System, Mining Planning System, Underground Mining Operations Management. The project developed at the Ecology ICC is dedicated to the predictive monitoring of emissions. These innovative products have been developed without disconnecting from the company’s production and business processes. The Predictive Emission Monitoring project is particularly important as it has potential for application not only in metallurgy, but also in the oil and gas, chemical and energy sectors.

Nornickel is also an active supporter of the new national Economy of Data programme, which aims to simplify interaction between the state and business. The head of the company noted that successful import substitution of systems and products is being achieved both by using existing solutions from Russian vendors and by creating new products within the ICC. These achievements should be made more accessible to the whole market.

At the DIIR-2024 Forum in Nizhny Novgorod, Nornickel and Rostelecom entered into a strategic partnership aimed at strengthening the cyber resilience of the mining and metals industry. Vladimir Potanin, President of Nornickel, and Mikhail Oseevsky, President of Rostelecom, signed an agreement to work together to ensure information security, prevent data leakage, control software security and limit access to malicious resources.

MACROECONOMIC NEWS OF RUSSIA

Russian Government proposes surcharge to tax on coal

The Russian Government has submitted to the State Duma amendments to the Tax Code proposing the introduction of a surcharge on the mineral extraction tax rate for coking and steam coal in the amount of 10% of the excess of prices in Far Eastern seaports over the established threshold.

“In case of coking and steam coal, it is proposed to introduce an additional surcharge to the tax rate in the amount of 10% of the excess of the price in the seaports of the Far Eastern Federal District over the established threshold,” the explanatory note to the document states.

Kuban’s radio electronics industry

In recent years, Kuban’s radio electronics industry has shown stable growth and has become a key sector of the regional economy. This sector specialises in the production of solar and rechargeable batteries, which are important components for spacecraft.

More recently, Kuban’s radio-electronics enterprises have become strategically important for the space industry. Production volume indicators doubled last year, confirming the efficiency of this sector. Today, more than a dozen companies successfully operate in the region, developing and producing key components for spacecraft, including power supply systems, video surveillance and unmanned aerial vehicles.

Over the past two years, significant sums have been allocated for the development of the radio electronics industry, both from regional grants and federal loans.

One of the best examples of successful project implementation with government support is the Krasnodar-based company Saturn. The company has become a leader in Russia in the development and production of solar and rechargeable batteries. Its products, including gallium arsenide solar batteries and lithium-ion batteries, are used on the Luch-5 series of spacecraft.

Loading on Russian Railways in May

According to operational data, loading on the Russian Railways network in May 2024 was 104.4 million tonnes, which is 2.1% less on year.

Loading for January-May 2024, according to operational data, amounted to 502 million tonnes, which is 3% less than in the same period last year.

Railways loaded:

• Hard coal: 143.1 million tonnes (-5.3% compared with January-May 2023);
• Coke: 4.9 million tonnes (+4.9%);
• Oil and oil products: 87.9 million tonnes (-1.6%);
• Iron and manganese ore: 45.1 million tonnes (-6.4%);
• Ferrous metals: 26.9 million tonnes (-5.7%);
• Ferrous scrap: 4.4 million tonnes (-14.9%);
• Construction products: 47.3 million tonnes (-13.3%);
• Non-ferrous and sulphur raw materials: 6.8 million tonnes (-8.7%);

CONTACT:
Alexey Kondratyev
Director, Public Relations
National Recycling Association RUSLOM.COM
Address: 119017 Bolshaya Ordynka st., 50 b.1, Moscow, Russian Federation
Phone/fax:+7 (499) 490-49-28
Mobile: +7 (903) 363-53-93
E-mail:a.kondratiev@ruslom.com

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