31 January 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.




Moscow to host Russia’s largest forum for scrap processors. 2

National Recycling Association RUSLOM.COM takes part in MRAI’s recycling forum in India. 3


Export quotas for ferrous scrap. 4

Total performance of regional plans for the procurement of ferrous scrap in 2023. 4



Copper and gold in Khabarovsk Krai 6

Magnitogorsk Iron and Steel Works’ dynamics in 2023. 7

Saudi Arabia signs mining deal with Russia. 7

Severstal to increase investment in Yakovlevsky Mining and Processing Plant 8


Review of export duties. 9

Turnover of Russian seaports up by 5% in 2023. 10

Russian Government retains rates of environments tax on packaging. 10

52.7% of waste is sorted in Russia. 10



Moscow to host Russia’s largest forum for scrap processors

From 4 to 7 March 2024 Moscow will host the 19th International Forum “Scrap of Ferrous and Non-Ferrous Metals” and the exhibition of recycling technologies Moscow International Recycling Expo 2024.

The event is organised by Rusmet Rating Agency in cooperation with the National Recycling Association RUSLOM.COM.

For many years it has been the largest industry forum in Russia dedicated to ferrous and non-ferrous scrap.

More than 1000 delegates and 75 speakers are expected, including representatives of the State Duma of the Russian Federation, Moscow City Hall, the Ministry of Industry and Trade, the Ministry of Natural Resources, the Ministry of Finance, the Ministry of Economic Development, the Federal Antimonopoly Service and Federal Customs Service, as well as representatives of Russian and international organisations. The participation of specialised foreign delegations from China, India, Iran, Turkey, UAE, Kazakhstan, etc. has been confirmed. Each of the regions of the Russian Federation will also have a working area at the Forum and exhibition.

Participants will have access to Rusmet Rating Agency’s reports with up-to-date information on the metals and scrap markets, which will help industry participants to keep abreast of fair and up-to-date prices for metals and scrap.

The events will take place from 4 to 7 March 2024 at the Plaza Garden Moscow WTC, 12 Krasnopresienskaya Naberezhnaya, 12, Moscow, 123610.

National Recycling Association RUSLOM.COM takes part in MRAI’s recycling forum in India

India is the third largest producer of e-waste in the world, with over 5 million tonnes of e-waste generated in the country each year. Of this, about 75 percent is generated by private companies and the public sector, with the rest generated by households.

However, there are issues with the collection and recycling of e-waste. A large volume of sales is still not legalised.

The 11th MRAI Recycling Forum started on 23 January 2024, allowing businesses and relevant authorities to discuss ways of improving the efficiency of handling metal waste, scrap, plastic, rubber, waste paper, and other types of recyclables. The association took an active part in the event.

The first day of the event saw sessions on recycling of plastics, rubber and e-waste. There was also an opening ceremony of the exhibition and a welcome party by the President of MRAI to which representatives of foreign associations and delegations were invited; the Association was among them.

24 January was dedicated to ferrous and non-ferrous scrap and alternative environmentally friendly types of secondary metallurgical raw materials. Experts said that unlike the Chinese and Turkish steel industries, the Indian steel industry grew in 2023 and the trend will continue in 2024.

India was the largest buyer of scrap in 2023, ahead of Turkey. Sponge iron was the main competitor to scrap in terms of price and demand. The National Recycling Association RUSLOM.COM took part in the expert meeting.

The experts discussed carbon regulation and its impact on the ferrous scrap market in various countries. Traders and scrap processors see this as one of the key factors that will influence the price of ferrous scrap.

The production of green steel is growing and requires more environmentally friendly raw materials. The cost of such steel is determined by the carbon tax and the cost of supporting the process of issuing documents confirming the “green” status. If sufficient scrap is available, producers of such steel will choose to use scrap rather than pay the tax, while setting a competitive price level for scrap relative to the cost of the tax and other costs of meeting the requirements of the carbon regulation.





Export quotas for ferrous scrap

By Resolution No. 2259 of 22 December 2023, the Russian Government extended the export quota for ferrous scrap and waste until 30 June 2024. The quota will be 600,000 tonnes and the export duty will be 5%, but not less than €15 per tonne. The introduction of the quota continues the policy of regulating metallurgical exports to meet the strategic needs of domestic companies.

In 2023, the volume of ferrous scrap loaded on the Russian Railways network increased by 6.7% to 13.7 million tonnes. Scrap exports from Russia, which recovered in 2023, are mainly carried out by rail and are directed to Turkey, EAEU countries and South Korea.

Total performance of regional plans for the procurement of ferrous scrap in 2023

Rusmet Rating Agency reports that in 2023 the plants in the South and Urals regions of Russia successfully fulfilled their plans for the purchase of ferrous scrap, with each region exceeding its plan by 2%.

At the same time, the plants in the centre of the country purchased ferrous scrap with a deviation of -4% from the planned figures.

The leading regions in 2023 were Siberia and the Far East, where scrap was collected at 7% more than planned.




The Weekly Rusmet Index for Steel Scrap 3A FCA Russia domestic on 4th week 2024 (22– 28 Jan) settled at 25 050 RUB/mt (ex VAT). The Index increased by 50 RUB/mt (0,2%) compared to previous week.

For 4th week 2024 (22– 28 Jan) Rusmet Billet Index FOB Black Sea settled at 45 296 RUB/mt (down 0,3%), Rusmet HRC FOB Black Sea Index settled at 52 197 RUB/mt (up 0,3%), Rusmet CRC FOB Black Sea Index settled at 63 698 RUB/mt (up 0,3%), Rusmet Rebar FOB Black Sea Index settled at 47 597 RUB/mt (up 1,3%).

Rusmet Coal FOB Australia (62% CSR) Index compared to previous week decreased by $2 (0,7%) to 270$/mt, Index for Coal FOB Australia (70% CSR) compared to previous week decreased by $7 (2,0%) and is equal to 329$/mt.




 Copper and gold in Khabarovsk Krai

In the spring-summer of 2024, Khabarovsk Krai will see the launch of two promising mining and processing facilities, according to Alexander Leontiev, the region’s Minister of Natural Resources. These new projects promise not only to strengthen the region’s position, but also to make a significant contribution to the metallurgical industry.

One of the major investment projects is the development of the Malmyzhskoye porphyry copper ore deposit. This project, carried out by Amur Minerals (part of the Russian Copper Company), will be the largest not only in the Khabarovsk Krai but also in the world. Construction of the concentrator is already in its final stages.

According to Leontiev, the facility of the concentrating plant has already been constructed on the deposit territory, the main equipment has been installed, extensive mining and investment works have been carried out, and the deposit has been stripped. At present, work is underway to adjust the equipment and install electrical systems.

The Malmyzhskoye deposit is estimated to contain 2.4 billion tonnes of ore, including 8.32 million tonnes of copper and 347 tonnes of gold. Annual ore processing at the plant is estimated at 104 million tonnes.

In May-June 2024, another project in the Ayano-Mayskiy district, Amur Gold’s Malyutka deposit, will come on stream. This project is designed to produce 1.2 tonnes of gold per year.


Magnitogorsk Iron and Steel Works’ dynamics in 2023

In the fourth quarter of 2023, Magnitogorsk Iron and Steel Works (MMK) experienced changes in its production performance, reflecting internal and external factors affecting the industry.

In a statement, MMK highlighted that steel production fell by 7.1% quarter-on-quarter to 3.116 million tonnes. This decline was explained by the repair of the converter at the Magnitogorsk site, which led to a temporary slowdown in production.

The 5.7% decline in sales of the Group’s steel products to 2.891 million tonnes was also due to the impact of ongoing repairs in the blast furnace, steelmaking, and rolling divisions.

In particular, sales of premium products decreased by 10.8% to 1.195 million tonnes due to lower demand for cold-rolled and products with finishing. The share of premium products in the total sales portfolio decreased to 41.3%.

In the first quarter of this year, sales are expected to be affected by a seasonal slowdown in construction activity in the domestic market and a reduction in customer inventories due to the increase in the key rate. However, by the end of the first quarter – beginning of the second quarter of 2024, demand is expected to recover due to restocking and a seasonal increase in construction activity.

It should be noted that sales of steel products increased by 10.1% in 2023.


Saudi Arabia signs mining deal with Russia

Saudi Arabia has signed memorandums of understanding (MoUs) with Egypt, Russia, Morocco, and the Democratic Republic of Congo (DRC) at the Future Minerals Forum in Riyadh.

The agreements with Egypt, Morocco, and the DRC include cooperation in mineral extraction and the one with Russia – in geological exploration. The Saudis plan to encourage mineral exploration in these countries as part of a $182 million programme to diversify the economy away from dependence on oil.

Saudi Arabia has vast reserves of phosphate, gold, copper, and bauxite. This week it is expected to sign deals worth additional $20bn, as well as to extend its exploration licensing programme.

Saudi Arabia has revised its estimate of its untapped mineral resources upwards to $2.5 trillion from an estimated $1.3 trillion in 2016. Bandar Alkhorayef, Saudi Arabia’s Minister of Industry & Mineral Resources said the figures were based on 30 percent of the Arabian Shield’s proven reserves. The data suggests that much more is yet to be discovered.

Saudi Arabia has also set up an investment fund, Manara Minerals, in partnership with Ma’aden and the Public Investment Fund of Saudi Arabia (PIF), and made its first deal, the $26bn acquisition of a 10 percent stake in Vale’s copper-nickel unit.


Severstal to increase investment in Yakovlevsky Mining and Processing Plant

Severstal has announced its intention to invest more than 6.6 billion roubles in the Yakovlevsky Mining and Processing Plant in 2024. In 2023, 3.6 billion roubles were invested.

Iron ore production at Yakovlevsky plant last year was more than 3 million tonnes, exceeding the 2022 figures. The company also confirmed the postponement of the plant’s production capacity increase to 5 million tonnes, previously planned for 2023, to 2026.

In 2023, Severstal announced the construction of an iron ore pellet complex at the Cherepovets Steel Mill (CherMK) at a cost of approximately 97 billion roubles. This complex, with a production capacity of 10 million tonnes, is scheduled be launched in 2026. Iron ore from Yakovlevsky plant and concentrate from Olenegorsk plant, both owned by Severstal, will be used to produce pellets.

The mine has reserves of 9.6 billion tonnes of iron ore. The iron content of the ore is 61%.

On Thursday, Severstal shares rose an impressive 7%, leading the market’s gainers.



Review of export duties

In a statement issued by the Russian Chamber of Commerce and Industry (RCCI), the Head of the Chamber, Sergey Katyrin, said that the Russian Government should reconsider the mechanism of export duties, suggesting possible adjustments or complete abolition during 2024. According to him, the export duty on 20% of Russia’s exports, introduced from the beginning of October 2023, has had a significant impact on investment sectors of the economy, such as oil and gas, mining, fertiliser and coal production, as well as ferrous and non-ferrous metallurgy.

Mr. Katyrin stressed that the export duty was introduced as a matter of urgency, without prior consultation with the business community, and did not take into account the financial situation of the industries. He noted that this duty, which is calculated solely on the basis of the rouble-dollar exchange rate, has a negative impact on the implementation of companies’ investment programmes and increases the tax burden to a level where the withdrawal of profits exceeds 60%.

The Head of the Chamber quoted figures to assess the impact of the duty, claiming that the expected revenue from it in 2024 will amount to about 35% of the average annual investment of the affected industries in the period from 2018 to 2022.


Turnover of Russian seaports up by 5% in 2023

At the end of 2023, the cargo turnover of Russian seaports increased by 5% year-on-year to 883.8 million tonnes. The volume of dry cargo handling increased by 10.4% to 446.9 million tonnes, Rosmorrechflot reported.

According to the company, the highest growth rates were recorded for grain, chemical and mineral fertilisers, scrap metal, ferry cargo, container cargo and rolling cargo.


Russian Government retains rates of environments tax on packaging

The Government has maintained the current rates and coefficients of the environmental tax on packaging for 2024, according to a decision signed by Prime Minister Mikhail Mishustin on the last working day of 2023. Until the last moment, they were planned to be increased several times, which has been the subject of disputes in recent months both with market participants and between the ministries themselves.

At the same time, the updated mechanism of extended responsibility of manufacturers for the disposal of products began to work on 1 January.


52.7% of waste is sorted in Russia

In Russia, more than half of waste is sorted and almost 13% is recycled. This was reported by the Deputy Prime Minister of the Russian Federation, Viktoria Abramchenko.

According to the official, Moscow and the Moscow region remained the leaders in creating and operating the waste management system last year, followed by the Tula and Nizhny Novgorod regions, the Stavropol Krai and the Udmurt Republic.

On the initiative of Russian President Vladimir Putin, the national project “Ecology” has been implemented since 2019. It includes nine federal projects covering different areas of the environmental agenda: “Clean Country”, “Creation of an Integrated System of Solid Municipal Waste Management”, “Infrastructure for the Management of Hazard Class I and II Waste”, “Preservation of Forests”, “Preservation of Unique Water Bodies”, “Revitalisation of the Volga River”, “Conservation of Lake Baikal”, “Conservation of Biodiversity and Development of Ecotourism”, “Clean Air”.

Alexey Kondratyev
Director, Public Relations
National Recycling Association RUSLOM.COM
Address: 50 Bolshaya Ordynka, building 1, room 1/1, vn.ter.g. Municipal district Yakimanka,
 st. 119017, Moscow, Russia
Phone/fax:+7 (499) 490-49-28
Mobile:+7 (903) 363-53-93

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