In a significant policy shift, the Russian government has announced an extension of export duty exemptions for long steel products and pig iron until December 31, 2024. This decision modifies the previous deadline of August 31, 2024, providing additional support to the country's metal industry during challenging global market conditions.
The Russian Cabinet of Ministers has broadened the scope of these exemptions to include tin ore and tin concentrates, which will now be completely free from export duties. Furthermore, the government has extended zero export duties on thermal coal and anthracite until November 30, demonstrating a comprehensive approach to supporting the country's raw material exports.
These export duties were originally implemented from October 1, 2023, with a variable rate structure tied to the Russian ruble's exchange rate against the US dollar. The duties were set between 4-7% when the exchange rate fell within the range of 80-95 rubles per dollar, and zero when the rate was below 80 rubles per dollar. With the current exchange rate at 96.67 rubles per dollar, this extension provides crucial relief to exporters.
Major Russian steel producers, including Severstal, Novolipetsk Steel, and Magnitogorsk Iron and Steel Works, are expected to benefit significantly from this extension. The policy aims to maintain the competitiveness of Russian steel products in international markets, particularly during a period of global economic uncertainty and fluctuating commodity prices.
The extension of duty-free exports is particularly relevant for Russia's steel industry, which produces approximately 71.5 metric tons of crude steel annually. This measure is expected to help maintain export volumes and support domestic producers in managing their international market presence, especially in key markets across Asia and Europe.
The government's decision reflects a strategic approach to supporting the country's industrial sector, particularly in light of various international trade challenges. The policy is designed to help Russian manufacturers maintain their market share and competitive edge in the global steel trade, while also ensuring stable revenue streams for the industry.
