The Scrap of Ferrous and Non-Ferrous Metals Forum is the Europe’s largest annual recycling forum and exhibition, which brings together raw material consumers, processors, and recyclers; manufacturers and technology suppliers; leading experts, rating agencies, and industry media from around the world. In 2022, the forum brought together about 1,000 delegates, more than 50 leading experts spoke to the audience.

The year 2022 marks the 100th anniversary of the Russian scrap collection and processing industry. In this momentous, but challenging year for scrap processors, the business programme addressed the anti-crisis agenda of the industry, business support, and new market trends. The focus was on establishing sales, financing and restoring logistics supply chains for ferrous, non-ferrous and precious metal scrap, preventing a decrease in scrap collection, as well as improving the regulatory framework and implementing governmental strategic documents in the field of industry and ecology. The agenda of the need to abolish export duties on scrap, paired with an economically reasonable policy on the issues of quotas and bans on the export of scrap was updated again. The topics of anti-crisis marketing in the metallurgical and scrap collection sectors, as well as the opportunities of working with the banking sector amidst the economic sanctions attracted great interest of the participants.

The main speakers of the Forum were the representatives of regulatory authorities, major market participants, rating agencies, professional associations, banking and financial institutions, and international industry professionals that are aimed at maintaining and developing cooperation with Russia. Among the speakers were:

• Viktor Kovshevny, Chairman of the Scrap of Ferrous and Non-Ferrous Metals Forum, Director of the Association NSRO RUSLOM.COM;
• Albina Dudareva, Executive Director of the Association for the Promotion of the Circular Economy Resurs, Advisor to the General Director of the Russian Environmental Operator;
• Andrey Savelyev, Head of the Department for the Development of Ferrous Metallurgy, Pipe Industry, and Metal Structures of the Department of Metallurgy and Materials of the Ministry of Industry and Trade of the Russian Federation;
• Andrey Zelenin, Director General of Rating Agency Rusmet;
• Alexander Kobenko, Chairman of Business Russia Waste Recycling and Secondary Resources Committee, member of Akron Holding Board of Directors;
• Sergey Astakhov, Director General of TransLom LLC, member of the Presidium of the Association NSRO RUSLOM.COM;
• Victor Haefeli, Dr. sc. techn. at the Swiss Federal Institute of Technology, Chairman of the WEEE Solutions

As part of the List of Priority Measures to Enhance the Regulatory and Legal Framework for the Scrap and Waste of Ferrous and Non-Ferrous Metals Industry, which is intended by the Government of the Russian Federation to be implemented in 2021-2023, the Association NSRO RUSLOM.COM has developed a number of proposals and presented them in detail to the professional community during the Forum. In particular, it is expected to introduce predominantly non-cash payments for scrap handed over by citizens and the abolition of personal income tax on income gained from such operations. It also included the increasing of the administrative responsibility and fines for the illegal turnover of scrap while removing licensing administrative barriers for trustworthy players. In addition, solutions on how to involve hard-to-reach and unaccounted scrap in re-circulation were outlined.

As part of the event programme, Association NSRO RUSLOM.COM members and the Forum participants’ delegations visited MTZ TRANSMASH production facilities and the Research and Production Enterprise TEMP named after F. Korotkov.

Within the forum, cooperation agreements were signed between: the Association NSRO RUSLOM.COM and RT-Invest Recycling LLC (part of Rostec), the Association NSRO RUSLOM.COM and the State Research Centre of the Russian Federation Troitsk Institute for Innovation and Fusion Research TRINITI (part of Rosatom). The Torg-Koms group of companies and FAW Eastern Europe signed a dealership agreement.

The event information partners were the leading industry, federal, and international media: the Interfax news agency, the Izvestia information centre, the Argus Media, the MetalTorg.Ru news agency, the Municipal Solid Waste magazine, the Ecologist’s Handbook magazine, the Market Electro magazine, the Cleandex portal, and the Helpinver portal.

The participants of the Scrap of Ferrous and Non-Ferrous Metals Forum and the MIR-Expo-2022 exhibition highly appreciated the level of the event and noted that its format is of great relevance in the current new stage of the industry development, which in 2021 was officially recognised as an independent one.

Founded in 1997, Rusmet Rating Agency LLC is a rating agency that develops a system of industry rating and analysis of market, prices, and their indices in the sphere of metal circulation, metal products, and scrap and waste of ferrous and non-ferrous metals. The company provides a wide range of services, the main of which are analytical studies of the metal scrap market, prices in this market, as well as the reliability assessment of the entities involved in the process of collecting, storing, processing, and selling scrap and metal waste.

Contact info:
Alexey Kondratyev
Press service
Tel.                 +7 (495) 980-06-08
Mob. tel.         +7 (903) 363-53-93
E-mail a.kondratiev@ruslom.com

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Viktor Kovshevny, Director of the Association NSRO RUSLOM.COM, will speak at the profile session “Circular Economy” of the business program of the international forum.

Viktor Kovshevny’s speech is also scheduled for September 8 at the IV Conference “Waste Management Systems: Environmental, Legal and Technological Solutions” within the WasteTech business programme 2021, at the session “The Market of Secondary Material Resources and Prospects for Recycling in Russia”. The report of the Director of the Association will be devoted to the topic “Increasing the transparency of activities related to the handling of scrap and metal waste. Industry Compliance. Harmonization of legislation and unification of business requirements”.

The session “The market of secondary material resources and the prospects for recycling in Russia” will be moderated by Denis Kondratyev, businessman, analyst in the fields of pulp and paper industry and waste management, General Director and Managing Partner of the industry analytical agency PPI “Center for System Solutions”, Deputy General Director and member of the Supervisory Board SRO Association “League of Waste Paper Recyclers”.

The session is also scheduled for a speech by Andrey Zelenin, General Director of the RUSMET rating agency, who will talk about the balance of the metallurgical raw materials market, trends and pricing factors.

Experts and participants in the waste management industry will discuss at the profile session a list of actions necessary for the transition to a circular economy, the current state of the waste management reform, problems of tariff regulation, separate waste collection, the impact of EPR on the transition to a cyclical economy.

The session will be moderated by Albina Dudareva, Executive Director of the Resource Closed Cycle Assistance Association, Deputy Chairman of the Public Council of the Russian Ministry of Natural Resources.

Another important event at the upcoming event will be the signing of a cooperation agreement between the Resource Closed Cycle Assistance Association and the RUSLOM.COM NSRO Association in order to improve the main economic indicators of the domestic industrial complex, including through the implementation of socially significant initiatives on the territory of the Russian Federation …

The following areas of cooperation between the Associations are planned:

• initiation and promotion of socially significant initiatives aimed at the transition to a circular economy, stimulation of the reuse of the maximum amount of secondary material resources, development of waste processing and disposal, effective protection of the domestic market and Russian manufacturers;
• promoting effective interaction and open dialogue between business, government, science and civil society.
• assistance in improving legal regulation in the field of waste and secondary resources management.

Forum “WasteTech 2021” is one of the main industry platforms for obtaining new professional knowledge and exchange of experience in the field of recycling, disposal of production and consumption waste, choosing rational solutions to pressing problems of the industry.

Conducted since 1999, WasteTech is the largest specialized platform in Russia and neighbouring countries for demonstrating ready-made solutions, technologies and services for the formation of a civilized industry for waste management, environmental protection, wastewater treatment and gas-air emissions.

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During the event, the participants discussed the current situation on the Russian and world markets for scrap and metals in the context of export restrictions, potential ways of developing foreign economic activity in the field of metallurgy and scrap procurement, new technologies in the scrap market and in the field of waste disposal, as well as the environmental agenda.

The event was opened with his opening remarks by the Deputy Chairman of the Committee for External Relations of St. Petersburg Arbi Abubakarov. The speaker noted the importance of holding a round table and similar events for establishing new ties and effective dialogue between the business community and government authorities.

In continuation, the head of the Export Development Department of the Committee for Industrial Policy, Innovation and Trade of St. Petersburg Anna Varyagina and Vladimir Volodkin, President of the NSRO RUSLOM.COM Association, presented their greetings for their contribution to the development of raw materials safety and environmental friendliness of metallurgy …

The next speaker of the round table was Viktor Kovshevny, Director of the Association NSRO “RUSLOM.COM”. He noted that in the context of the scrap market, St. Petersburg is an export-oriented region. At the same time, the contribution of scrap collectors to the economy of the Northwestern Federal District is very significant – 1 workplace of a scrap collector creates 4 jobs in related industries, and the economic contribution of the scrap collecting industry to the gross regional product is about 99 billion rubles. Moreover, there is significant growth potential. Due to diversification and increased efficiency, the industry in the region can grow 3 times by 2030.

Referring to the current situation on the scrap market, Viktor Kovshevny drew the attention of the event participants to the fact that Russia possesses a colossal metal fund – its volume exceeds 1.6 billion tons. This clearly indicates that there is no shortage of scrap in Russia.

Andrey Savelyev, Deputy Head of the Non-Ferrous Metallurgy Development Department of the Ministry of Industry and Trade of the Russian Federation, presented a plan of priority measures to increase the efficiency of the scrap market. Among the most significant, the speaker noted: the transition to non-cash payments with individuals, increased liability of individuals for violation of the rules for working with scrap, cancellation of personal income tax from the delivery of scrap.

In addition, the speaker drew attention to the reform of control and supervision activities in the market for ferrous and non-ferrous scrap, which is currently being worked out by the Ministry of Industry and Trade of Russia. Its purpose is to clarify the requirements for which there was the greatest legal uncertainty. In addition, enterprises will be assigned a risk category to determine the frequency and depth of licensing compliance checks. Another innovation will be the involvement of industry SROs in inspections.

Sergey Kurnosov, General Director of Uni-Blok LLC, spoke about the regional experience and peculiarities of the scrap market in St. Petersburg. According to the speaker, the surplus of scrap in the region is 1.7 million tons per year, and this scrap is not in demand by metallurgists. The reasons are in the peculiarities of logistics and capacity distribution.

At the same time, there is a surplus of carbon-free electricity and a surplus of personnel in the region. All this suggests that it is necessary to invest in the creation of production facilities in the region.

Referring to the issue of export duties, Sergei Kurnosov said that he supported the introduction of duties on the export of raw materials. According to the speaker, this contributes to the fact that the processing will remain on the territory of the Russian Federation.

The position of the Association against the introduction of duties is known; all the more valuable is the presence of different opinions of market professionals during the round table, which objectively represents the points of view of the participants in the discussion. The next speaker was Dmitry Potapenko, an entrepreneur, blogger, economist. The speaker expressed his attitude to the issue of introducing export duties.

According to the entrepreneur, the current approach to the introduction of duties is fundamentally wrong. It does not lead to real consumer support – as a result, metallurgists will stop their investment programs and development will stop.

Nikolay Malykh, the founder of INTERVTORRESURS LLC, spoke about the importance of scrap and metal exports for maintaining the market balance, and also highlighted the position of the business on export restrictions and an increase in export duties on metals and scrap.

The quotas, and then the increase in duties on scrap, had a strong impact on exporters of scrap metal. At the same time, according to the speaker, the introduction of duties on metal somewhat balanced the situation.

Mikhail Tarakanov, Director of MegaRex LLC, made a presentation on new technologies in the scrap market and in the field of waste disposal. The speaker presented proposals on a possible way to increase scrap collection in Russia.

The volume of scrap metal that does not require deep processing and complex mining is limited. The exemption from export duties for shredding scrap will allow the recycling of those types of metal-containing waste that are not currently being recycled. Since the shredder does not process scrap metal thicker than 6 mm, then, accordingly, those types of scrap that are currently most in demand from Russian metallurgists will not be involved in export. At the moment, private companies have only a few units of shredders in Russia, an increase in their number will significantly improve the deeper processing of metal-containing waste and bring into circulation the scrap metal that was previously not in demand on the market and, in fact, was simply thrown away, clogged the soil and worsened the environment.

Continuing the event, the Director of Vtorium Alexander Andreevsky spoke about new opportunities for working in the field of settlements with individuals, suppliers of scrap through integration with the Sberbank ecosystem.

To test the system, you can connect to the Vtorium system, open an account with Sberbank and set up a personal account. The staff will assist you.

Mikhail Gagarin, Development Director of Rusmet Rating Agency, touched upon the investment attractiveness of recycling. According to the speaker, the lack of large investments in the industry is due to the fact that now the industry is not entirely transparent and investments are high-risk. It is noteworthy that this statement was contested by several leading participants in the scrap processing industry, who have the highest ratings from Rusmet. These participants spoke about its high profitability and investment attractiveness, the transparency of their enterprises for potential investors. Thus, the role of the rating of market participants by Rusmet becomes obvious, reflecting the objective economic reality, on the one hand, and the current state of the leading enterprises in the industry, whose activities are at a high global level, on the other.

Andrey Zelenin, General Director of Rusmet RA LLC, drew attention to another aspect of the appropriateness of rating, which allows supplying bank compliance and government authorities with ready-made solutions for the reliability of scrap collectors.

Touching upon the issue of the introduced duties on the export of scrap and metals, the speaker noted that, in his opinion, such measures will not lead to a decrease in the cost. Regulation must be placed in the hands of the market.

Expert Vladimir Zotov continued the round table with a presentation on the role of scrap collectors in optimizing the carbon footprint. The scrap harvesting industry is an effective mechanism for reducing the carbon footprint and increasing the competitiveness of exported products.

The carbon footprint of primary metals production differs significantly from secondary metals production. The speaker believes that due to such a difference, it is possible to generate carbon credits and sell them through the register being created in the Russian Federation. 100 tons of scrap steel saves 157 tons of CO2. The cost of carbon units on the European market is 50-57 euros per tonne.

At the end of the round table, the participants took part in the discussion. During the discussion, scrap collectors emphasized the usefulness of the format of the event with the participation of regional authorities and proposed to conduct more active communication with them on topical problems of the industry, including during future events of the Association in St. Petersburg.

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Director of the Association NSRO RUSLOM.COM Viktor Kovshevny noted that today the scrap collection industry is really appreciated more than the oil market. After all, the new duties on the export of scrap in the amount of 70 euros are at least one and a half times more than the export duty on oil.

“We often hear about ‘green’ projects, ESG-investing on a national or continental scale, but often there is a feeling that we are practically like Oblomov. Let’s turn to reality. I am now talking about the metallurgy and scrap collection industry. In fact, this is the very industry that, taking into account the upcoming changes in the carbon tax, today allows our industry to remain competitive and maintain at least $ 2 billion a year (if we count ferrous and non-ferrous metals). For example, according to the calculations of the German Association of Scrap Metal Recyclers BDSV (Bundesvereinigung Deutscher Stahlrecycling und Entsorgungsunternehmen), in the iron and steel industry alone, one tonne of scrap can save up to 350 euros in climate and carbon taxes. Taking into account the volume of the market that we now have in Russia, for ferrous scrap this is at least 26 million tonnes, plus non-ferrous metallurgy, we will get exactly those very big figures”.

Viktor Kovshevny drew attention to the fact that, notwithstanding the real environmental, economic and social benefits of using scrap metals in the metallurgical process, the scrap procurement industry is not only unsupported by the state financially, but is also under excessive government regulation, under conditions of regular restrictions in the field of exports. “Our state should maximally support any environmental projects, both at the level of individual enterprises and at the level of segments and entire industries. This support can consist in simple actions: creating conditions for recyclers and metallurgy, which is one of the main consumers of recyclable materials, that would be no worse, at least as the same in the world. Then the industry of recycling and metallurgy will develop”. According to Viktor Kovshevny, the future of Russia is waste-free production, a waste-free industry.

At the same time, for example, the recycling fee, which should go to subsidize the costs of utilizers and the development of the recycling infrastructure, and is collected annually in the amount of over 200 billion roubles (and in 2020 exceeded 300 billion), is not really allocated for its intended purpose. The utilizers received absolutely nothing from this collection.

“We see that we have about 60 million cars in our country, our country in the recycling industry, if we compare with the world average, lags behind in the utilization of cars by 21 times. There is money, namely, the same 2 trillion roubles, which are managed by the Ministry of Industry and Trade. And we still do not have a recycling industry. Instead, we are now faced with the question of what should be done in the metallurgy and scrap collection industry, which in themselves bear a huge social burden in single-industry towns – and at the same time, instead of support, including in export directions, they are now receiving such a sharp increase in duties. Why do America and Japan never restrict their exports? Yes, only because behind every job in the metallurgy, behind every job in the scrap collection industry, there are 4 to 10 jobs in other industries. And therefore, speaking about investing, I believe that, first, we need to put things in order with the money that we have already collected. Secondly, we shall, together with the state, develop such rules of the game when any decisions are made with a real assessment of the regulatory impact”, said Viktor Kovshevny.

About INNOPROM

INNOPROM is an international industrial exhibition that has been held in Yekaterinburg annually since 2010. It is one of the main industrial, trade and export sites in Russia. It is one of the key exhibitions of the Ministry of Industry and Trade of the Russian Federation.

In 2021, INNOPROM will be held for the 11th time and will be held from 5 to 8 July at the Ekaterinburg-EXPO IEC. More than 43,000 visitors from 22 countries are expected.

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