08 May 2024
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. 2
Annual conference “Baltic Scrap” to be held on 30-31 May 2024. 2
RUSSIAN SCRAP PROCESSING INDUSTRY NEWS. 4
Copper scrap during the sanctions period in Russia. 4
Industrial companies join forces to clean Arctic from scrap metal 5
RUSMET RATING AGENCY INDICES. 6
Search for polymetallic ores in Altai Territory. 7
New rebar plant in Kamchatka Territory. 8
Upgrade of main units: Severstal overhauls its largest blast furnace. 8
MACROECONOMIC NEWS OF RUSSIA.. 9
Development of transport and logistics infrastructure: Murmansk multimodal port 9
Japan bans exports of 164 categories of goods to Russia. 10
RUSLOM.COM NEWS: ANNOUNCEMENTS AND POST-RELEASES
Annual conference “Baltic Scrap” to be held on 30-31 May 2024
The annual conference “Baltic Scrap” will be held in Svetlogorsk, Kaliningrad Region on 30-31 May 2024 with the support of Kaliningrad Region Administration and the participation of the Ministry of Industry and Trade of Russia and the Regional Union of Waste Processors of Kaliningrad Region.
The event is organised by Rusmet Rating Agency and the National Recycling Association RUSLOM.COM.
The upcoming conference is dedicated to the transformation of the scrap industry, as well as regulatory trends, state support, and control measures. On 30 May, the event will be held at the Crystal Hotel in Svetlogorsk. On 31 May, a visit to local enterprises and excursion programme are planned.
Members and partners of RUSLOM.COM take part in stainless steel market conference in Volgograd and welcome Chinese delegation
Sirius, Yug-Met, Intermettrade, HuaHong, SGMK-Trade, Akron, UralMetProm, Metallinvest groups of companies (all of them members of the National Recycling Association RUSLOM.COM), took part in the business programme of the events dedicated to the development of international cooperation and the Russian stainless steel and scrap market.
The partners were the Chinese analytical group MySteel, Rusmet Rating Agency and Metal Supply and Sales Magazine.
Ferrit, Salut, Globus-Stal, Brock Invest Service, Metalservice, Special Steels and Alloys hosted the foreign group at their facilities in Moscow and the region.
In Volgograd, a tour of the Krasny Oktyabr plant was organised, as well as negotiations with the representatives of Russian Stainless Company and Sirius Group of Companies.
In addition, Sirius management and employees in Volgograd prepared an informative programme for the Chinese colleagues to familiarise them with Russian history and culture.
The return visit of RUSLOM.COM’s delegation to China is planned for June 2024. The programme includes visits to production facilities, the Carbon Neutrality Exhibition in Shanghai, and the Stainless Steel Conference in Xi’an, which will bring together more than 200 leading stainless steel producers and suppliers from various countries. The city is famous for its legendary Terracotta Army.
Viktor Kovshevny, Director of RUSLOM.COM, speaks at international industry B2B roundtable discussion
He spoke about the balance of the stainless-steel market, secondary and primary raw materials. The speaker also gave a forecast of the industry and pointed out that the previous growth of the stainless-steel market in Russia was only due to imports.
The paradox of the current situation is that previously in Russia the entire volume of stainless steel was made from scrap, now more and more primary raw materials are used
Speakers of Chamber of Commerce and Industry and Promsvyazbank spoke at the business breakfast about opportunities for cross-country transactions. Promsvyazbank announced the availability of representative offices in Beijing and Chinese partner banks, as well as the possibility of opening accounts for Chinese companies in bank in Russia in various currencies.
Promsvyazbank also added that they have the best currency conversion rate with an option to fix it, which is very favourable given the volatile situation in the markets. It is possible to place yuan on deposits at individual service rates.
The speaker of Central Trading System said that they are actively entering the metallurgy market with their e-commerce services, holding a licence from the Bank of Russia since 2021. International transactions are now available on the platform. CTS is also co-operating with partners, for example, Rusmet Rating Agency in terms of client content of the platform and joint formation of price indices for metals and metal products.
RUSSIAN SCRAP PROCESSING INDUSTRY NEWS
Copper scrap during the sanctions period in Russia
The current situation regarding the extended sanctions on Russian aluminium, copper and nickel raises many questions in the scrap industry.
One of the questions is: “What will happen to copper scrap prices in Russia now?”
Victor Kovshevny, Director of the National Recycling Association RUSLOM.COM, comments on the situation: “It is obvious that the non-ferrous metals market will continue to replace scrap with primary metals. For example, it will be more profitable for cable plants to buy cathodes instead of scrap, and for aluminium plants to buy primary aluminium instead of scrap. Nonetheless, the collection of non-ferrous scrap has declined significantly and new export opportunities have emerged (although so far, most exports have been via Kazakhstan and Belarus), so there is no reason for the prices to fall in the medium and long term. Especially taking into account the weakening of the rouble and the increase in world prices for non-ferrous metals. Even taking into account the discount, we expect the prices to return to current levels. The only factor that can influence the decline in copper scrap prices is the extension of the agency VAT. However, the bill was never passed, although a two-week deadline was set at the beginning of March. This issue therefore needs to be monitored closely”.
It should be recalled that on 13 April the US administration, in coordination with the UK authorities, imposed a ban on imports of aluminium, copper and nickel from Russia.
Industrial companies join forces to clean Arctic from scrap metal
Industrial companies operating in the Arctic region are actively participating in the Clean Arctic project. As part of the initiative, four trucks delivered more than 80 tonnes of scrap metal to Yakutsk for disposal and recycling. This scrap, collected as part of the federal project, was handed over to Vtormet DV.
Launched in 2021, the Clean Arctic project is supported not only by the Russian government but also by the region’s leading companies. Yanolovo and Yanzoloto participated in the initiative.
The Clean Arctic project has not gone unnoticed at the highest level. Russian President Vladimir Putin expressed his support and noted the importance of the initiative. According to him, the Arctic needs special attention and protection, and cleaning up the waste is an important task not only from an environmental point of view, but also from an economic and defence point of view.
From 2021 to 2023, the Clean Arctic project collected about 850 tonnes of scrap metal and cleaned up an area of 33 hectares.
RUSMET RATING AGENCY INDICES
The Weekly Rusmet Index for Steel Scrap 3A FCA Russia domestic on 18th week 2024 (29 Apr – 05 May) settled at 26 800 RUB/mt (ex VAT). The Index increased by 150 RUB/mt (0,6%) compared to previous week.
For 18th week 2024 (29 Apr – 05 May) Rusmet Billet Index FOB Black Sea settled at 45 936 RUB/mt (down 1%), Rusmet HRC FOB Black Sea Index settled at 51 908 RUB/mt (down 0,8%), Rusmet CRC FOB Black Sea Index settled at 65 230 RUB/mt (down 0,8%), Rusmet Rebar FOB Black Sea Index settled at 47 039 RUB/mt (down 0,8%).
Rusmet Coal FOB Australia (62% CSR) Index compared to previous week decreased by $1 (0,4%%) to 207$/mt, Index for Coal FOB Australia (70% CSR) compared to previous week decreased by $2 (0,9%) and is equal to 242$/mt.
METALLURGY NEWS OF RUSSIA
Search for polymetallic ores in Altai Territory
The quality of polymetallic ores in the Zapadno-Zakharovskaya area will be assessed within three years. This was announced at the TASS press centre by Alexey Partolin, Head of the Mineral Resources Department of the Siberian Federal District.
According to the press centre, a contract has been signed this year for the evaluation of polymetallic ores in the Zakharovskaya area. The contract value is RUB 343 million and the work is expected to be completed within three years.
According to documentation on the portal of the Unified Information System for Procurement, the contract was awarded to the Ural Geological Survey Expedition company.
The 7 square kilometre site will be surveyed for copper, lead, and zinc deposits with associated gold and silver. According to the documents, the deposits could be up to 60 thousand tonnes of copper, 120 thousand tonnes of lead, and 290 thousand tonnes of zinc.
New rebar plant in Kamchatka Territory
As part of the strategy to develop the industrial sector in the Kamchatka Terrintory, a project is being launched to build a rebar plant on the peninsula. The initiative of Kamchatka Valve Plant LLC, a company based in the Vladivostok Free Port, is a promising one, aimed at supplying the region with high-quality metal products.
According to the official report of the Far Eastern Customs Administration, the production of rebar is planned at the level of 7.5 thousand tonnes per year, which is an important step towards meeting the needs of Kamchatka’s construction industry. The main raw material for production will be
Application of the free customs zone procedure will make it easier for the plant’s residents to pay customs duties and taxes on imported goods.
The free port of Vladivostok, which covers the territories of Priamurye, Kamchatka, Sakhalin and other regions, offers a number of advantages to its residents. It offers simplified tax and customs regimes, investment incentives, and special regulations that facilitate the inflow of investment and the development of production.
The timing of the project is still open, but the initiative is already generating interest among the metallurgical community and experts, who are awaiting further news and progress in the implementation of this innovative project.
Upgrade of main units: Severstal overhauls its largest blast furnace
At the beginning of April 2024, Severstal commenced the first stage overhaul of the Severianka Blast Furnace No. 5 at Cherepovets Steel Mill (CherMK). This step is part of the company’s strategic plan to renew and modernise its main production units.
Blast Furnace No. 5 is the largest pig iron production unit not only at CherMK, but also in the Russian steel industry as a whole. Its current capacity is 4.2 million tonnes of pig iron per year, with the furnace producing 35% of CherMK’s pig iron in 2023.
The main objective of the overhaul is to ensure high reliability and productivity of the strategically important facility. As part of the overhaul, the furnace’s refractory lining, cooling system elements, upper dome, and armour plate will be replaced. It is also planned to replace all metal structures and linings of hot blast air ducts, as well as to build new conveyor equipment for raw material feed.
Special attention is paid to the environmental component. It is planned to install high-efficiency aspiration suctions, which will capture dust generated during production. It is also planned to upgrade the natural gas supply system in order to reduce CO2 emissions.
All overhaul work will be carried out by Severstal’s own divisions. Suppliers of equipment and materials are Russian and Chinese companies.
MACROECONOMIC NEWS OF RUSSIA
Development of transport and logistics infrastructure: Murmansk multimodal port
Preparations have begun in the Murmansk region for the construction of a multimodal port designed to handle Belarusian cargo. This was announced by representatives of the Belarusian and Russian governments at talks in Moscow. The project has received the highest level of support, demonstrating the intensive cooperation between the two countries in the field of transport and logistics.
The Prime Minister of Belarus emphasised that cooperation between Belarus and Russia in the sphere of transport and logistics is developing rapidly. He noted that effective schemes for the delivery of goods via Russian ports in the North-West region have been developed and that the routes of the North-South international corridor are being actively used.
In connection with the sanctions imposed by Lithuania and Latvia, Belarus and Russia have shown flexibility by ensuring transit and transshipment of Belarusian cargoes through Russian ports.
Some 20 Russian ports near St Petersburg are already involved in handling Belarusian export cargo. However, Belarus is considering establishing its own port in this region, as well as building or leasing port facilities in Murmansk Oblast.
Japan bans exports of 164 categories of goods to Russia
Japan has announced a ban on exports to Russia of 164 categories of goods, including a wide range of products from automotive engine oil to lithium-ion batteries and power tools. The decision by Japan’s Ministry of Economy, Industry and Trade sends a clear message of freezing trade relations between the two countries.
Goods subject to the new ban include hydrogen chloride, aluminium hydroxide, nitrocellulose, pipes for gas and oil pipelines, and rhenium in various forms from lumps to powder and waste.
From a Russian perspective, the imposition of this ban on such a wide range of goods could affect various industries. For example, a ban on lithium-ion batteries could have a negative impact on the development of battery technology and the automotive industry. The oil and gas transportation industry could also be affected by a ban on pipes for gas and oil pipelines.
At the same time, Japan has also restricted exports of fertilisers, plastic products, precious metals and other goods, which could have a negative impact on the Russian market and consumers.
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
